Whereas Hungary’s agriculture and food industry have had to contend with unparalleled challenges, they have weathered the hardships, Minister of Agriculture István Nagy told parliament’s Agriculture Committee.
As well as Covid-19, the sector faced African swine fever and bird flu, so controlling these diseases was a signal achievement, he said, adding that domestic food supplies were never endangered. Nagy noted new regulations this year for primary producers and family farms. The personal income tax burden of 410,000 primary producers has eased, he said, and the burdensome legacy of indivisible common properties was solved, with rights-holders compensated.
Commenting on the Renewable Countryside and Renewable Agriculture schemes, Nagy noted increased national co-financing, adding that the government was committed to strengthening the country’s agriculture, food industry and rural areas, and will spend 4,265 billion forints (EUR 11.8bn) on agricultural and food industry developments over the next 7 years. New rules for government subsidies also mean that Hungarian food production will be more competitive internationally, he said, adding that this year more than a 1,000 billion forints of tenders were called, with government support channelled into horticultural and livestock farms, food processing plants, farming technology updates, and organic farming. In the year to October, Hungary’s state treasury had paid out almost 850 billion in farm subsidies.
Nagy noted the transition period in EU grants this year and next due to delays in European legislation. From 2023, however, direct subsidies are expected to approach 3,200 billion forints, while rural development subsidies could be worth 2,730 billion, he added.
Nagy said broad social consultations would continue regarding the strategic plan for CAP. By 2024, irrigated areas in Hungary will expand to around 300,000 hectares, he said. A big challenge will be the handover of farming from one generation to the next, so drawing up effective rules for transfers and cutting associated red tape will be a major task, the minister said. Higher energy and raw material prices also have an impact on agriculture, he noted, adding that it was lamentable that “Brussels is planning to increase energy prices rather than reduce them”. The government, however, will do all it can to keep prices steady, Nagy said.
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