Resource information
Besides its natural potential, Hungarian agriculture's major current advantage is low land prices and rental fees. Economic theory suggests that as Hungarian economic performance approachesthe EU average, production costs will also become equal. Increasing land prices, generated by higherrentals fees, will mean landowners continually remove more agricultural income and Hungary’s competitiveadvantage will dwindle. Moreover, subsequent capital withdrawal will lead to weaker agriculturalinvestments. The aim of land policy is to assist the land use of those farmers who makea living from agricultural production. To increase competitiveness one needs income security andpolicy efficiency meshing land ownership with land use for those farms wishing to acquire moreland This is particularly true for full-time farmers and for farms that can become commercially viable.Presently the land market is unstable. This instability, coupled with rigid legislative controls on arising desire for land acquisition, could lead to escalating land prices. A sudden surge in prices wouldhurt hands-on farmers, and strengthen the bargaining power of those landowners who are not actuallyengaged in farming.
