The adoption of the Hungarian strategic plan of the Common Agricultural Policy represents a historic opportunity

By: STA Date: 2022. 11. 08. 10:45

István Nagy emphasized that a favorable agreement was reached on EU agricultural and rural development subsidies for Hungary in the period until 2027. The European Commission considered sustainability to be more important than before in the development of the new agricultural policy, while Hungary also considers food security and the strengthening of the countryside to be essential. The government therefore strove to balance the environmental and competitiveness aspects – said the minister.

(Photo: Pixabay)

The EU funds, together with the outstanding budget contribution, mean more help than ever before for rural development, farmers and food processors – said István Nagy, who also expects the renewal of natural resources and the improvement of the country’s environmental condition. Thanks to the subsidies, Hungarian agriculture and the food industry will be more competitive, produce more efficiently and be more resistant to crises or even climate challenges, the minister said.

The CAP strategic plan includes HUF 2,485 billion in direct sector agricultural support and HUF 2,891 billion in rural development resources.

Area-based subsidies are still provided, the basic amount can be around 147 euros (almost HUF 60,000) per hectare. Small and medium-sized farms are also entitled to redistribution support, the amount of which can be 80 euros per hectare (more than HUF 30,000) between 1 and 10 hectares, and 40 euros per hectare between 10 and 150 hectares in addition to the basic support. Young farmers can count on a significantly higher amount than before, EUR 92 per hectare (almost HUF 40,000) as additional area-based support for family holdings of up to 300 hectares. Producers can also participate in the agroecology program, which provides additional subsidies for environmental and climate protection commitments. – The institutional, implementation and IT preparations necessary for the implementation of the new support system have already begun, the efficient use of resources forces everyone involved to plan and think, said the Minister of Agriculture.

This is how much the subsidies can increase

Zsolt Feldman, the state secretary responsible for agriculture and rural development, announced that with the subsidies, the productivity of Hungarian agriculture could increase by one and a half times, and the added value by two times by the end of the decade. Exports of almost 10 billion euros (4,000 billion forints) at the beginning of the decade may rise to 15 billion euros by 2030. He emphasized that more than half of the rural development resources, almost HUF 1,500 billion, will finance economic development, and more than HUF 1,000 billion will finance sustainability goals. Both represent a significant expansion compared to the previous ones, as well as the framework for agricultural research and innovation expenditures, which will double, he added.


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