Common Agriculture Policy (CAP) after 2013: the Hungarian standpoint __________________________________________________ S. Benedek, Á. Gábor, K. Kujáni and B. Kruppa Szent István University, Gödöllő ERASMUS-IP, 2 July, 2010

1. Characterisation of Hungarian Agriculture

What is good to know about Hungary Our Country is suitable for the continuation of agricultural activities The main sector in Hungary: – Plant production – Horticulture (fruits and vegetables) – Wine production – Animal production

Soil map of Hungary

Plant production in Hungary The most important plants are: – maize – wheat Cereals ha 69,1 % Wheat ha 27,9 % Maize ha 28,4 % Sonflower ha 12,2 %

Fruits and vegetables in Hungary Apple from Szabolcs county Plum from Szatmár County Peach from Kecskemét Pear Walnut from the Nort Balaton region

About the vegetables Potatoe Tomatoe Cabbage Papper Onion Garlic Root- crops

Animals in our country Pig Cattle Poultry Sheep Traditional species: „mangalica”, „grey cattle”, „racka”

Strengh in our agriculture Hungarikums Traditions Good climate to the fruits and vegetables Cheap labor force

Weakness in the agriculture Default of the found Econimie enviroment and taxes Processing industry The system is too bureaucratic

Opportunites in Hungary Traditional animals ( mangalica, racka) Thermal water Danube and Tisza river

2. Hungarian position for CAP beyond 2013

How should the CAP look like in 2020? - Simple - Market oriented - Justified - Green - Fair - “ Public goods oriented” - Simple - Market oriented - Justified - Green - Fair - “ Public goods oriented” Future CAP The CAP has to be more…

Main directions: - Maintaining the current structure! - Maintaining the total funding at current level! Pillar 1 Single Payment Sceme (SPS) Pillar 2 Rural Development EU-fundedCo-funded € Gradually implemented

Pillar 1 (Single Payment Sceme) Flat rate model (200 €/ha) Simplification of cross-compliance Completely decoupled payments Particular coupled payments in sensitive areas Strenghtening modulation Intervention in special cases

Allocation of direct payments in 2013 and Flat rate model

Pillar 2 (Rural Development) 1. Climate change axis 2. Structural improvement axis 3. Diversification axis 3 axis Measures: -CO2 emission reduction -Green energy production -risk management -preserving water resoruces -Biodiversity Measures: -Improving human potential -Restructuring and developing phisical potential -Improving the quiality of production and products Measures: -Improving non- agricultural activities -Improving the quality of life -Supporting micro businesses Depends on GDP

Climate stability Agricultural landscapes Air quality Food security Rural vitality Carbon storage Water availability Resilience to fire and flooding Farmland biodiversity Farm animal welfare and health Soil functionality Water quality Public goods Rural development helps farmers to provide…

3. Hungarian vision for CAP

Health Check (2008) → Changes in CAP after 2013 (Fehér, 2013) 1.Number of pillars (1,2,3) 2.Large and small farms 3.New system of direct payments 4.Water management 5.Rural development 6.Working places 7.Agricultural administration 8.Advisory system 9.Co-finance 10. SPS: experience in the member states

Support of farmers in the new EU-members (PSE) between (Kirschke, 2009)

Rural development (1): population in Hungary

Rural development (2): unemployment in Hungary

World population growth  At present 6.8 billion  Yearly growth: 75 million (+ 1.1%)  2040: 9 billion

The CAP after 2013: questions… Direct payments Markets Rural development Structural adjustment Public goods

Conclusion Agriculture: feeding the growing world population CAP → necessary? Conception: intensive and sustainable agriculture

Thank you for your attention!