Analysis of agriculture advisor’s system in the partnering country in the frame of the AAC project
1.Simple history characterization of extension services in Hungary
Before the year 1990
As a feature of the large-scale farming, in the years before the change of the regime the agricultural advisory service had been performed by experts with adequate qualifications in large-scale farms (co-operatives, state-farms). Various production systems (IKR, KITE) also played a significant role.
Until access into EU
After the regime-change, as a part of the privatisation process, sole and joint undertakings emerged, which besides agricultural production pursued consulting jobs as well. Prior to 1999 these enterprises were listed in an agricultural advisory register maintaned by the ministry responsible for agricultural affairs. These years advisory service was linked to firms. These firms provided advisory services that farmers ordered and paid for on a contractual basis. The implementation of the service was labelled – accepted of rejected – by the farmer by paying or not paying off the invoices of the firm. After the payment of advisory services, the farmer was entitled to apply for state subsidy in proportion with his annual income. The number of advisory firms was about 200.
The 95/1999. (XI. 5.) ministerial regulation about the Registry of Agricultural Advisors was issued in 1999, which lays down the requirements (professional, ethical etc.) related to agricultural advisors whose services can be subsidized by the state. From this time on the registration of advisors has been carried out individually. It is of secondary importance which firm the advisor works on behalf of. This change was forced out by the fluctuation of advisors employed by firms, which resulted in changes in service-providing abilities of the firms, and this – because of aspiring for quality assurance – meant huge administrative burdens on the authority responsible of the accreditation of these firms.
After access into EU
The regulational and subsidising principles so far – with regard to the subsidies from the EU too – have not been disapproved of by the competent bodies of the EU, thus it grounds for accomplishing the goals of CAP reform and the 100-step program of the Hungarian Government and its further development is justified.
The new EU regulation launched in the autumn of 2003 certainly had an effect on the agricultural advisory system, and with the „cross-compliance” a new agrarian political means has been introduced. The cross-compliance binds the direct payments to the observance of the EU norms and laws introduced in the fields of human-, animal- and plant-health service, environment and animal welfare as well as the best agricultural and ecological practice. The 1782/2003/EK regulation laid down the principle by which farmers not functioning according to the requirements of „cross-compliance” shall receive less direct payments or shall be excluded from the sphere of subsidy.
In the EU regulations 1782/2003/EK and 1783/2003/EK the agricultural advisory service can be subsidised. Moreover, the 13th article of 1782/2003/EK obligates a „Farm advisory system”, which every member state must operate from 1st January 2007, however, farmers’ participation remained on a volunteer basis.
The CAP reform defined the operation of the advisory system as it should cover at least the fields of „cross-compliance”. It must be emphasised that the Farm advisory system has merely a consulting role, and it cannot include controlling functions. The Committee will submit a report by 31st December 2010 at the latest about the application of the agricultural advisory system, and also suggestions of making the system compulsory if needed.
The rearrangement of the advisory system has also started in the framework of the 100-step program of the Government.Compared to the present system, the new, designated territorial advisory centers (TAC) with defined legal status mean a significant change. These can be vocational schools and firms, other organisations employing advisors. The territorial centers will be established inviting applications, considering the number of the farmers working in the given territory (county). The advisors – integrated in the territorial advisory centers – will provide advisory service for the farmers in the framework of some labour relation.The financing will be ensured mainly from state direct payments granted to the organisations and normative subsidies granted to farmers using advisory services till the end of 2006.The financial support of the advisory service to be implemented to orders of farmers from 2007 will be based chiefly on EU supports through the farmer as the beneficiary. The amount can reach up to 80 percent of the sum (max. 1500 €/ service) of the contract made between the farmer and the advisory organisation having the proper authority registration and functioning in the advisory system. The financing of the multi-level organisational structure is decreasingly conceivable in the form of national subsidies. The expenditure of the services offered by the organisational background should be covered more and more from the revenues of the advisor paralell to the gradual increase of the farmers’ solvency.
2.Valuation of extension services
Number of advisors, localisation in regions
The professional backbone of the system’s structure is made up of
-500-800 advisors specialised in 24 fields listed in the Registry,
-together with the agricultural educational and research institutes that have formed:
-regional, territorial and technical advisory centers,
-furthermore the network of demonstration farms and plants.
The number of advisors in each specialization is basically influenced by the role/significance of the given specialization within agriculture and the opportunities existing on the advisory service market. Diagram 1 shows the structure evolved in the last 15 years. An advisor is entitled to work in maximum three specialisations out of the 24.
Diagram 1.
The number of advisors significantly varies on geographical regions as well, depending on the „keeping-capacity” of the given region.
Presently Hungary’s administration system is divided into 20 units with the capital and the 19 counties, which form seven statistical regions of various size. Although the regional system of administration is under construction, it plays an important role concerning the organisational tasks of the advisory system in our days, too. The number of advisors within each region can be seen in diagram 2.
Diagram 2.
Due to the legal regulation, farmers really in need (nearly 60% of all the registered farmers) receive free-of-charge professional information necessary for making sensible decisions.
Agricultural advisory services to be paid are to be interpreted as customised advisory services for solving a farmer’s individual problem, for which farmers can receive normative state subsidy.In compliance with the MARD Regulation on agricultural subsidies, registered farmers can receive state subsidies for the expenses of the services provided by agricultural advisors registered in the Registry. The amount and the upper limit of the subsidy, depending on the farmer’s annual revenue in the year preceding the year under review, is 25-75 percent of the agricultural advisory fee, differentiated in bands. Due to the source-scarcity of the Hungarian farmers, and relatively under-supported system (viewed in the international scale), about 1800 farmers on the yearly average applied for state-subsidized agricultural advisory services, which is a much smaller number than it should be.
Organisation schema
The organizational background of agricultural advisory service and the knowledge transfer consists of the following:
Service providers,
Participants of the organizational process,
Participants of the decision-making process,
Paying organizations of subsidies.
Service providers
Agricultural advisors,
Regional centres of agricultural advisory service,
Demonstration plants
Entrepreneurs making contracts with farmers about agricultural advisory services with the involvement of agricultural advisors,
Other entrepreneurs implementing free-of-charge agricultural advisory programmes,
Organizations (educational and research institutes) implementing educational programmes,
Host places for farm trainees
Participants of the organizational process
Village agronomists,
County MARD Offices,
Regional and national agricultural chambers,
Regional agricultural advisory centres,
Background institutions involved in the organization of agricultural advisory activities of the Ministry,
Ministry departments in charge of agricultural advisory service.
Participants of the decision-making process
At county level leaders of MARD Offices, whose work in the preliminary phase of decision-making is aided by:
County Committees of Agricultural Advisory Service, including
- Regional agricultural chambers,
- Professional and producer organizations of interest representation within the county
At national level the Deputy State Secretary controlling the given specialization whose work in the preliminary phase of decision-making is aided by:
Ministry departments in charge of agricultural advisory service,
National Agricultural Advisory Committee,
Accreditational Committee of Demonstration Plants,
Expert Committee in charge of evaluating central applications.
Paying organizations of subsidies
Regional bodies of the Taxation Office (APEH).
By means of highlighting some of the more important functional components of the organizational background the operation of the nodes of the system can be clearly seen.
Regional Centres of Agricultural Advisory Service
The process of the establishment of regional centres started a few years ago. The heads of agricultural higher education institutions and employees dealing with agricultural advisory service accepted the proposal for the establishment of statistical regions determined by an analysis based on specializations and geographical positions.
Regions including counties and the agricultural advisory centres:
Central Hungary: Budapest and Pest county
Szent István Egyetem Gazdaság- és Társadalomtudományi Kar, Gödöllő
(Saint Stephen University, Faculty of Economy and Social Sciences, Gödöllő)
Central Transdanubia: Fejér, Komárom-Esztergom, Veszprém counties
Veszprémi Egyetem Georgikon Mezőgazdaságtudományi Kar, Keszthely
(University of Veszprém, Faculty of Georgikon Agricultural Sciences, Keszthely)
Western Transdanubia: Győr-Moson-Sopron, Vas, Zala counties
Nyugat-Magyarországi Egyetem, Mezőgazdaság- és Élelmiszertudományi Kar, Mosonmagyaróvár
(West-Hungarian University, Faculty of Agriculture and Food Sciences, Mosonmagyaróvár)
Southern Transdanubia: Baranya, Somogy, Tolna counties
Kaposvári Egyetem Állattudományi Kar, Kaposvár
(University of Kaposvár, Faculty of Animal sciences, Kaposvár)
Northern Hungary: Borsod-Abaúj-Zemplén, Heves, Nógrád counties
Károly Róbert Főiskola, Gyöngyös
(Károly Róbert College, Gyöngyös)
Northern Great Plain: Szabolcs-Szatmár-Bereg, Hajdú-Bihar, Jász-Nagykun-Szolnok counties
Debreceni Egyetem Agrártudományi Centrum, Debrecen
(University of Debrecen, Centre of Agricultural Sciences, Debrecen)
Southern Great Plain: Bács-Kiskun, Békés, Csongrád counties
Szegedi Tudományegyetem Mezőgazdasági Főiskolai Kar, Hódmezővásárhely
(University of Sciences in Szeged, Faculty of Agricultural College in Hódmezővásárhely)
In the seven regions, concrete agricultural advisory activities are implemented under the professional supervision of forming—or already existing—agricultural science centres, and also of institutes operating in university faculties.
Demonstration plants
The county, regional and national structure of demonstration plants is being formed by a series of decisions from basic level upwards and based on local needs. The largest number of demonstration plants operate in the following professional fields (in decreasing order): animal husbandry, plant production and horticulture.
County Committees of Agricultural Advisory Service
Legal status: The advisory committee of the Head of the Office with regard to the measures taken to manage subsidies for the implementation of agricultural advisory programmes and those related to the knowledge transfer facilitating farming efficiency within the scope of authority and duties of MARD Offices.
Tasks of the Committee
Forming opinions on plans for the utilisation of allotted subsidies within the scope of authority of the county, including:
Division of allotted subsidies for different claims
Vocational training plan
Network plan of demonstration plants
Plan and direction of free-of-charge agricultural advisory plans
Providing opinion on applications submitted for subsidizing the implementation of agricultural advisory programmes and those related to the knowledge transfer facilitating farming efficiency, in addition to making proposals for their acceptance or rejection.
Providing opinion on applications with the aim of the knowledge transfer facilitating farming efficiency that—due to their budget—are to be evaluated within the scope of ministerial authority.
Performing the duties of the Preparation Committee of Demonstration Plants.
Compositon of the Committee
The committee consists of 5 or 7 members with the right to vote.
Members:On behalf of the MARD Office: president and chief supervisor of agricultural advisory service,
On behalf of the Regional Agricultural Chamber: administrator of agricultural advisory service as the secretary of the Committee,
The rest of the members, depending on counties, are representatives of organizations of county importance, e.g. Regional Organizations of Agricultural Advisory Service, Hungarian Peasants’ Association, MAGOSZ[1], TESZÖV[2], Agricultural Committee of County Assembly, representatives of Small Regions.
National Committee of Agricultural Advisory Service (NAAC)
Legal status: The NAAC is an advisory committee of the Deputy State Secretary in charge of the specialization with regard to the measures taken to manage subsidies for the implementation of agricultural advisory programmes and those related to the knowledge transfer facilitating farming efficiency within the scope of authority and duties of MARD Offices.
Tasks of the Committee
Giving opinion on the draft of the ministerial regulation on agricultural advisory service,
Giving opinion on the prescriptions of the Regulation on the Register of Agricultural Advisors,
Making proposals for elaboration of the chapter on agricultural advisory service of the Regulation on Agricultural Subsidies,
Making proposals for determining the order of priorities concerning agricultural advisory service,
Making proposals for the forms of subsidies depending on the annual revenue of subsidised farmers,
Discussing directives for the division of the subsidies allotted between regions and counties,
Evaluating the activities of regional centres,
Determining directives for the evaluation of agricultural advisors,
Making proposals for the further improvement of the demonstration plant network,
Evaluating the activities of the regional agricultural advisory centres,
Promoting co-operation between regional centres and counties.
Composition of the Committee:
The composition of the Committee (president, secretary and organizations represented in the Committee) is determined by the MARD Deputy State Secretary in charge of controlling agricultural advisory activities, while organizations appoint their representatives.
President:Head of ministerial department in charge of agricultural advisory service
Members:Representative of the Hungarian Agricultural Chamber,
Head of ministerial sub-department in charge of agricultural advisory service,
Representative of the Department of MARD Offices,
Heads of regional agricultural advisory centres (7 representatives),
2-2 representatives of the county MARD Offices,
2 representatives of the regional agricultural chambers,
3 representatives of the professional organizations (MOSZ[3], MAGOSZ, Hungarian Peasants’ Association)
Representative of the organizations of agricultural advisory service,
2 representatives of institutes of vocational education,
Representative of MARD Professional Department,
Representative of MVH Office.
MARD Educational and Advisory Institute
National Advisory Centre
MARD Educational and Advisory Institute is a background institute of the Ministry of Agriculture and Rural Development.
In the field of state subsidised agricultural advisory services provided in MARD sectors, the Institute—as a National Advisory Centre—participates in the nationwide management of advisory services in addition to the quality assurance of the advisory system. Also, it provides administrative support for the completion of ministerial tasks. Furthermore, in the course of completing operative tasks related to advisory services, it co-ordinates the activities of advisors, regional, county and local centres and provides information for advisors.
3.Focusation of extension services
Up to 1999 the advisory service focussed on technological issues. This mainly originates in privatization of the time. Due to privatization, many new farmers embarked on their activity, who hadn’t had suitable agricultural qualifications.
The proportion of technological-type advisory service shows a descending tendency with the enhancement of the farmers’ qualifications. In line with this, new demands appeared, and an expansion of the choosable fields became necessary. Presently advisors can choose from the 24 specializations listed below:
Arable plant productionAnimal husbandry
Horticulture
Landscaping and garden architecture
Veterinary science, animal health care
Forest and wood management
Game management
Fishery
Plant protection
Melioration, water management
Mechanical Engineering
Environmental management / Land management
Processing animal products
Processing plant products
Processing vegetables and fruits
Beverage manufacturing
Processing tobacco products
Agricultural economy, farming
Agro-tourism
Logistics
Ecological farming
Nutrient management, soil protection
Rural Development
1
1
Subsidies connected to the National Rural-Development Plan enhance the significance of environmental management and rural development. More and more advisors have the necessary qualification in these fields. After the EU-accession the role of plant-advisory has increased. The Agricultural Rural Development Operative Plan of the National Development Plan demands preparing applications and business-plans linked to applications..
Summarizing the above mentioned effects we can state that the special claims established on advisory services are determined mainly by the requirements linked to EU cofinancing supports. In connection with this, there is a significant tendency in expanding advisory service towards fields not strictly linked to agriculture (e.g. early retirement, aiding families within family farms, etc.)
4.Financing of extension services focussed on sources
Based on the general regulations of agricultural subsidies determined in a Government Regulation, the detailed regulations of agricultural advisory service and other forms of the knowledge transfer are determined in a MARD Regulation.
On basis of the regulation, farmers, depending on the amount of their annual revenue declared—and registered in the county MARD Office—can require the following forms of subsidised agricultural advisory services:
- Free-of-charge specialised services for a group of farmers;
- Services to be paid concerning the solution of individual problems, based on a contract;
- Other services facilitating the efficiency of farming.
Free-of-charge specialised agricultural advisory programmes for a group of farmers
Free-of-charge specialised agricultural advisory programmes for a group of farmers can be organised for a group of participants in a certain topic and place determined by the regional centre of village agronomists[4]. Decisions on subsidies are made at county level. In the course of specialised agricultural advisory programmes for a group of farmers both theoretical and practical knowledge can be gained. Programmes for farmers are free-of-charge, i.e. 100% subsidised by the state. Interest in free-of-charge programmes has proved to be unflagging; therefore the retention and further development of these services are justified not only from professional but also from agro-political aspect.