Hungary agriculture faces crisis from drought and rising costs

The Hungarian agricultural sector is facing a multi-faceted crisis driven by extreme drought, rising feed costs, and economic instability. Agriculture Minister Szabolcs Bóna warned that the industry is in a survival phase, with potential losses estimated at nearly 800 billion forints this year. The dairy sector is particularly hard hit, with producers selling milk below cost for ten months due to high expenses and low prices.

Drought has also significantly impacted corn production, with yields and energy content declining, potentially forcing Hungary to rely on imports. Furthermore, the lack of natural food caused by climate change has led to increased wildlife damage to crops. This has caused rising tensions between farmers and hunters, prompting the Minister to announce that hunting laws may need to be modified to address overpopulated large game species.

To support liquidity, the government is accelerating subsidy payments, with over 205 billion forints already distributed and a potential 400 billion forints in advances by year-end. Additionally, the Növénytermesztők Köre Egyesület is organizing professional webinars to help farmers adapt through improved soil management, water conservation, and technological solutions.