Factsheet on Rural Development Programme for Hungary

Transcription

1 Factsheet n Rural Develpment Prgramme fr Hungary The Rural Develpment Prgramme (RDP) fr Hungary was frmally adpted by the Eurpean Cmmissin n 10 August 2015, utlining Hungary's pririties fr using the 4.2 billin f public mney that is available fr the 7-year perid ( 3.4 billin frm the EU budget and 740 millin f natinal c-funding). Hungary's RDP is putting emphasis n actins related t restring, preserving and enhancing ecsystems, prmting scial inclusin, pverty reductin and ecnmic develpment in rural areas and prmting fd chain rganisatins and risk management in agriculture. Almst ha agricultural land is expected t cme under management cntracts supprting bidiversity, better water management and sil management. In additin, ha f frests will cme under management cntracts mainly fr prtecting bidiversity. Hungary's RDP will cntribute t scial inclusin and ecnmic develpment in rural areas by bringing imprved services t 68% f the rural ppulatin investment prjects will receive supprt t increase energy efficiency in the agricultural and fd prcessing sectr. The RDP will supprt investment prjects related t prcessing activities and a further t imprve the cmpetitiveness f farmers. Yung farmers and shrt supply chain will have dedicated sub-prgrams, under which yung farmers and farms will receive targeted supprt. Hungary has put particular emphasis n innvatin when selecting peratins and 3.6% f RDP public expenditure is earmarked fr actins that fster innvatin and cperatin including prjects under the Eurpean Innvatin Partnership. Supprt fr Rural Develpment is the 2nd Pillar f the Cmmn Agricultural Plicy, prviding Member States with an envelpe f EU funding t manage natinally r reginally under multi-annual, c-funded prgrammes. In ttal, 118 prgrammes are freseen in all 28 Member States. The new RD Regulatin fr the perid addresses six ecnmic, envirnmental and scial pririties. Prgrammes cntain clear targets setting ut what is t be achieved. Mrever, in rder t crdinate actins better and maximise synergies with the ther Eurpean Structural & Investment Funds (ESIF), a Partnership Agreement has been agreed with each Member State highlighting its brad strategy fr EU-funded structural investment. This dcument prvides a brief verview f hw the challenges and pprtunities Hungary is facing are addressed by the RDP. In the annex, a table indicates the pririties and fcus areas each with their specific targets, and their allcated budgets. 1. SITUATION AND KEY CHALLENGES Hungary is a rural cuntry with 66.3% f its area classified as rural, 33.1% as intermediate and nly 0.6% is cnsidered urban. 46% f the ppulatin lives in rural areas. Agricultural land cvers 57% and frestry 21% f the ttal territry. Cmpared t the EU average the Hungarian agricultural sectr is atypical with very high share f arable farming (81% f agricultural land) and lw grassland (14.2%).

2 Hungary has very favurable agr-eclgical cnditins fr agricultural prductin, which represent a significant grwth ptential. The share f agriculture in the GDP is 4%, while the verall agricultural industry (agricultural engineering and chemical industry, fd prcessing industry, etc.) has a 15% share f the GDP. Agriculture and fd industry are imprtant pillars f the lcal ecnmy, particularly in rural areas. The average farm size in Hungary is 8.1 ha - much belw the EU average; 87% f the farms have less than 5 ha. The average age f farmers in Hungary is 56 years; therefre there is an urgent need fr generatinal renewal. The extent f hrizntal and vertical c-peratin in the Hungarian agri-fd sectr is lw. The rural emplyment rate is lw, and the unemplyment rate fr yung peple and wmen is especially high cmpared t the natinal average. Cncerning climate change, Hungary is frequently hit by imprtant water imbalances between drught and flds and there is a clear need fr mre efficient water management. Hungary has a limited and utdated irrigatin system and nly 2.4% f the agricultural area is irrigated. Organic prductin is amng the lwest in EU with 2.7%. Cncerning bidiversity 83% f habitats are in pr cnditin. The main envirnmental challenges t be tackled cncern the prtectin f bidiversity, the quality f surface and grund water and sil ersin. 2. HOW HUNGARY'S RDP WILL ADDRESS THESE CHALLENGES In addressing these challenges, Hungary's RDP will fund actins under all f the six rural Develpment pririties with a particular emphasis n restring, preserving and enhancing ecsystems related t agriculture and frestry as well as prmting scial inclusin, pverty reductin and ecnmic develpment in rural areas and prmting fd chain rganisatins and risk management in agriculture. The fcus f each pririty is explained briefly belw. Knwledge transfer and innvatin in agriculture, frestry and rural areas Hungary is investing quite heavily in actins related t this pririty. Knwledge transfer will address the training, infrmatin actins, exchanges and farm visits, advisry services and the training f advisrs. In ttal, participants will benefit frm training supprted by the RDP. An imprtant element is innvatin: 470 prjects will be supprted t strengthen the link between agriculture, fd and frestry sectrs and research and innvatin, 70 f which will be under the Eurpean Innvatin Partnership. Cmpetitiveness f agri sectr and sustainable frestry Given the ageing farmer ppulatin and the small size f agricultural hldings in Hungary, the RDP will supprt the start-up f yung farmers and the develpment f small farms. The investments and mdernisatin f existing and cmpetitive farms is als prgrammed with a clear targeting n the animal husbandry and hrticultural sectr and n yung farmers. Fd chain rganisatin, including prcessing and marketing f agricultural prducts, animal welfare and risk management in agriculture Under this pririty, Hungary will supprt prjects targeting prcessing and marketing develpment. It aims t imprve the market psitin f the farmers by supprting the setting up f 200 prducer grups, which will bring tgether farmers. Hungary will als supprt farmers participatin in quality schemes and quality prmtin activities. Hungary als intrduces risk management instruments. Insurance premiums and incme stabilisatin supprt will be prvided t farms.

3 Restring, preserving and enhancing ecsystems related t agriculture and frestry Under this pririty Hungary will target interventins n territries with inland water and drught prblems and n high nature values areas. Arund 11.5% f agricultural land and 6.4% f frests will be under management cntracts fr supprting bidiversity, t imprve water and sil management. Arund 26% f the allcated EAFRD funds will be used fr area-based payments t farmers fr using envirnment/climate-friendly land management practices, including rganic farming, supprt t areas facing natural cnstraints and supprt t areas under Natura 2000 management. Over hectares f farmland will receive supprt t either cnvert r maintain rganic farming. Resurce efficiency and climate The RDP has a strng fcus n energy efficiency related investments in the agriculture and fd prcessing sectrs and aims at supprt f prjects. Efficiency f existing water management systems will als be imprved n ha f agricultural land. Under this pririty, the RDP will pursue carbn sequestratin mainly by supprting affrestatin, agrfrestry systems, the preventin and restratin f damage t frest, the imprvement f the resilience and envirnmental value f frest ecsystems, as well as their cnservatin, als by encuraging envirnmentally and climate friendly frest cnservatin services. The RDP will als pursue the reductin f greenhuse gas and ammnia emissins by investments in manure strage. Scial inclusin and lcal develpment in rural areas The Hungarian RDP cmplements ther EU interventins in rural areas. It supprts the diversificatin f farmers' activities and it imprves access t lcal services (lcal markets, scial enterprises, secndary rads, hmesteads). The RDP will als supprt small and very small villages' basic service develpment by waste water treatment in villages with less than inhabitants and with the establishment f multifunctinal cmmunity spaces in villages with less than inhabitants. Lcal Develpment Strategies will be implemented thrugh LEADER Lcal Actin Grups and will cver ver 68% f the rural ppulatin. Thanks t the peratins prgrammed under this pririty, additinal jbs will be created and 68% f the rural ppulatin will benefit frm imprved services. The fur majr RDP measures in budgetary terms (ttal public funding) are: millin allcated t measure 4 (Investments in physical assets) 638 millin allcated t measure 10 (Agr-envirnment-climate) 328 millin allcated t measure 6 (Farm and business develpment) 279 millin allcated t measure 7 (Basic services in rural areas)

4 Annex 1: Indicative public supprt fr the Rural Develpment Prgramme in Hungary Target Measure Ttal public % Pririty1: Knwledge transfer and innvatin in agriculture, frestry and rural areas 1 1A: Fstering innvatin, c-peratin, knwledge base 3.6% f RDP expenditure 01 knwledge 02 advisry 16 c-peratin 1B: Strengthening links (with research etc.) 470 cperatin prjects 1C: Training participants trained 16 c-peratin 01 knwledge Pririty 2: Farm viability, cmpetitiveness and sustainable frest management A: Ecnmic perfrmance, restructuring & mdernisatin 0.98% f hldings with RDP supprt 01 knwledge advisry investments farm / business develpment c-peratin B: Generatinal renewal 0.61% f hldings with RDP supprted business develpment plan/investments fr yung farmers 01 knwledge advisry investments farm / business develpment Pririty 3: Fd chain rganisatin, including prcessing and marketing f agricultural prducts, animal welfare and risk management A: Imprving cmpetitiveness f primary prducers 5.43% f agricultural hldings receiving supprt fr participating in quality schemes, lcal markets and shrt supply circuits, and prducer grups/rganisatins ttal investment fr the prcessing/ marketing and/r develpment f agricultural prducts 01 knwledge advisry quality schemes investments prducer grups/rganisatins animal welfare c-peratin B: Farm risk preventin and management 3.10% f farms participating in risk management schemes 05 restring agric. ptential risk management N financial allcatin shwn fr Pririty 1 as the expenditure is distributed acrss ther fcus areas.

5 Pririty 4: Restring, preserving and enhancing ecsystems in agriculture and frestry A Bidiversity 01 knwledge % f agricultural and 5.08% f frestry under cntracts 02 advisry 04 investments B Water management 3.57% f agricultural and 0.59% f frestry land under cntracts 08 frests 10 AEC 11 rganic farming 12 NAT-WFD C Sil ersin and management 13 ANC % f agricultural and 0.77% f frestry land under cntracts 15 frest-envirnment 16 c-peratin Pririty 5: Resurce efficiency and shift t lw carbn and climate resilience ecnmy in agriculture, fd and frestry sectrs A Water efficiency 5.75% f irrigated UUA supprted 04 investments B Energy efficiency ttal fr energy efficiency investments in the agricultural and fd sectrs 01 knwledge advisry investments C Renewable energy ttal investment in renewable energy prductin 5D Reducing GHG and NH3 1.41% f agricultural land under management cntracts targeting reductin f GHG and/r ammnia emissins 5E Carbn cnservatin and sequestratin 0.59% f agricultural and frest land under management cntracts cntributing t carbn sequestratin r cnservatin 08 frest investments knwledge advisry frests c-peratin Pririty 6: Scial inclusin, pverty reductin and ecnmic develpment in rural areas A Diversificatin, creatin f small enterprises and jbs 04 investments jbs created in supprted prjects 06 farm / business develpment frest c-peratin B Fstering lcal develpment 68.03% rural ppulatin under lcal develpment strategies 68.03% rural ppulatin with imprved services/infrastructure 07 basic services LEADER and CLLD Expenditure under Pririty 4 is prgrammed fr the pririty as a whle, nt fr individual fcus areas.

6 500 jbs created (via LEADER) Technical Assistance Measure Ttal public expenditure