Some 6 billion forints (20 million euros) has been spent over the past three years on developing living conditions on Hungary's rural farmsteads with a view to keeping farmsteads populated, but according to Minister of State Gyula Budai, funding must continue to be available for several more years within the framework of the Farmstead Development Programme before living conditions for the some 300 thousand Hungarians who live in farmsteads reaches the level of those living in municipalities.

According to the Ministry of Rural Development's Minister of State for Parliamentary Affairs, based on its activities so far, the Farmstead Development Programme is one of the country's most successful rural development programmes. In a review of the programme provided to Hungarian news agency MTI, Mr. Budai pinted out that the Government had launched the programme in 2011 to improve the quality of life at farmsteads and the production conditions of people living there.

Mr. Budai also stated that several non-governmental organisations in Hungary are cooperating to help improve the lives and living conditions of the almost 300 thousand people who live on homesteads, including the Hungarian Association for People Living on Farmsteads (MTEE) and the village and farmstead agronomist networks. However, until recent years, the level of funding has been insufficient to maintain roads in periphery areas, to subsidise the connection of farmsteads to the national electricity grid or the expansion of farmsteads, including the purchasing of more animals. This is why the Government decided as early as 2010 to launch the Farmstead Development Programme.

According to Mr. Budai, people living on farmsteads and the local governments of municipalities with farmsteads could apply for funding from a total budget of some 1 billion forints (some 3.3 million euros) in 2011, and the budget increased to HUF 1.5bn (EUR 5 million) and HUF 2bn (EUR 6.7 million) in 2012 and 2013, respectively. In addition, in view of the high level of interest, the Ministry of Rural Development increased the budget by a further HUF 1.5bn in national resources to allow for the further financing of farmstead development programmes.

Individual applicants, the owners of farmsteads, were able to apply for funding for the Farmstead Development Programme projects up to the upper limit of the EU de minimis funding, meaning a maximum of 7500 euros. In the case of local governments in farmstead areas, the upper limit for funding was 200 thousand euros per project. The level of funding was 90 percent for local governments and 75 percent in the case of farmstead owners.

According to Mr. Budai, recent changes include the fact that the level of funding for farmers under 40 has also increased to 90 percent, while no personal participation at all is required with regard to projects to connect farmsteads to the national electricity grid.

The Minister of State emphasised that the programme has developed continuously in recent years, with tender target areas and their budgets conforming to requirements. As an example he cited the fact that more applications that expected were submitted for projects aimed at the maintenance and repair of roads that provide access to farmsteads, in addition to which there was also significant interest in funding to facilitate the marketing of farmstead produce.

One of the most popular areas was the electrification of farmsteads, as a result of which in 2013 not only local governments, but the owners of individual farmsteads could also apply for funding to connect farmsteads to the national grid, and some 450 million forints (EUR 1.5 million) was spent for this purpose in 2013, he added.

This year's budget for road repair and maintenance exceeded HUF 500 million, in addition to which providing funding for establishing new farmsteads was also introduced as a new target area, for which some 200 applications were received in 2013.

Gyula Budai stated that the Farmstead Development Programme would continue in 2014, as the need for the continued availability of the programme is underpinned by its achievements so far. He reminded the press that according to the Government's decision, by 2020 all farmsteads must be connected to the mains electricity supply and must have a useable road that provides full access. The funding available to farmsteads in 2014 will be at least as large as the 2013 budget, the Minister of State stressed.

The Farmstead Development Working Group was recently formed with inter-ministerial cooperation to coordinate tasks aimed at realising development goals between the ministries involved and to secure the required funding, he added.

(MTI)