Hungary's government has unveiled a HUF106bn (€291mn) agricultural rescue package to support farmers hit by drought, natural disasters and a market crisis, as the country faces the impact of an extended heatwave and severe dry conditions.

The package, approved at a government meeting this week, will include an advance payment programme from September 2026 that will provide 75% of available support to around 150,000 farmers, the government said in a statement.

It will also include a HUF100,000 per hectare advance payment to help offset spring damage and the use of HUF6bn in European Union crisis funds, the government said.

Hungary will also support a move allowing the National Chamber of Agriculture and Food (NAK) to waive membership fees, providing relief of HUF18.6bn for more than 400,000 producers.

"The government is introducing an extraordinary agricultural rescue package and structural reform to deal with the drought, natural disasters and market crisis," it said.

The measures come after Hungary experienced prolonged hot and dry weather, with authorities warning of the impact of the heatwave on public health and agriculture. The national chief medical officer extended a third-degree heat alert until midnight on August 7 after forecasts showed average daily temperatures were expected to remain above 27 degrees Celsius.

The government urged residents to take precautions against dehydration and heat-related illness, particularly among elderly people, children and outdoor workers.

The extreme weather has added pressure on agricultural producers, who have faced damage from drought conditions affecting crops and livestock. The government said the rescue package was intended not only to provide immediate financial relief but also to strengthen the resilience of the agricultural sector.

Alongside the financial measures, the government submitted amendments to the Agricultural Chamber Act aimed at restructuring the sector's main interest representation body.

Under the changes, individual parliamentary candidates would no longer be allowed to hold chamber positions, while a chamber commissioner could be appointed if needed to ensure the organisation's functioning.

"The decisions, finalised after parliamentary and ministerial consultations, guarantee both the financial relief of producers and the political independence of interest representation," the government said.

The government also said it had decided to cut the tax on firewood to 5% and take steps towards establishing a National Asset Recovery and Asset Protection Office.

Meanwhile, the government's Defence Work Group said energy and water supplies remained stable after recent concerns linked to high demand during the heatwave.

"The energy and water supply in our country is stable. From now on, there is no need for voluntary consumption reduction," it said, adding that the Paks nuclear power plant turbine was operating steadily. The government also said rainfall in Austria would temporarily raise the Danube water level by 20-30 centimetres.