The government is expected to decide on topping up a damage compensation fund and on the restructuring of subsidies for dairy producers at a cabinet meeting on Wednesday, Rural Development Ministry state secretary György Czerván said at an event organised by Baki Agrocentrum on Tuesday.
About 310,000 hectares of the 4.5 million hectares of arable land in Hungary is under standing water, Czerván said. A further 740,000 hectares have been damaged because of the soaking, he added.
The government wants to create an entirely new way of compensating farmers for weather related damages, Czerván said. The plan could come before Parliament in the autumn and come into force in 2012, he added.
A possible decision on changes to subsidies for dairy farmers would involve making the base for the support livestock rather than milk produced, Czerván said.
Almost HUF 593 billion in state and EU funding is available for farm and rural development subsidies in 2011, up from HUF 463 billion in 2010. (MTI Econews)