WORLD TRADE  
ORGANIZATION  G/SCM/N/71/HUN 
13 January 2004 
 (04-0082) 
Committee on Subsidies 
and Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the GATT 1994  
and Article 25 of the Agreement on Subsidies  
and Countervailing Measures  
 
HUNGARY 
 
 The following communication, dated 18 December 2003, is being circulated at the request of 
the Delegation of Hungary. 
 
_______________ 
 
 
INTRODUCTION 
 
 Hungary’s notification contains both industri al and agricultural assistance programmes for the 
implementation of which there was legislative author ity in 2000, irrespective of whether they became 
operative or not.  Assistance programmes for which th e legislative authority has expired, but there 
were payments in 2000, are also included.  
 
 The fact that an assistance programme ha s been notified does not, in accordance with 
Article 25.7 of the Agreement on Subsidies and C ountervailing Measures, prejudge its legal status 
under GATT 1994 or this Agreement, nor does it pr ejudge its effects under the Agreement on the 
nature of the measure itself.  Furthermore this do es not imply in any way that any of the measures 
notified, wholly or in part constitutes a specific subsidy. 
 
 In the case of previously notified programmes,  only changes that occurred therein during the 
period covered by this notification are indicated.  Newly notified programmes are reported in full, 
pursuant to the agreed format of G/SCM/6.  G/SCM/N/71/HUN 
Page 2  
 
 2000 
 
TABLE OF CONTENTS 
 
Page
 
 
1. EXPORT ENHANCEMENT PROGRAMMES ......................................................................................8  
 
1.1. Export enhancement programme for agricultural products ................................................8  
1.2 Export enhancement programme for apple harvested in 1996 ............................................9  
1.3. Export enhancement prog ramme for live pig ........................................................................9  
1.4. Export enhancement programme for potatoes for human consumption ............................9  
1.5. Intervention assistance of financing surplus stocks of dried onion ......................................9  
1.6.  Assistance to the export of seasonal milk surplus ..................................................................9  
1.7.  Assistance to the export of pork and processed pork-products..........................................10  
1.8. Export enhancement programme for rabbit for slaughter.................................................11  
1.9. Export enhancement programme for 500.000 tons of wheat for feeding purposes ..........11  
1.10. Export enhancement programme for wheat harvested in 1998..........................................11  
1.11. Export enhancement programme fo r milling  or EURO wheat .........................................12  
1.12. Export enhancement programme for table,  regional and quality white wine in 
barrels ........................................................................................................................ ..............12  
1.13. Export enhancement programme for mushroom ................................................................12  
1.14. Export enhancement programme for certain canned meat  and meat products ..............12  
1.15. Additional export assistance for certain duck meat ............................................................12  
1.16. Export enhancement programme for cert ain pork and  pork products of 
Szabolcs-Szatmár-Bereg, Borsod-Abaúj- Zemplén, Hajdú-Bihar, Jász-Nagykun-
Szolnok, Békés, Csongrád and Bács-Kiskun county............................................................13  
1.17. Export enhancement programme for surplus stocks of sugar............................................13  
1.18. Export enhancement programme for maize.........................................................................13  
 
2.  PRICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL PRODUCTS ................14  
 2.1.
 Support programmes for beef for slaughter.........................................................................14  
2.1.1.  State purchase of beef for slaughter at guaranteed price....................................................14  
2.1.2.  Intervention support for the quality production of beef for slaughter ..............................15  
2.2. Support programmes for pig for slaughter ..........................................................................16  
2.2.1.  State purchase of pig for slaugh ter at guaranteed price .....................................................16  
2.2.2.  Intervention support for the quality production of pig for slaughter ................................17  
2.2.3.  Intervention support for pig for slaughter of large weight originating from 
family farms and private producers......................................................................................19  
2.3 Support programme  for maize for feeding purposes .........................................................19  
2.3.1 State purchase of maize for feeding purposes at guaranteed price harvested in 1998 ........................................................................................................................... ...............19
 
2.3.2 State purchase of maize for feeding purposes at guaranteed price harvested in 
1999 ........................................................................................................................... ...............20  
2.3.3 State purchase of maize for feeding purposes at guaranteed price harvested in 
2000. .......................................................................................................................... ...............21  
2.4 Support programmes for wheat for human consumption...................................................22  
2.4.1.  State purchase of wheat for human consumption harvested in 1998 at 
guaranteed price ............................................................................................................... ......22  
2.4.2.  State purchase of wheat for human consumption harvested in 1998 at 
guaranteed price ............................................................................................................... ......23  G/SCM/N/71/HUN 
Page 3 
 
 
 2.4.3.  Income support for certain producers thro ugh intervention purchase of their 
wheat harvested in 1998 ........................................................................................................ .23 
2.4.4.  State purchase of wheat for human consumption harvested in 2000 at 
guaranteed price ............................................................................................................... ......24  
2.5 Support programmes for milk...............................................................................................24  
2.5.1.  Regulation of the ma rket for cow milk .................................................................................24  
2.5.2.  Quality-linked support for cow milk.....................................................................................25  
2.5.3.  Assistance to the purchase of qualified sheep milk..............................................................26  
2.5.4.  Assistance to the purchase of qualified goat milk in 2000...................................................27  
2.6. Support programmes for apple .............................................................................................28  
2.6.1.  Intervention assistance to the processing of apple in bulk harvested in 1996 ...................28  
2.6.2.   Intervention assistance to the processing of apple in bulk harvested in 1997 ...................28  
2.6.3.   Intervention assistance to the purchase of  apple in bulk harvested in 1998.....................28  
2.6.4.  Interest subsidy on loans received for the purchase and storage of extra and 1st 
class fresh apple harvested in 1998........................................................................................28  
2.6.5.  Intervention assistance to the purchase of apple in bulk produced in 1999 ......................29  
2.7. Support programmes for wine...............................................................................................30  
2.7.1.  Intervention assistance for the distillation  of wine produced in 1997 in order to 
reduce stocks .................................................................................................................. .........30  
2.7.2 Intervention assistance for the distillation of vintage wine of 1998 in order to 
reduce stocks .................................................................................................................. .........30  
2.7.3.  Interest subsidy for the purchase of white grapes produced in 1998 in certain 
regions........................................................................................................................ ..............30  
2.7.4.  Intervention assistance for the distillation of vintage wine of  1999 in order to 
reduce stocks .................................................................................................................. .........31  
2.8 Support programme for barl ey, rye, triticale.......................................................................32  
2.8.1 Income support for certain producers thro ugh intervention purchase of their 
barley, rye, triticale harvested in 1998..................................................................................32  
2.9. Support programme for poultry............................................................................................32  
2.9.1.  Assistance to the production of quality poultry for slaughter ............................................32  
2.10. Support programmes for vegetables .....................................................................................33  
2.10.1.  Quality-linked support of tomato for indusrial purposes ...................................................33  
2.10.2.  Quality-linked support for red pepper..................................................................................34  
2.10.3.  Quality-linked support for onion...........................................................................................35  
2.10.4.  Guidance price and intervention price of sugar and sugarbeet in 2000 ............................36  
 
3 - 4 OTHER SUPPORT PROGRAMMES ................................................................................................37  
 
3.1. Assistance to stock-breeding ..................................................................................................3 7 
3.2. Assistance to fishery activities............................................................................................... .38 
3.3. Assistance to agric ulture and forestry ..................................................................................39  
3.3.1 Assistance to the preservation or development of biological bases and the 
modernisation of related system of qualification .................................................................39  
3.3.1.1  Assistance to genetic development ...........................................................................................39  
3.3.1.2.  Assistance to the purchase and changes of breeding animals and to the expansion 
of their stocks ...........................................................................................................................40  
3.3.2.  Assistance to the utilisation of arable la nds in disadvantaged producing areas ...............41  
3.3.3.  Assistance to investment in, and develo pment of agricultural production and 
food processing................................................................................................................ ........41  
3.3.4.  Assistance to mending, cultivating and preserving the quality and the quantity of 
forests ........................................................................................................................ ...............41  
3.4. Assistance to game husbandry...............................................................................................42  
3.5. Assistance to the protection of arable land...........................................................................43  G/SCM/N/71/HUN 
Page 4  
 
 3.6.
 Assistance to the construction and renovation of buildings................................................45  
3.6.1.  Assistance to the construction of buildin gs of "new type" co-operations, fishery 
and forestry ................................................................................................................... ..........45  
3.6.2.  Assistance to technology investments in the food industry .................................................45  
3.6.3.  Assistance to the modernisation and construction of buildings and machinery of 
forestry, game husbandry, fishery and horticulture............................................................46  
3.7. Assistance to the establishment of vi neyards and orchards and renewal of 
vineyards...................................................................................................................... ............47  
3.8. Regional assistance programmes...........................................................................................48  
3.8.1.  Assistance to the development of disadvantaged regions ....................................................48  
3.8.2.  Assistance to the inhabitants of settlements with less than 3 000 inhabitants 
living in disadvantaged regions..............................................................................................48  
3.8.3.  Additional assistance to certain counties in disadvantaged areas ......................................48  
3.8.4 Assistance to the develo pment of agro-tourism....................................................................49  
3.9.  Assistance to foster co-o perative integration........................................................................49  
3.10. Assistance to the purchase of individual shares of the members of co-operatives............50  
3.11. Assistance to the realisation of certain goals of the agricultural policy .............................50  
3.11.1.  Assistance to the realisation of certain goals of the agricultural policy .............................50  
3.11.2.  Assistance to agricultura l information network ..................................................................51  
3.11. 3.  Assistance to foreign training programmes..........................................................................52  
3.11.4.  Assistance to agricultural research and deve lopment of non-profit organisations...........53  
3.11.5.  Assistance to purchasing state-of-the-art technical equipment for institutions 
engaged in agricultural research and development .............................................................54  
3.12. Assistance to common marketing in agriculture......................................................................55  
3.13. Agricultural research programmes.......................................................................................55  
3.14 Assistance to the joint establishment of  wholesale markets by producers and to 
investments of joint sales or ganisations of producers..........................................................55  
 
4.1 Finance subsidies.............................................................................................................. .......56  
4.1.1.  Assistance given to further agricultural activities ...............................................................56  
4.1.2.  Government guarantee........................................................................................................... 56 
4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery ..............................56  
4.1.5.  Assistance to members of co-operatives in acquiring loans ................................................57  
4.1.6.  Interest rate subsidy for bank loans for maximum one year, and for more than 
one year, government guarantee ...........................................................................................57  
4.1.7.  Interest subsidy for purchasing grain seed  with quality assurance necessary for 
the 1999 sowing ................................................................................................................ .......58  
4.1.8.  Government guarantee for a HUF 16 billion loan given to small companies in the 
canning sector................................................................................................................. .........59  
4.1.9.  Assistance to the modernisation of certain agricultural machinery...................................60  
4.2.  Assistance to the production of certain agricultural products............................................61  
4.3. Assistance to the restructurin g of the agricultural sector ...................................................61  
4.4.  Assistance to soil melioration and to irrigation investment ................................................62  
4.5.  Assistance for planting and restru cturing forests and afforestation..................................63  
4.6.  Payments for relief from environm ental degradation of forests ........................................64  
4.7. Refund of the consumption tax on diesel fuel.......................................................................65  
4.8. Assistance to the participat ion in insurance schemes ..........................................................66  
4.9. Payments for relief from  natural disasters...........................................................................66  
4.9.1.  Payments for relief from natural disasters affecting plant cultivation in 1995.................66  
4.9.2.  Payments for relief from  fireblight disease...........................................................................67  
4.9.3.  Payments for relief from natural disasters affecting plant cultivation in 1997.................67  
4.9.4.  Payments from relief from natural disast ers not covered by insurance policies ..............67  G/SCM/N/71/HUN 
Page 5 
 
 
 4.9.5.  Assistance to provide relief from the damage caused by the extraordinary 
weather conditions in June and July 1999............................................................................68  
4.9.6.   Assistance to provide relief from the da mage caused by flood and internal water 
occurred in 1999............................................................................................................... .......69  
4.9.7.  Assistance to the intervention  of unharvested sugar beet ...................................................69  
4.9.8.  Assistance to provide relief from the dam age caused by flood and internal water 
occurred in 2000............................................................................................................... .......69  
4.9.9.  Assistance for land cultivation provi ded for producers who incurred damage 
due to the drou ght in 2000..................................................................................................... .70 
4.10. Assistance to the organisation of wine-growing communities.............................................71  
4.11. Assistance to the utilisation of advisory and extension services .........................................71  
4.12. Assistance to the "Borsod-Abaúj-Zemplén" region ............................................................72  
4.13.  Assistance to the maintenance of recreational and park woods .........................................72  
4.14. Assistance to tobacco harvested in 1995 ...............................................................................73  
4.15.  Assistance to potatoes harvested in 1996 ..............................................................................74  
4.16.  Assistance to stabili se the egg market ...................................................................................75  
4.17. Intervention support for quality production of game birds................................................76  
4.18. Assistance to  beek eepers....................................................................................................... ..76 
4.19. Assistance to the establishment of environmentally friendly crop structure ....................76  
4.20. Assistance to the transition to organic production ..............................................................76  
4.21. Assistance to stabilisatio n of the cerea l market....................................................................77  
4.22. Intervention assistance to producers of  wheat for feeding purposes for selling 
their crop ..................................................................................................................... ............78  
4.23. Assistance to the maintenance and develo pment of the statistical data-bases of 
producers’ councils ............................................................................................................ .....78  
4.24. Assistance to the improvement of competitiveness ..............................................................79  
4.25. Assistance to the reduction of costs relating to the rental of agricultural land.................79  
4.26. Assistance to socially disadvantaged agricultural communities .........................................79  
4.27. Assistance to the construction and modernisation of rural roads ......................................80  
4.28. Assistance to the servi ce of field wardens .............................................................................80  
4.29. Assistance to young farmers ..................................................................................................80  
4.30. Assistance to agricultural employment.................................................................................81  
4.31. Assistance to the school milk programme.............................................................................81  
4.32. Assistance to the purchasing of the required amount of the maize for feeding 
purposes ....................................................................................................................... ............82  
4.33.1.  Additional assistance to the storage of maize harvested in 1998 for feeding 
purposes in public warehouses ..............................................................................................83  
4.33.2.  Assistance to the storage of maize for feeding purposes harvested in 1999 in public warehouses .............................................................................................................. .....84
 
4.34. Wheat exchange transaction ..................................................................................................85  
4.35. Assistance to the purchase of wheat seed for the 1998 autumn sowing .............................85  
4.36. Interest subsidy to loans received for the purchase of apple in bulk harvested in 
1997 for processing purposes .................................................................................................85  
4.37.  Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998 ........................................................................................................................... ...............86
 
4.38. Intervention assistance to the sellin g of wheat for feeding purposes..................................87  
4.39. Market intervention related to the duck production...........................................................87  
4.40.  Quality-linked support to the production of sugar beet......................................................87  
4.41. Emergency income support to  certain producers of cereals ...............................................88  
4.42.  Assistance to reduce certain sani tary- and phytosanitary costs .........................................88  
4.43. Assistance to the produc tion of sowing seed.........................................................................90  
4.44. Assistance to the purchase of the required amount of cereals for feeding and of 
wheat for mi lling purposes..................................................................................................... 91 G/SCM/N/71/HUN 
Page 6  
 
 4.45.
 Assistance to the storage in public warehouse of wheat harvested in 1998 .......................92  
4.46. Assistance to introduce the HACCP system of quality management.................................93  
4.47. Intervention support to maintain the EU approved level of hygiene of pig and 
cattle slaugh terhouses......................................................................................................... ....93  
4.48. Assistance to organisations producin g and selling fruit and vegetables ............................93  
4.49. Assistance to research and development of co-operatives...................................................93  
4.50. Assistance to programmes of agricultural structure and rural development 
programmes..................................................................................................................... ........94  
4.51. Assistance to technical development .....................................................................................94  
4.52. Assistance to genetic and technologica l development and to the utilisation of 
innovations.................................................................................................................... ...........95  
4.53. Assistance to plant protection against the damage caused by non-indigenous 
disease ........................................................................................................................ ..............95  
4.54. Assistance to regional development.......................................................................................96  
4.54.1.  Assistance to territorial development....................................................................................96  
4.54.2.  Assistance to rural development............................................................................................97  
4.55. Payments for relief from damage  caused by wild animals..................................................98  
4.56.  Assistance to the market of pig for slaughter.......................................................................99  
4.57. Assistance to the storage in public warehouse of barley, rye and triticale 
harvested in 1998 .............................................................................................................. ....100  
4.58. Area-based payment for crop production ..........................................................................100  
4.59. Assistance to the quality control of certain foods...............................................................101  
4.60. Assistance to the testing of agricultural machines and technology ..................................102  
4.61. Assistance to the trade of products originating from the ecological fishing of  
silver carp in Lake Balaton ..................................................................................................10 3 
4.62. Quality-linked support to the production of game meat ...................................................104  
4.63.  Assistance to on-farm education..........................................................................................105  
4.64 Assistance to the storage in public warehouse of wheat harvested in 1999 .....................105  
4.65. Assistance to agricultural research institutes with research and development 
activities ..................................................................................................................... ............106  
4.66. Assistance to establish fac ilities of inland waterways ........................................................107  
 5.
 CORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT AND 
ECONOMIC DEVELOPMENT .....................................................................................................108  
 
5.1. Corporate tax concession for companies with foreign participation................................108  
5.2. Tax concession for dividend invested in Hungary by foreign shareholders ....................108  
5.3. Tax concession in entrepreneurial zone..............................................................................109  
5.4. Tax concession related to regional investments .................................................................109  
5.5 Tax concession for investments exceeding 1 billion HUF..................................................109  
5.6. Tax concession for investments exceeding 3 billion HUF..................................................110  
5.7. Tax concession for investments exceeding 10 billion HUF................................................110  
5.8. Tax concession to promote structural adjustment.............................................................111  
5.9. Tax concession for bank credits financing other investments ..........................................111  
5.10. Tax rate relief for foreign investors.....................................................................................111  
5.11. Investment-related tax concessions .....................................................................................112  
5.12 Tax concession in regions of high priority..........................................................................112  
5.13. Tax concession to promote investments in production of exportable goods....................113  
5.14. Tax relief related to R&D activities.....................................................................................113  
 
6. BASIC CENTRAL TECHNICAL DEVELOPMENT PROGRAMME ...................................................113  
 7.
 TERRITORIAL DEVELOPMENT FUND .......................................................................................114  G/SCM/N/71/HUN 
Page 7 
 
 
  
8. BUDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT ....................................114  
 9.
 MINING CONVERSION PROGRAMME .......................................................................................115  
 
10. CENTRAL ENVIRONMENT PROTECTION FUND ........................................................................115  
 11.
 BUDGETARY SCHEME EARMARKED FOR THE DEVELOPMENT OF SMALL AND MEDIUM 
SIZED ENTERPRISES ................................................................................................................115  G/SCM/N/71/HUN 
Page 8  
 
  
1. E
XPORT ENHANCEMENT PROGRAMMES  
1.1. Export enhancement progra mme for agricultural products 
 
1. Title of the subsidy programme  
 Export enhancement programme for agricultural products 
 2. Period covered by the notification
 
 2000 
 
3. Policy objective and/or purpose of the subsidy  
 To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  4. Background and authority for the subsidy
 
 Decree 11/1998 (III.31.) FM-PM-IKIM of the Minist er for Agriculture, the Minister for Finance 
and the Minister for Industry, Trade and Tourism;    Decree 47/1998 (VI.16.) FM-PM-IKIM of the Minist er for Agriculture, the Minister for Finance 
and the Minister for Industry, Trade and Tourism,   29/1998. (X.1.) FVM-PM-GM of the Minister for Agriculture and Regional Development, the 
Minister for Finance and the Minister for Economic Affairs 
 53/1998. (XI.6.) FVM-PM-GM of the Minister for Agriculture and Regional Development, the 
Minister for Finance and the Minister for Economic Affairs  65/1998. FVM-PM-GM of the Minister for Agricu lture and Regional Development, the Minister 
for Finance and the Minister for Economic Affairs  12/1999. (II.1.) FVM-PM-GM of the Minister fo r Agriculture and Regional Development, the 
Minister for Finance and the Minister for Economic Affairs 
 51/1999. (V.31.) FVM-PM-GM of the Minister for Agriculture and Regional Development, the 
Minister for Finance and the Minister for Economic Affairs  67/1999. (VIII.16.) FVM-PM-GM of the Minister  for Agriculture and Regional Development, 
the Minister for Finance and the Minister for Economic Affairs  74/1999. (IX.1.) FVM-PM-GM of the Minister for Agriculture and Regional Development, the 
Minister for Finance and the Minister for Economic Affairs 
 37/2000. (VII.19.) FVM-PM-KÜM of the Minister for Agriculture and Regional Development, the Minister for Finance and the Minister for Economic Affairs  60/2000. (IX.13.) FVM-PM-KÜM of the Minister  for Agriculture and Regional Development, 
the Minister for Finance and the Minister for Economic Affairs 
 
5. Form of the subsidy
 
 Grant  
 6. To whom and how the subsidy is provided
 
 Exporters 
 G/SCM/N/71/HUN 
Page 9 
 
 
 7. Subsidy per unit or the total amount  
 The list of products benefiting from and the co rresponding per unit amount of export subsidies 
for 2000 are contained in the annexes to the above decrees.    Payments under this programme amounted to HUF 19 160.7 million 
 
8. Duration of the subsidy
 
 From 1 April 1998 to 3 November 2001 
 9. Statistical data permitting an assessment of the trade effects of the subsidy
 
 N.A. 
  
1.2 Export enhancement programme for apple harvested in 1996 
 Phased out 
1.3. Export enhancement programme for live pig 
 Phased out 
1.4. Export enhancement programme for potatoes for human consumption 
 Phased out 
1.5. Intervention assistance of fina ncing surplus stocks of dried onion 
 Phased out 
1.6.  Assistance to the export of seasonal milk surplus 
1. Title of the subsidy programme
 
 Assistance to the export of seasonal milk and milk product-surplus 
 
2. Period covered by the notification  
 2000 
 3. Policy objective and/or purpose of the subsidy
 
 To help to maintain the equilibri um between domestic supply and demand. 
4. Background and authority for the subsidy  
The maximum eligible amount is HUF 650 million. 
 76/1999 (IX.1.) FVM of the Minister for Agriculture and Regional Development  
 5. Form of the subsidy
 
 
 Grant 
 G/SCM/N/71/HUN 
Page 10  
 
 6. To whom and how the subsidy is provided
 
  
 Exporters 
 7. Subsidy per unit or the total amount
 
 
 HUF 150 - 540 per kg net weight depending on th e product.  Payments under this programme 
amounted to HUF 99 million.  8. Duration of the subsidy
 
 
 From 1 September 1999 to 18 July 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
1.7.  Assistance to the export of  pork and processed pork-products 
1. Title of the subsidy programme
 
 
 Assistance to the export of pork and processed pork-products  
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  
4. Background and authority for the subsidy
 
  Decree 17/1998 (IV.3.) FM of the Minister of  Agriculture, Decree 16/1998 (VIII.28.) FVM of 
the Minister for Agriculture and Regional Devel opment and as amended by 50/1998 (XI.4) FVM of 
the Minister for Agriculture and Regional Development. 
 
5. Form of the subsidy
 
  Grant   6. To whom and how the subsidy is provided
 
 
 Exporters  7. Subsidy per unit or the total amount
 
 
 HUF 20 to 63 per kg depending on the type/variety of the pork meat 
  From 17 April to 27 August 1998:  G/SCM/N/71/HUN 
Page 11 
 
 
   HUF 20-40 per kg, if the purchase price is at least  
Class Purchase price, HUF per kg  
(carcass weight) 
E and S 316 
U 297 
R 279 
  
 From 28 August to 31 to 3 November 1998: 
   HUF 20-63 per kg, if the purchase price is at least  
Class Purchase price, HUF per kg  
(carcass weight) 
E and S 286 
U 267 
R 249 
 
 
 From 4 November to 31 December 1998:     HUF 20-63 per kg, if the purchase price is at least:  
Class Purchase price, HUF per kg  
(carcass weight) 
E and S 251 
U 232 
R 214 
  Payments under this programme amounted to HUF 8 million.  8. Duration of the subsidy
 
  From 3 April 1998 to 30 December 1998 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
1.8. Export enhancement prog ramme for rabbit for slaughter 
 Phased out 
 
1.9. Export enhancement programme for 500. 000 tons of wheat for feeding purposes   
 Phased out 
 1.10. Export enhancement programme for wheat harvested in 1998 
 Phased out 
 
 G/SCM/N/71/HUN 
Page 12  
 
 1.11. Export enhancement programme for milling  or EURO wheat 
 Phased out  
 
1.12. Export enhancement programme for table,  regional and quality white wine in barrels  
 Phased out 
 
1.13. Export enhancement programme for mushroom  
 Phased out 
 
1.14. Export enhancement programme for cert ain canned meat  and meat products  
 Phased out 
 
1.15. Additional export assistance for certain duck meat   
1. Title of the subsidy programme
 
 
 Additional export assistance for certain duck meat   
 2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets.  
4. Background and authority for the subsidy
 
  Decree 55/1998. (VI.26.) FM of the Minister for Agriculture   5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Exporters  
 
7. Subsidy per unit or the total amount
 
  HUF 28 to 45 per kg depending on the variety/ type of the meat.  Payments under this 
programme amounted to HUF 1.3 million  
8. Duration of the subsidy
 
  From 26 June to 31 December 1998  
 G/SCM/N/71/HUN 
Page 13 
 
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  N.A.   1.16. Export enhancement programme for certai n pork and  pork products of Szabolcs-
Szatmár-Bereg, Borsod-Abaúj-Zemplén, Ha jdú-Bihar, Jász-Nagykun-Szolnok, Békés, 
Csongrád and Bács-Kiskun county 
 Phased out 
 1.17. Export enhancement programme for surplus stocks of sugar 
Phased out  
  
1.18. Export enhancement programme for maize   
1. Title of the subsidy programme
 
  Export enhancement programme for maize    2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To help to maintain the equilibrium between  domestic supply and demand and to improve the 
competitiveness of the products in export markets. 
 4. Background and authority for the subsidy
 
  Decree 12/2000. (III..29.) FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Grant 
 6. To whom and how the subsidy is provided
 
 
 Exporters  7. Subsidy per unit or the total amount
 
  HUF 2000 per ton.  Payments under this programme amounted to HUF 144.8 million. 
 
8. Duration of the subsidy
 
  From 29 March to 31 August 2000   G/SCM/N/71/HUN 
Page 14  
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   
2.
  P RICE-RELATED SUPPORT PROGRAMMES FOR CERTAIN AGRICULTURAL PRODUCTS  
2.1. Support programmes for beef for slaughter 
2.1.1.  State purchase of beef for slaughter at guaranteed price   
1. Title of the subsidy programme  
 
 State purchase of beef for slaughter at guaranteed price  
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To stabilise and support agricultural income and prices.   4. Background and authority for the subsidy
 
 
 Decree 86/1999. (X. 1.) FVM  of the Minister for Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Buying-in of beef for slaughter at guaranteed prices.  
 6. To whom and how the subsidy is provided
 
  Producers  
7. Subsidy per unit or the total amount
 
  Classification, quality standards, guaranteed prices  
  Definition  
Cattle    
Class Guaranteed 
price  
(HUF per kg) 
  1st group: male   E and  1st class 220 
   2nd group: male   E and  1st class 200 
  3rd group male    E and  1st class (250-450 kg) 160 
       more than 450 kg  150 
  No intervention occurred during the period covered by the notification.  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000 G/SCM/N/71/HUN 
Page 15 
 
 
  
9. Statistical data permitting an assessment of the trade effects of the  subsidy  
  N.A.  
 
2.1.2.  Intervention support for the quality production of beef for slaughter 
1. Title of the subsidy programme
 
  Intervention support for the quality production of beef for slaughter  
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production.   4. Background and authority for the subsidy
 
 
 Decree 97/1997(XII.1.)FM of the Minister for Agriculture; Decree 5/1999 (I.14.) FVM of the Minister for Agriculture and Regional Developm ent; Decree 48/2000 (VII.28.) FVM of the Minister 
for Agriculture and Regional Development   
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers, processors  
 7. Subsidy per unit or the total amount
 
  The amount of support depended on the purchase price. 
 
 Producers:  
Class Purchase price Available support 
Group 1 0 - 270 HUF 0 - 12 
Group 2 0 - 257 HUF 0 - 10 
 
 Processors:  
Class Purchase price Available support 
Group 1 280 - HUF 0 - 12 
Group 2 235 - HUF 0 - 10 
 G/SCM/N/71/HUN 
Page 16  
 
  The guidance price ( i.e. the price which – depending on the expected market conditions - 
indicates the expected central point of the fluctua tion in prices) evolved during the year as follows: 
 
Definition: Cattle Class Guidance price, HUF per kg 
1st group: male E and 1st class 269-275 
2nd group: male E and 1st class 230-262 
 
 An intervention price was established based on the guidance price. When it is reached or 
exceeded by the market price, the instruments of  the agricultural market regime (selling of 
intervention stocks or other measures) are applie d. The maximum of the intervention price was HUF 
276 (1st group)  and HUF 242 (2nd group). 
 
 Payments under this programme amounted to HUF 125 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
2.2. Support programmes for pig for slaughter 
2.2.1.  State purchase of pig for slaughter at guaranteed price   
1. Title of the subsidy programme
 
 
 State purchase of pig for slaughter at guaranteed price  
 2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To stabilise and support agricultural income and prices   4. Background and authority for the subsidy
 
 
 Decree 88/1999. (X. 1.) FVM of the Minister for Agriculture and Regional Development; Decree 89/1999. (X.1.) FVM of the Minister for Agriculture and Regional Development  5. Form of the subsidy
 
 
 Buying-in of pig for slaughter at guaranteed prices.  6. To whom and how the subsidy is provided
 
  Producers G/SCM/N/71/HUN 
Page 17 
 
 
  
7. Subsidy per unit or the total amount  
  Classification, quality standards, guaranteed prices   
Class Guaranteed price, HUF per kg 
(carcass weight) 
E and S 220 
U 204 
R 186 
  No intervention occurred during the period covered by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
2.2.2.  Intervention support for the quality production of pig for slaughter 
1. Title of the subsidy programme
 
 
 Intervention support for the quality production of pig for slaughter    2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production. 
4. Background and authority for the subsidy
 
  87/1997 (XI.26.) FM of the Minister for Agriculture; 52/1998. (XI.4.) FVM of the Minister for Agriculture and Regional Development;  6/1999 (I.14.) FVM of the Minister for Agriculture and Regional Development; 20/1999. (I.12.) FVM of the Minister for Agriculture and Regional 
Development; 34/1999. (IV.2.) FVM of the Minist er for Agriculture and Regional Development; 
42/1999. (IV.23.) FVM  of the Minister for Agri culture and Regional Development; 54/1999. (VI.11) 
FVM of the Minister for Agriculture and Regional Development; 81/1999. (IX.17.) FVM of the Minister for Agriculture and Regional Development; 49/2000. (VII. 28.) FVM of the Minister for Agriculture and Regional Development;   
5. Form of the subsidy
 
  Grant  G/SCM/N/71/HUN 
Page 18  
 
 6. To whom and how the subsidy is provided
 
  Producers, processors  7. Subsidy per unit or the total amount
 
 
 Producers:  
Class Purchase 
price (HUF) Available support 
E and S 0 - 300 HUF 0-40 
U 0 - 287 HUF 0-40 
R 0 - 275 HUF 0-40 
O 0 - 203 HUF 0-35 
P 0 - 193 HUF 0-35 
 
 Processors: 
 
Class Purchase 
price (HUF) Available support 
E and S 290 - HUF 0-12 
U 269 - HUF 0-12 
R 246 - HUF 0-12 
 
 The guidance price ( i.e. the price which – depending on the expected market conditions - indicates the central point of the fluctuation in prices) evolved during the year as follows: 
 
Class Guidance price, HUF per kg 
E and S 284-316 
U 236-293 
R 240-281 
O 209-267 
P 199-257 
 
An intervention price was established based on the guid ance price. When it is  reached or exceeded by 
the market price, the instruments of the agricultura l market regime (selling of  intervention stocks or 
other measures) are applied. The maximum of th e intervention price was HUF 323 (E and S quality 
group) and HUF 300 (U quality group).  
 Payments under this programme amounted to  HUF 3,224 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 G/SCM/N/71/HUN 
Page 19 
 
 
 2.2.3. Intervention support for pig for slaughter of large weight originating from family farms 
and private producers 
1. Title of the subsidy programme  
  Intervention support for pig for slaughter of la rge weight originating from family farms and 
private producers  
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To ensure the equilibrium betw een domestic supply and demand.  
 
4. Background and authority for the subsidy
 
  61/1999 (VII.13.) FVM of the Minister for Agriculture and Regional Development;   5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Processors 
 
7. Subsidy per unit or the total amount
 
  HUF 40 per kg for pigs weighing minimum 160 kg if the purchase price is  UF 193 per kg   Payments under this programme amounted to  HUF 144.5 million during the period covered 
by the notification. 
 8. Duration of the subsidy
 
  From 13 July 1999.  Duration has not been specified  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   
2.3 Support programme  for maize for feeding purposes 
2.3.1 State purchase of maize for feeding purposes at guaranteed price harvested in 1998 1. Title of the subsidy programme
 
  State purchase of maize for feeding purposes at guaranteed price   G/SCM/N/71/HUN 
Page 20  
 
 2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilise and support agricultural income and prices.  
 4. Background and authority for the subsidy
 
 
 55/1998. (XII.2) FVM of the Minister for Agriculture and Regional Development  
 5. Form of the subsidy
 
  Buying-in of maize for feeding purposes at guaranteed price.  
 
6. To whom and how the subsidy is provided
 
  Producers  7. Subsidy per unit or the total amount
 
 
 The guaranteed price was HUF 16, 500 per to n.  Maximum quantity that one producer may 
offer for purchase:  3.2 tons per ha.  Payments  under this programme amounted to HUF 33.6 million 
during the period covered by the notification.  
8. Duration of the subsidy
 
  From 2 December 1998 to 30 September 1999  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
2.3.2 State purchase of maize for feeding purposes at guaranteed price harvested in 1999 
1. Title of the subsidy programme
 
 
 State purchase of maize for feeding purposes at guaranteed price  2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To stabilise and support agricultural income and prices.  
 4. Background and authority for the subsidy
 
 
 102/1999. (XII.1) FVM of the Minister for Agriculture and Regional Development   G/SCM/N/71/HUN 
Page 21 
 
 
 5. Form of the subsidy  
  Buying-in of maize for feeding purposes at guaranteed price.   6. To whom and how the subsidy is provided
 
 
 Producers  7. Subsidy per unit or the total amount
 
 
 The guaranteed price was HUF 14 000 per ton.  Maximum quantity that one producer may 
offer for purchase:  3.2 tons per ha.  Payments under this programme amounted to HUF 40 million.  
 8. Duration of the subsidy
 
 
 From 1 December 2000 to 31 December 2000   
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
2.3.3 State purchase of maize for feeding purpo ses at guaranteed price harvested in 2000. 
1. Title of the subsidy programme
 
  State purchase of maize for feeding purposes at guaranteed price  
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilise and support agricultural income and prices.  
 4. Background and authority for the subsidy
 
 
 8/2000. (II.29) FVM of the Minister for Agriculture and Regional Development  
 5. Form of the subsidy
 
  Buying-in of maize for feeding purposes at guaranteed price.   
6. To whom and how the subsidy is provided
 
  Producers  7. Subsidy per unit or the total amount
 
 
 The guaranteed price was HUF 14 000 per ton.  Maximum quantity that one producer may offer for purchase:  3.2 tons per ha.  No  payments occurred under this programme.  
 G/SCM/N/71/HUN 
Page 22  
 
 8. Duration of the subsidy
 
  From 6 March 1999 to 1 March 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
2.4 Support programmes for wheat for human consumption 
2.4.1. State purchase of wheat for human consum ption harvested in 1998 at guaranteed price  
1. Title of the subsidy programme
 
  State purchase of wheat for human consumption harvested in 1998 at guaranteed price   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilise and support agricultural income and prices. 
 4. Background and authority for the subsidy
 
  Decree 1/1998. (VII.16)FVM  11§1/A,   
 
5. Form of the subsidy
 
  Buying-in of wheat for human consumption at guaranteed price.  6. To whom and how the subsidy is provided
 
 
 Producers  7. Subsidy per unit or the total amount
 
 
 The guaranteed price was HUF 18 000 per ton.  Maximum quantity of wheat that one 
producer may offer for purchase:  2.4 tons per ha.  Payments under this programme were negligible 
during the period covered by the notification.  8. Duration of the subsidy
 
 
 From 6 September 1998 to 10 October 1999 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 G/SCM/N/71/HUN 
Page 23 
 
 
 2.4.2. State purchase of wheat for human consum ption harvested in 1998 at guaranteed price  
 Phased out 
  
2.4.3. Income support for certain producers th rough intervention purchase of their wheat 
harvested in 1998  
1. Title of the subsidy programme
 
  Income support for certain producers through intervention purchase of their wheat harvested 
in 1998 
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To stabilise and support agricultural income of small producers.   4. Background and authority for the subsidy
 
 
 Decree 3/1998. (VII.16.) §6, §7 FVM of the Minister for Agriculture and Regional 
Development, Decree 49/1999. FVM of the Minist er for Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Buying-in of wheat harvested in 1998 of certain producers. 
 6. To whom and how the subsidy is provided
 
  Producers with a registered area of wheat not exceeding 20.8 ha  
7. Subsidy per unit or the total amount
 
  The purchase prices:   HUF 18 000 per ton for Mill-type wheat 
          HUF 16 000 per ton for EURO wheat 
          HUF 13.000 per ton for wheat for feeding purposes   Maximum quantity of wheat that one producer ma y offer for purchase: 2.4 tons per ha, but the 
maximum eligible quantity is 50 tons per producer   
Payments under this programme amounted to HUF 93.6 million during the period covered by the 
notification.  8. Duration of the subsidy
 
 
 From 16 July 1998 to 3 November 2001  
 G/SCM/N/71/HUN 
Page 24  
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   2.4.4. State purchase of wheat for human consum ption harvested in 2000 at guaranteed price  
1. Title of the subsidy programme
 
  State purchase of wheat for human consumption harvested in 2000 at guaranteed price   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilise and support agricultural income and prices.  4. Background and authority for the subsidy
 
  Decree 64/1999 (VIII.4.)FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Buying-in of wheat for human consumption at guaranteed price.  
6. To whom and how the subsidy is provided
 
  Producers  7. Subsidy per unit or the total amount
 
 
 The guaranteed price was HUF 16 000 per ton.  Maximum quantity of wheat that one 
producer may offer for purchase:  2.4 tons per ha .  No intervention occurred under this program 
 8. Duration of the subsidy
 
 
 From 12 August 1999 to 20 July 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
2.5 Support programmes for milk 
2.5.1. Regulation of the market for cow milk  
1. Title of the subsidy programme
 
 
 Regulation of the market for cow milk  
 G/SCM/N/71/HUN 
Page 25 
 
 
 2. Period covered by the notification  
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilise and support agricultural income and prices.  4. Background and authority for the subsidy
 
 
 Decree  85/1999 (X.1.) FVM of the Minister for Agriculture 
 5. Form of the subsidy
 
   Buying-in of cow milk at guaranteed price  
 
6. To whom and how the subsidy is provided
 
  Producers  7. Subsidy per unit or the total amount
 
 
 Guaranteed price: HUF 44 per l for extra high quality milk.  No intervention occurred during 
the period covered by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
2.5.2. Quality-linked support for cow milk 
1. Title of the subsidy programme
 
 
 Quality-linked support for cow milk 
 2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To stabilise and support agricultural income.   4. Background and authority for the subsidy
 
 
 Decree 19/1998 (IX.1.) FVM of the Minister for Agriculture and Regional Development   Decree 2/1999. (I.14.) FVM of the Minister for Agriculture and Regional Development   Decree 77/1999 (XI.1.) FVM of the Minister for Agriculture and Regional Development G/SCM/N/71/HUN 
Page 26  
 
  Decree 3/2000. (II.11.) FVM of the Minister  for Agriculture and Regional Development 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Producers, processors   
7. Subsidy per unit or the total amount
 
  Processor: HUF 4.5 per l for extra high quality milk, if the purchase price is at least  
HUF 65 per l .  
 Producer: the above-mentioned s ubsidy per unit, if the purchase price is less than that 
indicated above.   Payments under this programme amounted to  HUF 5,852.6 million during the period covered 
by the notification.  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
2.5.3. Assistance to the purchase of qualified sheep milk 
1. Title of the subsidy programme
 
 
 Assistance to the purchase of qualified sheep milk   2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To stabilise and support agricultural inco me and to encourage quality production. 
 
4. Background and authority for the subsidy
 
  Decree 101/1997. (XII .15.) FM of the Minister for Agriculture  Decree 16/1999 (I.10.) FVM of the Minister for Agriculture and Regional Development  Decree 98/1999 (XI.18.) FVM of the Minister  for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  G/SCM/N/71/HUN 
Page 27 
 
 
  
6. To whom and how the subsidy is provided  
  Processors  
7. Subsidy per unit or the total amount
 
  HUF 25 per l for first class quality milk if the purchase price is at least 130 HUF per l  
  Payments under this programme amounted to HUF 17.9 million during the period covered by 
the notification. 
 8. Duration of the subsidy
 
  From 15 December 1997 to 30 December 2000  
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   2.5.4.  Assistance to the purchase of qualified goat milk in 2000 
1. Title of the subsidy programme
 
  Assistance to the purchase of qualified goat milk   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilise and support agricultural in come and to encourage quality production.    
 
4. Background and authority for the subsidy  
  Decree 99/1999 (XI.18.) FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Grant  
 6. To whom and how the subsidy is provided
 
 
 Processors  7. Subsidy per unit or the total amount
 
 
 HUF 15 per l for first class quality milk if the purchase price is at least HUF 85.  
  Payments under this programme amounted to HUF 1.7 million during the period covered by 
the notification. G/SCM/N/71/HUN 
Page 28  
 
  
8. Duration of the subsidy
 
  From 18 November 1999 to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   2.6. Support programmes for apple 
2.6.1. Intervention assistance to the pro cessing of apple in bulk harvested in 1996 
 Phased out 
 
2.6.2.   Intervention assistance to the pr ocessing of apple in bulk harvested in 1997 
 Phased out 
 
2.6.3.   Intervention assistance to the purchase of  apple in bulk harvested in 1998 
 Phased out 
 
2.6.4. Interest subsidy on loans received for the purchase and storage of extra and 1
st class 
fresh apple harvested in 1998     
1. Title of the subsidy programme  
  Interest subsidy on loans received for the purchase and storage  of extra and 1
st class fresh 
apple harvested in 1998 
 
2. Period covered by the notification  
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To ensure the equilibrium betw een domestic supply and demand  
 4. Background and authority for the subsidy
 
 
 Decree 31/1998 (X.2.) FVM of the Minister for Agriculture and Regional Development 
 5. Form of the subsidy
 
  Interest subsidy  
 
6. To whom and how the subsidy is provided
 
  Operators of fruit storage facilities   G/SCM/N/71/HUN 
Page 29 
 
 
 7. Subsidy per unit or the total amount  
  Interest subsidy of 100 per cent of the basic in terest rate of the Nati onal Bank of Hungary if 
the purchase price is at least HUF 35 per kg   
 Payments amounted to HUF 0.5 million during the period covered by the notification. 
 8. Duration of the subsidy
 
  From 2 October 1998 to 29 July 1999 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
2.6.5. Intervention assistance to the pu rchase of apple in bulk produced in 1999 
1. Title of the subsidy programme
 
  Intervention support to the purchase of apple in bulk produced in 1999  
2. Period covered by the notification
 
  1999  3. Policy objective and/or purpose of the subsidy
 
 
 To ensure the equilibrium betw een domestic supply and demand  
 4. Background and authority for the subsidy
 
  Decree 80/1999 (IX.17.) FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Operators of fruit storage facilities    7. Subsidy per unit or the total amount
 
 
 HUF 6, 000 per ton if the purchase price is at  least HUF 22, 000 per ton.  No payments under 
this programme during the period covered by the notification. 
 8. Duration of the subsidy
 
 
 From 17 September 1999 to 1 February 2000 
 G/SCM/N/71/HUN 
Page 30  
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   2.7. Support programmes for wine  
2.7.1. Intervention assistance for the distillation of wine produced in 1997 in order to reduce 
stocks 
 Phased out  
 2.7.2 Intervention assistance for the distillation  of vintage wine of 1998 in order to reduce 
stocks 
 Phased out 
 
2.7.3.  Interest subsidy for the purchase of white grapes produced in 1998 in certain regions 
1. Title of the subsidy programme
 
  Interest subsidy for the purchase of white grapes produced in 1998 in certain regions 
 
2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To support the income of small holders. 
 
4. Background and authority for the subsidy
 
  Decree 32/1998 (X.2) FVM  of the Minister of Agriculture and Regional Development  5. Form of the subsidy
 
 
 Interest subsidy  6. To whom and how the subsidy is provided
 
 
 Processors 
 7. Subsidy per unit or the total amount
 
  Interest subsidy of 50 per cent of the Basic in terest rate of the National Bank of Hungary, if 
the purchase price is  HUF 30 per kg for normal, HUF 36 per kg for high quality grapes.  
 
 Payments under this programme amounted to HUF 0.02 million during the period covered by 
the notification.  G/SCM/N/71/HUN 
Page 31 
 
 
 8. Duration of the subsidy  
  From 2 October 1998 to 30 April 1999   9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
2.7.4. Intervention assistance for the distillation of vintage wine of  1999 in order to reduce 
stocks 
1. Title of the subsidy programme
 
  Intervention assistance for the distillation of vi ntage wine of 1999 in order to reduce stocks 
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To reduce stocks. 
 4. Background and authority for the subsidy
 
  Decree 65/1999. (VIII.6.) FVM of the Minister  for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Distilleries  
 7. Subsidy per unit or the total amount
 
 
 The maximum subsidy is HUF 34 per l  if the purchase price is at least HUF 54 per l. 
  Payments under this programme amounted to  HUF 264.2 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 6 August 1999 to 31 December 1999  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 G/SCM/N/71/HUN 
Page 32  
 
 2.8 Support programme for barley, rye, triticale 
2.8.1 Income support for certain producers thro ugh intervention purchase of their barley, 
rye, triticale harvested in 1998  
 Phased out 
 
 
2.9. Support programme for poultry 
2.9.1. Assistance to the production of quality poultry for slaughter  
1. Title of the subsidy programme
 
 
 Assistance to the production of quality poultry for slaughter  
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To ensure the equilibrium between domestic  supply and demand, to support agricultural 
income and encourage quality production.  
4. Background and authority for the subsidy
 
  Decree 103/1997 (XII.15.) FM of the Minister for Agriculture as amended by 10/1998 (III.31.) FM of the Minister for Agriculture  Decree 59/1998 (XII.16.) FVM of the Minister for Agriculture and Regional Development  
 Decree 3/1999 (I.14.) FVM of the Minister for Agriculture and Regional Development  
 Decree 84/1999 (X.1.) FVM of the Minister for Agriculture and Regional Development   Decree 13/2000 (III.31.) FVM of the Minister for Agriculture and Regional Development  
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Producers, processors 
 
7. Subsidy per unit or the total amount
 
 Producers: 
 
  The amount of subsidy is HUF 3 per kg if the purchase price is l ess than HUF 163 (for the 
poultry slaughtered before 31 March 2000)  
  As of 31 March 2000, the amount of subsidy r eceived by producers is HUF 5,5 per kg for 1
st 
class poultry and HUF 11 per kg for young poultry.  G/SCM/N/71/HUN 
Page 33 
 
 
 Processors:  
  1
st class poultry:    HUF 5 per kg 
 Young poultry for slaughter:   HUF 7 per kg  
 Processors receive an additional HUF 3 per kg if the purchase price is at least HUF 163 (for 
the poultry slaughtered before 31 March 2000)    As of 31 March 2000, the amount of subsidy r eceived by processors is HUF 5.5 per kg for 1
st 
class poultry and HUF 11 per kg for young poultry, if the purchase price is at least HUF 152.  
 
 Payments under this programme amounted to  HUF 1 128.4 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January 1998 to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
2.10. Support programmes for vegetables 
2.10.1. Quality-linked support of tomato for indusrial purposes 
1. Title of the subsidy programme
 
 
 Quality-linked support for tomato for industrial purposes 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
 
 To provide assistance to the quality production of tomato 
 
4. Background and authority for the subsidy  
  6/2000 (II.26.) §203 FVM of the Minister for Agriculture and Regional Development  
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Processors  
 G/SCM/N/71/HUN 
Page 34  
 
 7. Subsidy per unit or the total amount
 
  Processors: HUF 7 per kg for tomato for the refrigeration industry if the purchase price is at 
least HUF 15 per kg.  HUF 2 per kg for tomato for the canning industry if the purchase price is at least  
HUF 15-18.5 per kg . 
 
 Payments under this programme amounted to HUF 43.4 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 26 February 2000 to 15 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
2.10.2. Quality-linked support for red pepper  
1. Title of the subsidy programme
 
 
 Quality-linked support for red pepper 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To provide assistance to the quality production of red pepper  4. Background and authority for the subsidy
 
 
 6/2000 (II.26.) §203 FVM of the Minister for Agriculture and Regional Development  
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Processors   
7. Subsidy per unit or the total amount
 
  Processor: HUF 5 per kg if the purchase price is at least  HUF 60 per kg . 
  
 Payments under this programme amounted to HUF 0.1 million during the period covered by 
the notification.  G/SCM/N/71/HUN 
Page 35 
 
 
 8. Duration of the subsidy  
  From 26 February 2000 to 15 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
2.10.3. Quality-linked support for onion  
1. Title of the subsidy programme
 
  Quality-linked support for onion  2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
  To provide assistance to the quality production of onion 
 
4. Background and authority for the subsidy
 
  6/2000 (II.26.) §203 FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Processors  
 7. Subsidy per unit or the total amount
 
  Processors: HUF 5 per kg for the drying industry if the purchase price is at least HUF 32; 
HUF 5 per kg for the canning industry if the purchase pr ice is at least HUF 27.  No payments occurred 
under this programme during the period covered by the notification.  8. Duration of the subsidy
 
  From 26 February 2000 to 15 December 2000 
 
9. Statistical data permitting an assessment of the trade effects of the  subsidy
 
  N.A.  
 G/SCM/N/71/HUN 
Page 36  
 
 2.10.4. Guidance price and intervention price of sugar and sugarbeet in 2000  
1. Title of the subsidy programme
 
  Guidance price and intervention price of sugar and sugarbeet in 2000  
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To stabilize and support agricultural income and prices  4. Background and authority for the subsidy
 
 
 Decree 66/2000 (IX.21.) FVM of the Minister  for Agriculture and Regional Development; 
Decree 58/2000 (IX.8.) FVM of the Minister for Agriculture and Regional Development   5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Processors, producers   
7. Subsidy per unit or the total amount
 
  Producer - Sugarbeet:   The guidance price (i.e. the price which – de pending on the expected market conditions - 
indicates the central point of the fluctuation in prices was HUF 6800 per ton. 
 
 Apart from the guidance price, a maximum and minimum intervention price was established. When the maximum intervention price is reached or  exceeded by the market price, or when the 
market price falls below the minimum intervention pr ice, the instruments of the agricultural market 
regime (state purchase, selling of intervention stocks or other measures) are applied. 
 
 Minimum intervention price: HUF 6000 per ton  Maximum intervention price: HUF 7600 per ton  Processor - Sugar:  
 The guidance price (i.e. the price which – de pending on the expected market conditions - 
indicates the central point of the fluctuation in prices was HUF 110 000 per ton.   Apart from the guidance price, a maximum and minimum intervention price was established. When the maximum intervention price is reached or  exceeded by the market price, or when the 
market price falls below the minimum intervention pr ice, the instruments of the agricultural market 
regime (state purchase, selling of intervention stocks or other measures) are applied.  
Minimum intervention price: HUF 100 000 per ton G/SCM/N/71/HUN 
Page 37 
 
 
  Maximum intervention price: HUF 125 000 per ton 
  No payments occurred under this programme during the period covered by the notification. 
 8. Duration of the subsidy
 
 
 From 16 September  to 31 December 2000  9. Statistical data permitting an assessment of the trade effects of the  subsidy
 
 
 N.A. 
  3
 - 4 O THER SUPPORT PROGRAMMES  
3.1. Assistance to stock-breeding  
1. Title of the subsidy programme  
  Assistance to stock-breeding  2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To support genetic development aimed at enhancing the breeding and utility value of 
domestic animals and to develop the genetic background aimed at  producing first-rate animal 
products.   To support the operation of identification a nd information system of breeding animals. 
  To support publications  and participation in animal breeding fairs, conferences and 
international organisations. 
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26. ) FVM of the Minister of Agriculture and Regional Development, 353-
360. § 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Stock breeders   7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to HUF 873 million during the period covered by 
the notification. G/SCM/N/71/HUN 
Page 38  
 
  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
3.2. Assistance to fishery activities 
1. Title of the subsidy programme
 
 
 Assistance to fishery activities  2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To facilitate the protection and preservation of fi sh stocks in waters, to enhance the values of 
the fish stocks, to prevent the perishing of fish  and eliminate the consequences thereof, and to 
promote the execution of tasks connected with wa ter utilisation for fishing and angling purposes. 
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26..) FVM of the Minister of  Agriculture and Regional Development, 361.-
369 §. 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Stock breeders   7. Subsidy per unit or the total amount
 
 
 The amount of the subsidy is 50 per cent of  the costs.  Payments under this programme 
amounted HUF 196 million during the period covered by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 G/SCM/N/71/HUN 
Page 39 
 
 
 3.3. Assistance to agriculture and forestry 
3.3.1 Assistance to the preservation or develo pment of biological bases and the modernisation 
of related system of qualification 
3.3.1.1  Assistance to genetic development 
1. Title of the subsidy programme  
 
 Assistance to genetic development 
 2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To assist the preservation or development of bi ological bases, the modernisation of related 
systems of qualification and the participation of Hungary in international scientific organisations. 
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 103.-
114. § 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Producers  7. Subsidy per unit or the total amount
 
 
 50 to 100 per cent of the cost s. 
  Payments under this programme amounted to HUF 542 million during the period covered by 
the notification.  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  G/SCM/N/71/HUN 
Page 40  
 
 3.3.1.2. Assistance to the purchase and changes of breeding animals and to the expansion of their 
stocks 
1. Title of the subsidy programme
 
  Assistance to the purchase and changes of breed ing animals and to the expansion of their 
stocks 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To facilitate the acquisition of high-quality  breeding animals and propagating materials. 
 
4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 15.-
80. §  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 Stock breeders 
 7. Subsidy per unit or the total amount
 
 
 For female animals 
   For beef cow and mare for service:  HUF 20,000 per female 
 For heifer with calf    HUF 45,000  For registered mare for  service   HUF 60,000 
 For sheep and goat for service :   HUF 1,200 per female  For red deer for service    HUF 10,000 
 For pig for service:     HUF 8,000 to 15,000 per female 
 
 For bees: 
  
 HUF 1,000 per family  HUF 850 per queen-bee 
 
 For poultry: 
  
 For chicken and "peking" type duck  HUF 100 per female  For turkey and "barbarie" type duck  HUF 200 per female 
 For goose and "mulard" type duck  HUF 500 per female 
 G/SCM/N/71/HUN 
Page 41 
 
 
  For male animals: 
 
 For bull for service:     HUF 60,000 per male.  For boar for service:    HUF 10,000 to 25,000 per male  For ram for service and he-goat for service:  HUF 15,000 to 25,000 
 
 For purchasing stallion for breeding: minimum 40 maximum 60 animals, maximum amount: HUF 35 million.   For semen of cattle, sheep, goat and hog for using is HUF 200 to 800. 
 For artificial insemination of cow:   HUF 65 per female 
 For artificial insemination of  mare:  HUF 35,000 per female. 
  Assistance to the special identification syst em ENAR of calves and horses is HUF 700 and 
1 650 per head. 
 
 Maximum amount for development of registrati on and identification system of pigs is HUF 
65 million.   Analysis of genetic performance of horses HUF 20,000 per animal  Use of breeding fish    HUF 70 per kilogram 
 Rabbit breeding     HUF 2,000 per animal 
  Payments under this programme amounted to  HUF 5,685 million during the period covered 
by the notification.  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
3.3.2. Assistance to the utilisation of arab le lands in disadvantaged producing areas 
 Phased out 
 
3.3.3. Assistance to investment in, and deve lopment of agricultural production and food 
processing 
 Phased out 
 
3.3.4. Assistance to mending, cultivating and preserving the quality and the quantity of forests  
1. Title of the subsidy programme
 
  Assistance to mending, cultivating and preser ving the quality and the quantity of forests 
 2. Period covered by the notification
 
 
 2000 G/SCM/N/71/HUN 
Page 42  
 
  
3. Policy objective and/or purpose of the subsidy
 
 
• To facilitate afforestation, treatment and cultivation of young forests; 
• To reduce costs arising from provisional utilisation of forests, from afforestation resulted 
from the change in use of land; 
• To contribute to the costs of forest treatment of public interest; 
• To contribute to the costs of operation of forest protection measuring and monitoring 
systems arising from international obligations; 
• To preserve the ecosystem, the ecological bala nce and physical condition of the forests; 
• To contribute to the costs of propagation of forest culture. 
 
4. Background and authority for the subsidy  
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 293.-
306. § 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Sylviculturists   7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to  HUF 3,772 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
3.4. Assistance to game husbandry 
1. Title of the subsidy programme
 
 
 Assistance to game husbandry 
 2. Period covered by the notification
 
  2000  G/SCM/N/71/HUN 
Page 43 
 
 
 3. Policy objective and/or purpose of the subsidy  
 
• To protect and preserve natural stocks of the species hunted as game and of their 
habitats; 
• To protect and preserve natural stocks of special areas; 
• To propagate hunting; 
• Regional game husbandry planning that is  consistent with forestry plans; 
• To contribute trophy evaluation; 
• To provide services related to research and development if connected to or aiming at 
achieving the objectives set out above; 
• To facilitate activities in domestic or foreign markets or in the area of marketing if 
connected to or aiming at achieving the objectives set out above. 
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 370.-
380. § 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Hunters, institutions, companies opera ting in the field of game husbandry 
 7. Subsidy per unit or the total amount
 
 
 The maximum amount of support eligible per a pplicant is HUF 5 million, but not more than 
the 50 per cent of the value of the investment. 
 
 Payments under this programme amounted to HUF 627 million during the period covered by 
the notification. 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy 
  N.A.   3.5. Assistance to the protection of arable land 
1. Title of the subsidy programme
 
  Assistance to the protection of arable land  2. Period covered by the notification
 
 
 2000 G/SCM/N/71/HUN 
Page 44  
 
  
3. Policy objective and/or purpose of the subsidy
 
  To provide supplement for cultivable land to lo wer the unjustified decrease of land capable of 
cultivation and to enhance different types of utilisa tion of land capable of cu ltivation as a sector with 
constant changes.  
 - To facilitate utilisation of land capable of cultiv ation by re-utilisation of idle land, to develop 
terraces for vineyards, to facilitate land concentr ation, elimination of orchards and vineyards, 
re-cultivation of fish ponds. 
- Assistance to remote sensoring related to agriculture 
- Assistance to international relations and studies in the field of land concentration policy and 
quality protection, 
- Improvement of land quality of erosion pron e cropland, inland waters, acidic, alkaline and 
sand soil.  
- Assistance to improve land registration 
- Assistance to research related to quantita tive and qualitative protection of cropland. 
- Financing of the national protection programme against weeds.  4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 321.-
344. §  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Producers, institutions, companies engaged in the  quantitative and qualitative protection of 
croplands and land concentration policy 
 
7. Subsidy per unit or the total amount
 
  40 per cent of the costs related to the process of quickening the soil, preserving the quality of 
land and the elaboration of projects in this regard, 
  
 40 per cent of the costs of improving the quality of land.   40 per cent of the costs of research relate d to the quantitative and qualitative protection of 
croplands  
 Payments under this programme amounted to  HUF 1,690 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. G/SCM/N/71/HUN 
Page 45 
 
 
  
 
3.6. Assistance to the construction and renovation of buildings 
 Phased out  
 3.6.1. Assistance to the construction of buildings of "new type" co-operations, fishery and 
forestry  
 Phased out  
 
 
3.6.2. Assistance to technology investments in the food industry 
1. Title of the subsidy programme
 
  Assistance to food industrial technology investments   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To assist the development of technology used in the food industry, especially: 
 
• Quality improvement, development of environmentally-friendly packaging, 
• Fulfilment of food hygiene requirements 
• Reducing energy use and environmental damage, 
• Production of traditional and organic products, specialities. 
•  
4. Background and authority for the subsidy  
  Decree 6/2000 (II. 26.) FVM of the Minister of Agriculture and Regional Development, 216-
217. § 
 5. Form of the subsidy
 
  Grant and interest subsidy 
 
6. To whom and how the subsidy is provided
 
  Processors   
7. Subsidy per unit or the total amount
 
  30 per cent of the cost of investment, maxi mum HUF 40 million, with the condition of own 
capital not less than 25 per cent of the investment.   40 per cent of the interest on the loan for investment, maximum loan HUF 150 million, with 
the condition of own capital not less than 25 per cent of the investment 
 G/SCM/N/71/HUN 
Page 46  
 
  Payments under this programme amounted to HUF 365 million during the period covered by 
the notification.   8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
3.6.3. Assistance to the modernisation and construction of buildings and machinery of 
forestry, game husbandry, fishery and horticulture 
1. Title of the subsidy programme
 
  Assistance to the modernisation and constructi on of buildings of forestry, game husbandry, 
fishery and horticulture  2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 To assist the modernisation and construction of buildings. 
 
4. Background and authority for the subsidy  
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 218.-
219. § 
 
5. Form of the subsidy
 
  Grant and interest subsidy  
6. To whom and how the subsidy is provided
 
  Sylviculturists, fish and horticulture producers   7. Subsidy per unit or the total amount
 
 
 Grant  
  30 per cent of the cost of construction, maximum HUF 40 million   Interest subsidy
: 
 
 40 per cent of the interest on the loan, maximum loan: HUF 150 million  G/SCM/N/71/HUN 
Page 47 
 
 
  For the construction of post harvest facilities (gra ding, packaging, cooling) in horticulture in 
specified regions, the maximum amount of the grant and the interest rate subsidy is HUF 75 million 
  Payments under this programme amounted to  HUF 5,213 million during the period covered 
by the notification. 
 
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   3.7. Assistance to the establishment of vine yards and orchards and renewal of vineyards 
1. Title of the subsidy programme
 
  Assistance to the establishment of vineyard s and orchards and renewal of vineyards  
 2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 To establish new plantations (fruit and grape) and to renew old vineyards  
 4. Background and authority for the subsidy
 
  Decree 6./2000 (II.26.) FVM of the Minister of  Agriculture and Regional Development, 220-
222. §  
 
5. Form of the subsidy
 
  Grant  Interest subsidy 
 
6. To whom and how the subsidy is provided
 
  Owners and tenants of vineyards or orchards  7. Subsidy per unit or the total amount
 
 
 Grants:  
  25 to 60 per cent of the different costs of establishment of vineyards and orchards, 5 per cent extra subsidy for producers using environmenta lly-friendly "integrated" production technology. 
 G/SCM/N/71/HUN 
Page 48  
 
  Interest subsidy:
 
 - 40 per cent of the interest on loans granted for maximum ten years, the maximum amount of 
the loan can not exceed HUF 150 million, with the condition of own capital not less than 25 per cent 
of the investment 
 
 Payments under this programme amounted to  HUF 4,731 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
3.8. Regional assistance programmes 
3.8.1. Assistance to the development of disadvantaged regions  
 Phased out  
 
3.8.2. Assistance to the inhabitants of settlem ents with less than 3 000 inhabitants living in 
disadvantaged regions 
 Phased out 
 3.8.3. Additional assistance to cert ain counties in disadvantaged areas 
1. Title of the subsidy programme
 
  Additional assistance to certain counties in disadvantaged areas  2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 To compensate for regional disadvantages.  
 4. Background and authority for the subsidy
 
  Decree 42/2000 (VII.21.) FVM of the Minister of Agriculture and Regional Development  
5. Form of the subsidy
 
  Grant  G/SCM/N/71/HUN 
Page 49 
 
 
 6. To whom and how the subsidy is provided  
  Producers located in Nógrád, Szabolcs- Szat már- Bereg, Borsod-Abaúj-Zemplén, Somogy 
and Békés counties  
7. Subsidy per unit or the total amount
 
 
• 15-20 per cent increase of the grant provi ded under the "3.7 Assistance to the 
establishment of vineyards and orchards a nd renewal of vineyards"-programme. Basic 
grant is 40 per cent of cost of establishmen t of new vineyards and orchards and 25 per 
cent of the cost of renewal of old vineyards 
 
• 10 per cent increase of the grant provided under the " 3.6.3. Assistance to the 
modernisation and construction of buildings and machinery of forestry, game husbandry, 
fishery and horticulture" programme. Basic grant is 40 per cent of the cost of the investment. 
 
• 20 per cent increase of the grant and 20 per cent of the interest subsidy provided under 
the "4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery" 
programme.  
 
• Increased grant provided under the " 4.4. Assi stance for planting and restructuring forests 
and afforestation" programme. 
 
 Maximum amount of the supplementary grant is HUF 15 million, maximum amount of the 
basic grant is HUF 40 million per beneficiary.   Payments under this programme amounted to HUF 961 million during the period covered by 
the notification.  
8. Duration of the subsidy
 
  From 21 July to 31 October 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  
3.8.4 Assistance to the development of agro-tourism 
 Phased out 
 3.9.  Assistance to foster co-operative integration 
1. Title of the subsidy programme
 
  Assistance to foster co-operative integration 
 
2. Period covered by the notification
 
  2000  G/SCM/N/71/HUN 
Page 50  
 
 3. Policy objective and/or purpose of the subsidy
 
  To encourage co-operative integration in th e field of production, purchase and marketing. 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 138. § 
 5. Form of the subsidy
 
 
 Grant, interest subsidy 
 6. To whom and how the subsidy is provided
 
  Agricultural co-operatives and other economic ope rators engaged in the buying and selling of 
products and providing services.  
 7. Subsidy per unit or the total amount
 
  80 per cent of the start up cost, maximum HUF 250,000 for agricultural co-operations.  20 per cent of the cost of operation, maximum HUF 15 million. 
 HUF 150,000 per hectare, maximum HUF 5 million for partnerships in the field of forestry.  
 HUF 100 000 per member, maximum HUF 3 m illion for non-profit organisations providing 
machinery service to agriculture  30 per cent of the cost of investment, maximum HUF 50 million for wholesale markets.   40 per cent of  interest on loan with limitation: the maximum credit is HUF 200 million. 
 
 Payments under this programme amounted to  HUF 1,761 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
3.10. Assistance to the purchase of individu al shares of the members of co-operatives 
 Phased out 
 
3.11. Assistance to the realisation of certain goals of the agricultural policy  
3.11.1 . Assistance to the realisation of certain goals of the agricultural policy  
1. Title of the subsidy programme
 
  Assistance to the realisation of cer tain goals of the agricultural policy 
 G/SCM/N/71/HUN 
Page 51 
 
 
 2. Period covered by the notification  
  2000  3. Policy objective and/or purpose of the subsidy
 
  
 To assist the development of the agricultural information network and  the tasks concerning 
the arrangement for support.  4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) §200 FVM Minister of  Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Agricultural research institutes   
7. Subsidy per unit or the total amount
 
  Payments under this programme amounted to HUF 9.1 million during the period covered by 
the notification.   
8. Duration of the subsidy
 
  From 26 February 2000 to 2 March 2001  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
3.11.2. Assistance to agricultural information network 
1. Title of the subsidy programme
 
 
 Assistance to the development of th e agricultural information network  
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To assist the development of the agricultural information network   
4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 393-396. § G/SCM/N/71/HUN 
Page 52  
 
  
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Agricultural Research and Information Institute  Producers, book-keeping offices  
7. Subsidy per unit or the total amount
 
  HUF 85,000 to 135,000 depending on the amount of total returns   Payments under this programme amounted to HUF 307 million during the period covered by 
the notification.  
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N. A.   3.11. 3. Assistance to foreign training programmes 
1. Title of the subsidy programme
 
  Assistance to foreign training programmes   2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to foreign training programmes  
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 389.-
392. § 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Young agricultural experts  G/SCM/N/71/HUN 
Page 53 
 
 
 7. Subsidy per unit or the total amount  
  30 to 50  per cent of the cost of travel, accommodation and training programmes.   Payments under this programme amounted to HUF 71 million during the period covered by 
the notification.  
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  3.11.4. Assistance to agricultural research a nd development of non-profit organisations 
1. Title of the subsidy programme
 
  Assistance to agricultural research and devel opment of non-profit organisations founded by 
the Minister of Agriculture and Regional Development  
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to non-profit organisations relate d to agricultural research and development 
activities  4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 279.-
282. §  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Non-profit organisations with research and development activities 
 
7. Subsidy per unit or the total amount
 
  100 per cent of the cost   Payments under this programme amounted to HUF 405 million during the period covered by 
the notification.  
 G/SCM/N/71/HUN 
Page 54  
 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
3.11.5. Assistance to purchasing state-of-the-art technical equipment for institutions engaged in 
agricultural research and development 
1. Title of the subsidy programme
 
  Assistance to purchasing state-of-the-art tec hnical equipment for agricultural research and 
development 
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to purchasing technical equipmen t for agricultural research and development 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 245.-
249. §  5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Agricultural research institutes  
7. Subsidy per unit or the total amount
 
  70 per cent of the cost, maximum amount HUF 15 million.   Payments under this programme amounted to HUF 226 million during the period covered by 
the notification.  
 
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   G/SCM/N/71/HUN 
Page 55 
 
 
  
3.12. Assistance to common marketing in agriculture 
1. Title of the subsidy programme  
  Assistance to common marketing in agriculture 
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To co-finance the participation on international fairs.  Promotion of Hungarian agricultural products.  Assistance to market resear ch with advanced methods. 
 
4. Background and authority for the subsidy
 
  Decree 8/1999 (I. 20) FM of the Minister for Agriculture and Regional Development  Decree 6/2000 (II.26) § 161, §163 FVM of the Minister for Agriculture and Regional 
Development 
 
7. Subsidy per unit or the total amount
 
  50 - 100 per cent of the costs  
 Payments under this programme amounted to  HUF 3,237 million during the period covered 
by the notification.  8. Duration of the subsidy
 
  From 20 January 1999 to 2 March 2001 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
3.13. Agricultural research programmes  
 Phased out  
 
3.14 Assistance to the joint establishment of wholesale markets by producers and to 
investments of joint sales organisations of producers 
 Phased out  
  G/SCM/N/71/HUN 
Page 56  
 
 4.1 Finance subsidies 
4.1.1. Assistance given to further agricultural activities  
 Phased out  
 
4.1.2. Government guarantee 
 Phased out   
 
4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery 
1. Title of the subsidy programme
 
 
 Assistance to the purchase and l easing of agricultural machinery 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To assist the producers in financing their purchase or leasing of agricultural machinery. 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 ( II.26.)  FVM of the Minister of Agriculture and Regional Development, 223.-228. §  5. Form of the subsidy
 
 
 Grant and interest subsidy   6. To whom and how the subsidy is provided
 
  Producers, leasing companies and entrepreneurs performing hired labour service with 
agricultural machinery 
 7. Subsidy per unit or the total amount
 
  In the case of purchase: 
 
 
 20 to 30 per cent of the actual purchase price of agricultural machinery 
 25 to 30 per cent of the actual purchase price of technological equipment  30 per cent of the actual purchase price of ag ricultural machinery for machinery co-operatives 
 The maximum amount of grant is HUF 40 million 
 
 In the case of leasing:
 
 
 40 per cent of the interest on related bank loan s granted for more than one year. 
 Requirement: minimum 25 per cent own capital of the investment cost 
 
 25 per cent of the actual purchase price of the machinery G/SCM/N/71/HUN 
Page 57 
 
 
  40 per cent of the interest on the related bank loans for the user of the leased agricultural 
machinery 
 Assistance is provided for leasing contracts of at least 3 years.  
 
 Payments under this programme amounted to  HUF 13,079 million during the period covered 
by the notification. 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  4.1.5. Assistance to members of co-operatives in acquiring loans 
 Phased out  
 
4.1.6. Interest rate subsidy for bank loans for maximum one year, and for more than one year, 
government guarantee 
1. Title of the subsidy programme
 
 
 Interest subsidy for loans of current assets 
 2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To assist producers in financing their costs of input materials.  
4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26.) FVM of the Minister for Agriculture and Regional Development, 81.-102. §  
5. Form of the subsidy
 
  Interest subsidy  Government guarantee  6. To whom and how the subsidy is provided
 
 
 Producers  7. Subsidy per unit or the total amount
 
 
 Interest rate subsidy for bank loans for maximum one year : 
  The interest rate subsidy is 40 per cent for loans given in HUF. G/SCM/N/71/HUN 
Page 58  
 
  The interest rate subsidy is 100 per cent for loans given for cereals storage in public 
warehouse  The interest rate subsidy is 25 per cen t for loans given in foreign currency. 
 In case of a natural disaster, extra interest rate  subsidy of 25 per cent is given for loans in 
HUF, 15 per cent for loans in foreign currency.  
 
Government guarantee: 
 
 Producers of wheat, maize, rye, barley are entitled to claim Government guarantee for up to 70 per cent of loans or maximum HUF 20,000 per hectare. 
 
 Interest rate subsidy of bank loans for at least four but maximum six years:
 
  The maximum amount of the loan can be HUF 150 million.  
 The interest rate subsidy is  50 per cent in the first year, 
     70 per cent in the second year,      50 per cent in the third year,      40 per cent in the fourth year,      20 per cent in the fifth  year,      10 per cent in the sixth year. 
 
 Government guarantee: 
 
 80 per cent for loans up to HUF 5 million. 
 60 per cent for loans over HUF 5 million 
 
 Payments under this programme amounted to  HUF 14,033 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  4.1.7. Interest subsidy for purchasing grain seed  with quality assurance necessary for the 1999 
sowing 
1. Title of the subsidy programme
 
  Interest subsidy for purchasing wheat, barley, rye, triticale-seed 
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To assist producers in financing their costs of seed  G/SCM/N/71/HUN 
Page 59 
 
 
 4. Background and authority for the subsidy  
  Decree 70/1999 (VIII. 26.) FVM of the Minister  for Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Interest subsidy  6. To whom and how the subsidy is provided
 
 
 Seed wholesalers, retailers 
 7. Subsidy per unit or the total amount
 
  The interest rate subsidy is 100 per cen t on loan for seed purchase, maximum 250 kg per 
hectare for wheat seed, 200 kg per hectare for ot her seeds, maximum price HUF 38,100 per tonnes for 
wheat seed and HUF 34,300 per tonnes for other seeds.    Payments under this programme amounted to HUF 138 million during the period covered by 
the notification.  
8. Duration of the subsidy
 
  Starting date:  26 August 1999  Duration has not been specified  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 4.1.8. Government guarantee for a HUF 16 b illion loan given to small companies in the 
canning sector 
1. Title of the subsidy programme
 
  Government guarantee for loans given to small food processing companies  
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To facilitate the access of small food processing companies to loans 
 4. Background and authority for the subsidy
 
  Decree 57/1999 (VI.18.), 79/1999 (IX. 3.), 7/ 2000 (II. 29), 19/2000 (V. 16.), 20/2000 (V. 16.) 
FVM of the Minister for Agriculture and Regional Development 
 G/SCM/N/71/HUN 
Page 60  
 
 5. Form of the subsidy
 
  Government guarantee  6. To whom and how the subsidy is provided
 
 
 Processors   7. Subsidy per unit or the total amount
 
 
 Government guarantee for 100 per cent of the loan. 
  Payments under this programme amounted to  HUF 1,220 million during the period covered 
by the notification.  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
4.1.9.  Assistance to the modernisation of certain agricultural machinery 
1. Title of the subsidy programme
 
 
 Assistance to the modernisation of certain agricultural machinery 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To assist producers in financing the modernisa tion of agricultural machinery at least 5, 
maximum 15 years old  
 
4. Background and authority for the subsidy
 
  Decree 6/2000 ( II.26.) FVM of the Minister of  Agriculture and Regional Development, 229.-
232. §  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers, leasing companies and entrepreneurs performing hired labour service with agricultural machinery  G/SCM/N/71/HUN 
Page 61 
 
 
 7. Subsidy per unit or the total amount  
  50 per cent of the cost of modernisati on, maximum HUF 400,000 per beneficiary. 
 
 Payments under this programme amounted to HUF  1 million during the period covered by the 
notification. 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.2.  Assistance to the production of certain agricultural products 
 Phased out 
 
4.3. Assistance to the restructuring of the agricultural sector 
1. Title of the subsidy programme
 
 
 Assistance to the restructur ing of the agricultural sector 
 2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
   (A)  To facilitate the organisational and st ructural adaptation of the agricultural sector.  
 
 (1)  To provide investment loans by bank s for the purchase of assets of agricultural co-
operatives or companies provided that these goods are used by the economic operator for agricultural or forestry production or for processing or services relating to agriculture and forestry; 
 
 (2)  To provide investment loans by ba nks for the purchase of assets of companies 
established as a result of transformation of state farms, agricultural complexes or forest exploitations provided that these goods are used for agricultural or forestry production and that no privatisation loan or other advantage is available for 
subsidising the interest; 
 
 (3)  To provide loans of more than one year for the operation of assets referred to under 
items 1) and 2) above. 
  Assets referred to above include the followi ng: real estates (excluding arable lands and 
residential real estates) equipment, machiner y, lorries and trucks and other equipment. 
 
 (B)  To provide additional assistance:   G/SCM/N/71/HUN 
Page 62  
 
  (1)  To individual producers that have started their enterprises not earlier than one year 
before applying for the support under (A) above;  
  (2)  To producers operating in economically  underdeveloped regions to the financing of 
their development projects. 
 
4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 381.-
386. § 
 
5. Form of the subsidy
 
  Grant 
 Interest subsidy  
 
6. To whom and how the subsidy is provided
 
  Producers  7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to HUF 344 million during the period covered by 
the notification.  
 8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.4.  Assistance to soil melioration and to irrigation investment 
1. Title of the subsidy programme
 
 
 Assistance to soil melioration and to irrigation investment 
 2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To help landholders and water management asso ciations maintain and improve the fertility of 
arable lands and facilitate the security of production.  
 (A)  To assist holders in the financing of their melioration development projects.  
 G/SCM/N/71/HUN 
Page 63 
 
 
  (B) To provide additional assistance to holders  by financing bank loans of more than one 
year granted for soil conservation, country  planning and the realisation of water 
supply and irrigation facilities. 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 ( II. 26.) FVM of the Minister of Agriculture and Regional Development, 263.-278. §  5. Form of the subsidy
 
 
 Grants (in the case of soil melioration)   Interest subsidy (in the case of irrigation investment)  6. To whom and how the subsidy is provided
 
 
 Producers  7. Subsidy per unit or the total amount
 
  Payments under this programme amounted to  HUF 2,276 million during the period covered 
by the notification.  
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.5.  Assistance for planting and restructuring forests and afforestation 
1. Title of the subsidy programme
 
  Assistance for planting and restructuring forests and afforestation 
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To provide assistance for planting and restructuring forests and afforestation. 
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 283.-
292. § 
 G/SCM/N/71/HUN 
Page 64  
 
 5. Form of the subsidy
 
  Grant 
 6. To whom and how the subsidy is provided
 
 
 Sylviculturists 
 7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to  HUF 2,607 million during the period covered 
by the notification.  
 8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.6.  Payments for relief from environmental degradation of forests   
1. Title of the subsidy programme
 
  Payments for relief from environmental degradation of forests   
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To compensate for losses of income due to the environmental degradation of forests. 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 ( II. 26.) FVM of the Minister of Agriculture and Regional Development, 
317.-320. §  5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Owners and tenants of forests  
7. Subsidy per unit or the total amount
 
  HUF 600 per gross cubic metre of timber   G/SCM/N/71/HUN 
Page 65 
 
 
  Payments under this programme amounted to HUF 245 million during the period covered by 
the notification.  
 8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.7. Refund of the consumption tax on diesel fuel 
1. Title of the subsidy programme
 
 
 Refund of the consumption tax on diesel fuel  
 2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To reduce the tax burden of producers.  
 4. Background and authority for the subsidy
 
 
 Decree 216/1997 (XII. 1) Korm of the Government  5. Form of the subsidy
 
  Tax refund 
 
6. To whom and how the subsidy is provided
 
  Producers  
7. Subsidy per unit or the total amount
 
  Refund of 70 per cent of the consumption tax on diesel fuel.  
  Payments under this programme amounted to  HUF 14,400 million during the period covered 
by the notification.  
 
8. Duration of the subsidy
 
  Starting date: 1 January 1998  Duration has not been specified. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. G/SCM/N/71/HUN 
Page 66  
 
  
 
4.8. Assistance to the participation in insurance schemes  
1. Title of the subsidy programme
 
 
 Assistance to the particip ation in insurance schemes 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To promote the enrolment of producers in insurance schemes. 
 
4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 147.-
153. §  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 Producers 
 7. Subsidy per unit or the total amount
 
  30 per cent of the insurance premium.  
 Payments under this programme amounted to  HUF 1,560 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.9. Payments for relief from natural disasters  
4.9.1.  Payments for relief from natural disasters affecting plant cultivation in 1995 
 Phased out  
 G/SCM/N/71/HUN 
Page 67 
 
 
 4.9.2. Payments for relief from fireblight disease 
 Phased out 
 
4.9.3.  Payments for relief from natural disasters affecting plant cultivation in 1997 
 Phased out  
 
4.9.4. Payments from relief from natural disasters not covered by insurance policies  
1. Title of the subsidy programme  
  Natural disasters not covered by insurance policies  
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To provide relief from damage of natural disasters.  4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 154.-
158. §  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Producers   
7. Subsidy per unit or the total amount
 
  The amount of subsidy depends on the type of  damage, the production loss, the additional 
costs related to plant protection and the area affected by the disaster.   
 Payments under this programme amounted to HUF 25 million during the period covered by 
the notification.  8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 G/SCM/N/71/HUN 
Page 68  
 
 4.9.5. Assistance to provide relief from the damage caused by the extraordinary weather 
conditions in June and July 1999 
1. Title of the subsidy programme
 
  Assistance to provide relief from the damage ca used by the extraordinary weather conditions 
in June and July 1999 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To provide relief from the damage caused by the extraordinary weather conditions in June 
and July 1999 
 
4. Background and authority for the subsidy
 
  Decree 75/1999 (IX. 1.) FVM of the Minister of Agriculture and Regional Development  
 5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 Producers  
 7. Subsidy per unit or the total amount
 
 
 Grant for damage caused by flood and internal water: 
 
 HUF 20,000 to 23,000 per hectare for wheat 
 HUF 19,000 to 22,000 per hectare for barley  HUF 20,000 per hectare for triticale, rye and oat  HUF 25,000 per hectare for rape (canola)  HUF 25,000 per hectare for pea (seed) 
 HUF 17,000 per hectare for maize 
 HUF 25,000 per hectare for sunflower and sugar beet   
 Grant for damage caused by hail:  
 
 HUF 3,000 per hectare 
 
 Grant for losses, damage of quality and losses in plantations 
 
 HUF 100,000 per hectare for green pepper, tomato, melon, cucumber  HUF 50,000 per hectare for other vegetables 
 HUF 150,000 per hectare for vegetable production in green houses 
 HUF 100,000 per hectare for vineyards and orchards  G/SCM/N/71/HUN 
Page 69 
 
 
  Grant for losses of breeding animals: 
 
 HUF 100,000 to 220,000 per animal for cattle (beef, dairy, heifers)  HUF 30,000 to 35,000 for pig  HUF 18,000 per animal for sheep 
 HUF 900 to 3,500 per animal for poultry 
 
 Grant for losses of other animals: 
 
 HUF 145 to 165 per kilogram for cattle  HUF 3,000 to 5,000 per animal, HUF 193 per kilogram for pig 
 HUF 400 to 500 per kilogram for sheep  HUF 160 to 280 per kilogram for poultry   Payments under this programme amounted to HUF 426 million during the period covered by 
the notification. 
 8. Duration of the subsidy
 
  From 1 September to 31 December 1999  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.9.6.  Assistance to provide relief from the damage caused by flood and internal water 
occurred in 1999  
 Phased out   
 
4.9.7. Assistance to the intervention of unharvested sugar beet 
 Phased out. 
 
4.9.8. Assistance to provide relief from the damage caused by flood and internal water 
occurred in 2000 
1. Title of the subsidy programme
 
 
 Assistance to provide relief from the damage ca used by flood and internal water occurred in 
2000  2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To mitigate the damage caused by fl ood and internal water occurred in 2000 
 G/SCM/N/71/HUN 
Page 70  
 
 4. Background and authority for the subsidy
 
  Decree 43/2000 (VII.21.) FVM of the Minister of Agriculture and Regional Development  5. Form of the subsidy
 
 
 Grant  
 
6. To whom and how the subsidy is provided
 
 
 Producers and sylviculturists  7. Subsidy per unit or the total amount
 
 
 Grant for damage caused by flood or internal water: 
  For cereals     HUF 10,000 per hectare  For vegetables     HUF 30,000 to 35,000 per hectare  For area ploughed preceding fall   HUF 3,000 per hectare  For area ploughed, fertilised but not sowed HUF 5,000 per hectare 
 For afforested areas    50 per cent of the cost 
 For losses of orchards and vineyards  HUF 60,000 per hectare  For destruction of orchards and vineyards HUF 100,000 per hectare  For destruction of bee-families   HUF 10,000 per family  For losses of game husbandry and fi shing 25 per cent of the damage 
 For areas covered in water,  
 not suitable for sowing in spring   HUF 3,000 per hectare   Payments under this programme amounted to  HUF 2,598 million during the period covered 
by the notification.  
8. Duration of the subsidy
 
  From 21 July to 30 November 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  
 
4.9.9. Assistance for land cultivation provide d for producers who incurred damage due to the 
drought in 2000 
1. Title of the subsidy programme
 
 
 Assistance for land cultivation provided for producers who incurred damage due to the 
drought in 2000  
2. Period covered by the notification
 
  2000  G/SCM/N/71/HUN 
Page 71 
 
 
 3. Policy objective and/or purpose of the subsidy  
  To mitigate the damage cau sed by the drought in 2000 
 4. Background and authority for the subsidy
 
 
 Decree 71/2000 (IX.30.) FVM of the Minister  of Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Producers cultivating an area of 1 to 3,000 hect ares, who incurred losses due to the drought in 
2000 
 7. Subsidy per unit or the total amount
 
  HUF 2,500 per hectare  
 Payments under this programme amounted to  HUF 1,299 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 30 September to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.10. Assistance to the organisation of wine-growing communities 
 Phased out 
 
4.11. Assistance to the utilisation of advisory and extension services 
1 Title of the subsidy programme
 
  Assistance to the utilisation of advisory and extension services  2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To promote the use of advisory and extension services. 
 G/SCM/N/71/HUN 
Page 72  
 
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 121.-
137. §  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers, sylviculturists  7. Subsidy per unit or the total amount
 
 
 25 to 75 per cent of advisory fee based on the turnover of producers 
 75 per cent for young farmers (aged under 40)    50 per cent of advisory fee for sylviculturists  Maximum grant is the amount of the minimum wage effectual at the time of the contract  
 Maximum 50 per cent of the costs of  training, maximum HUF 3 million,  
 Maximum 50 per cent of the costs of publications, maximum HUF 3 million,  100 per cent of the costs of the development of advisory information technology.    Payments under this programme amounted to HUF 601 million during the period covered by 
the notification. 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.12. Assistance to the "Borsod-Abaúj-Zemplén" region 
 Phased out 
 
4.13.  Assistance to the maintenance of recreational and park woods 
1. Title of the subsidy programme
 
 
 Assistance to the ma intenance of recreational and park woods 
 2. Period covered by the notification
 
  2000 
 G/SCM/N/71/HUN 
Page 73 
 
 
 3. Policy objective and/or purpose of the subsidy  
  To co-finance the costs of maintaining forest facilities such as botanical gardens, parking lots, 
green corridors and hiking paths.  
4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26.) FVM of the Minister of Agriculture and Regional Development, 307.-
316. §  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Operator s of forest facilities 
 
7. Subsidy per unit or the total amount  
  10 per cent of the investment costs. 
 
 Payments under this programme amounted to HUF 201 million during the period covered by 
the notification.  
 8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.14. Assistance to tobacco harvested in 1995 
1. Title of the subsidy programme
 
 
 Assistance to the production of tobacco 
 2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To encourage quality production   4. Background and authority for the subsidy
 
 
 26/2000. (V. 26.) FVM of the Minister for Agriculture and Regional Development   G/SCM/N/71/HUN 
Page 74  
 
 5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers   7. Subsidy per unit or the total amount
 
 
 Producers:  HUF 40 000 per ton for the group  of Virginia  
   A V - B V      HUF 23 000 per ton for the group of Virginia BI-Anya    HUF 16 000 per ton for the group of Kállói-Pallagi "A"  
 Payments under this programme amounted to  HUF 193.9 million during the period covered 
by the notification.  8. Duration of the subsidy
 
  From 10 June 2000 to 3 April 2001 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.15.  Assistance to potatoes harvested in 1996 
1. Title of the subsidy programme
 
  Assistance to the production of potato for human consumption  
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To encourage quality production   4. Background and authority for the subsidy
 
  6/2000 (II.26.) §203 FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Producers  G/SCM/N/71/HUN 
Page 75 
 
 
 7. Subsidy per unit or the total amount  
  HUF 8 per kg    No payments occurred under this programme. 
 
8. Duration of the subsidy
 
  From 26 February to 2 March 2001  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.16.  Assistance to stabilise the egg market 
1. Title of the subsidy programme
 
  Assistance to stabilise the egg market  2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 To re-establish the equilibrium be tween domestic supply and demand. 
 4. Background and authority for the subsidy
 
  8/1999 (IV.8.) FVM of the Minister fo r Agriculture and Regional Development  
 6/2000 (II.26.) §201 FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Producers   7. Subsidy per unit or the total amount
 
 
 HUF 300-500 per laying hen .  Payments under this programme amounted to HUF 22  million 
during the period covered by the notification.  8. Duration of the subsidy
 
 
 From 20 January 1999 to 2 March 2001 
 G/SCM/N/71/HUN 
Page 76  
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.17. Intervention support for quality production of game birds  
 Phased out 
 
4.18. Assistance to beekeepers 
 The description of the measure can be found under 4.42. 
 
4.19. Assistance to the establishment of environmentally friendly crop structure 
 Phased out 
 
4.20. Assistance to the transition to organic production  
1. Title of the subsidy programme
 
  Assistance to the transition to organic production  2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To promote organic production  
 
4. Background and authority for the subsidy
 
  Decree 6/2000 ( II. 26.) FVM of the Minister of Agriculture and Rural Development, 115.-122. §    
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers  
 7. Subsidy per unit or the total amount
 
  Grant for the period of transition, maximum three years. 
 
 75 per cent of the costs of pl ant and soil test, quality control 
 40 per cent of the costs of organic fertiliser, special plant protection chemicals, quality seeds  
 
 Payments under this programme amounted to HUF 50 million during the period covered by 
the notification.  G/SCM/N/71/HUN 
Page 77 
 
 
  
8. Duration of the subsidy  
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.21. Assistance to stabilisation of the cereal market 
1. Title of the subsidy programme
 
  Assistance to stabilisation of the cereal market  
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To prolong the period of sale in order to est ablish better market conditions and prices, to 
facilitate access to bank loans.  4. Background and authority for the subsidy
 
 
 Decree  46/1997 ( VI. 25.) FM of the Minister of Agriculture 
 5. Form of the subsidy
 
  Grant  Interest subsidy 
 
6. To whom and how the subsidy is provided
 
  Producers 
 
7. Subsidy per unit or the total amount
 
  Interest subsidy to cover 70 per cent of the cost for producers who placed their crop in public storage.  Storage support: HUF 10 per ton per week  
 
 Payments under this programme amounted to HUF 2.8 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 Starting date: 25 June 1997. Duration of the subsidy has not been specified.  
 G/SCM/N/71/HUN 
Page 78  
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.22. Intervention assistance to producers of wheat for feeding purposes for selling their crop 
 Phased out. 
 
4.23. Assistance to the maintenance and de velopment of the statistical data-bases of 
producers’ councils 
1. Title of the subsidy programme
 
  Assistance to the maintenance and developmen t of the statistical data-bases of producers’ 
councils  
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 Statistical monitoring of the agricultural sector.   
 4. Background and authority for the subsidy
 
  Decree 8/1999 FVM of the Minister of  Agriculture and Regional Development 
 Decree 6/2000 §167 FVM of the Minister of Agriculture and Regional Development 
 5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Producers’ councils 
 7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to HUF 85.6 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 18 January 1997 to 2 March 2001 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 G/SCM/N/71/HUN 
Page 79 
 
 
 4.24. Assistance to the improvement of competitiveness 
 Phased out 
 
4.25. Assistance to the reduction of costs relating to the rental of agricultural land  
 Phased out  
 
4.26. Assistance to socially disadvantaged agricultural communities 
1. Title of the subsidy programme  
  Assistance to socially disadva ntaged agricultural communities 
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To provide assistance to socially disadvant aged agricultural commun ities for local family 
farming.    4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 140.-
146. §  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
  Local governments   
 
7. Subsidy per unit or the total amount
 
  50 per cent of the cost of purchasing seed, breeding animals, propagating material.   
 Payments under this programme amounted to HUF 26 million during the period covered by 
the notification.  8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 G/SCM/N/71/HUN 
Page 80  
 
 4.27. Assistance to the construction  and modernisation of rural roads  
 Phased out  
 
4.28. Assistance to the service of field wardens 
1 Title of the subsidy programme
 
 
 Assistance to the service of field wardens 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To ensure the establishment and efficient operation of field wardens.   
4. Background and authority for the subsidy
 
  Decree 17/2000 (IV. 10.) FVM and PM of the Minister of Agriculture and Regional Development and Minister of Finance  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 Local governments 
 7. Subsidy per unit or the total amount
 
  Grant for establishment: 50 per cent of the cost, maximum HUF 300,000 per service area  
 Grant for operation: 50 per cent of the cost of service, maximum HUF 40,000 per service area 
  Payments under this programme amounted to HUF 228 million during the period covered by 
the notification.  
8. Duration of the subsidy
 
  From 10 April to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
4.29. Assistance to young farmers  
1. Title of the subsidy programme
 
 
 Assistance to young farmers  G/SCM/N/71/HUN 
Page 81 
 
 
  
2. Period covered by the notification  
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To encourage the agricultura l activities of young farmers. 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II. 26.) FVM of the Minister of Agriculture and Regional Development, 139.§ 
 5. Form of the subsidy
 
 
 Grant  
 Interest subsidy  6. To whom and how the subsidy is provided
 
  Producers under the age of 40  
 
7. Subsidy per unit or the total amount
 
  Grant : 30 per cent of the purchase price or investment cost of buying land, on-farm facilities, 
animals 
 
 The maximum amount of grant per farmer is HUF 15 million.   Interest subsidy: 80 per cent of the basic in terest rate of the National Bank of Hungary on 
loans up to HUF 30 million received for the above-mentioned purposes.  
 Payments under this programme amounted to  HUF 1,558 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.30. Assistance to agricultural employment 
 Phased out 
 
4.31. Assistance to the school milk programme 
1. Title of the subsidy programme
 
  Assistance to the school milk programme G/SCM/N/71/HUN 
Page 82  
 
  
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  To encourage milk consumption in order to  improve the nutritional intake in socially 
disadvantaged regions.   
4. Background and authority for the subsidy
 
  Decree 1/2000 (I. 14.) FVM of the Minister  of Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
  Milk Producers’ Council 
 
7. Subsidy per unit or the total amount
 
  Payments under this programme amounted to  HUF 1,500 million during the period covered 
by the notification. 
 
8. Duration of the subsidy
 
  From 14 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
4.32. Assistance to the purchasing of the required amount of the maize for feeding purposes 
1. Title of the subsidy programme
 
  Assistance to the purchasing of the required amount of the maize for feeding purposes   2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To ensure an adequate supply of maize for feeding purposes   
 
4. Background and authority for the subsidy
 
  Decree 49/1998 (XI.4.) FVM of  the Minister of Agriculture and Regional Development G/SCM/N/71/HUN 
Page 83 
 
 
  Decree  100/1999 ( VII. 7.) FVM of the Minister of Agriculture and Regional Development 
 5. Form of the subsidy
 
  Grant 
 Interest subsidy 
 6. To whom and how the subsidy is provided
 
  Producers 
 
7. Subsidy per unit or the total amount
 
  Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary. 
 Storage support: HUF 15 per ton per week 
  
 Payments under this programme amounted to HUF 702 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 4 November 1998 to 30 September 2000  
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.33.1. Additional assistance to the storage of  maize harvested in 1998 for feeding purposes in 
public warehouses 
1. Title of the subsidy programme
 
 
 Additional assistance to the storage of maiz e harvested in 1998 for feeding purposes in public 
warehouses   2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To provide assistance to the storage of ma ize harvested in 1998 in public warehouses. 
 
4. Background and authority for the subsidy
 
  Decree 44/1998 (X. 28.) FVM  of the Minist er of Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Interest subsidy  Grant  G/SCM/N/71/HUN 
Page 84  
 
 6. To whom and how the subsidy is provided
 
  Producers 
 7. Subsidy per unit or the total amount
 
 
 Interest subsidy of 100 per cent of the basic interest rate of the Na tional Bank of Hungary on 
loans which have the stored commodity as collateral.    Storage support: HUF 15 per ton per week, for a period of maximum one year. 
 
 Payments under this programme amounted to HUF 68.1 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 28 October 1998 to 19 January 1999  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.33.2. Assistance to the storage of maize for feeding purposes harvested in 1999 in public 
warehouses 
1. Title of the subsidy programme
 
 
 Additional assistance to the storage of maize for feeding purposes harvested in 1999 in public 
warehouses   2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  To provide assistance to the storage of ma ize harvested in 1999 in public warehouses. 
 
4. Background and authority for the subsidy
 
  Decree 94/1999 (XI. 3.) FVM  of the Minist er of Agriculture and Regional Development 
 5. Form of the subsidy
 
 
 Interest subsidy  Grant  6. To whom and how the subsidy is provided
 
 
 Producers 
 G/SCM/N/71/HUN 
Page 85 
 
 
 7. Subsidy per unit or the total amount  
  Interest subsidy of 100 per cent of the basic interest rate of the Na tional Bank of Hungary on 
loans which have the stored commodity as collateral.    
 Storage support: HUF 15 per ton per week, for a period of maximum one year. 
  Payments under this programme amounted to  HUF 356.9 million during the period covered 
by the notification.  
8. Duration of the subsidy
 
  From 28 October 1998 to 25 February 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
4.34. Wheat exchange transaction 
 Phased out. 
 
4.35. Assistance to the purchase of wheat seed for the 1998 autumn sowing 
Phased out 
 
4.36. Interest subsidy to loans received for the purchase of apple in bulk harvested in 1997 for 
processing purposes 
1. Title of the subsidy programme
 
  Interest subsidy to loans received for the purchase of apple in bulk harvested in 1997 for 
processing purposes   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To re-establish the equilibrium between domestic supply and demand. 
 4. Background and authority for the subsidy
 
  Decree 105/1997 (X.11.) FM of the Minister for Agriculture as amended by 52/1998 (VI.26.) 
FM of the Minister for Agriculture 
 5. Form of the subsidy
 
  Interest subsidy  
 G/SCM/N/71/HUN 
Page 86  
 
 6. To whom and how the subsidy is provided
 
  Processors  7. Subsidy per unit or the total amount
 
 
 Interest subsidy of 70 per cent on lo ans received for purchasing apple in bulk. 
  Payments under this programme amounted to HUF 2.5 million during the period covered by 
the notification. 
 
8. Duration of the subsidy
 
  From 17 December 1997 to 31 August 1998 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   
4.37.  Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998 
1. Title of the subsidy programme
 
  Interest subsidy on loans received for th e purchase of apple in bulk harvested in 1999 
 2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
  To re-establish the equilibrium between domestic supply and demand. 
 
4. Background and authority for the subsidy
 
  Decree 80/1999 (IX.17.) FVM of the Minister  for Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Interest subsidy  
 6. To whom and how the subsidy is provided
 
 
 Processors 
 7. Subsidy per unit or the total amount
 
  Interest subsidy: 100 per cent of the basic interest rate of the National Bank of Hungary on 
loans received for the purchase of apples in bulk.  
  Payments under this programme amounted to  HUF 1,499.3 million during the period covered 
by the notification. G/SCM/N/71/HUN 
Page 87 
 
 
  
8. Duration of the subsidy  
  From 1 September 1999 to 1 February 2000  
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.38. Intervention assistance to th e selling of wheat for feeding purposes 
 Phased out. 
 
4.39. Market intervention related to the duck production  
 Phased out. 
 
4.40.  Quality-linked support to the production of sugar beet  
1. Title of the subsidy programme
 
  Quality-linked support to th e production of sugar beet  
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To encourage quality production   4. Background and authority for the subsidy
 
  6/2000 (II.26.) §203 FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Producers with a yield of at least 6.6 t per ha in 2000  7. Subsidy per unit or the total amount
 
 
 The amount of subsidy is HUF 25 000 per ha 
  No payments occurred under this programme during the period covered by the notification. 
 8. Duration of the subsidy
 
 
 From 26 February to 1 March 2001 G/SCM/N/71/HUN 
Page 88  
 
  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  4.41. Emergency income support to certain producers of cereals  
1. Title of the subsidy programme
 
  Emergency income support to certain producers of cereals   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To dissuade producers from offering th eir produce for intervention purchase. 
 4. Background and authority for the subsidy
 
  Decree 42/1998. (X.28.) FVM of the Minister for Agriculture and Regional Development   
 
5. Form of the subsidy
 
  Grant   
6. To whom and how the subsidy is provided
 
  Producers who disclaim the right of the intervention at guaranteed price   7. Subsidy per unit or the total amount
 
 
 HUF 3 000 per ton  
  Payments under this programme amounted to HUF 1.1 million during the period covered by 
the notification.   
8. Duration of the subsidy
 
  From 16 July 1998 to 1 October 1999  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
4.42.  Assistance to reduce certain sanitary- and phytosanitary costs  
1. Title of the subsidy programme
 
 
 Assistance to reduce the sanita ry- and phytosanitary costs.  
 G/SCM/N/71/HUN 
Page 89 
 
 
 2. Period covered by the notification  
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To reduce the sanitary and phytosanitary costs.  4. Background and authority for the subsidy
 
 
 Decree 109/1997. (XII. 30.) §200, §204, §208, §213 and FM of the Minister of Agriculture  
 Decree 39/1998. (V.22)  FM of the Minister of Agriculture 
Decree 8/1999. (I.20.) §171, §176,§180,§184,§186,§188, §191-193, §455 FVM of the 
Minister of Agriculture and Regional Development  Decree 69/1999. (VIII.26.) FVM of the Minister of Agriculture and Regional Development 
 Decree 6/2000. (II.26.) FVM §174; §178; §182;  §186;§190; §191; §192;  §198; §199 FVM of 
the Minister of Agriculture and Regional Development  5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Producers  
7. Subsidy per unit or the total amount
 
 
 Sanitary cost compensation:  
 
 medical costs of bee colonies   Maximum HUF 1000 per colony          vaccination for pig for slaughter   HUF 1300 - 1500 per animal 
 pig for slaughter    HUF 84 - 100 per animal   
 cattle for slaughter   HUF 275 - 300 per animal    poultry for slaughter    HUF 1 - 1.5 per kg  rabbit for slaughter    HUF 1800 - 2000 per ton       HUF 12 per animal (veterinary control) 
 game      HUF 60-120 per kg  
      HUF 4.90-2000 per animal (medical costs)  duck     HUF 20 - 22 per animal  goose     HUF 33 - 36 per animal  edible snails    HUF 1000 per ton  medical costs of bee colonies   Maximum HUF 500 per colony    
 costs of quality control for honey  2000-9000 per sample 
 waste management    HUF 9/kg    (maximum amount:   rabbits  5000 tons 
 wild animals 600 tons 
 edible snails 500 tons)   medical control for sheep and   goat for slaughter                           HUF 40 per animal  G/SCM/N/71/HUN 
Page 90  
 
  
Phytosanitary cost compensation:
 
  seed production    50 per cent of the phytosanitary costs  
 grain, maize, flour   
 and feed stuffs    75 per cent of the phytosanitary costs   arable and horticultural areas   and nurseries    50 per cent of the phytosanitary costs 
 
 propagating material of   forestry tree species   70 per cent of the phytosanitary costs           herbaceous plants and spice crops  50 per cent of the phynosanitary costs 
 
 Payments under this programme amounted to  HUF 2 663.9 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 1 January 1998 to 25 February 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
4.43. Assistance to the production of sowing seed  
1. Title of the subsidy programme
 
  Assistance to the production of sowing seed   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To reduce the cost of the sowing seed production.  4. Background and authority for the subsidy
 
  Decree 109/1997 (XII. 30.)  FM of the Minister of Agriculture 
 Decree 6/2000 (II. 26.)  FM of the Minist er of Agriculture and Regional Development 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Producers G/SCM/N/71/HUN 
Page 91 
 
 
  
7. Subsidy per unit or the total amount  
  50 per cent of the cost of qualification  
 Payments under this programme amounted to HUF 56.8 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
4.44. Assistance to the purchase of the required amount of cereals for feeding and of wheat 
for milling purposes  
1. Title of the subsidy programme
 
  Assistance to the purchasing of the required am ount of cereals for feeding and of wheat for 
milling purposes  
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  To ensure an adequate supply of grain for feeding and wheat for milling purposes. 
 4. Background and authority for the subsidy
 
 
 Decree 57/1998 (VII.7.) FM of the Minister of Agriculture as amended by 11/1998 (VIII.7) FVM of  the Minister of Agriculture and Regional Development  5. Form of the subsidy
 
 
 Grant  Interest subsidy  6. To whom and how the subsidy is provided
 
 
 Producers 
 7. Subsidy per unit or the total amount
 
  Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary. 
 Storage support: HUF 15 per ton per week 
   Payments under this programme amounted to  HUF 112.5 million during the period covered 
by the notification. G/SCM/N/71/HUN 
Page 92  
 
  
8. Duration of the subsidy
 
  From 7 July to 31 December 1999  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
4.45. Assistance to the storage in public warehouse of wheat harvested in 1998  
1. Title of the subsidy programme
 
  Assistance to the storage in public warehouse of wheat harvested in 1998. 
 
2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
  To ensure an adequate level of supply. 
 
4. Background and authority for the subsidy
 
  Decree 2/1998 (VII. 16.) FVM  of the Minist er of Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Grant  Interest subsidy  6. To whom and how the subsidy is provided
 
 
 Producers 
 7. Subsidy per unit or the total amount
 
 
 Interest subsidy: 
  60 per cent for wheat for human consumption  100  per cent for wheat for feeding purposes  Storage support: HUF 15 per ton per week  
 Payments under this programme amounted to  HUF 118.3 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 From 16 July  1998 to 19 January 1999  
 G/SCM/N/71/HUN 
Page 93 
 
 
 9. Statistical data permitting an assessmen t of the trade effects of the subsidy  
  N.A. 
 
4.46. Assistance to introduce the HACCP system of quality management  
1. Title of the subsidy programme
 
  Assistance to introduce the HACCP system of quality management and  food safety 
 2.. Period covered by the notification
 
 
 2000  4. Background and authority for the subsidy
 
 
 Decree 109/1997. (XII.30.) FM of the Minist er for Agriculture; Decree 8/1999 (I.20.) FVM 
Minister of Agriculture and Regional Development,  §171; §201;  and Decree 6/2000(II.26) FVM of 
the Minister of Agriculture and Regional Development, §169  6. To whom and how the subsidy is provided
 
 
 Companies in the retail or wholesale business 
 7. Subsidy per unit or the total amount
 
  Maximum 50 per cent of the costs.  
 The maximum eligible amount of sup port is HUF 1 million per beneficiary. 
  Payments under this programme amounted to  HUF 144.3 million during the period covered 
by the notification.   8. Duration of the subsidy
 
 
 From 1 January 1998 to 2 March 2001  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
 
4.47. Intervention support to maintain the EU  approved level of hygiene of pig and cattle 
slaughterhouses  
 Phased out 
 4.48. Assistance to organisations pr oducing and selling fruit and vegetables 
 Phased out  
 
4.49. Assistance to research and development of co-operatives  
 Phased out 
 G/SCM/N/71/HUN 
Page 94  
 
 4.50. Assistance to programmes of agricultura l structure and rural development programmes 
 Phased out  
 
4.51. Assistance to technical development 
1. Title of the subsidy programme
 
 
 Assistance to technical development  2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  Assistance to technical development 
 
4. Background and authority for the subsidy
 
  Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 233.-
239. §  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers, institutes, organisations  7. Subsidy per unit or the total amount
 
  50 per cent of the cost of the establishment of pilot projects, investments related to renewable 
energy resources  
  50 per cent of the costs of other investme nts related to the technical development 
requirements arising from the EU accession, with th e condition of 25 per cent own capital of the cost 
of investment. 
 
 The maximum amount of the grant  is HUF 10 million per beneficiary . 
  Payments under this programme amounted to HUF 335 million during the period covered by 
the notification.  
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.  G/SCM/N/71/HUN 
Page 95 
 
 
  
4.52. Assistance to genetic and technological de velopment and to the utilisation of innovations 
1. Title of the subsidy programme  
  Assistance to genetic and technological development 
 
2. Period covered by the notification
 
  2000  
3. Policy objective and/or purpose of the subsidy
 
  Assistance to genetic and technological development  4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 240.-
244. §  5. Form of the subsidy
 
 
 Grant 
 6. To whom and how the subsidy is provided
 
  Agricultural research institutes, universities 
 
7. Subsidy per unit or the total amount
 
  50 per cent of the costs, maximum amount of the grant is HUF 10 million per beneficiary.   Payments under this programme amounted to HUF 504 million during the period covered by 
the notification. 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
4.53. Assistance to plant protection against the damage caused by non-indigenous disease 
1. Title of the subsidy programme
 
  Assistance to plant protection against non-indigenous disease  2. Period covered by the notification
 
 
 2000  G/SCM/N/71/HUN 
Page 96  
 
 3. Policy objective and/or purpose of the subsidy
 
  Assistance to the additional plant prot ection costs caused by non-indigenous disease 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II. 26.) FVM of the Minister of  Agriculture and Regional Development, 397.-
400. §  5. Form of the subsidy
 
 
 Grant  6. To whom and how the subsidy is provided
 
 
 Producers 
 7. Subsidy per unit or the total amount
 
  75 per cent of the costs of chemicals used for plant protection against non-indigenous disease  
 No payments under this programme during the period covered by the notification. 
 8. Duration of the subsidy
 
  From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.54. Assistance to regional development 
4.54.1. Assistance to territorial development 
1. Title of the subsidy programme
 
  Assistance to regional (territorial)development 
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to regional development, especially:   Investments creating new employment opportunities 
Investments for keeping labour in regions with high unemployment rate, investments 
promoting new products and markets, es tablishment of plantations, forests 
 Development of infrastructure (energy, transpor tation, sewage disposal, canalisation, dam, in-
land waterway, establishment of fish ponds etc.) G/SCM/N/71/HUN 
Page 97 
 
 
  Innovation and logistic centres, industrial parks 
 Development of producing a nd utilising renewable energy 
 Co-operation, integration programmes  Development of human resources  Preparing regional development programmes 
 Development of regional specialities and organic products 
 Development of tourism in villages and recreation areas   Research and development progra mmes related to regional programmes 
 4. Background and authority for the subsidy
 
 
 Decree 50/2000 (IV. 13.) Korm. of the Government  5. Form of the subsidy
 
 
  G r a n t  
  Interest subsidy  6. To whom and how the subsidy is provided
 
  Legal and natural pe rsons, organisations 
 
7. Subsidy per unit or the total amount
 
  The amount of the grant is 20 to 70 per cent of the cost of investment.  Payments under this programme amounted to  HUF 7,121 million during the period covered 
by the notification. 
 8. Duration of the subsidy
 
  From 13 April to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.54.2. Assistance to rural development 
1. Title of the subsidy programme
 
  Assistance to regional development  2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to regional development, especially: 
  Improving the opportunities of inhabitant s living in disadvantageous regions 
 Sustainable development in regions with special ecological advantages  G/SCM/N/71/HUN 
Page 98  
 
  Preparation of regional development programmes based on integration policy 
 Diversification and development of alternative activities in order to increase the income of 
inhabitants 
 Development of human resources  Development of villages, preservation of the rural traditions 
 Development of infrastructure 
 4. Background and authority for the subsidy
 
  Decree 34/2000 (VII. 6.) FVM of Minister of Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Grant  
6. To whom and how the subsidy is provided
 
  Legal and natural pe rsons, organisations 
 7. Subsidy per unit or the total amount
 
 
 Grant is 40 to 50 per cent of the costs of i nvestment, maximum amount of the grant is HUF 1 
to 15 million  per investment. 
  Payments under this programme amounted to  HUF 1,470 million during the period covered 
by the notification. 
 
8. Duration of the subsidy
 
  From 6 July to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   
4.55. Payments for relief from damage caused by wild animals  
1. Title of the subsidy programme
 
  Payments for relief from damage caused by wild animals  2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  Assistance to reduce the dama ge caused by wild animals 
 
4. Background and authority for the subsidy
 
  Decree 30/1997 (IV. 30.) FVM of the Minister  of Agriculture and Regional Development G/SCM/N/71/HUN 
Page 99 
 
 
 5. Form of the subsidy  
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers  7. Subsidy per unit or the total amount
 
 
 Payments under this programme amounted to  HUF 1,109 million during the period covered 
by the notification.  8. Duration of the subsidy
 
 
 Starting date: 30 April 1997 
 Duration has not been specified.  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A. 
 
 
4.56.  Assistance to the market of pig for slaughter  
1. Title of the subsidy programme
 
 
 Assistance to the market for pig for slaughter  
 2. Period covered by the notification
 
  2000  
3. Policy objective and /or purpose of the subsidy
 
  Support to stabilize domestic agricultural prices  4. Background and authority for the subsidy
 
 
 Decree 60/1999. (VII. 13.) FVM  of the Minister for Agriculture  and Regional Development 
 6. To whom and how the subsidy is provided
 
  Producers 
 
7. Subsidy per unit or the total amount
 
  The amount of subsidy is HUF 30 per kg  
 Payments under this programme amounted to HUF 0.4 million during the period covered by 
the notification.   G/SCM/N/71/HUN 
Page 100  
 
 8. Duration of the subsidy
 
  From 13 June 1999    Duration has not been specified. 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
 
4.57. Assistance to the storage in public wareh ouse of barley, rye and triticale harvested in 
1998  
 Phased out 
 4.58. Area-based payment for crop production 
1. Title of the subsidy programme
 
  Area based payment for crop production  2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 To assist the crop production of small farms (1  to 300 hectares), to increase their income, to 
moderate the disadvantages of small-scale farming .  
 4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26.) FVM of the Minister of  Agriculture and Regional Development, 4.-
14.§ 
 5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Producers: 
  Payments per hectare to all farms from 1 to 300 hectares engaged in the production of the 
following crops: 
 
 −  wheat, durum wheat, barley, rye, triticale, rice, maize,  
 −  (dry) pea, soy bean,  
 −  rape, tobacco, potato, 
 −  grass-seed, pumpkin-seed, sunflower-seed, 
 −  vegetables on arable land with a minimum size of 0,5 hectare G/SCM/N/71/HUN 
Page 101 
 
 
  −  orchards and vineyards, 
 −  grassland, 
 −  fish-ponds, 
 −  orchards, vegetables on arable land, hybrid seed producti on with irrigation. 
 
7. Subsidy per unit or the total amount  
  In general:
 
  1.00 to 20.00 hectares   HUF 8,000 per hectare 
 20.01 to 50.00 hectares   HUF 6,000 per hectare 
 50.01 to 300.00 hectares   HUF 4,000 per hectare   For:
 
  vineyards, orchards   HUF 8,000 per hectare 
 vegetable on arable land   HUF 8,000 per hectare 
 grassland    HUF 3,000 per hectare  fish pond    HUF 3,000 per hectare   Producers in less favoured regions where the av erage golden crown value of the land does not 
exceed 17 golden crown per hectare are authorised to  get subsidy with the condition of cultivating at 
least 300 hectares:   Over 300 hectares  HUF 3,000 per hectare   Payments under this programme amounted to  HUF 15,581 million during the period covered 
by the notification. 
 8. Duration of the subsidy
 
   From 1 January to 31 December 2000 
 
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  4.59. Assistance to the quality control of certain foods 
1. Title of the subsidy programme
 
  Assistance to quality control of certain foods   2. Period covered by the notification
 
 
 2000  3. Policy objective and/or purpose of the subsidy
 
 
 To provide assistance to the quality control of certain foods 
 G/SCM/N/71/HUN 
Page 102  
 
 4. Background and authority for the subsidy
 
  Decree 8/1999 (I.20.) §196-§199 FVM Minister of Agriculture and Regional Development 
 Decree 6/2000 (II.26.) §194-197; FVM Minister of Agriculture and Regional Development 
 
5. Form of the subsidy
 
  Grant 
 6. To whom and how the subsidy is provided
 
 
 Producers  7. Subsidy per unit or the total amount
 
 
 50 per cent of the costs of the quality control 
  Payments under this programme amounted to  HUF 27,8  million during the period covered by 
the notification.   8. Duration of the subsidy
 
 
 From 1 January 1997 to 2 March 2001  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
4.60. Assistance to the testing of agricultural machines and technology 
1. Title of the subsidy programme
 
 
 Assistance to the testing of agricultu ral machines and technological equipment 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  Assistance to testing of agricultura l machines and technological equipment 
 4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM. of the Minister of  Agriculture and Regional Development, 252.-
253. §  5. Form of the subsidy
 
 
 Grant   G/SCM/N/71/HUN 
Page 103 
 
 
 6. To whom and how the subsidy is provided  
  Technical Development Institute of the Mini stry of Agriculture and Regional Development 
 7. Subsidy per unit or the total amount
 
 
 90 per cent of the costs   Payments under this programme amounted to HUF 44 million during the period covered by 
the notification. 
 
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.  
4.61. Assistance to the trade of products originat ing from the ecological fishing of  silver carp 
in Lake Balaton  
1. Title of the subsidy programme
 
  Assistance to the trade of products originating from the ecological fishing of  silver carp in 
Lake Balaton   
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To support the fishing of silver carp for the purpose of environmental protection 
 4. Background and authority for the subsidy
 
  6/2000 (II.26.) FVM of the Minister for Agriculture and Regional Development, §208 
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers   7. Subsidy per unit or the total amount
 
 
 HUF 200 per kg 
  Payments under this programme amounted to  HUF 20.9 million  during the period covered by 
the notification. G/SCM/N/71/HUN 
Page 104  
 
  
8. Duration of the subsidy
 
  From 26 February 2000 to 1 March 2001    
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   4.62. Quality-linked support to the production of game meat  
1. Title of the subsidy programme
 
  Quality-linked support to th e production of game meat  
 
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 To encourage quality production  
 4. Background and authority for the subsidy
 
  6/2000 (II.26.) §203 FVM of the Minister for Agriculture and Regional Development  
 
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Producers   7. Subsidy per unit or the total amount
 
 
 big wild animals:  HUF  90  per kg 
 small wild animals:  HUF 70 per animals   Payments under this programme amounted to HUF 85.8 during the period covered by the 
notification.  
8. Duration of the subsidy
 
  From 26 February to 1 March 2001  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A.   G/SCM/N/71/HUN 
Page 105 
 
 
 4.63.  Assistance to on-farm education  
1. Title of the subsidy programme  
  Assistance to the investments of on-farm education  
2. Period covered by the notification
 
  2000  3. Policy objective and/or purpose of the subsidy
 
 
 Assistance to the investments of on-farm education  4. Background and authority for the subsidy
 
 
 Decree 6/2000 (II.26.) FVM. of the Minister of  Agriculture and Regional Development, 259.-
262. §  5. Form of the subsidy
 
  Grant 
 
6. To whom and how the subsidy is provided
 
  Farms of educational institutions  
7. Subsidy per unit or the total amount
 
  The maximum amount of grant per project is HUF 30 million.   Payments under this programme amounted to HUF 971 million during the period covered by 
the notification. 
 
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   
4.64 Assistance to the storage in public warehouse of wheat harvested in 1999 
1. Title of the subsidy programme
 
  Assistance to the storage in public  warehouse of wheat harvested in 1999  
 2. Period covered by the notification
 
 
 2000  G/SCM/N/71/HUN 
Page 106  
 
 3. Policy objective and/or purpose of the subsidy
 
  To ensure an adequate level of supply.  4. Background and authority for the subsidy
 
 
 Decree 68/1999 (VIII. 18.) FVM  of the Minister of Agriculture and Regional Development  5. Form of the subsidy
 
 
 Grant 
 Interest subsidy  6. To whom and how the subsidy is provided
 
 
 Producers 
 7. Subsidy per unit or the total amount
 
  Interest subsidy:  60 per cent for wheat for human consumption 
 100  per cent for wheat for feeding purposes 
 Storage support: HUF 15 per ton per week   Payments under this programme amounted to  HUF 418.7 million during the period covered 
by the notification. 
 
8. Duration of the subsidy
 
  From 18 August to 1999 to 25 February 2000  9. Statistical data permitting an assessment of the trade effects of the  subsidy
 
 
 N.A.  
 
4.65. Assistance to agricultural research instit utes with research and development activities 
1. Title of the subsidy programme
 
  Assistance to agricultural research institutes with resear ch and development activities 
 2. Period covered by the notification
 
 
 2000 
 3. Policy objective and/or purpose of the subsidy
 
  Assistance to agricultural research institutes with resear ch and development activities 
 G/SCM/N/71/HUN 
Page 107 
 
 
 4. Background and authority for the subsidy  
  Decree 6/2000 (II.26.) FVM. of the Minister of  Agriculture and Regional Development, 250.-
251. §  
5. Form of the subsidy
 
  Grant  6. To whom and how the subsidy is provided
 
 
 Non-profit organisations relate d to research and development 
 7. Subsidy per unit or the total amount
 
 
 Maximum amount of the grant is HUF 30 million  per institute. 
  Payments under this programme amounted to HUF 345 million during the period covered by 
the notification.  8. Duration of the subsidy
 
 
 From 1 January to 31 December 2000  9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
 
 N.A. 
  
4.66. Assistance to establish facilities of inland waterways 
1. Title of the subsidy programme
 
 
 Assistance to establish facilities of inland waterways on arable land 
 2. Period covered by the notification
 
  2000 
 
3. Policy objective and/or purpose of the subsidy
 
  Assistance to the operation, maintenance and modernisation of facilities of inland waterways 
on arable land  
4. Background and authority for the subsidy
 
  Decree 6/2000 (II.26.) FVM. of the Minister of  Agriculture and Regional Development, 210-
215 §  
5. Form of the subsidy
 
  Grant  G/SCM/N/71/HUN 
Page 108  
 
 6. To whom and how the subsidy is provided
 
  Local governments, producers  7. Subsidy per unit or the total amount
 
 
 75 per cent of the cost of investment   Payments under this programme amounted to HUF 646 million during the period covered by 
the notification. 
 
8. Duration of the subsidy
 
  From 1 January to 31 December 2000  
9. Statistical data permitting an assessmen t of the trade effects of the subsidy
 
  N.A.   5. C
ORPORATE TAX CONCESSIONS TO ASSIST STRUCTURAL ADJUSTMENT AND ECONOMIC 
DEVELOPMENT  
5.1. Corporate tax concession for co mpanies with foreign participation 
1. Title of the subsidy programme  
  Corporate tax concession for companies with foreign participation 
 
2. Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The approximate amount of tax concession accounted for 38,7 billion HUF.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A. 
  
5.2. Tax concession for dividend invested in Hungary by foreign shareholders 
1. Title of the subsidy programme
 
 
 Tax concession for dividend invested in  Hungary by foreign shareholders 
 2. Period covered by the notification
 
  2000 
 G/SCM/N/71/HUN 
Page 109 
 
 
 7.  Subsidy per unit or the total amount  
  The amount of tax relief was negligible.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A.   
5.3. Tax concession in entrepreneurial zone 
1.  Title of the subsidy programme
 
  Tax concession in entrepreneurial zone  2.  Period covered by the notification
 
 
 2000  7.  Subsidy per unit or the total amount
 
  See scheme 5.12. 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.  
 
5.4. Tax concession related to regional investments 
1.  Title of the subsidy programme
 
  Tax concession related to regional investments  
2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The approximate amount of tax con cession accounted for 5,7 billion HUF.  
 9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A. 
 
 
5.5 Tax concession for investme nts exceeding 1 billion HUF 
1.  Title of the subsidy programme
 
 
 Tax concession for investments exceeding 1 billion HUF 
 G/SCM/N/71/HUN 
Page 110  
 
 2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The approximate amount of tax c oncession accounted for 5,9 billion HUF. 
 9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A. 
  
5.6. Tax concession for invest ments exceeding 3 billion HUF 
1.  Title of the subsidy programme
 
 
 Tax concession for investments exceeding 3 billion HUF  2.  Period covered by the notification
 
  2000 
 
7.  Subsidy per unit or the total amount
 
  The tax benefit accounted for 6 200 million HUF.   
9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.   
5.7. Tax concession for investments exceeding 10 billion HUF 
1.  Title of the subsidy programme
 
  Tax concession for investments exceeding 10 billion HUF  2.  Period covered by the notification
 
 
 2000  7.  Subsidy per unit or the total amount
 
  The tax benefit accounted for 5 700 million HUF  
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.  
 G/SCM/N/71/HUN 
Page 111 
 
 
 5.8. Tax concession to promote structural adjustment 
1.  Title of the subsidy programme  
  Tax concession to promote structural adjustment  
2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated, according to the following ratio of th e interests on the loans and credits linked to the 
approved project: 30 per cent of the capitalised inte rest or 18 per cent of the interest accounted as 
costs.   
 
 The support, including the aid granted under schemes 5.9 and 5.13, amounted to 60 million HUF.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A. 
  
5.9. Tax concession for bank credits financing other investments 
1.  Title of the subsidy programme
 
 
 Tax concession for bank credits financing other investments 
 2.  Period covered by the notification
 
  2000 
 
7.  Subsidy per unit or the total amount
 
  The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated, according to the following ratio of th e interests on bank and credits: 19 per cent of the 
capitalised interest or 12 per cent of the interest acco unted as costs.  As to the amount of aid see reply 
under scheme 5.8.   9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A. 
 
 
5.10. Tax rate relief for foreign investors 
1.  Title of the subsidy programme
 
 
 Tax rate relief for foreign investors 
 G/SCM/N/71/HUN 
Page 112  
 
 2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The foreign investor may take advantage of a preferential 3 per cent tax rate instead of the 
normal 18 per cent rate.   9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A.   
5.11. Investment-related tax concessions 
1.  Title of the subsidy programme
 
  Tax concession related to investments  2.  Period covered by the notification
 
 
 2000 
 7.  Subsidy per unit or the total amount
 
  The maximum extent of the subsidy is 100 pe r cent of the corporate tax due for the first 
5 years and 60 per cent for the second period of 5 years.  
  The tax concession can be made use of in the form of withholding the tax out of the tax 
calculated.    The approximate amount of aid was 7,9 billion HUF. 
 
9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.  
 
5.12 Tax concession in regions of high priority 
1.  Title of the subsidy programme
 
  Tax concession in regions of high priority  
2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The approximate amount of aid granted unde r this scheme and scheme 5.3 accounted for 
728 million HUF.  G/SCM/N/71/HUN 
Page 113 
 
 
 9.  Statistical data permitting an assessment of the trade effects of the subsidy  
  N.A. 
 
5.13. Tax concession to promote investme nts in production of exportable goods 
1.  Title of the subsidy programme
 
  Tax concession to promote investment s in production of exportable goods 
 2.  Period covered by the notification
 
 
 2000  7.  Subsidy per unit or the total amount
 
 
 The tax benefit can be made use of in th e form of withholding the tax out of the tax 
calculated, according to the following ratio of the interests on mid-term loans and credits: 19 per cent 
of the capitalised interest or 6 per cent of the inte rest accounted as costs.  As to the amount of support 
pl. see programme 5.8.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A.   
5.14. Tax relief related to R&D activities 
1.  Title of the subsidy programme
 
  Tax relief related to R&D activities  2.  Period covered by the notification
 
 
 2000 
 7.  Subsidy per unit or the total amount
 
  20 per cent of the amount incurred as direct co sts of research and development is deductible 
from the tax base.  
 9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.  
 
6. B
ASIC CENTRAL TECHNICAL DEVELOPMENT PROGRAMME  
1.  Title of the subsidy programme  
  Basic central technical development programme 
 G/SCM/N/71/HUN 
Page 114  
 
 2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The total amount was: 10 560 million HUF (GGB E). The range of support per unit accounted 
for 25-75 million HUF.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A.   7. T
ERRITORIAL DEVELOPMENT FUND 
1.  Title of the subsidy programme  
  Territorial development fund  2.  Period covered by the notification
 
 
 2000 
 7.  Subsidy per unit or the total amount
 
  The total amount  of support accounted for 4 750 million HUF of which 2 135 HUF was spent 
on job creation. 
 9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.  
 
8. B
UDGETARY SCHEME EARMARKED FOR ECONOMIC DEVELOPMENT  
1.  Title of the subsidy programme  
  Budgetary scheme earmarke d for economic development 
 
2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 Net costs to government: HUF  13,8 billion.    9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A. 
  G/SCM/N/71/HUN 
Page 115 
 
 
 9. M INING CONVERSION PROGRAMME  
1.  Title of the subsidy programme  
  Mining conversion programme  
2.  Period covered by the notification
 
  2000  7.  Subsidy per unit or the total amount
 
 
 The subsidy amounted to 5 009 million HUF.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A. 
 
 
10. C ENTRAL ENVIRONMENT PROTECTION FUND  
1.  Title of the subsidy programme  
 
 Central Environment Protection Fund  
 2.  Period covered by the notification
 
  2000 
 
7.  Subsidy per unit or the total amount
 
  The total amount accounted for 30,8 billion HUF.  9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
 
 N.A.   11. B
UDGETARY SCHEME EARMARKED FOR THE DEVELOPMENT OF SMALL AND MEDIUM SIZED 
ENTERPRISES  
1.  Title of the subsidy programme  
  Budgetary scheme earmarked for the developm ent of small and medium sized enterprises 
 
2.  Period covered by the notification
 
 
 2000 
 3.  Policy objective and/or purpose of the subsidy
 
 
 The scheme is designed to help SMEs overco me disadvantages inherent in their size.  
 G/SCM/N/71/HUN 
Page 116  
 
 4.  Background and authority for the subsidy
 
  The subsidy is provided for by the Act XCV of 1999 on the Small and Medium Sized 
Enterprises and on the Support of their Developmen t, the acts on annual state budgets and the Decree 
79/1999. (XII.26.) of the Minister for Economic Affairs. 
 
5. Form of the subsidy
 
  The support can be provided for in the form of  grant, interest rate support, preferential 
guarantee fee, interest free loan, loan with preferen tial interest rate, participation in venture capital 
funds. 
 
6. To whom and how the subsidy is provided
 
 
 All kinds of subsidy are awarded through tender procedures.   
 Support may be granted for programmes whose purpose is i.a.    - to establish conditions for start up,   - to attain entrepreneurial knowledge, to ge t acquainted with the law of the European 
Union, to develop entrepreneurial culture and managerial qualities,  
 - to improve competitiveness through technological development, 
 - to enlarge subcontractors network,  - to explore market possibilities,  - to promote cooperation  among SMEs  in production, selling and purchase, 
 - to participate in EU programmes, 
 - to help take advantage of internationa l aid programmes aiming at the preparation for 
EU membership. 
  The subsidy may not be in excess of 50 per cent of the programme's total costs except for 
depressed counties where the ceiling is 65 per cent.   
 In the case of so called incubator houses th e upper limit is 75 per cent except for depressed 
counties where the ceiling may be increased by 10 per cent.    7.  Subsidy per unit or the total amount
 
 
 HUF 5 200 million 
 8.  Duration of the subsidy
 
  No explicit time limit is attached to this programme.  
9.  Statistical data permitting an assessment of the trade effects of the subsidy
 
  N.A.   
__________