Hungary’s government is ramping up support for the agricultural sector, with officials highlighting record levels of funding aimed at strengthening competitiveness, stabilising rural economies and supporting investment across the country.
Speaking at an agricultural conference organised by Borsod Agroker Zrt. in Miskolc, András Tállai, Parliamentary State Secretary at the Ministry of Agriculture, said the government expects commitments linked to agricultural investment programmes to reach HUF 1,000 billion by March.
According to Tállai, the scale of recent financial support demonstrates the government’s commitment to maintaining stability in a sector that faced significant challenges in 2025.
Record Levels of Agricultural Funding
Total agricultural and rural development payments in 2025 reached HUF 1,509 billion, reflecting one of the largest annual support packages for Hungarian agriculture in recent years.
Much of this funding stems from the long-running Rural Development Programme, which has been operating since 2014. Over that period, nearly HUF 3,000 billion has been distributed to rural areas, supporting approximately 394,000 investment projects.
The impact has been particularly visible in Borsod-Abaúj-Zemplén County, where more than 29,000 projects received funding, with total payments reaching around HUF 228 billion.
Officials say these investments have helped modernise farms, expand food-processing capacity and strengthen infrastructure in rural regions.
The New CAP Strategy
Looking ahead, Hungary’s agricultural sector will continue to rely heavily on funding from the European Union’s Common Agricultural Policy (CAP).
Under the country’s CAP Strategic Plan, which runs until 2027, more than HUF 5,650 billion will be available to support the sector. Of that amount, roughly HUF 3,150 billion — about 55 percent — is earmarked specifically for agricultural and rural development programmes.
These funds will be distributed across several priority areas.
More than HUF 441 billion has been allocated for the comprehensive development of food-processing plants, while HUF 39.7 billion will support smaller-scale agricultural investments. Modernisation of livestock farms will receive HUF 67.7 billion, and HUF 72.29 billion has been set aside for horticultural development.
Additional funding includes HUF 9.67 billion for orchard planting and medicinal herb cultivation, as well as HUF 2.1 billion aimed at supporting small ornamental horticulture businesses.
Taken together, these programmes are intended to improve productivity, boost technological adoption and strengthen Hungary’s domestic food supply chain.
Protecting Farmers in Global Markets
Despite the strong financial backing, Hungarian agriculture faces challenges beyond domestic policy.
Tállai warned that the proposed Mercosur trade agreement between the European Union and several South American countries could create serious competitive pressures for Hungarian farmers if introduced without adequate safeguards.
According to the ministry, increased imports from South America could affect several key sectors of Hungary’s agricultural economy, including meat, sugar and honey production.
Officials also argue that such an agreement could conflict with Hungary’s GMO-free agricultural strategy, which remains a cornerstone of national agricultural policy.
Strengthening Rural Economies
Beyond direct farm support, agricultural funding is also seen as a tool for broader rural development.
Agriculture remains one of the main economic pillars in many regions outside Hungary’s major cities. Investment programmes tied to farming, food processing and rural infrastructure therefore have significant spillover effects for employment and local economic activity.
Government officials say the goal is not only to increase farm output but also to ensure that value-added processing, logistics and supply chains remain anchored within Hungary.
Strengthening domestic food production capacity is also framed as a strategic objective, particularly in light of recent global supply disruptions.
A Long-Term Strategy
The scale of agricultural funding now flowing into the sector reflects a long-term policy direction rather than a short-term response to economic pressures.
Hungary’s agricultural strategy aims to combine modernisation, sustainability and rural economic development, while maintaining a strong domestic food supply and protecting farmers from volatile global market conditions.
As Tállai emphasised during the conference, government support programmes are intended to ensure that Hungarian farmers remain competitive while continuing to provide high-quality food for domestic consumers.
With billions of forints in investment funding still being rolled out over the coming years, the sector is likely to remain a central focus of economic policy — particularly in rural regions where agriculture continues to shape livelihoods and local communities.
