Today, the European Commission approved the CAP Strategic Plan for Hungary. The new Common Agricultural Policy (CAP), set to start on 1 January 2023, is designed to shape the transition to a sustainable, resilient and modern European agricultural sector. Under the reformed policy, funding will be more fairly distributed among farms, with an emphasis on small and medium-sized farms, as well as young farmers. Moreover, farmers will be supported to take up innovation, from precision farming to agro-ecological production methods. By supporting concrete actions in these and other areas, the new CAP can be the cornerstone for food security and farming communities in the European Union.
The new CAP incorporates a more efficient and effective way of working. EU countries will implement national CAP Strategic Plans, combining funding for income support, rural development and market measures. In designing its CAP Strategic Plan, each Member State chose from a wide range of interventions at EU level, tailoring and targeting them to address their specific needs and local conditions. The Commission has been assessing whether each Plan is aimed towards the ten key CAP objectives, which touch upon shared environmental, social and economic challenges. The Plans need to be in line with EU legislation and should also contribute to the EU's climate and environmental goals, as set out in the Commission's Farm to Fork and Biodiversity strategies.
The CAP will benefit from €270 billion EU funding for the 2023-27 period. The Hungarian Plan approved today will receive €8.4 billion from the EU budget, including €2 billion dedicated to environmental and climate objectives and eco-schemes, and €186 million for young farmers.
The CAP Plan of Hungary offers a wide range of interventions aimed at securing a fair income for farmers, as well as achieving a fairer distribution of financial support amongst them. Measures in the Plan will also facilitate the setting-up of 8 800 young farmers. A priority of the Plan is the modernisation of 7 700 farms. Short and local supply chains are also important elements in terms of market access for local products and reducing transport costs and emissions. Sectors facing difficultires will get an additional income support, coupled with production, will also be given to sectors that are facing difficulties, in order to strengthen their resilience.
Hungary allocates, among others, 38% of the rural development budget to agri-environmental interventions, 8% to the further development of organic farming and about 5% to the protection of Natura 2000 sites, which cover around 162 631 hectares. These schemes added together will contribute to sustainable nutrient management and the reduction of fertiliser application and ammonia emissions. In addition, Hungary’s ambition is to double the area under organic farming by 2027. Rural development measures will contribute to develop local crafts and artisanal industries, strengthen the economic activities of local micro and small businesses, and boost local ecotourism and local gastronomic and cultural festivals. Around 30% of the rural population will benefit from improved rural services and at least 7 000 new jobs will be created by projects supported by the Plan.
More information on each Plan as well as the breakdown of their CAP budget is available in the “at a glance” documents.
The European Commission presented its proposal for the Common Agricultural Policy (CAP) reform in 2018, introducing a new way of working to modernise the EU's policy on agriculture. Following extensive negotiations between the European Parliament, the Council of the EU and the European Commission, an agreement was reached and the new CAP was formally adopted on 2 December 2021.
The deadline set by co-legislators for Member States to submit their CAP Strategic Plan was 1 January 2022. After receiving the Plans, the Commission sent observation letters to all of the Member States by 25 May 2022. They were published on the Europa website together with the reactions of all Member States, in line with the transparency principle. A structured dialogue between the Commission services and national authorities resumed thereafter to solve remaining issues and finalise the revised CAP Plans.
Hungary submitted its first proposals for a CAP Strategic Plan on 30 December 2021, after consultation with stakeholders. The country then sent its reviewed proposals, addressing the Commission’s observations, on 14 October 2022.
To be approved, each Plan must be complete and compatible with the legislation, and ambitious enough to deliver on the CAP objectives and EU environmental and climate commitments.
For more information
“At a glance”: insights into the CAP Strategic Plan of Hungary
- Publication date
- 7 November 2022
- Directorate-General for Agriculture and Rural Development