New Agricultural and Rural Development Support Program Introduced

The government will provide 80 percent additional national funding to EU development funds for rural development, and will spend some HUF 4,300 billion (EUR 11,4 billion) on the development of Hungarian agriculture, food industry, and rural settlements as part of the second pillar of the Common Agricultural Policy until 2027, Minister of Agriculture István Nagy announced on Wednesday at the handover ceremony of the development of Lajta-Hanság Zrt. in Jánossomorja (north-west Hungary).

The minister said that the new program will maintain support for the energy development of agricultural enterprises in order to increase the energy self-sufficiency of farms, reduce energy dependence, and improve energy efficiency. Support will also be provided for plant nurseries, livestock farms, and the general modernization of crop storage and drying, he noted.

The government will also support the promotion of agricultural digitization, István Nagy said, adding that

this area will play a central role in boosting the competitiveness and added value of farms, as well as the use of environmentally friendly cultivation, breeding, and production technologies.

He stressed that farmers can apply for the modernization calls with a minimum farm turnover of 40 percent and a farm size worth at least EUR 10,000. The aid intensity is planned to be 50 percent in principle, with the possibility of increasing it in certain cases. As an example, the minister said that organic farmers can expect a 10 percent higher aid intensity. He added that supporting of water management and the development of efficient irrigation, including farmers in irrigation communities, would remain a priority.

Furthermore, in order to promote generational change, the new agricultural support cycle will offer even more opportunities than before: start-up support for young farmers will continue and the priority investment aid intensity for young farmers will be maintained, with the previously applied 10 percent additional intensity being increased to 15 percent.

The minister stressed that the tender timetable has been prepared, on the basis of which

the new calls for proposals and support for agricultural and rural development will be launched from the beginning of next year.

Nagy pointed out that since 2016, some 1,300 agricultural investments worth HUF 180 billion (EUR 478.4 million) have been supported as part of the Rural Development Program, including the construction or renovation of grain storage capacities. This meant the development of almost 2 million tons of storage capacity in addition to the existing capacity of around 20 million tons. The development of Lajta-Hanság Zrt. worth about HUF 2 billion (EUR 5.3 million) was also carried out with the help of this tender.

Via MTI, Featured image: Pixabay