The increase is from a growth within the Rural Development Programme, according to Petr Bendl, Minister of Agriculture. Grants from national sources are expected to annually decrease over the medium term.

Direct payments are increasing by 4.8 billion crowns to 39.6 billion crowns and form the largest part of Common Agricultural Policy CAP contribution to Czech agriculture.

The national budget for farm support in 2012 was 8 billion but because of increased EU funding the 2013 figures will drop to 5.1 billion crowns.

Rural Development funds decreased last year, dropping by 20 per cent to 11.9 billion Czech crowns. A rise for 2013 is expected and Minister Petr Bendle has said he expects the figure to rise toward the 16 billion figure.

State funded subsidy programmes delegated by the State Land Office will decline by 500 million to 800 million Czech crowns. Funding for forestry schemes and utilities projects are expected to be affected by reductions in subsidy.

The government has acknowledged that Czech agriculture depends on CAP payments to be profitable. Experts have warned that coninued long term dependence on subsidies is inevitable.