Farmers to Receive Compensation for Damages
In response to significant damages caused by spring frost and drought last year, affecting over 20,000 hectares, the Hungarian Ministry of Agriculture announced on Thursday a substantial financial relief package.
Approximately 1,680 agricultural producers will benefit from agricultural damage relief payments totaling 2.85 billion forints, covering damages over an area exceeding 20,400 hectares. This payout, expected to be completed by the end of March, aims to aid those affected by the adversities of the previous year.
The Ministry highlighted that these compensations play a crucial role in supporting agricultural producers through spring operations and in maintaining production. The initiative is part of a consciously developed agricultural risk management system over the past decade.
Breaking down the total relief amount, spring frost claims will receive more than 863 million forints, drought damage about 796 million forints, hail damage nearly 480 million forints, damages from cloudbursts approximately 330 million forints, storm damages around 247 million forints, waterlogging damage roughly 97.5 million forints, autumn frost damage 24.2 million forints, and winter frost damage 13.2 million forints, as delineated by the Hungarian Treasury.
Eligibility for the damage relief benefits, and the determination of the compensation amounts, were based on documented damage events verified by government offices during the relief period from November 1, 2022, to October 31, 2023. This form of assistance is available to those who have contributed to the damage relief contribution, with full compensation contingent upon having market insurance.
The Ministry of Agriculture emphasizes its aim to enhance the profitability of agricultural activities. Since 2012, the continuous development of the agricultural risk management system, with the agricultural damage mitigation system as its cornerstone, has contributed to income security and predictability for farmers. Additional tools within this framework include agricultural insurance premium subsidies and agricultural crisis insurance, promoting self-care among farmers.
The agricultural damage mitigation system, designed to manage extraordinary, large-scale damages adequately, will start leveraging the resources available under the Hungarian CAP Strategic Plan for 2024-2027 from next year onwards, the Ministry of Agriculture disclosed.
The Ministry highlighted that these compensations play a crucial role in supporting agricultural producers through spring operations and in maintaining production. The initiative is part of a consciously developed agricultural risk management system over the past decade.
Breaking down the total relief amount, spring frost claims will receive more than 863 million forints, drought damage about 796 million forints, hail damage nearly 480 million forints, damages from cloudbursts approximately 330 million forints, storm damages around 247 million forints, waterlogging damage roughly 97.5 million forints, autumn frost damage 24.2 million forints, and winter frost damage 13.2 million forints, as delineated by the Hungarian Treasury.
Eligibility for the damage relief benefits, and the determination of the compensation amounts, were based on documented damage events verified by government offices during the relief period from November 1, 2022, to October 31, 2023. This form of assistance is available to those who have contributed to the damage relief contribution, with full compensation contingent upon having market insurance.
The Ministry of Agriculture emphasizes its aim to enhance the profitability of agricultural activities. Since 2012, the continuous development of the agricultural risk management system, with the agricultural damage mitigation system as its cornerstone, has contributed to income security and predictability for farmers. Additional tools within this framework include agricultural insurance premium subsidies and agricultural crisis insurance, promoting self-care among farmers.
The agricultural damage mitigation system, designed to manage extraordinary, large-scale damages adequately, will start leveraging the resources available under the Hungarian CAP Strategic Plan for 2024-2027 from next year onwards, the Ministry of Agriculture disclosed.
Translation:
Translated by AI
