1 Improving the competitiveness of the agricultural and forestry sector Imre Wayda Senior counsellor Ministry of Rural Development 27th June 2011

2 EU rural development strategy (1698/2005/EC Council reg., 1974/2006/EC Council reg.) Hungarian rural development strategy New Hungary Rural Development Program (NHRDP) New Hungary Rural Development Strategy Plan Creating the rural development program

3 The national legal background Act XVII of 2007 On the procedures connected to the agricultural, rural development and fishery support schemes and other measuresOn the procedures connected to the agricultural, rural development and fishery support schemes and other measures 23/2007. (IV. 17.) MARD regulation On the general rules of using the supports On the general rules of using the supports MARD Regulations on the support schemes

4 The structure and funds of NHRDP Axis I Improving the competitiveness Improving the competitiveness of the agricultural and forestry of the agricultural and forestry sector sector € Ft 45,5% Axis II Improving the environment Improving the environment and the countryside and the countryside € Ft 32,5% Axis III Quality of life in rural areas Quality of life in rural areas and diversification of the and diversification of the rural economy rural economy € Ft 13% Axis IV Implementation of the Implementation of the LEADER-approach LEADER-approach € Ft 5% TA € Ft 4% Total € Ft

5 Axis I Improving the competitiveness of the agricultural and forestry sector

Measures aimed at promoting knowledge and improving human potential Measures aimed at promoting knowledge and improving human potential  Vocational training and information actions Vocational training and information actions Vocational training and information actions  Setting up of young farmers Setting up of young farmers Setting up of young farmers  Early retirement of farmers and farm workers Early retirement of farmers and farm workers Early retirement of farmers and farm workers  Use of farm advisory services Use of farm advisory services Use of farm advisory services

Measures aimed at restructuring and developing physical potential and promoting innovation  Modernisation of agricultural holdings Modernisation of agricultural holdings Modernisation of agricultural holdings  Increasing the economic value of forests Increasing the economic value of forests Increasing the economic value of forests  Adding value to agricultural products Adding value to agricultural products Adding value to agricultural products  Infrastructure related to the development and adaptation of agriculture and forestry Infrastructure related to the development and adaptation of agriculture and forestry Infrastructure related to the development and adaptation of agriculture and forestry  Meeting standards Meeting standards Meeting standards  Supporting semi-subsistence agricultural holdings undergoing restructuring Supporting semi-subsistence agricultural holdings undergoing restructuring Supporting semi-subsistence agricultural holdings undergoing restructuring  Setting up of producer groups Setting up of producer groups Setting up of producer groups

Vocational training and information actions Vocational training and information actions  3 sub-measures  - farmers’ information service  - dissemination of innovative technologies by means of demonstration projects on farms and forestry holdings  - trainings related to agriculture and forestry

Setting up of young farmers Setting up of young farmers  Aim:  to facilitate the initial establishment of farms for young farmers  enhance the population retention ability of the countryside  improve the age structure of the agricultural labour force  Beneficiaries  people at the age that are setting up a farm for the first time  Amount of support  Max. 44,000 euro (non-refundable)

Early retirement of farmers and farm workers Early retirement of farmers and farm workers  Aim:  improve the age structure of the agricultural labour force  to achieve a better structure of agricultural holdings  Beneficiaries  Farmers and employees above the age of 55 but below their normal retirement age  Amount of support  Non-refundable payment of % of the official minimum wage (depending on the size of the farm) for max. 7 years

Use of farm advisory services Use of farm advisory services  Aim:  to provide advisory services on farm management  to enhance sustainable development  to meet cross compliance, GAEC and work safety requirements  Beneficiaries  Farmers and forestholders  Amount of support  Max. 80% of the advisory service fee, but not more than 700 euro/year and 1500 euro/7 years

Modernisation of agricultural holdings Modernisation of agricultural holdings  Aim:  upgrading the technological level of animal husbandry, horticulture and arable farming  the diversification of the arable-sector-based agriculture by promoting investments in horticulture and the production of biomass  aims to ensure the compliance with the relevant requirements of the EU in particular in the field of environmental standards  Support schemes  Machinery for arable farming  Constructions for arable farming (grain dryers, cleaners and storehouses)  Machinery for horticulture  Modernization of horticultural plantations  Modernization of animal husbandry facilities (manure storage)  Establishment of periannual plantations (fruit and energy)  GAZDANet  Beneficiaries  Farmers with a farm size above 4 ESU (except GAZDANet)  Amount of support  On average 40% of the eligible costs (in the case of young farmers 50%)

Increasing the economic value of forests Increasing the economic value of forests  Aim:  upgrading of the machinery used for forestry purposes  Beneficiaries  Forest holders with 50 hectars of forest or above  Amount of support  Max. 50% of the eligible costs (60% in the case of LFA, or NATURA 2000 area)

Adding value to agricultural products Adding value to agricultural products  Aim:  to promote the development of processing farm products for food purposes (meat, poultry, dairy, milling, wine, fruits and vegetables, etc.)  to promote the development of processing farm products for non-food purposes (bio-fuel production)  Beneficiaries  Small and medium enterprises  Amount of support  Max. 50% of the eligible costs (except for the Central Hungarian region, where it is 40%)

Infrastructure related to the development and adaptation of agriculture and forestry Infrastructure related to the development and adaptation of agriculture and forestry  Aim:  to improve the conditions and capacity utilization of the facilities required for the provision of irrigation water  to protect agricultural lands by means of ameliorative interventions,  to establish paved agricultural roads and foresry exploration roads  Support schemes  Development of communal facilities of irrigation and amelioration  Collective investments in water-flow regulations, elimination of water damages, regulation of excess surface waters  Development of the forestry infrastructure  Development of agricultural roads Water- and energy-supply of agricultural holdings  Beneficiaries  Farmers, forest holders, municipalities, water management associations, producer groups  Amount of support  Max. 70% of the eligible costs

Setting up of producer groups Setting up of producer groups  Aim:  to facilitate the steady marketing of the products of agricultural producers by means of supporting the establishment, operation and enlargement of producer groups  Beneficiaries  Producer organizations (also with preliminary licence from MARD)  Amount of support  1.5-5% of the marketed product value (depending on the size of the PO, and with decreasing rate for 5 years)

17 Results at mid-term  Resources used:  For the NHRDP:70%  For Axis I :80%  Beneficiaries  Training:20,000  Advisory: 15,000  Modernization of agriculture: 16,000

18 Thank you for your attention!