Minister for Rural Development began the distributing of the second instalment of 2013 Single Area Payment Scheme (SAPS) funding, during the course of which some 170 thousand farmers will receive a total of HUF 170 billion.

This is equal to 35 thousand forints in funding per hectare. Payment of the first instalment began last October and was 34 thousand forints per hectare, Mr. Fazekas said at a press conference organised to mark the occasion in the Pest County town of Tápiószentmárton. The Minister stated that the monies would be transferred in packages to ensure secure payment, over a period of three weeks beginning on Thursday. "Today, total payments of over 30 billion forints are being made to 51 thousand clients", he announced.

Mr. Fazekas stressed that agriculture was one of the major factors in Hungary's 2013 economic growth, with exports approaching 2012 record levels at some 8.1 billion euros. The sector's output grew by 4.2% to HUF 2265 billion in 2013 from HUF 2173 billion in 2012.

Referring to long debate over the European Union's Common Agricultural Policy (CAP), the Minister emphasised that the negotiations had been a success and Hungary is receiving 20 percent more funding in 2014-2020 compared to the previous financial period, a total of 12.3 billion euros. "We will be able to spend an extra 500 billion forints on agriculture and rural development over the next seven years", he said.

Minister of State for Agricultural Economy György Czerván indicated that although the new EU financial period was beginning this year, 2014 will still be a transitional year with regard to the Common Agricultural Policy. All forms of funding that existed in 2013 will remain in place. Accordingly, area-based SAPS funding will continue to be paid, at an expected level of 227 euros per hectare, as well as special funding, restructuring payments and other earmarked funding. According to the Government's decision, small farms may choose to be included in a simplified flat rate funding system from 2015.

It was also decided that Hungary would continue to apply the Simple Area Payment System until 2021, which will also be expanded to include several new, partly compulsory and partly voluntary features. The Minister of State indicated that funding from the national budget would also be increased in 2014.

President of the Agricultural and Rural Development Agency Péter Palkovics told reporters that the distribution of several types of funding is currently in process. He highlighted three SAPS categories, payment of which began at the end of last year and is still underway: the Agrarian Ecological Farming Programme, funding for Less Favoured Areas and the Natura2000 Programme, with respect to which payment will begin next week.

(MTI)