Farmers who suffered frost damage in May will receive support totalling 13.3 billion forints, announced State Secretary for Agricultural Economy György Czerván at the press conference following the meeting of the Harvest Co-ordination Committee. The State Secretary reviewed the results of the 2011 harvest and then announced that route permit requirements for oversized vehicles had been annulled. With reference to GMO-contaminated seeds, Endre Kardeván reassured the press that farmers are not at fault and so shall not incur damages.

Frost Damage Mitigation

The State Secretary emphasised that the three-tier package of measures will cover an estimated fifty percent of damage caused by frost in May. Those farmers whose crops were destroyed by late frost will receive a total of 1.27 billion forints in compensation. To aid the earliest possible recovery of growers, long-term, interest- and bank charge free loans will be made available totalling 8 billion forints. In addition, the Ministry of Rural Development is putting 4 billion forints towards the mitigation of frost damage out of the Agricultural Damage Relief System, said György Czerván.

Rapid aid may be received by those farmers who have suffered damage to over 70 percent of their crops. According to preliminary calculations, the area affected is in excess of 28 thousand hectares.

The Frost Damage Assets Loan Programme will enable those affected by frost damage to receive long-term loans. The loans are 100% free of interest and bank charges, and may be applied for by those corporations, agricultural licensed small-scale producers and family business dealing primarily with the cultivation of agricultural products, whose growing crops were damaged by late frosts in the spring of 2011, and who are able to verify this to the level required by law.

The sum of the loan may be between 500 thousand and 5 million forints, and shall be in proportion with the level of damage. In addition, a further 4 billion forints is also expected to be made available via the Agricultural Damage Relief System, through which payments can be expected in December 2011 and early 2012 – added the State Secretary for Agricultural Economy.

The May frosts caused damaged to over 32 thousand hectares of growing crops in Hungary, which could mean as much as 28-29 billion forints of lost income for farmers. A total of 8784 producers reported frost damage to the various government offices. Of these, 7035 producers are from Szabolcs-Szatmár-Bereg County, with a further 640, 368 and 216 farmers from Bács-Kiskun, Pest and Borsod-Abaúj-Zemplén Counties, respectively. The May frosts had the most devastating effect on the fruit-producing farms of Szabolcs County, with especially high, 80-100% levels of damage in the county’s eastern regions, and an average of at least 40% damage throughout the rest of region.

Three Million Tons of Autumn Wheat Stored

The good weather did much to boost recent harvests. Farmers have already completed the harvesting of autumn barley and 669 thousand tons of high-quality barley from 165 thousand hectares has been successfully stored. 76 percent of the bread wheat sown on 952 thousand hectares has also been harvested by farmers. The highest yield results in the case of both species were achieved in Baranya and Bács-Kiskun counties.

In Hungary, autumn barley can be sold for around 35-49 thousand forints per ton, while fodder wheat costs 38-51 thousand forints. The price of bread wheat is around 42-60 thousand forints per ton, with oilseed rape moving at around 105-130 thousand forints per ton. The price of corn per ton is currently at 43-50 thousand forints, said György Czerván.

The State Secretary added that no fungal diseases are present in this years’ bread wheat. The amount of grain harvested is sufficient to cover the needs of the country and there will also be an exportable surplus. In addition to the quantity of grain reaching the market from Hungary, the gradual fall in grain prices over the past weeks is also the result of world market tendencies, such as the drought which has been hitting Western Europe for months now, and the Russian and Ukrainian grain that has also appeared on the market.

There are no storage problems on the market; the Concordia public store can accommodate all requirements, so it is worthwhile for farmers to take advantage of the opportunity.

Wide vehicles: no route permit required

György Czerván announced that oversized agricultural vehicles – with a width in excess of 2.55 metres – will be permitted to use the country’s national highways and local roads without requiring a special route permit. The statute will come into effect this week, after being published in the official Hungarian legal journal, the Magyar Közlöny.

At the initiative of the Minister for Rural Development, the government voted in the spring to revoke legislation governing permit requirements for wide vehicles. This is an anti-labour statue and should be repealed – said Minister for Rural Development Sándor Fazekas at the time.

The Ministry of National Development hopes the statute amendment will enable farm labourers to approach their farmland more easily, and regulations on the time of day when such traffic may use public highways will also be revoked. The terms and conditions regarding the compulsory use of accompanying vehicles will also be simplified significantly. The Ministry of the Interior has also amended the Highway Code so that certain no-entry signs will not apply to oversized agricultural vehicles.

In the interests of road safety the use of yellow flashing lights, as well as a red and white reflective sign and the use of a pilot-light on the widest part of the vehicle will be compulsory in the case of both oversized agricultural vehicles and the machinery accompanying them. The new amendment also states that farmers should be even more attentive of normal traffic while driving their oversized vehicles on public highways, and motorists should also try to be more patient in view of the fact that farmers are working in the interests of ensuring our food supply.

József Vancsura, Chariman of the National Association of Grain Producers, thanked the police for helping the activities of those performing agricultural work.

Hungary will remain GMO free

According to the laws in effect, plants and seeds contaminated with GMOs must be destroyed, and the Ministry of Rural Development will act in strict accordance with these rules – announced the ministry's State Secretary for Food Chain Control and Agricultural Administration. Endre Kardeván stated: the affected farmers are already being sent the official decisions on this issue and the surveying of the contaminated areas is occurring continually.
The State Secretary announced: the Ministry of Rural Development and the Central Agriculture Office will implement the stipulations of the statue to the full. The standpoint of the government and the Ministry of Rural Development is clear: it is not permitted to sow or reap any GMO-contaminated seeds or crops in Hungary – State Secretary for Food Chain Control and Agricultural Administration Endre Kardeván reminded those present.

He also stated that areas in which the corn must be destroyed are being continuously surveyed, also noting what expenses this is likely to incur. The State Secretary stressed that farmers will not be adversely affected and shall not incur any damages as a result of these measures.

(Press Office of the Ministry of Rural Development)