"The accomplishments of the past five decades prove that the Common Agricultural Policy is one of the European Union's most successful, strongest and most efficient community achievements. One of our priority interests is the suitable development of the CAP for the period 2014-2020", stated Minister for Agriculture Sándor Fazekas at the conference organised to mark the 50th anniversary of the CAP. The meeting entitled CAP Reform 2014-2020 – Agricultural Economy Challenges and held at the Ministry of Rural Development was welcomed in a letter by EU Commissioner for Agricultural and Rural Development Dacian Cioloș.

Participants at the large-scale conference organised to mark the 50-year anniversary searched primarily for the solution to the issue of what the Common Agricultural Policy should be like during the next, 7-year cycle after 2014, during the planning of which the member states and European Union institutions also determine the distribution of available resources. The European Commission published its detailed recommendations for the CAP last autumn, which the Council and European Parliament are still debating. They must come to an agreement by the end of 2012 and certainly no later than early 2013, so that the legislation package may come into force on January 1, 2014.

In his message, Commissioner for Agriculture Dacian Cioloș stressed that discussions on the future of the CAP have entered a crucial phase, and this will be the most significant agricultural policy reform wince the accession of Hungary and the 11 other new member states. Dacian Cioloș pointed out that the Commission's recommendations are aimed at a more sustainable policy, the more equitable distribution of direct support payments, the retention and perfection of market tools, the increased flexibility of rural development policy, incentives for innovation, and cooperation between producers. The Commissioner stressed that the uniform internal market which includes some 500 million consumers requires common regulations and conditions, but it must be possible for this community to take national and local specificities into consideration in a flexible manner.

In his speech, Minister for Rural Development Sándor Fazekas drew attention to the fact that it is an outstanding achievement of the Hungarian presidency that we succeeded in defending the Common Agricultural Policy so that farmers may also receive support in the future. The Minister reminded those present that certain member states wanted to abolish the CAP or significantly reduce its budget. The Common Agricultural Policy is of decisive importance for our country, and it is essential that the interests of the new member states, including Hungary, be sufficiently represented in the new CAP from 2014. The Minister made it clear that although farmers are the ones who receive support, it is consumers who are the main beneficiaries, since without support food would be more expensive.

"Hungary and its rural areas require a strong and diverse agriculture in which a primary role is played by family farms, and which is characterised by the balance between animal husbandry and crop production, locally produced goods and sustainable farming. CAP priorities, which may be regarded as European strategic endeavours, are in harmony with the objectives of the National Rural Strategy and the Ignác Darányi Plan", emphasised Sándor Fazekas.

In her speech, State Secretary for European Affairs of the Ministry of Foreign Affairs Enikő Győri stressed that 98 percent of European Union resources enter the country via cohesion policy and the CAP. Hungary is receiving Euro 33 billion in European Union financing during the period 2007-2013, and pays Euro 8 billion, meaning our balance is positive. A fundamental goal, she added, is that European Union resources entering Hungary should not decrease within the upcoming budgetary period, and that we be able to utilize them in such a way that permanently facilitates the development of the country. The State Secretary called it worrying that a decrease is expected in the funds available to Hungary for cohesion policy, and that in fact member states who are net payers are calling for further reductions. She emphasised that the Hungarian negotiation delegation must continue to be successful and effective, and that is important to achieve compromises that are in line with Hungary's goals.

In is speech, State Secretary for the Agricultural Economy György Czerván talked about the details of the First Pillar of the Common Agricultural Policy and direct support issues that affect Hungary.

While praising the importance of the CAP, the State Secretary drew attention to the fact that according to plans, Hungary is expected to have available HUF 500 billion for agricultural and rural development support, 80 percent of which originates from the European Union resources. The total budget of the CAP is some Euro 400 million, some three-quarters of which are put towards Pillar I, the direct support payments.

"Hungary's status is expected to remain roughly the same following the more equitable distribution of resources between member states. The State Secretary explained that according to the draft legislation, the direct support system will be significantly restructured. It will include both compulsory elements and optional voluntary elements that may be chosen by the member states, and a simplified support construction will be developed for small farms. An important new element will be "greening", and according to the Commissions recommendations 30 percent of direct support payments are conditional to environmentally friendly farming. Hungary agrees in principal with the proposals, but views the 30 percent ratio as too high and would like a solution that means fewer administrative and monitoring burdens", said the State Secretary. "The European Commission's recommendations on the CAP are in harmony with two important objectives of Hungarian agricultural policy: small-scale producers will be able to receive support payments within the framework of a simplified system, and incentives for young farmers. However, with regard to support payments they may be provided with, it is objectionable that the maximum area of land eligible would be 25 hectares in Hungary, and so we would only be able to pay out a small fraction of available resources to young farmers who are just starting out. In the interests of the better utilization of this support opportunity, we stand in favour of abolishing the area limitations", announced the State Secretary.

State Secretary for Rural Development Zsolt V. Németh opened his speech with the words of George Orwell: "After fifty years everyone has the face he deserves". "The personified Common Agricultural Policy is mature and strong-featured, but needs renewal. We can expect several important changes in rural development policy from 2014," pointed out the State Secretary. "Contrary to current practices, the various funs will belong to a Join Strategic Framework, which provides opportunities for the coordination of various programmes and for co-financing from several funds. In the interests of flexibility the axis-like division of the rural development programme will be terminated and instead member states may chose from a package of 20 measures. LEADER organisations will be given a greater role and community-based local developments will become more common. Hungarian local governments will also have more responsibilities and shall be able to develop complex county development concepts". Zsolt V. Németh announced that the Ministry would be launching a priority programme for the preparation and elaboration of a European Union co-financed rural development programme and fisheries operational programme for the period 2014-2020. "The document related to this has already been accepted by Head of the Ministry Sándor Fazekas", announced the State Secretary.

Fidesz MP Sándor Font, president of the Parliamentary Committee on Agriculture reminded those present that the level of support of Hungarian farmers would only reach that of older member states next year. This competitive disadvantage must not be repeated and so we must work together and cooperate with all those affected in Hungary to ensure that the reform of the CAP will in no way cause a disadvantage to Hungarian producers and Hungary's current, favourable position may be retained.

Rebeka Szabó, member of parliament for the Lehet Más a Politika Party ("Politics can be Different", LMP) explained that "the current draft of the CAP favours large farms, does not hinder the decrease in the number of family-run farms and provides hardly any incentives for sustainable farming. The LMP supports the inclusion of more funding in the policy's 2nd, rural development pillar, even if this means a reduction for Pillar I (direct payments). According to the party, area-based support should be replaced by job-based support. The Member of Parliament stressed that the Hungarian standpoint must be reviewed: greening criteria must not be weakened.

István Jakab, President of the National Association of Hungarian Farmers' Societies and Cooperatives (MAGOSZ), presented the organisation' objectives. It is the firm standpoint of MAGOSZ that ordered land ownership conditions, strong producer integration, more cooperatives, comprehensive market regulation and new risk management tools are required. It is essential that producers, processors and rural developers work together in a suitable chamber system.

Tamás Nagy, President of the National Federation of Agricultural Cooperatives and Producers (MOSZ) emphasised that the current concept of the CAP is in line with Hungarian interests, stressing: "Hungary's natural conditions are excellent, its traditions are unique, and we must exploit these."

(Press Office of the Ministry of Rural Development)