The entire amount of EU subsidies granted for land in excess of 1,200 hectares will be withheld by the government and redistributed to animal farmers and smallholders in the new seven-year EU budget period.

The government will assign Ft 30-35 billion annually to vegetable farming and fruit orchards, preferring these labour-intensive forms of farming.

Fazekas said the changes will create 50,000-70,000 jobs in the agriculture sector, with the ultimate goal of increasing the number of people living from agriculture from 195,000 to 500,000-600,000.

The news provoked outrage from agricultural co-operators and producers association MOSZ, which represents large-scale grain farming operations – the former agricultural co-operatives.

Its statement warned that the changes will bankrupt those farmers who account for one-fourth of agricultural output, and endangers tens of thousands of jobs.

Source: Hungary Around the Clock

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