Agriculture Minister István Nagy on Wednesday said an agreement reached overnight on the European Unionʼs new common agriculture policy (CAP) would establish the conditions for the competitive development of Hungaryʼs farm sector, according to a report by state news wire MTI.
"The direct subsidies system, the support for farm and food industry investments, the environmental conditions connected to production and the support for young farmers and small farms together ensure the competitive development of Hungaryʼs agriculture sector," Nagy told MTI.
"Itʼs good news for both livestock and crop farmers that production subsidies, as well as transitional national subsidies, will remain," he added.
He said the subsidy system under the new agreement ensures the environment is protected and keeps farmers competitive.
In a statement released after a two-and-a-half-day meeting of EU farm ministers in Luxembourg, the Council of the EU said the agreement on the general approach for the post-2020 CAP "puts forward some strong commitments from member states for higher environmental ambition", but also "allows member states to have the necessary flexibility in how they would reach environmental goals".