Ministry of Rural Development.

According to Council Regulation (EC) No 1260/1999 laying down general provisions on the Structural Funds1, regions and countries covered by Objective 1 - regions whose development is lagging behind where per capita GDP is less than 75 % of the Community average - need to prepare a strategic document, National Development Plan (NDP), for the planning period defined by the EU. The European Commission - based on the NDP negotiations with the Hungarian Government - prepares the Community Support Framework (CSF). The CSF represents the legal framework for financial support, and contains the financial commitments of the EU and the Member State related to the development programmes for the Member State launched in the given EU budget period.

On the basis of the negotiations on the programming documents submitted by Hungary, which were concluded by the end of 2003, the CSF for Hungary 2004-2006 will be implemented by five Operational Programmes.

One of these is the Agriculture and Rural Development Operational Programme (ARDOP), which ensures the realisation of the strategic objectives set in the CSF together with the other Operational Programmes. It contains an analysis of the situation of agriculture and the rural areas, the strategy determining the objectives and the directions of development, as well as a brief summary of the priorities and content of each measure and of the implementing provisions. The detailed description of the measures as well as of the implementing provisions is contained in the Programming Complement.

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- Links to the Community Support Framework directives and priorities.

The Agriculture and Rural Development Operational Programme contributes to the realisation of the strategic objectives set forth in the Community Support Framework by providing support for a more competitive and sustainable agricultural sector (including agriculture, fisheries and food processing) and by promoting an integrated development of rural areas, based on the improvement of the income level and the job opportunities of the population.

It is linked to the specific objective of improving Hungary's economic competitiveness, to be achieved mainly through the first priority of the Community Support Framework. An increased competitiveness also builds on the strengthening of the economic potential of rural areas: the integrated development of rural areas has therefore been inserted in this priority, while also contributing significantly to another specific objective of the CSF, i.e. a more balanced regional development. A number of activities supported by the ARDOP will also contribute to the other two specific objectives of the CSF, i.e. improving the use of human resources and improving infrastructure and protecting the environment.

The specific objectives of the Operational Programme are:

The above mentioned objectives are translated into the following priorities:

 

The priority aims at increasing the competitiveness of agricultural production, including fisheries, through investments to reduce production costs, increase the added value and the quality of goods and preserve and improve the environment, hygiene conditions and animal welfare standards. The priority will also support the setting-up of young farmers, to improve the economic viability of agricultural holdings, and the acquisition of adequate skills and targeted training for persons involved in agricultural activities and their conversion, to adapt to the requirements of the expanded markets and to a more environmentally sound management.

The priority supports the development of food processing industry, by the modernisation of technologies and of the related logistical, storage, warehouse capacities and IT background. Investments will also focus on consumer health protection and food safety and quality, as well as on the environment (treatment of by-products and waste) and on a better adaptation to the sales channels.

This priority addresses some of the main structural weaknesses of rural areas, such as the inadequate infrastructure and the dependence of rural settlements on agricultural production. It contains three specific objectives: improving the economic potential of rural areas and increasing employment; making rural areas more attractive; developing and implementing integrated small regional pilot programmes (Leader+ approach). Such objectives will be achieved by diversifying the agricultural activities and expanding the rural business activities, such as developing rural tourism (the latter includes on-farm tourism) and handicrafts and the marketing of quality products. Support will also be provided to improve the quality and the conditions of life of rural population by the development of adequate rural infrastructure and the establishment of a more attractive residential environment, by strengthening rural communities and preserving and improving the natural and cultural heritage.

It will assist in the implementation of the programme and contribute to the achievement of its objectives.

The EU financial contribution to the Agriculture and Rural Development Operational Programme is set at 317,2 million euro for the period 2004-2006. This sum includes a contribution from the EAGGF, Guidance Section, of 312,8 million euro and a contribution of 4,4 million euro from the FIFG.

The Department of Structural Funds of the Ministry of Agriculture and Rural Development has been designated as the Managing Authority for the ARDOP.

 

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Attached documents:

Full text of the ARDOP (PDF)