EC Approves Hungary CAP Strategic Plan 

EU

The European Commission on Monday approved Hungary's Common Agricultural Policy (CAP) Strategic Plan for 2023-2027, clearing the way for the transfer of some EUR 8.4 billion in funding, according to a report by state news wire MTI.

The EU funding includes EUR 6.633 bln in direct payments, EUR 1.635 bln for rural development, and EUR 133 million for sectoral support.

Including national funding, the farming sector is set to get EUR 10.016 bln.

Around EUR 1.163 bln of the EU funding in the plan is allocated for environmental and climate objectives under rural development and EUR 187 mln is earmarked for young farmers.  

With the CAP Strategic Plan, Hungary aims to "create a competitive, resource-efficient, high value-added and innovative agriculture and food industry that is more resilient to external economic shocks and natural factors directly affecting production".

The plan contains basic income support per hectare, set at around EUR 150/hectare, for about 5 million hectares of agricultural land. To recognize the difficulties and disadvantages faced by small and medium-sized farms, farmers will get an additional EUR 80/hectare for their first 10 hectares of land and EUR 40/hectare for areas between 10 and 150 hectares. 

The plan allocates 38% of the rural development budget to agri-environmental interventions, 8% to the further development of organic farming, and about 5% to the protection of Natura 2000 sites, which cover around 162,631 hectares. Hungary aims to double the area of organic farms by 2027.

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