The European Commission plans to reduce the sum of area-based agricultural funding available during the 2021-2027 period by 16.4 percent compared to the current programming period. 26.6 percent less EU funding would be available to Hungary for rural development. The majority of member states are against the planned reduction of Common Agricultural Policy (CAP) funding.

“A reduction in funding of such magnitude is unacceptable, while the planned regulations would also place significantly greater burdens on farmers, and according to a system of regulations that is much more complex than the current one”, Minister of Agriculture István Nagy stressed at a session of the Agriculture and Fisheries Council on 18 June.

The session in Luxembourg was the first at which EU agriculture ministers discussed the planned regulatory changes to the CAP announced by the European Commission on 1 June. One major change to the current system would be that, in view of the introduction of so-called CAP strategic plans, regulations on direct funding and rural development would be regulated in a joint statue.

According to Mr. Nagy, strategic planning is incompatible with the logic of area-based (SAPS) funding and needlessly complicates the system. “In recent years the Hungarian Government has made a huge effort to simplify agricultural policy regulations and realise a farmer-friendly funding system, and for this reason during the course of the negotiations we will be objecting to all proposals that lead to the further complication of the system”, the Hungarian Agriculture Minister pointed out.

“Maintaining the current level of production-based funding, which primarily assists dairy and beef farmers, sheep farmers, fruit and vegetable farmers and protein crop farmers,  is extremely important to Hungary. The European Commission also plans to reduce these types of funding. Hungary, in cooperation with the V4 and the other member states affected, will be doing everything possible to assure the preservation of this funding”, Mr. Nagy said.

Monday’s ministerial debate was the beginning of a 12-18 month negotiation process during the course of which the regulatory framework for the post-2020 CAP will be developed. “Hungary will be actively participating in the Brussels negotiations in the upcoming period, which promise to be difficult. Together with our allies we will be doing everything possible to assure that the CAP continues to serve the interests of farmers after 2020”, the Hungarian Minister of Agriculture said.

Following the session of the Agriculture and Fisheries Council, which was the first attended by Mr. Nagy since his appointment, the Minister held bilateral talks with European Commissioner for Agriculture and Rural Development Phil Hogan, and with his fellow agriculture ministers from Germany, France, Ireland and Slovenia.

((Ministry of Agriculture Press Office))