More than HUF 5,300 billion will be spent on Hungarian agriculture

By: STA Date: 2022. 11. 10. 09:28

The adoption of the Strategic Plan of the Common Agricultural Policy is the basis of a safe food supply, Minister of Agriculture István Nagy announced on his social media page. The KAP Strategic Plan’s five-year budget is a total of 14.7 billion euros (5,365 billion forints). Almost half of this is provided by the Hungarian government, and 8.4 billion euros are coming from Brussels.

(Photo: Pixabay)

The minister drew attention to the fact that the total resources of pillar I of the Common Agricultural Policy (CAP) are 6.8 billion euros, all of which are EU funds. KAP II. the total resources of its pillar reach almost 8 billion euros. More than 20% of this amount is provided by the European Union, which exceeds 1.6 billion euros. The amount of domestic resources is almost 80%, which means 6.3 billion euros, about 2,300 billion forints at the planning exchange rate, the minister listed. He explained that the EU funds, together with the outstanding proportion of the Hungarian budget contribution, mean more help than ever before for rural development, farmers and food processors. A total of more than HUF 5,300 billion can be used to renew Hungarian agriculture. István Nagy emphasized that 52% of rural development funds, or almost HUF 1,500 billion, will go to economic development, agricultural and food industry investments in the next five years.

This amount is four times more than in the previous EU budget period

Through the efficient use of resources, the sector goals set for 2030, which we set for ourselves at the beginning of 2021, can be achieved. Among them is that the territorial productivity indicator of agriculture, the gross added value per hectare, should increase by 53%, i.e. to 862 euros. The value of agricultural exports may increase by 57% to 15 billion euros. Investments in the food industry can increase by 117% to 1.8 billion euros. He added that, in addition to all this, more than a third of the rural development resources were allocated for sustainability and green purposes, which thus exceeds HUF 1,000 billion and represents a one and a half times increase. Thanks to this, among other things, by the end of the decade, the areas covered with forests and trees may increase by 148,000 hectares, to 27% of the country’s territory. And the areas cultivated in organic farming can be expanded by 64%. The head of the ministry also said that 10% of the funds, more than HUF 285 billion, will be spent on rural development measures in the classical sense in the next period. This represents a 26% increase in resources compared to the seven-year period of the previous program. Thanks to the approval of the KAP Strategic Plan, agricultural subsidies for Hungarian farmers are secured in the period between 2023-2027, and the complete and comprehensive renewal of the Hungarian agriculture and food industry can continue – stressed István Nagy.