The agricultural production concerning subsidies in Hungary in period of 2008-2020

Abstract

Study focuses on influences of subsidies on agricultural production, as plant production, animal husbandry, output growing trend, and input growing trend and agricultural gross value added. Price conditions for input and producing price, as output price from agricultural producers paid by purchasers, manufacturing industries, whole traders, retailer traders or possible farmers sell their products directly on local markets – can create considerable influences on economic and marketing background for agricultural production including output growing, agricultural gross value added, gross fixed asset accumulation all. Subsidies accompanying with self-financial capacity of agricultural producers and credits financed by banks create basic financial issues for the agricultural basic material production conditions of producers. Plan production has share as 59-60% of all agricultural production and animal husbandry has share as 33-35%. The case-study uses statistical analyses as Special Program for Social Sciences. There is an import role of gross fixed asset accumulation all without recoverable value added taxes for agricultural production, because this has very strong correlations with gross value added by 0.941 and output growth by 0.934 and input growth by 0.803, also this one has strong correlation with producing price by 0.732. Subsidies should be provided for agricultural producers in order to obtain enough incomes to realize continuous basic agricultural production process, to develop advanced technology for their competitiveness on the markets and finally not to escape from the agricultural sector in order to ensure the supplying food for domestic consumers. Naturally subsidies cannot substitute self-financing capital force of producers.