More than HUF 5300 billion is allocated to support Hungarian agriculture

The acceptance of the Hungarian Strategic Plan of the Common Agricultural Policy means the basis of food security – the Minister of Agriculture István Nagy announced on his social media page. A total of EUR 14.7 billion (HUF 5365 billion) is the 5-year budget of the CAP Strategic Plan. Almost half of it is contributed by the Government of Hungary and EUR 8.4 billion is provided by Brussels.

The Head of the Ministry pointed out that the entire source of the first pillar of the Common Agricultural Policy (CAP) is EUR 6.8 billion, exclusively EU money. The entire source of the second pillar of the CAP almost reaches EUR 8 billion. More than 20% of this amount is provided by the European Union, which exceeds EUR 1.6 billion. The amount of domestic source is almost 80%, EUR 6.3 billion, which means about HUF 2300 billion at the planning exchange rate – said the Minister.

The Minister explained, EU funds together with an outstanding financial contribution, means more help than ever for rural development, food processing and farmers. The Hungarian agriculture can be renewed from more than HUF 5300 billion. István Nagy emphasized, 52% of the rural development sources, nearly HUF 1500 billion, is allocated for economic development, agricultural and food investments over the next five years. This amount is four times more than the previous EU budget period. The sectoral goals, we determined for ourselves at the beginning of 2021, can be reached for 2030, through the efficient use of resources. It includes the territorial productivity index of agriculture, which gross value added per hectare should increase by 53%, that is EUR 862. The value of agricultural export may increase by 57% to EUR 15 billion. Investments in the food industry could increase by 117% to EUR 1.8 billion. He added, besides all this, more than a third of rural development funds have been allocated to sustainability and green goals, which thus exceeds HUF 1000 billion and represents an increase of one and a half times. Thanks to this, inter alia, by the end of the decade the areas covered with forest, trees, may rise by 148 thousand hectares, to 27% of the country’s territory. Areas dedicated to organic farming can be expanded by 64%. The minister also spoke about the fact that 10% of the funds will be spent on rural development measures in the classical sense, more than HUF 285 billion in the next period. This represents an increase of 26% of resources compared to the 7-year period of the previous programme.

Thanks to the approval of the CAP Strategic Plan, agricultural subsidies for Hungarian farmers are ensured in the period 2023-2027, a full and comprehensive renewal of the Hungarian agriculture and food industry can continue – emphasized István Nagy.