The adoption of the Strategic Plan of the Common Agricultural Policy is the basis of a safe food supply. The KAP Strategic Plan's five-year budget is a total of 14.7 billion euros (5,365 billion HUF). Almost half of this is provided by the Hungarian government, EUR 8.4 billion in funds will come from Brussels, said Minister of Agriculture István Nagy on his social media page.

The total source of direct support for farmers is 6.8 billion euros, while 8 billion euros are allocated to rural development resources from the CAP. For the latter purpose, the European Union provides about 1.6 billion, i.e. 20 percent of the total amount, so the level of domestic resources is almost 80 percent, i.e. a subsidy corresponding to 6.4 billion euros.

"The EU funds, together with the outstanding proportion of the Hungarian budget contribution, mean more help than ever before for rural development, farmers and food processors," said István Nagy in his video message.

"With the efficient use of resources, we can achieve the sector goals for 2030 that we set for ourselves at the beginning of 2021. Therefore, Hungarian agriculture can be renewed with a total of HUF 5,300 billion."

52 percent of rural development resources, i.e. almost HUF 1,500 billion, will go to economic development, agricultural and food industry investments in the next five years.

"This amount is four times more than in the previous EU budget period.

As a result of the package of measures, by 2030 the indicator indicating the territorial productivity of agriculture, the gross added value per hectare, may increase by 53 percent, i.e. to 862 euros. The value of agricultural exports may increase by 57 percent, i.e. to 15 billion euros. Investments in the food industry can increase by 117 percent, to 1.8 billion euros. In addition to all this, more than a third of the rural development resources are allocated for sustainability purposes, which thus exceeds HUF 1,000 billion. Thanks to this, among other things, by the end of the decade, the areas covered with forests and trees may increase by 148,000 hectares, i.e. 27 percent of the country's area.

And the areas cultivated in organic farming can increase by 64 percent. In the next period, we will allocate 10 percent of the resources, more than HUF 285 billion, to rural development measures in the classical sense. This represents a 26 percent increase compared to the seven-year period of the previous program. Let's not forget that thanks to the approval of the KAP Strategic Plan, agricultural subsidies for Hungarian farmers are secured in the period between 2023 and 2027, and the complete and comprehensive renewal of the Hungarian agriculture and food industry can continue," declared István Nagy.

Source: Magyar Hírlap

Featured image: MTI/Tibor Illyés