Compensatory Allowance in Disadvantaged Areas

The compensation allowance in disadvantaged areas of Hesse supports agricultural enterprises in offsetting income losses and additional expenses caused by natural disadvantages. Funding is provided as a non-repayable grant in the form of a fixed-amount financing, ranging between €25 and €180 per hectare of eligible land – depending on the yield measurement number (EMZ) and the proportion of main fodder area. With a funding rate of 60% to 100% and a project duration of 12 months, the program aims to secure the widespread use of agricultural land in Hesse’s disadvantaged areas in the long term. Applications for the current year must be submitted annually by May 15 as part of the Common Application.

Eligible participants are farm owners who cultivate at least 3 hectares of eligible land in defined disadvantaged regions of Hesse and meet the conditionality requirements according to Regulation (EU) No. 2021/2115. Eligible expenses include exclusively the compensation allowance per hectare, calculated based on location and soil quality. The payment is tiered according to farm size: up to 100 ha at 100%, from 100.01 to 250 ha at 80%, and from 250.01 to 500 ha at 60%. The application must include the Direct Payments application folder as well as the Common Application. This funding instrument makes a significant contribution to preserving agriculture in structurally weak regions and thereby strengthens rural development in Hesse.