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Hungary to get 1.9 billion euros more for agriculture

Staff writer |
Hungary will receive 1.9 billion euros more from the Common Agriculture Policy (CAP) budget in the period 2014-2020 than it did in 2007-2013, Secretary of State for Rural Development György Czerván said.

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The Ministry of Rural Development's Minister of State for Agricultural Economy pointed out that the European Union's budget, which now includes Croatia, has decreased by 3.5 percent for the 2014-2020 period and the CAP budget has fallen by even more, by 11 percent compared to the previous period of 2007-2013.

Mr. Czerván stressed that despite this, Hungary's share of the CAP budget has increased from 1.4 percent to 3.2 percent, meaning the annual budget for direct funding to Hungary will be EUR 1.27 bn. This means that Hungary has succeeded in preserving the level of direct funding available to Hungarian farmers.

The Minister of State pointed out that member states would have much greater room for movement for choosing their agricultural policy measures within the new CAP system for 2014-2020, increasing their freedom in this area and enabling greater flexibility when developing measures.

Mr. Czerván also indicated that several strategic decisions are also required in relation to the new system of direct payments operating within the CAP, in view of the fact that - following the transition year - the new CAP model introduced in 2015 includes both compulsory and voluntary elements.

Mr. Czervan indicated that according to calculations the extended use of the SAPS system would mean farmers will receive EUR 214 per hectare each year. This figure was 230 euros per hectare in 2013 and is expected to be 227 euros per hectare this year.

The Government has also decided not to implements CAP redistribution in Hungary, because it would reduce the level of basic funding. The principle of degrassivity, which means that at least 5 percent of basic funding must be withdrawn above a level of 150 euros, will be applied, however. The Government decided this was important in the interests of realising national economy goals and to further whiten economic processes.

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