Improving the competitiveness of the agricultural and forestry sector

1. Improving the competitiveness of the agricultural and forestry sector Imre Wayda Senior counsellor Ministry of Rural Development 27th June 2011

2. EU rural development strategy (1698/2005/EC Council reg., 1974/2006/EC Council reg.) Hungarian rural development strategy Hungarian rural development strategy Creating the rural development program New Hungary Rural Development Strategy Plan New Hungary Rural Development Program (NHRDP)

3. The national legal background Act XVII of 2007 On the procedures connected to the agricultural, rural development and fishery support schemes and other measures 23/2007. (IV. 17.) MARD regulation On the general rules of using the supports MARD Regulations on the support schemes

4. The structure and funds of NHRDP

5. Axis I Improving the competitiveness of the agricultural and forestry sector

6. 5.3.1.1. Measures aimed at promoting knowledge and improving human potential 5.3.1.1.1. Vocational training and information actions 5.3.1.1.2. Setting up of young farmers 5.3.1.1.3. Early retirement of farmers and farm workers 5.3.1.1.4. Use of farm advisory services

7. 5.3.1.2.Measures aimed at restructuring and developing physical potential and promoting innovation 5.3.1.2.1. Modernisation of agricultural holdings 5.3.1.2.2. Increasing the economic value of forests 5.3.1.2.3. Adding value to agricultural products 5.3.1.2.5. Infrastructure related to the development and adaptation of agriculture and forestry 5.3.1.3.1. Meeting standards 5.3.1.4.1. Supporting semi-subsistence agricultural holdings undergoing restructuring 5.3.1.4.2. Setting up of producer groups

8. 5.3.1.1.1. Vocational training and information actions 3 sub-measures - farmers’ information service - dissemination of innovative technologies by means of demonstration projects on farms and forestry holdings - trainings related to agriculture and forestry

9. 5.3.1.1.2. Setting up of young farmers Aim: to facilitate the initial establishment of farms for young farmers enhance the population retention ability of the countryside improve the age structure of the agricultural labour force Beneficiaries people at the age 18-40 that are setting up a farm for the first time Amount of support Max. 44,000 euro (non-refundable)

10. 5.3.1.1.3. Early retirement of farmers and farm workers Aim: improve the age structure of the agricultural labour force to achieve a better structure of agricultural holdings Beneficiaries Farmers and employees above the age of 55 but below their normal retirement age Amount of support Non-refundable payment of 25-200% of the official minimum wage (depending on the size of the farm) for max. 7 years

11. 5.3.1.1.4. Use of farm advisory services Aim: to provide advisory services on farm management to enhance sustainable development to meet cross compliance, GAEC and work safety requirements Beneficiaries Farmers and forestholders Amount of support Max. 80% of the advisory service fee, but not more than 700 euro/year and 1500 euro/7 years

12. 5.3.1.2.1. Modernisation of agricultural holdings Aim: upgrading the technological level of animal husbandry, horticulture and arable farming the diversification of the arable-sector-based agriculture by promoting investments in horticulture and the production of biomass aims to ensure the compliance with the relevant requirements of the EU in particular in the field of environmental standards Support schemes Machinery for arable farming Constructions for arable farming (grain dryers, cleaners and storehouses) Machinery for horticulture Modernization of horticultural plantations Modernization of animal husbandry facilities (manure storage) Establishment of periannual plantations (fruit and energy) GAZDANet Beneficiaries Farmers with a farm size above 4 ESU (except GAZDANet) Amount of support On average 40% of the eligible costs (in the case of young farmers 50%)

13. 5.3.1.2.2. Increasing the economic value of forests Aim: upgrading of the machinery used for forestry purposes Beneficiaries Forest holders with 50 hectars of forest or above Amount of support Max. 50% of the eligible costs (60% in the case of LFA, or NATURA 2000 area)

14. 5.3.1.2.3. Adding value to agricultural products Aim: to promote the development of processing farm products for food purposes (meat, poultry, dairy, milling, wine, fruits and vegetables, etc.) to promote the development of processing farm products for non-food purposes (bio-fuel production) Beneficiaries Small and medium enterprises Amount of support Max. 50% of the eligible costs (except for the Central Hungarian region, where it is 40%)

15. 5.3.1.2.5. Infrastructure related to the development and adaptation of agriculture and forestry Aim: to improve the conditions and capacity utilization of the facilities required for the provision of irrigation water to protect agricultural lands by means of ameliorative interventions, to establish paved agricultural roads and foresry exploration roads Support schemes Development of communal facilities of irrigation and amelioration Collective investments in water-flow regulations, elimination of water damages, regulation of excess surface waters Development of the forestry infrastructure Development of agricultural roads Water- and energy-supply of agricultural holdings Beneficiaries Farmers, forest holders, municipalities, water management associations, producer groups Amount of support Max. 70% of the eligible costs

16. 5.3.1.4.2. Setting up of producer groups Aim: to facilitate the steady marketing of the products of agricultural producers by means of supporting the establishment, operation and enlargement of producer groups Beneficiaries Producer organizations (also with preliminary licence from MARD) Amount of support 1.5-5% of the marketed product value (depending on the size of the PO, and with decreasing rate for 5 years)

17. Results at mid-term Resources used: For the NHRDP: 70% For Axis I : 80% Beneficiaries Training: 20,000 Advisory: 15,000 Modernization of agriculture: 16,000

18. Thank you for your attention!