"Disbursement of the second phase of area-based agricultural funding due for last year has begun; farmers will receive HUF 140 billion during the following months", announced Minister for Rural Development Sándor Fazekas at a press conference in Tök on Wednesday.

Those affected received HUF 141 billion during the first phase of payment from last October until the end of the year. The sum of HUF 294 billion, paid out in two phases, means in practice funding of some HUF 60 thousand per hectare. This is 30 percent more than two years ago, and the level of funding is expected to rise further, which is also an indication of the success of Hungarian agricultural diplomacy within the EU.

Around 175 thousand farmers receive funding at present, and as a result need to take on less loans and credit to begin spring operations, stressed Sándor Fazekas.

President of the Agricultural and Rural Development Agency Péter Palkovics informed the press that the majority of farmers would already be receiving funding in January. However, around 3000 farmers will have to wait until March to receive their money; issues relating to land ownership are slowing their payments. Mr. Palkovics noted that village agronomists had also helped with the submission of applications, and accordingly the number of mistakes is several orders of magnitude less that in previous years, reaching only one percent last year.

In reply to a question, Sándor Fazekas explained that food prices are rising throughout the world as a result of last year's drought and the increase in the world population, and we should also expect a moderate rise in Hungary. The Government is taking steps to keep food prices in check and places great significance on the rekindling of old forms of self-sufficiency and the promotion of subsistence farming at home.

The Minister also spoke about the fact that talks are underway within the EU with relation of the development of the funding system for the period after 2014. According to the Hungarian standpoint, the framework for funding within the agriculture sector must be retained and is required to enable farmers to make a living and for the production of healthy foods.

(MTI)