Rural Development in Hungary

November 2005

Ministry of Agriculture and Rural Development

Dept. Of Managing Authority

Outline of the presentation

SAPARD (Special Accession Programme for Agriculture and Rural Development)

ARDOP (Agricultural and Rural Development Operational Programme)

NRDP (National Rural Development Plan) Lessons learnt

The SAPARD Programme

SAPARD is a „Special Accession Programme for Agriculture and Rural Development”.

Lessons learnt: EU conform institutions, setting up the

administrative structure (programming, management, control)

Human resource development Programming practice (SAPARD Plan) Experience in the implementation

Share of priorities in ARDOP

Priority 1: Establishment of competitive basic material production in agriculture (Assistance to investments in agriculture, Structural assistance to fisheries sector, Setting up young farmers, Assistance to vocational training and retraining)

Priority 2: Modernisation of food processing (Improvement of processing and marketing of agricultural products)

Priority 3: Development of rural areas (Expansion of rural income earning opportunities, Development of rural infrastructure, Renovation and dev. of villages, LEADER+)

Priority 4: Technical assistance.

ARDOP - Priorities & Measures

1. Establishment of competitive basic material production in agriculture 57,0% — EAGGF,FIFG

Assistance to investments in agriculture (51,3%, EAGGF) Structural assistance to fisheries sector ( 1,4%, FIFG) Setting up young farmers ( 2,8%, EAGGF) Assistance to vocational further training and retraining ( 1,5%, EAGGF)

2. Modernisation of food processing 14,0% — EAGGF

Improvement of processing and marketing of agricultural products (14%, EAGGF) 3. Development of rural areas

26,5% — EAGGF Expansion of rural income earning opportunities (12,5%, EAGGF) Development and improvement of rural infrastructure connected with the development of agriculture ( 6,0%, EAGGF) Renovation and dev. of villages and protection and conservation of rural heritage ( 3,5%, EAGGF) LEADER+ ( 4,5%, EAGGF)

4. Technical assistance 2,5% — EAGGF

ARDOP Statistics

The Commission approved the ARDOP in June 2004 The ARDOP Monitoring Committee approved the

Programme-Complement (PC) on 5 July 2004. Applications for ARDOP can be submitted from 3 May

2004.

Applications received

Applications approved by the Head of Managing Authority

Contracts ARDOP (11.11.2005)

Total ARDOP fund (2004-2006) (Number) (Amount,€) (Number) (Amount,€) (Number) (Amount,€)

Priority 1: Establishment of competitive basic material production in agriculture

241,1 millions

4076 393 millions

2461 238,3 millions

2147 195,3 millions

Priority 2: Modernisation of food processing

59,2 millions

331 120 millions

112 39,8 millions

85 32,9 millions

Priority 3: Development of rural areas

112,0 millions

1549 143 millions

589 53,6 millions

526 48,5 millions

Priority 4: Technical assistance.

10,5 millions

47 5 millions 36 3,1 millions 34 3,1 millions

TOTAL 422,8 millions

6001 661 millions

3198 334,9 millions

2792 279,9 millions

ARDOP latest events

Suspended measures Mid-term assessment

Number of applications in NRDP by measures 2004 - 2005

Afforestation of agricultural land 936+847

Agri-environment 32 685

Less Favoured Areas 5 761+747

Support for semi subsistence farms 1 031+402

Producer groups 9+148

Meeting standards 1030

Lessons learnt - experiences

Simplify as much as possible

(SAPARD was not a good training in this respect) Information – nothing is too much

(Advisory Network – Technical Assistance) Human resource capacity & development

(Managing Authority, ARDA) Keep contact with civils, NGOs

(Monitoring Committee)

Information on Hungarian ARDOP and NRDP

www.fvm.huwww.fvm.hu(Webpage of the Ministry of Agriculture and (Webpage of the Ministry of Agriculture and Rural Development)Rural Development)

www.mvh.gov.huwww.mvh.gov.hu(Webpage of the Agricultural and Rural (Webpage of the Agricultural and Rural Development Agency)Development Agency)

www.nfh.huwww.nfh.hu(Webpage of the National Development Office)(Webpage of the National Development Office)

+36 1 301-4657 +36 1 301-4657 and +36 1 301-5929 +36 1 301-5929 (Department of Managing Autority – NRDP Unit)(Department of Managing Autority – NRDP Unit)

Thank you for your attention!

Dr. Miklós MAÁCZDeputy Head of DepartmentDepartment of Managing AuthorityMinistry of Agriculture and Rural DevelopmentE-mail: maaczm@fvm.huTel: +36 1 3014657