On the whole, Hungarian agriculture has concluded an excellent year, crop results were good and the export-import balance was positive – announced the State Secretary of the Ministry of Rural Development on Tuesday in Hévíz at the opening of the Baki Agro Centre's first agricultural economy day of the year.

Endre Kardeván told those present that farm produce prices had risen by an average of 15 percent last year, with the most significant increase of 55 percent in the live animal and animal products sector. Only the farm price of vegetables decreased somewhat, while the level of expenditure rose by 15 percent. Agricultural exports rose by 21.2 percent to 4.9 billion Euros during the first nine months of last year. Imports rose by a smaller percentage to 3.1 billion Euros, resulting in a positive export-import balance.

With regard to the 2010 figures, he reminded those present that in that year 198 thousand beneficiaries received agriculture support and a total of 591 billion HUF in funding was invested in agriculture and rural development. Of the latter, 302 billion HUF was made up of area-based support, which will rise continually until 2013.

Uniform area-based support is available on 4.8 billion hectares in Hungary, of which 57 thousand HUF was allocated per hectare in 2011. This sum is expected to rise to 62 thousand HUF this year. 280 billion HUF was paid out last year, with an expected 300 billion in pay-outs for this year. The exact sum is also dependent on the currency exchange rate. – detailed the State Secretary.

Agriculture makes up 3-4 percent of the country's GDP. The export performance of the agricultural sector continues to be strong, closing at a positive average of 1-2 billion HUF each year, and providing 38 percent of the country's export surplus.

In connection with the Ignác Darányi Plan launched on Monday, the State Secretary spoke of the fact that the main goals of the plan include a reversal of the unfavourable changes that have occurred in rural areas, an increase in employment, the strengthening of family-run farms and the development of local markets. The Plan is primarily designed to aid small and medium sized farms, but large producers are also involved, without whom Hungarian agriculture would not be viable, he said.

Péter Palkovics, President of the Agriculture and Rural Development Agency (MVH), announced: Area-based support for this year will begin being paid on Thursday. He also mentioned that the MVH plans to fulfil its payment responsibilities for the first two quarters during the first 3-4 months of the year, including the expected opening of the 4.2 billion HUF agricultural damage mitigation fund in February.

With regard to the upcoming period of planning, he said that when adjudging support, green factors would be more important than previously, and that new legislation is also expected, such as the coming into force of compulsory ratios and elements regarding the support of young farmers. Of this year's MVH support opportunities he mentioned the "farmer-net" programme, which will be available for the first time this year and which makes available 3.3 billion HUF in support funding for IT developments specifically for small farms. The Ministry of Rural Development will again be making available a support budget for the protection of our rural heritage, and funding for young farmers will also become available during the first quarter, announced Péter Palkovics.

(Press Office of the Ministry of Rural Development)