Act No. CLXVIII of 2011 on handling weather-related and other natural risks affecting agricultural production.

The purpose of this Act is to create a risk pool for the mitigation of the impact of negative weather and other natural events, to strengthen the responsibility of farmers based on self-provisioning, to render more efficient the state aid and to distribute responsibility proportionately. This Act is composed of four chapters. In Chapter I lays down general provisions, such as definitions of terms used. Article 3 establishes that damages caused by natural disasters to agricultural producers must be shared among the agricultural producer, the buyer having stipulated contracts before harvesting, the insurer, the lessor of the agricultural land and the state. Chapter II regulates the system of risk management and its financial resources. There are also rules on the contribution to the insurance premium. Chapter III provides for the management of damages caused by vis major weather or other natural events to farms and forestries. Chapter IV contains final provisions.
The Act structures agricultural risk management into a multi-pillar system combining mandatory solidarity contributions, subsidized market insurance, and state mitigation funds. Pillar I establishes the Agricultural Damage Mitigation System (agrárkár-enyhítési rendszer), requiring agricultural producers above specified land thresholds to pay annual damage mitigation contributions into a central risk fund (kárenyhítési alap). In return, registered producers who suffer severe yield losses—exceeding thirty percent due to adverse weather conditions such as drought, frost, hail, torrential rains, or flooding—are eligible for financial compensation, provided they satisfy self-provisioning criteria such as maintaining certified agricultural insurance.
Pillar II incentivizes private market risk-taking by offering state premium subsidies for voluntary agricultural insurance policies covering yield and weather risks. Furthermore, the Act regulates administrative procedures for reporting natural damage events, establishing standardized methodologies for official yield loss verification by agricultural damage assessment authorities.