Minister of Agriculture István Nagy received EU Commissioner in charge of agriculture and rural development Phil Hogan for bilateral talks in Budapest.

The parties reviewed the priority issues relating to discussions on developing the Common Agricultural Policy (CAP) after 2020.

Hungary is a dominant player in the bargaining process on the rules for the new EU multiannual framework, as witnessed by the fact that this is Phil Hogan’s second visit to Budapest this year to discuss the future of the CAP.

During the discussions, the Hungarian Minister made it clear again that the dramatic cut in CAP funding proposed by the Commission was unacceptable. As regards Hungary, this would mean 16.4 percent less funding for direct payments and 26.6 percent less for rural development aid – calculated at 2018 comparative prices – for the next seven-year budget period.

Mr. Nagy noted that the fulfilment of the environmental protection goals specified in the CAP should not result in a more complicated system. He also noted that the role of irrigation will gain importance due to the more frequent and intensive periods of drought, and accordingly are required that allow for the implementation of irrigation projects. As regards efforts to simplify the Common Agricultural Policy, he emphasised the need for regulations that allow for the transfer of funds to the farmers in the simplest and quickest manner possible, coupled with low financial risks. Area-based direct payments should remain the most important component of the new system, as this solution is the one that offers adequate income security for farmers. Opportunities for development should be granted to farmers mainly by way of aid for investments provided through the rural development pillar associated with such direct payments.

The negotiating parties agreed that the ageing of the farming society was a problem affecting all of Europe, which is why it it more necessary to support young farmers than ever before.

(Ministry of Agriculture Press Office)