Fiatal gazda (Young farmer): Financial support for young farmers to start business
Published on 01 February 2018
Hungary
Közép-Dunántúl
This is the good practice's implementation level. It can be national, regional or local.
About this good practice
In Hungary regarding to the geogpraphical position and to the geological quality of the soil agriculture still plays an important role in the national economy. The average age among the farmers has been rising and there is a lack of knowledge among the younger generations of the farmers. So there is a need to facilitate the generation change with complex approach and with the involvement of the young skilled and experienced farmers.
The call was launched within the framework of the Rural Development Operative Programme. The core goal of the programme is to support the business establishment of young farmers and regarding to this the transformation of the agricultural estate structure, improve the age structure of the farmers and to enhance the population retention of the rural parts of the country. The call offers a one-time lump sum support of 40000 € that the winners can use for general purposes in the field of setting up an agricultural business.
The tenderer and the managing authority of the programme is the Deputy State Secretariat for Agricultural and Rural Development Programmes of the Prime Minister’s Office. The beneficiaries can be natural persons between 18 and 40 years, who are sole traders in agricultural activity no longer than 12 months and have approved vocational qualifications. Legal persons can apply if the sole owner and managing director fulfil the same sole owner and managing director fulfil the same requirements.
The call was launched within the framework of the Rural Development Operative Programme. The core goal of the programme is to support the business establishment of young farmers and regarding to this the transformation of the agricultural estate structure, improve the age structure of the farmers and to enhance the population retention of the rural parts of the country. The call offers a one-time lump sum support of 40000 € that the winners can use for general purposes in the field of setting up an agricultural business.
The tenderer and the managing authority of the programme is the Deputy State Secretariat for Agricultural and Rural Development Programmes of the Prime Minister’s Office. The beneficiaries can be natural persons between 18 and 40 years, who are sole traders in agricultural activity no longer than 12 months and have approved vocational qualifications. Legal persons can apply if the sole owner and managing director fulfil the same sole owner and managing director fulfil the same requirements.
Resources needed
The dedicated amount of money is 37.75 billion HUF (~121 million €) and the expected number of winning projects is 3000.
Evidence of success
In the previous programming period 5 calls were announced, altogether 8000 young farmers were supported and 97 billion HUF (~312 million €) was spent during the programme. The winners had to work as a sole trader for five years after they received the grant and this brought young and skilled workforce into the agricultural sector.
Potential for learning or transfer
The aging rural society is a problem which affects not just Hungary but many other parts of the EU as well. The single, non-refundable grant and the fact that the scope of the eligible activities covers everything which is needed to start a business makes the programme an ideal opportunity for skilled people who have business idea but lack of financial resources.
This programme is co-financed by the European Agricultural Fund for Rural Development and by the budget of Hungary. Regarding the fact that this is a micro grant (40 000 €) other institutions in other countries in Europe can also launch a programme like this because there are no larger payments in the programme.
During the application process and the management of the project the farmers gain business skills that can be used for their future activities. There is no denying the fact that these skills are necessary at the rural societies.
This programme is co-financed by the European Agricultural Fund for Rural Development and by the budget of Hungary. Regarding the fact that this is a micro grant (40 000 €) other institutions in other countries in Europe can also launch a programme like this because there are no larger payments in the programme.
During the application process and the management of the project the farmers gain business skills that can be used for their future activities. There is no denying the fact that these skills are necessary at the rural societies.
Further information
Website
Good practice owner
You can contact the good practice owner below for more detailed information.
Organisation
Prime Minister´s Office - Hungary
Hungary
Contact
Managing Director