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Parliament adopts law introducing SPS agricultural subsidy system in 2009

  Hungary’s parliament has adopted a law stipulating the introduction of the Single Payment Scheme (SPS) agricultural subsidy system in the country next year.


The SPS represents a property right, which raises the value of land. This is viewed as an important provision as foreigners will be allowed to purchase arable land in Hungary beginning in 2011.

The ministry of agriculture said that the SPS is advantageous for both land lessors and lessees, because it makes both sides interested in signing long-term lease contracts. All old and two new EU member states use the SPS system.

Opponents of the SPS say that the production-based property right is financially disadvantageous for 1.8 million Hungarian land lessors whose right to the subsidy will expire once their lease contract expires. The subsidy will apply to only the 200,000 registered producers. (MTI-Econews)