Hungary Natura 2000 Grassland Compensation Scheme

Hungary's national Natura 2000 grassland compensation scheme pays farmers an annual per-hectare fee to maintain land management practices compatible with the ecological requirements of EU-designated habitats. The legal foundation is Ministerial Decree 269/2007 (VIII.1.) on payments for nature-conservation restrictions affecting agricultural activities in Natura 2000 areas.

Established in 2007–2008, the scheme targets Pannonian steppe grasslands (puszta), wet meadows, and other high-nature-value habitats classified under the EU Habitats Directive. During the 2014–2022 Rural Development Programme period, approximately 250,000 hectares of Natura 2000 grassland were enrolled, with around 15,000 farmers benefiting.

Payment rates began at approximately €38 per hectare per year under the 2007 decree. Under the CAP 2023–2027 Hungarian Strategic Plan, rates were updated to approximately €115 per hectare per year. In early 2025, Hungary's Ministry of Agriculture paid 7.7 billion HUF (approximately €19 million) to over 7,500 farmers in Natura 2000 grassland areas.

The scheme is co-financed by the European Agricultural Fund for Rural Development (EAFRD) and has been sustained across three successive CAP programming periods (2007–2013, 2014–2022, 2023–2027). Enrolled sites include iconic Pannonian landscapes: Hortobágy, Kiskunság, Körös–Maros, and Fertő–Hanság.

Limitations: the payment compensates for restrictions on land use rather than directly purchasing measurable ecological improvements; no published independent evaluation has demonstrated biodiversity outcomes specifically attributable to the compensation payments.

Read the full analysis: https://biodiversity.europa.eu/countries/hungary/eu-biodiversity-strategy