Problems, solutions,

explanation

Environmental problems

Problem Explanation Solution

1. The Danube strategy doesn’t work

EC gave Hungary money for this problem for years 2007-2013 – 100 billion euros, but they spent this money and it wasn’t enough.

They need more money for this problem from EU budget, because it is important thing for more countries.

Environmental problems

Problem Explanation Solution

2. The Homokhatsag programme is stopped

Homokhatsag is the area with difficult living conditions and income opportunities and the Hungarian government gave money to this problem in last years, but stopped subsidies and this programme can’t be finished.

To get more subsidies from Hungarian government or EU budget for complete this project.

Environmental problems

Problem Explanation Solution

3. Overgone species are in use

There exist a lot of resistant plants and it would be better to use more of them in Hungary, but there is not enough money to create the new seeds.

The researchers need more subsidies from EU budget to create the new seeds because it is important for Hungarian agriculture.

Environmental problems

Problem Explanation Solution

4. The geothermal energy

There is a lot of geothermal energy in Hungary, but farmers can’t use it because of the laws. The utilization of this type of renewable energy became uneconomic because of the taxes and charges.

The utilisators should change the technology for getting geothermal energy and find cheaper way – innovation.

Economic problems

Problem Solution Explanation

1.Hipermarket are dominate the market of law material

The government should advertising the direct selling.Direct selling will be beneficial for the customers.

If customers use direct selling, farmers will be free form hipermarkets domination.

Economic problems

Problem Solution Explanation

2.Missing partnership and cooperation.

The Hungarian Producer Organizations should be recreated.The subsidies which PO win should use for development.Farmers should cooperate for example they should create a machinery ring.

Lot of PO’s destroyed but these organizations is useful.If farmers cooperate they will save money and they can help each other.

Economic problems

Problem Solution Explanation

3.Weak Research + Development and innovation

Research Institutes should get more subsidies.

In Hungary the Research Institutes are not developed.They do not produce for example resistant seeds variety.

Economic problems

Problem Solution Explanation

4.Not enough money to control the food security.

The national budget for institutions like the Central Agricultural Office (MgSZH) needs more employees for the food security control.The government should stop the man power reduction.

If CAO have enough employees they can use the food security like a market protection and they can check the imported food from the third countries.

Problem Solution Explanation

1.Ageing labor forceAlmost half of the farmers are over the age of 55The young farmers (< 35) are less than 8%

1.Implying measures for generation change (setting up for young farmers):

Installation aid for young farmersEarly retirement for old farmersHigher support

If the generations aren’t changing the future is not sure. The young farmers can bring some new skills and energy. They can increase the productivity and they can adapt easily in the face of new challenges and technology changes.

Social problems

Social problems

Problem Solution Explanation

2.Large number of small farms80% of the farms are small

1.Developing of the market relations2. The CAP fund should be easily accessible for small farms3. Special support 4. Co-operating betweensmall farms

The small farms have poor market relations so they should work with co-operating organizations. That could help them to increase their income.

Social problems

Problem Solution Explanation

3.Declining agricultural labor force

1.Investment in rural infrastructure2.Investment in education3.Improvement in the Social Security System

The agriculture is an important employer. The creation of new job positions in the rural areas is important for the quality of life.

Hungarian CAP reform Hungarian CAP reform interestsinterests

1.1. Protection of the hungarian Protection of the hungarian farmland.farmland.

Explanation: Extension of the ban on Explanation: Extension of the ban on foreign land buys. Against the foreign land buys. Against the selling of arable land to foreigners.selling of arable land to foreigners.

2. Keeping the milk quotas2. Keeping the milk quotas

Explanation: The hungarian Explanation: The hungarian government is fighting to keep the government is fighting to keep the milk quotas or at least to have very milk quotas or at least to have very long lasting phasing out period.long lasting phasing out period.

Hungarian CAP reform Hungarian CAP reform interestsinterests

3. Fighting against the reduction of 3. Fighting against the reduction of agricultural subsidiesagricultural subsidies

Explanation: Hungary is against the Explanation: Hungary is against the further cut of direct subsidies to farmers further cut of direct subsidies to farmers and also oppose the idea to base the level and also oppose the idea to base the level of payments to historical principle (more of payments to historical principle (more for the old member states).for the old member states).

4. Protection of the competitiveness of 4. Protection of the competitiveness of hungarian animal breedershungarian animal breeders

Explanation: Subsidies for introducing Explanation: Subsidies for introducing electronic identification systems for electronic identification systems for poorer member statespoorer member states

Hungarian CAP reform Hungarian CAP reform interestsinterests

5. Making the agriculture a strategic 5. Making the agriculture a strategic sectorsector

Explanation: Fidesz pledge to create 1 Explanation: Fidesz pledge to create 1 million job positions mainly in this million job positions mainly in this sectorsector

ConclusionConclusion:: Hungarian agriculture Hungarian agriculture would be much smaller or even would be much smaller or even disappear without the measures of disappear without the measures of direct payments, milk quotas and direct payments, milk quotas and intervention mechanisms intervention mechanisms

Thank you for your kind attention!

Sandra IVANOVA

Miroslava GOGOVA

Zsuzsanna KUJANI