Support for young farmers in Hungary Attila Nagy Head Of Department Ministry Of Agriculture State Secretariat of Rural Development Lavender Farm Iklódbördőce

Young Farmer scheme Total budget: EUR 121 million Main objective: To support a newly created agricultural business: fulfillment of the obligations related to the business plan Published on: December 2016 Support period: 1 March, 2017. – 28 February, 2019 Submission of the applications: From 1 March, 2017. Grant amount: non-refundable lump sum support: EUR 40 000 in two installments (75% + 25%) Expected number of applications: 3 000

Young Farmers scheme Type of support: non-repayable lump sum support Beneficiaries: At the time of the submission of the application the applicant is a natural person aged over 18, but no more, than 40 years, who launches an agricultural enterprise for the first time. In the case of legal entities the young agricultural producer is the sole owner and manager of the entity

Eligibility criteria Natural persons aged maximum 40 years at the time of the submission of the application Having agricultural qualifications recognised by the state Applied to the competent authority for registration as a private entrepreneur engaged in agriculture no sooner than 12 months prior to the submission of the application Having at least 6,000 and no more than 25,000 SO equivalent production potential on exclusive basis (e.g., registered as a land user of production land) In the case of legal entities sole owners and managers of the entity are eligible. Submission of a business plan.

Business plan Minimum content of the business plan: • The situation of the agricultural holding at the time of joining the scheme, • Production features, relevant in terms of the development e.g., access to the irrigation system and limitations (NATURA 2000 or any other protection, etc). • The objective and market of the planned activity, composition of production and the description of the process of how the beneficiary will become an active farmer within 18 months from the start of operation. • Elaborating a financial analysis to guarantee the viability and profitability of the project. • Further planned investments, further improvements, trainings, consultations to be financed under the RDP.

Commitments • to submit the first tax return at the latest in the year following the registration as a private entrepreneur (the end date of setting up), • to begin the implementation of the business plan within 9 months of the support decision • to become an active farmer as referred to in Article 9 of No. 1307/2013 (EU) Regulation within no more than 18 months from from the date of submitting the first tax return as an individual entrepreneur • to become a full-time individual entrepreneur no later than by the beginning of the 4th calendar year • the income earned from agricultural activities in the 4th closed business year of the support equals at least the mandatory wage minimum of the previous year • to fulfill the commitments undertaken in the business plan no later than by the end of the 4th calendar year • to take part in obligatory professional training by the formal submission of a request for payment of 25% at the latest.

Young farmer payment in Pillar I On the basis of Art. 50 of Reg. (EU) 1307/2013, Member States are obliged to grant an annual payment for young farmers. Young farmer: who are setting up for the first time an agricultural holding as head of the holding, or who have already set up such a holding during the five years preceding the first submission of an application of SAPS/BPS. who are no more than 40 years of age in the year of submission of the application. Maximum ceiling: 2% of the total DP envelope (HU: 0,8-1,0%).

Young farmer payment in Pillar I A national regulation is also in place with rules on the technical details of application. The number of applicants and the UAA is increasing. Claim Year Number of beneficiaries Total amount paid (in billion HUF) (in million EUR) 2015 6 765 3,0 9,677 2016 9 541 3,529 11,38 2017 (not final) 11 187 3,933 12,68 UAA of Young farmers ~220 000 hectares Total SAPS area ~4,9 million hectares 1 EUR=310 HUF; Source: Hungarian State Treasury

Thank You For The Attention! www.palyazat.gov.hu www.kormany.hu Ministry Of Agriculture State secretary of Rural Development H-6000 Kecskemét, Ipoly st. 1.