Foundations of the new agricultural strategy

Buday-Sántha, Attila

Keywords: agricultural strategy, production size, land consolidation, technology, qualifications, product paths, rural development

Downhill trends in agricultural production and lack of hope for rural communities mean that demand for a single agricultural and rural strategy is steadily growing. External reasons as well as the deep-running antagonism existing among the interested parties leave little hope that such a strategy will actually come into existence. It will never come into being unless numerous taboos – in existence since the change of political system in Hungary and protected by the laws born out the same change – are eliminated. This would require a feeling of greater responsibility for the fate of agriculture and rural areas, as well as humility and stronger cooperation. The paper is intended to contribute to these changes.
The value of agricultural production has obviously been stagnating for two decades. Meanwhile, fields which generate greater added value and comprise the vertical structure of economy – such as horticulture and anima husbandry – are gradually losing eight. Agriculture has been limited to the production of grain and oilseeds. The processing industry is declining, and it has been a long time since any significant product development took place. Food industry products with low added value are being produced for the mass market. Industry is withdrawing into Western Europe, with the necessary raw materials being supplied from Eastern Europe, including the Hungarian agriculture, the latter clearly being forced into a vulnerable, colony-like state. Having acquired the Hungarian market, factories are being closed down and Western capital is being withdrawn from Hungarian food economy. The guilt lies with the country’s economic vulnerability brought about by its indebtedness of half a century; with the liberal economic policy which disregarded national interests; however, the main cause is the unscrupulous fight for the bits and pieces of the former socialist holdings, which has been going on since the change of the political system in Hungary, also known as the debate of small holdings vs. large ones. Meanwhile, the crisis of Hungarian rural areas has deepened. It can only be reversed by speeding up the process of consolidation, developing product paths and supply chains, concentrating technical development and grants to suitable holdings, promoting producers’ interest in processing and distribution operations, and implementing vertical cooperation with processing businesses of national interest. Efforts must be made to reach these goals, and any obstacles which paralyse the industry and inhibit its development should be eliminated. The most important aspect is making the necessary changes to land policy, including the inheritance system. Another major component is changing the current tax policy, which leads to the deliberate fragmentation of holdings. This would mean that the tax base of agricultural facilities would be based on the land they own. This would moderate land speculation and contribute to the development of more intensive cultures and product paths (animal husbandry, processing). What’s more, it would make revenues transparent.

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