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Gov't applies for HUF 200 billion advance on EU farming subsidies

The Ministry for Rural Development (VM) has submitted to the European Commission its application for advance payments on the single area payment scheme (SAPS) subsidies as well as the special dairy producers' subsidies, the ministry told MTI on Friday.

The government is asking for payment of 80% of next year's farming subsidies - around HUF 200 billion - as advance before the end of this year considering the inland water and flood damages caused by storms.

The ministry argues that SAPS payments could begin on December 1, however, in justified cases the Commission may grant member states the possibility of advance payment of up to 50%-80% of the total amount.

In that case, advance payment could start from October 16.

10.2% of SAPS applicants or 19,000 farmers have so far reported vis maior incidents related to flood and inland-water damage, affecting 440,000 hectares of farm land. The amount of the advance can be a maximum €137 per hectare.

The Ministry has also applied for advance payment on the special dairy farming subsidies.

The ministry said Hungarian dairy farmers are still struggling with difficulties as farm gate prices remain below production costs.

Dairy producers are entitled to special subsidies for the first time this year. In this case, the advance could amount to HUF 6.5-HUF 6.7 per liter. (MTI-ECONEWS)