"The European Union's new Common Agricultural Policy (CAP) will continue to favour crop production", announced the State Secretary for Agricultural Economy of the Ministry of Rural Development in Debrecen.

György Czerván, commenting on the changing support system at the conference on wheat and rapeseed cultivation organised in the Agri-center in Debrecen, said "each of the 180 thousand registered producers in Hungary will be eligible for basic support, the sum of which will be 140-150 Euro per hectare."

"The "green'" component will receive great emphasis within the Common Agricultural Policy for the period 2014-2020, meaning added responsibilities, but 30% of direct payments will be related to it. If certain conditions are met, the green component will mean a further 80 Euros per hectare above the basic level of support for farmers", added the State Secretary.

He also stressed that expenditure related to the Common Agricultural Policy will be frozen at the 2013 nominal value from 2014. According to the European Commission recommendation, Hungary's situation following the redistribution of direct payments between the member states will remain roughly unchanged.

The simplified support system for small producers will affect those working less than 4-4.5 hectares, meaning 40% of registered farmers.

"The government expects 10-15 billion HUF of extra revenue from the reversed VAT that will come into force on July 1. In Romania, 90% of those involved in the black economy have disappeared from the market as a result of the introduction of reversed VAT.", said State Secretary György Czerván, describing the experiences of the neighbouring country.

He also reported on the fact that a medium cereal harvest of is expected this year. As a result of the period of drought, 20 percent of autumn-sown crops are in good condition and 40 percent are in poor condition; this ratio was reversed last year.

The Debrecen conference on wheat and rapeseed was organised for the 19th occasion this year by the Agri-Center plant science institute and the Hajdú Gabona Corporation for the area's farmers.

(Press Office of the Ministry of Rural Development)