ANNOUNCEMENT 13 Mar 2015

In March 2015, the Hungarian government established the eligibility criteria and requirements of the direct income payment scheme. The scheme aims to support farmers in Hungary under the European Agricultural Guarantee Fund (EAGF) 2014-2020 (see related state act).

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Decree No. 8 of 2015 (III. 13.), 13 March 2015, FM of the Ministry of Agriculture regarding the rules of application for direct payment subsidy to be granted to agricultural producers:
https://net.jogtar.hu/jogszabaly?docid=a1500008.fm

EUR-Lex, Official Journal of the European Union, 20 December 2013, "Regulation (EU) No 1307/2013 of the European Parliament and of the Council of 17 December 2013 establishing rules for direct payments to farmers under support schemes within the framework of the common agricultural policy and repealing Council Regulation (EC) No 637/2008 and Council Regulation (EC) No 73/2009": https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R1307&from=EN

Inception date: 16 Mar 2015 | Removal date: 31 Dec 2020

Financial grant

On 13 March 2015, the Hungarian government adopted the Decree on Direct Payments Schemes, establishing the eligibility criteria and requirements of the direct income payment scheme. Under the scheme, eligible local farmers receive direct income payments under the European Agricultural Guarantee Fund (EAGF). The 2015-2020 budget for these Hungarian payments has a total value of EUR 6.35 billion (approx. USD 6.72 billion) established by Regulation (EU) No 1307/2013 of 2 December 2013, see related state act.

Income support measures to farmers take the form of financial grants. According to Regulation (EU) No 1307/2013, beneficiaries are active farmers that meet minimum requirements further specified by the Member States. In the case of Hungary, the minimum requirement for beneficiaries is to have at least one hectare of agricultural land. 

The payments system will be coordinated and managed by the Hungarian State Treasure (Magyar Államkincstár in Hungarian). 

The measure entered into force on 16 March 2015 and shall be applicable during the 2015-2020 period. Previous to that, Hungary was financing its income support payments primarily from the 2007-2013 budget of the EAGF which was established under a different subset of rules. 

EU's CAP framework

The CAP framework is the EU-wide agricultural policy established in 1962 that is subject to reforms and new rules every six years. According to the EU, it aims to support farmers and improve agricultural productivity, ensuring a stable supply of affordable food. Under the CAP, Member States provide three main types of support to the agriculture sector: (i) income support measures, (ii) market measures; and (iii) rural development measures. The two first are primarily financed by the EAGF; whilst the third and last support type is financed by the European Agricultural Fund for Rural Development (EAFRD).