Farmers will receive 280 billion Forints in Single Area Payment Scheme (SAPS) funds for the current year, 50 billion more than last year. The payment of half this sum, around 135 billion Forints, will begin today – stated Sándor Fazekas at the joint press conference of the Ministry of Rural Development and the Agricultural and Rural Development Agency (MVH). Péter Palkovics stressed that payment of special milk support would also begin in December, within the framework of which 2700 milk farmers will receive payments from a fund of 13.5 billion Forints.

169 farmers applied for support with regard to 5 million hectares of agricultural land, meaning that payments per hectare for 2011 will be 56 thousand Forints, 20 percent more than last year. In view of last year's frost damage, Hungary was the first to request the European Commission to allow payment of 50% of SAPS fund starting on October 16. Despite of the difficult state of the budget, the Government has succeeded in facilitating the timely execution of payments – emphasised the Minister.

Payment of SAPS funds is governed by the Common Agricultural Policy (CAP), which will change significantly from 2014. The CAP reform package was presented by the Commission on October 12. The preparation of the document took direction from the Presidential Conclusions adopted during the Hungarian Presidency.

The Minister stressed that one of the key elements of the reform of the Common Agricultural Policy is direct support payments which are better targeted than currently, and which are more equitably distributed between the member states, farmers and the various sectors.

In future, the operators of airports, railway companies, property developers, sports facilities and other corporations that perform no agricultural activities at all will not receive payments from direct agricultural support funds. The more targeted use of support will also be aided by the determination of the "active farmer" category, who will need to perform actual agricultural activates.

The EU is planning to determine a ceiling for direct support payments made to the largest beneficiaries. 5 percent of the national envelope may be earmarked for farmers working in difficult environmental conditions. 2 percent may be applied for by young entrant agricultural producers, to help start up their activities. 20 percent of the total budget will be paid to small-scale farmers within the framework of a streamlined system that will take the place of all other direct support schemes.

One of the most important factors of the package will be the more equitable distribution of payment between countries, farmers and the carious sectors. The level of payments made per hectare on the basis of past support practices and "historical references" will decrease – Sándor Fazekas concluded his report.

Speaking at the press conference, the President of the MVH emphasised that the Agency has been working continuously since 2010 to simplify the system and increase internal organisation so that work is performed more efficiently and payment may be executed more easily.

With reference to the Agency's achievements, he stated that they had trained over 500 rural managers and consultants, as a result of which the application period went more smoothly and the number of problematic cases fell by 25%.

On-site monitoring went on between July 5 and September 23, 2011. After collating data, the advance payment applications of around 7000 businesses were rejected by the Agency. The main reason was that the applicant was not eligible according to SAPS requirements, or did not comply with joint suitability regulations.

Payment of the second half of the support funds will occur between December 1, 2011 and June 30, 2012, but the Ministry will do everything in its power to make sure farmers receive payments as early as possible.

Following the press conference, the Minister presented two farmers with the order approving their Single Area Payment Scheme support payments, after which he initiated the transfer of payments with the press of a button using the MVH system. The press were able to follow the starting of the system and the payment of the support funds on a projected computer screen.

(Press Office of the Ministry of Rural Development)