The government spends several thousand billion forints on the development of agriculture

By: STA Date: 2023. 11. 15. 10:00

The Hungarian government provides 80 percent additional national funding in addition to the EU development resources for rural development, until 2027, as part of the second pillar of the common agricultural policy, it will spend about HUF 4,300 billion on the development of domestic agriculture, the food industry and rural settlements – stressed István Nagy, Minister of Agriculture, on Wednesday in Jánossomorja.

(Photo: AM/István Fekete)

The head of the ministry said that in the new support program, support for energy-related developments of agricultural enterprises will be maintained in order to increase the energy self-sufficiency of agricultural plants, reduce energy dependence and improve energy efficiency. They will also support horticultural plants, livestock farms and the general modernization of crop storage and drying, he listed. The government also supports the promotion of agricultural digitalization – said István Nagy, adding that the area takes on a central role because it strengthens the competitiveness and value-added production of agricultural farms, and also enables the application of environmentally friendly cultivation, breeding and production technologies. He pointed out that agricultural producers can apply for tenders aimed at modernization with at least 40 percent agricultural revenue and a farm size of at least 10,000 euros. According to the plans, the support intensity will be 50 percent in the basic case, which can be increased in certain cases, he said. He cited as an example that those practicing organic farming can count on a 10 percent higher support intensity. István Nagy added that they continue to give special support to water management and efficient irrigation development, including farmers who join irrigation communities. The Minister of Agriculture emphasized that agri-environment payments and organic farming subsidies will continue under unchanged conditions until 2025. He also said that, in order to facilitate the generational change, more options are offered in the new agricultural support cycle than before: the start-up support for young agricultural producers will continue and the priority investment support intensity for young agricultural producers will be maintained, where the additional intensity of 10 percent used previously will rise to 15 percent. The head of the department emphasized that the tender schedule has been prepared, based on which the new agricultural and rural development tender calls and grant titles will be announced from the beginning of next year.

István Nagy highlighted that since 2016, about 1,300 agricultural investments worth HUF 180 billion have been supported as part of the Rural Development Program

As part of this, grain storage capacities were also established or renewed. All this meant an increase in storage capacity of almost 2 million tons in addition to the existing capacity of about 20 million tons, he added. He said that the development of Lajta-Hanság Zrt. worth about HUF 2 billion was also realized with the help of this tender. The Minister of Agriculture also emphasized that in the programming period until 2027, there will be investment subsidies related to crop storage and precision farming, among other things. Lőrinc Mészáros, owner of the Mészáros Group, said that many small and large companies joined the company in the last five years, including Lajta-Hanság Zrt. Developments and mergers are also planned for the next five years in order to make production and animal husbandry even more efficient. As an example, he mentioned that at Gallicoop Zrt., a development worth almost HUF 50 billion is being carried out, a new slaughterhouse is being built and turkey farms are being established. Makai Szabolcs, CEO of Talentis Agro Zrt., said that a grain storage silo, dryer, cleaner and service technology have been implemented in Jánossomorján, with the investment there is no compulsion for the company to sell, the grain is sold when it is most favorable. He emphasized that with the implementation of the irrigation investments, 7 thousand hectares will be irrigated, and 10 thousand hectares are already included in the next 5-year plan. He said that Talentis Agro Zrt. achieved sales revenue of HUF 28.1 billion in 2019, and HUF 59 billion in 2023. Although they achieved a record result last year, which was not achieved this year, they still produced more than 10 tons/hectare of corn and produced 100 million liters of milk.


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