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Short introduction of the NRDP
The National Rural Development Plan for the EAGGF Guarantee Section Measures 2004-2006 (further referred to as NRDP), as a document fitting into the structure of the National Development Plan, was a tool of key importance regarding the sustainable development of rural areas.
The primary objectives of the NRDP – aligned with the single objective system set in the National Development Plan – were set to enhance the development of rural areas and the sustainable development of agricultural economy. The base materials of the NRDP were the situation analysis, SWOT analysis and strategy elaborated for the National Development Plan and the Agricultural and Rural Development Operational Programme. These documents underpinned the implementation of rural development measures financed by the
EAGGF Guarantee Section. The strong coherence among these three programmes was ensured by the common grounds. The financial tool assigned to the priorities included in the NRDP was the EAGGF Guarantee Section, thus these measures represented a unique, mixed system: generally application-based, yet normative supports were available through the programme. We counted on the utilisation of the entire, annually increasing resources that can also mean the gradual introduction of the various measures.
The measures provided responses to environmental challenges (Agri-environment, Support for less favoured areas, Support of compliance with the environmental, animal welfare and hygiene stipulations of the European Union, Support of afforestation of agricultural lands), furthermore they participated in the alleviation of socio-economic difficulties caused by the transition (Support of setting up and operation of producer groups, Support for semi subsistence farms undergoing restructuring, Early retirement).
The strategy was consistent with the priorities and objectives of rural development defined in the NDP and the included Operational Programmes taking the development of rural areas on board, primarily the ARDOP. The connection of the agricultural and rural development objectives to the national objectives were described as follows.
Objectives of agricultural and rural development to be reached by the implementation of the ARDOP and the
NRDP:
- improving the competitiveness of agricultural production and food processing,
- environment-friendly development of agriculture, rationalisation of land use,
- assistance to the realignment18 of rural areas.
The
general objectives of the NRDP were to improve income and safeguard employment in rural areas, to ensure environment-friendly development of agriculture, rationalisation of land use and to encourage landscape management.
Specific objectives
- To extend and improve income opportunities, strengthen rural employment, establish new alternatives for agriculture in compliance with the requirements of environmental protection;
- To set up appropriate production structures that match the characteristics of the corresponding cultivated areas, to encourage environmentally aware farming and sustainable landscape management;
- To improve the quality of the environment and to reduce environmental contamination of agricultural origin;
- To strengthen the market position of producers;
- To improve the viability and the economic efficiency of farms;
- To increase forest cover and thereby improve the ecological conditions and strengthen the economic, social and public welfare role of forests.
Within the framework of the NRDP EUR 602.3 million was available in the period between 2004 and 2006. The Community resources were complemented by national contribution worth EUR 151.84 million regarding the same period. Therefore altogether more than EUR 750 million could be used for implementing the measures of the programme. This amount, depending on the exchange rates, summed up approximately
HUF 180 to 190 billion.
The tools for achieving the objectives of the NRDP and their financial weight within the NRDP were as follows:
1.
Agri-environment: The measure provided support for farmers applying farming methods in compliance with the rules of Good Farming Practice as well as with the specific conditions of the different schemes of the measure. Schemes were developed for arable land, grassland, permanent cultures, wetland and extensive animal husbandry of endangered breeds, covering this way all kind of land use methods. Zonal programmes were elaborated for designated areas called High Nature Value Areas, where specific programmes served special nature conservation aims. The measure engaged approximately 41% of the NRDP budget that means EUR 307.2 million, including both Community and national contribution.
2.
Support of Less Favoured Areas: The measure provided compensatory payments to farmers maintaining farming activities on land designated as a Less Favoured Area. On these areas the land abandonment is relatively high, so the measure aimed at cease of this phenomenon by supporting the agricultural activities that were met the prescriptions of Good Farming Practice. The measure engaged approximately 11% of the NRDP budget that means EUR 81.42 million, including both Community and national contribution.
3.
Meeting standards: The measure provided assistance on one hand to solve the environmental problem generated mainly by the accumulation of organic (liquid and stable) manure by supporting the on-site manure management. On the other hand it assisted to improve animal welfare and hygienic conditions through improving husbandry technologies in order to meet the relevant EU standards. The measure engaged approximately 20% of the NRDP budget that means EUR 150.85 million, including both Community and national contribution.
4.
Afforestation of agricultural land: The measure contributed to the increase of the forested area of the country as well as to the improvement of the quality of forests and their protective functions. The measure consisted of three types of support: 1) planting costs for the afforestation of agricultural land, 2) maintenance, protection and fill-in planting cost of newly planted forests, 3) premium for loss of income occurred on the afforested area. The measure engaged approximately 11% of the NRDP budget that means EUR 79.68 million, including both Community and national contribution.
5.
Support for semi-subsistence farms undergoing restructuring: The measure provided a temporary income support for farmers who produced primarily for their own consumption, but who also marketed a significant proportion of their output, and whose farms could potentially evolve into commercially viable units. The support was provided for five years as a flat rate annual aid with a maximum annual amount of 1,000 EUR/farm. Applicants had to submit a business plan demonstrating the future economic viability of the enterprise. The measure engaged approximately 3% of the NRDP budget that means EUR 24.00 million, including both Community and national contribution.
6.
Supporting the establishment and administrative operation of producer groups: The measure supported farmers of any type of agricultural production profile (except fruit, vegetable and tobacco) to set up and maintain a producer group. The support was paid upon recognition of a producer group. The amount was calculated on the basis of the annual production turnover of the group. The measure engaged approximately 5% of the NRDP budget that means EUR 34.00 million, including both Community and national contribution.
