Compensatory Allowance for Disadvantaged Areas (AGZ)

This program targets agricultural holdings in Hesse that cultivate land in designated disadvantaged areas. The aim is to maintain agricultural land use and thus the cultural landscape in these regions, and to prevent negative impacts on biodiversity as well as climate and environmental protection.

The program promotes the permanent cultivation of agricultural land in Hesse's disadvantaged areas. It aims to compensate for income losses and additional costs arising from cultivation under more difficult conditions. The focus is on grassland and fodder-based farming methods.

Support is provided as a non-repayable grant, the amount of which is staggered per hectare according to the yield index and the proportion of the main fodder area. Payments are degressively scaled by farm size, with areas over 500 hectares no longer being funded.

Applicants must meet certain legal and operational requirements, including compliance with the conditionality requirements of the Common Agricultural Policy (CAP). Non-compliance may result in reductions or non-payments. A minimum area of 3 hectares in disadvantaged areas is required for application.

The application for the compensatory allowance must be submitted annually as part of the Single Application to the competent approving authority by May 15. The examination is carried out through administrative checks and on-the-spot controls.

The compensatory allowance is granted based on a specific directive of the State of Hesse, which in turn is based on the National Strategic Plan for the implementation of the CAP reform, as well as various EU regulations and national laws on the Common Agricultural Policy (CAP). It is also subject to the Hessian State Budget Code and the Hessian Administrative Procedure Act.