Budapest, August 5 (MTI) – The government’s planned subsidy cuts have created tensions in the farming sector, the head of the Association of Agricultural Producers (MOSZ) said today.
Area-based European Union subsidies are set to drop by at least 150,000 euros per farm with land exceeding 1,200 hectares, under a government decision announced in mid-July. The subsidies will be used to support animal husbandry instead, farm minister Sandor Fazekas said earlier.
Tamas Nagy, the head of MOSZ, said the subsidy cut would make life difficult mostly for farmers who worked through the tough years after the democratic transition before managing to stabilise their businesses, which are often the sole legal employers in the area, Nagy said.
The green opposition LMP party said the government’s move would not fulfil its stated aim of helping small farmers. The subsidies are currently mainly absorbed by farms of 300-1,200 hectares, LMP lawmaker Benedek R. Sallai told a news conference on Tuesday. LMP would draw away subsidies from 300-1,200 hectare farms and give them to small farmers with just one or two hecatres, Sallai said, adding that the subsidy distribution should also take into account the number of jobs a farm provides.