Generational Change in Family Farms and the Situation of Arable Land, as a Factor of Production, in Hungary

Abstract

Family farms have been the cornerstone of rural society for centuries in Hungary. They provide significant contributions to the rural population and strengthen social and cultural traditions. From an agricultural point of view, Hungary has excellent potential, both because of its climate and its location. This is why agriculture has been the country's key sector for centuries. Even today, it still plays a significant role, but in terms of competitiveness and development, it falls short of the level that could be expected regarding to its capabilities. According to the 2020 agricultural census in Hungary, 216,000 farms are managed on nearly 4.922 million hectares. A substantial proportion of these farms are family farms and a significant share of the land as a natural resource is owned by them. My study – based on secondary research – deals with a major problem in Hungarian agriculture: Generational Change. In Hungary, there is currently, no tradition of farm transfer, but the issue of generational change, is becoming an increasingly pressing problem, for the Hungarian agricultural economy. In parallel, I analyze statistical data on the relationship of family farms with arable land, one of the most important and limited natural resources of the sector. The results show, that it is essential for the long-term survival of family farms, that the land owned and used by the farm, remains in the same hands and is not fragmented. Successful generational change is therefore, also crucial for land use. Measures taken in the past and in the period ahead (e.g., targeted support under the Common Agricultural Policy Strategic Plan 2023-2027 or Act CXLIII of 2021) can help to ensure a successful generational transition and the preservation of land.