Published: November 16 2023
The Hungarian government has recently announced a new support program for agriculture and rural development. With additional national funding from the EU, Hungary plans to invest billions of HUF into the development of agriculture, food industry, and rural settlements until 2027.
Energy Development and Modernization
The new program aims to support the energy development of agricultural enterprises, with a focus on improving energy self-sufficiency, reducing energy dependence, and enhancing energy efficiency. Additionally, support will be provided for plant nurseries, livestock farms, and the general modernization of crop storage and drying facilities.
Agricultural Digitization and Water Management
The promotion of agricultural digitization is one of the key goals of the support program. The government plans to provide aid to farmers for implementing digital solutions in their operations. Furthermore, there will be a continued focus on water management and the development of efficient irrigation systems, particularly for farmers in irrigation communities.
Generational Change and Young Farmers
The new agricultural support cycle will offer increased opportunities for generational change, specifically targeting young farmers. Start-up support for young farmers will continue, and the priority investment aid intensity will be maintained, with an additional increase from 10% to 15%. This aims to encourage and support the involvement of young people in the agricultural sector.
Previous Success and Future Plans
Since 2016, the Rural Development Program has already supported numerous agricultural investments, including the construction and renovation of grain storage capacities. The recent development of Lajta-Hanság Zrt. serves as an example of the positive impact of the support program. The government has also prepared a tender timetable for future applications.
By implementing these measures and providing substantial funding, the Hungarian government is committed to boosting agriculture, improving the food industry, and developing rural settlements to ensure sustainable growth and development in the coming years.
Questions & Answers
What is the new support program for agriculture and rural development in Hungary? The new support program aims to provide additional national funding and spend HUF 4,300 billion (EUR 11.4 billion) on the development of Hungarian agriculture, food industry, and rural settlements until 2027.
What areas will be supported by the new program? The program will provide support for the energy development of agricultural enterprises, plant nurseries, livestock farms, and the general modernization of crop storage and drying. It will also promote agricultural digitization and water management, including the development of efficient irrigation.
Who can apply for the modernization calls under the new program? Farmers with a minimum farm turnover of 40 percent and a farm size worth at least EUR 10,000 can apply for the modernization calls.
What is the aid intensity under the program? The aid intensity is planned to be 50 percent in principle, with a possibility of increasing it in certain cases. For example, organic farmers can expect a 10 percent higher aid intensity.
What opportunities are offered for young farmers in the new agricultural support cycle? The new agricultural support cycle offers start-up support for young farmers and maintains the priority investment aid intensity. The previously applied 10 percent additional intensity for young farmers has been increased to 15 percent.
What has been the impact of the Rural Development Program implemented since 2016? Since 2016, the Rural Development Program has supported around 1,300 agricultural investments worth HUF 180 billion (EUR 478.4 million). This includes the construction or renovation of grain storage capacities, resulting in the development of almost 2 million tons of additional storage capacity.
What is the Lajta-Hanság Zrt. project worth and how was it funded? The development of Lajta-Hanság Zrt., located in Jánossomorja, was worth about HUF 2 billion (EUR 5.3 million) and was carried out with the help of the tender associated with the Rural Development Program.