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Improving the competitiveness of the Improving the competitiveness of the agriculturalagricultural and forestry sector and forestry sector

Imre WaydaImre Wayda

Senior counsellorSenior counsellor

Ministry of Rural DevelopmentMinistry of Rural Development

27th June 201127th June 2011

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EU rural development strategyEU rural development strategy(1698/2005/EC Council reg., 1974/2006/EC Council reg.)(1698/2005/EC Council reg., 1974/2006/EC Council reg.)

Hungarian rural development strategyHungarian rural development strategy

Hungarian rural development strategyHungarian rural development strategy

New Hungary Rural Development New Hungary Rural Development ProgramProgram

(NHRDP)(NHRDP)

New Hungary Rural Development Strategy New Hungary Rural Development Strategy PlanPlan

Creating the rural development Creating the rural development programprogram

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The national legal backgroundThe national legal background

Act XVII of 2007 Act XVII of 2007 • On the procedures connected to the On the procedures connected to the

agricultural, rural development and fishery agricultural, rural development and fishery support schemes and other measuressupport schemes and other measures

23/2007. (IV. 17.) MARD regulation23/2007. (IV. 17.) MARD regulation• On the general rules of using the supportsOn the general rules of using the supports

MARD Regulations on the support MARD Regulations on the support schemes schemes

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The structure and funds of The structure and funds of NHRDPNHRDP

Axis I Axis I Improving the Improving the

competitivenesscompetitiveness of the agricultural and of the agricultural and

forestry forestry sectorsector

2 388 289 2 388 289 459 €459 €

649 853 561 649 853 561 793 Ft793 Ft 45,5%45,5%

Axis II Axis II Improving the Improving the environment environment and the countryside and the countryside

1 697 679 1 697 679 988 €988 €

461 938 724 461 938 724 734 Ft734 Ft 32,5%32,5%

Axis IIIAxis III Quality of life in rural Quality of life in rural areas areas and diversification of and diversification of thethe rural economy rural economy

691 806 587 691 806 587 €€

188 240 572 188 240 572 323 Ft323 Ft 13%13%

Axis IVAxis IV Implementation of theImplementation of the LEADER-approachLEADER-approach

273 176 970 273 176 970 €€

74 331 453 537 74 331 453 537 FtFt 5%5%

TATA 205 860 358 205 860 358 €€

56 014 603 412 56 014 603 412 FtFt 4%4%

TotalTotal 5 256 813 5 256 813 362 €362 €

1 430 378 915 1 430 378 915 800 Ft800 Ft   

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Axis IAxis I

Improving the competitiveness Improving the competitiveness of the agricultural and forestry of the agricultural and forestry

sectorsector

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5.3.1.1. Measures aimed at promoting knowledge and improving human potential

5.3.1.1.1. Vocational training and information actions

5.3.1.1.2. Setting up of young farmers5.3.1.1.2. Setting up of young farmers

5.3.1.1.3. Early retirement of farmers and farm 5.3.1.1.3. Early retirement of farmers and farm workersworkers

5.3.1.1.4. Use of farm advisory services 5.3.1.1.4. Use of farm advisory services

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5.3.1.2. 5.3.1.2. Measures aimed at restructuring and Measures aimed at restructuring and developing physical potential and promoting developing physical potential and promoting innovation innovation

5.3.1.2.1. Modernisation of agricultural holdings5.3.1.2.1. Modernisation of agricultural holdings 5.3.1.2.2. Increasing the economic value of forests5.3.1.2.2. Increasing the economic value of forests 5.3.1.2.3. Adding value to agricultural products5.3.1.2.3. Adding value to agricultural products 5.3.1.2.5. Infrastructure related to the 5.3.1.2.5. Infrastructure related to the

development and adaptation of agriculture and development and adaptation of agriculture and forestryforestry

5.3.1.3.1. Meeting standards5.3.1.3.1. Meeting standards 5.3.1.4.1. Supporting semi-subsistence 5.3.1.4.1. Supporting semi-subsistence

agricultural holdings undergoing restructuringagricultural holdings undergoing restructuring

5.3.1.4.2. Setting up of producer groups5.3.1.4.2. Setting up of producer groups

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5.3.1.1.1. Vocational training and 5.3.1.1.1. Vocational training and information actionsinformation actions

3 sub-measures3 sub-measures

- farmers’ information service - farmers’ information service - dissemination of innovative - dissemination of innovative

technologies by means of technologies by means of demonstration projects on farms and demonstration projects on farms and forestry holdings forestry holdings

- trainings related to agriculture and - trainings related to agriculture and forestry forestry

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5.3.1.1.2. Setting up of young 5.3.1.1.2. Setting up of young farmersfarmers

Aim:Aim: to facilitate the initial establishment of farms for young to facilitate the initial establishment of farms for young

farmersfarmers enhance the population retention ability of the enhance the population retention ability of the

countryside countryside improve the age structure of the agricultural labour forceimprove the age structure of the agricultural labour force

BeneficiariesBeneficiaries people at the age 18-40 that are setting up a farm for the people at the age 18-40 that are setting up a farm for the

first timefirst time

Amount of supportAmount of support Max. 44,000 euro (non-refundable)Max. 44,000 euro (non-refundable)

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5.3.1.1.3. Early retirement of farmers and 5.3.1.1.3. Early retirement of farmers and farm workersfarm workers Aim:Aim:

improve the age structure of the agricultural labour improve the age structure of the agricultural labour forceforce

to achieve a better structure of agricultural holdingsto achieve a better structure of agricultural holdings

BeneficiariesBeneficiaries Farmers and employees above the age of 55 but below Farmers and employees above the age of 55 but below

their normal retirement agetheir normal retirement age

Amount of supportAmount of support Non-refundable payment of 25-200% of the official Non-refundable payment of 25-200% of the official

minimum wage (depending on the size of the farm) minimum wage (depending on the size of the farm) for max. 7 yearsfor max. 7 years

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5.3.1.1.4. Use of farm advisory services5.3.1.1.4. Use of farm advisory services

Aim:Aim: to provide advisory services on farm managementto provide advisory services on farm management to enhance sustainable development to enhance sustainable development to meet cross compliance, GAEC and work safety to meet cross compliance, GAEC and work safety

requirementsrequirements

BeneficiariesBeneficiaries Farmers and forestholdersFarmers and forestholders

Amount of supportAmount of support Max. 80% of the advisory service fee, but not more Max. 80% of the advisory service fee, but not more

than 700 euro/year and 1500 euro/7 yearsthan 700 euro/year and 1500 euro/7 years

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5.3.1.2.1. Modernisation of agricultural 5.3.1.2.1. Modernisation of agricultural holdingsholdings Aim:Aim:

upgrading the technological level of animal husbandry, horticulture and upgrading the technological level of animal husbandry, horticulture and arable farming arable farming

the diversification of the arable-sector-based agriculture by promoting the diversification of the arable-sector-based agriculture by promoting investments in horticulture and the production of biomass investments in horticulture and the production of biomass

aims to ensure the compliance with the relevant requirements of the EU in aims to ensure the compliance with the relevant requirements of the EU in particular in the field of environmental standardsparticular in the field of environmental standards

Support schemesSupport schemes Machinery for arable farmingMachinery for arable farming Constructions for arable farming (grain dryers, cleaners and storehouses)Constructions for arable farming (grain dryers, cleaners and storehouses) Machinery for horticultureMachinery for horticulture Modernization of horticultural plantationsModernization of horticultural plantations Modernization of animal husbandry facilities (manure storage)Modernization of animal husbandry facilities (manure storage) Establishment of periannual plantations (fruit and energy)Establishment of periannual plantations (fruit and energy) GAZDANetGAZDANet

Beneficiaries Beneficiaries Farmers with a farm size above 4 ESU (except GAZDANet)Farmers with a farm size above 4 ESU (except GAZDANet)

Amount of supportAmount of support On average 40% of the eligible costs (in the case of young farmers 50%)On average 40% of the eligible costs (in the case of young farmers 50%)

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5.3.1.2.2. Increasing the economic value 5.3.1.2.2. Increasing the economic value of forestsof forests

Aim:Aim: upgrading of the machinery used for forestry upgrading of the machinery used for forestry

purposespurposes

BeneficiariesBeneficiaries Forest holders with 50 hectars of forest or aboveForest holders with 50 hectars of forest or above

Amount of supportAmount of support Max. 50% of the eligible costs (60% in the case of Max. 50% of the eligible costs (60% in the case of

LFA, or NATURA 2000 area)LFA, or NATURA 2000 area)

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5.3.1.2.3. Adding value to agricultural 5.3.1.2.3. Adding value to agricultural productsproducts

Aim:Aim: to to promote the development of processing farm products promote the development of processing farm products

for food purposes (meat, poultry, dairy, milling, wine, for food purposes (meat, poultry, dairy, milling, wine, fruits and vegetables, etc.)fruits and vegetables, etc.)

to to promote the development of processing farm products promote the development of processing farm products for non-food purposes (bio-fuel production)for non-food purposes (bio-fuel production)

BeneficiariesBeneficiaries Small and medium enterprises Small and medium enterprises

Amount of supportAmount of support Max. 50% of the eligible costs (except for the Central Max. 50% of the eligible costs (except for the Central

Hungarian region, where it is 40%)Hungarian region, where it is 40%)

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5.3.1.2.5. Infrastructure related to the 5.3.1.2.5. Infrastructure related to the development and adaptation of agriculture and development and adaptation of agriculture and forestryforestry Aim:Aim:

to improve the conditions and capacity utilization of the facilities required for to improve the conditions and capacity utilization of the facilities required for the provision of irrigation water the provision of irrigation water

to protect agricultural lands by means of ameliorative interventions, to protect agricultural lands by means of ameliorative interventions, ttoo establish paved agricultural roads and foresry exploration roads establish paved agricultural roads and foresry exploration roads

Support schemesSupport schemes Development of communal facilities of irrigation and ameliorationDevelopment of communal facilities of irrigation and amelioration Collective investments in water-flow regulations, elimination of water damages, Collective investments in water-flow regulations, elimination of water damages,

regulation of excess surface waters regulation of excess surface waters Development of the forestry infrastructure Development of the forestry infrastructure Development of agricultural roads Development of agricultural roads

Water- and energy-supply of agricultural holdings Water- and energy-supply of agricultural holdings BeneficiariesBeneficiaries

Farmers, forest holders, municipalities, water management associations, Farmers, forest holders, municipalities, water management associations, producer groups producer groups

Amount of supportAmount of support Max. 70% of the eligible costsMax. 70% of the eligible costs

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5.3.1.4.2. Setting up of producer groups5.3.1.4.2. Setting up of producer groups

Aim:Aim: to facilitate the steady marketing of the products of to facilitate the steady marketing of the products of

agricultural producers by means of supporting the agricultural producers by means of supporting the establishment, operation and enlargement of producer establishment, operation and enlargement of producer groupsgroups

BeneficiariesBeneficiaries Producer organizations (also with preliminary licence Producer organizations (also with preliminary licence

from MARD)from MARD)

Amount of supportAmount of support 1.5-5% of the marketed product value (depending on 1.5-5% of the marketed product value (depending on

the size of the PO, and with decreasing rate for 5 the size of the PO, and with decreasing rate for 5 years)years)

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Results at mid-term Results at mid-term

Resources used:Resources used: For the NHRDP:For the NHRDP: 70%70% For Axis I :For Axis I : 80%80%

Beneficiaries Beneficiaries Training:Training: 20,00020,000 Advisory: 15,000Advisory: 15,000 Modernization of agriculture: 16,000Modernization of agriculture: 16,000

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Thank you for your attention!Thank you for your attention!