The National Agriculture and Rural Development Strategy Plan of Hungary Dr. Miklós Maácz Dep. Head of Department Department of Managing Authority Ministry of Agriculture and Rural Development Budapest

Basic hypothesis in respect of rural development in Hungary Favourable geological, natural and ecological endowments – good circumstances for agricultural production The role of agriculture in the society – much bigger than its ecological weight Hungary is a net exporter in agricultural products (the only one amongst New member states-NMS) Agriculture is an organic system where natural resources, the ability of retaining the population and reservation of the rural heritage are equally important

Expectations in the national agricultural policy Quality and security approach instead of quantity one Need of structural changes in agriculture Importance of improving integration Wider diversification (processing, more added value) Improvement of ecological farming Clearer picture in land ownership (finishing compensation)

Requirements in the EU strategic guidelines Lisbon strategy (employment and development) Goteborg strategy (sustainable development) Harmonization with regional development policies Multifunctional role of rural development

National Concept of Development Policy Enhancement of competitiveness Enhancement of employment Reaching a competitive knowledge Extension of information society Improvement in the state of health of the society Protection of natural resources Balanced regional development (rural development is one of the components)

Strategic priorities of rural development Competitiveness (modernization, integration, infrastructure) Jobs in rural areas (diversification, local cooperation) Sustainable development (environmental protection) Food safety Improvement of services (extension, vocational trainings)

Question marks about the strategy Available resources (lack of financial perspective) – very modest increase compared to Determination from the programs – degressivity in the financial plan Small budget for everyone or concentrated efforts

Partition amongst axes No doubt: largest part will be taken by Axis 2 – more than 42% Doubts: Competitiveness or rural societies – which creates more jobs? – 27-27% or 44-10% LEADER – 5% TA – 4% Consultations: economic and social partners – lack of time (no time for discussing the strategy itself)

RD in the National Strategic Reference Framework What can be financed by structural funds? Large projects: – Agricultural logistics – Biotechnology – Green energy - biofuels – Water management

Thanks for your attention!