Land consolidation, employment, diversification and multifunctionality

Fehér, Alajos – Czimbalmos, Róbert – Kovács, Györgyi – Szepesy, Edit

Keywords: rural economy, rural employment, multifunctional agriculture

Statistics reveal that the number of people employed in Hungarian agriculture is constantly decreasing. Our paper highlights the contradiction between the employment goals announced and the proliferation and effect of machinery acquisition subsidies granted to improve competitiveness. These subsidies may reinforce farmers’ attempts to increase their land, and contribute to the laying off of agricultural workforce. Diversification of operations could potentially counter this process, but its progress is hardly discernible. We surveyed 104 farmers in three LEADER micro-regions to find out about the farm development motives of farmers and farmer families, the status of farm diversification, their plans concerning multifunctional agriculture, as well as the relevant positive and negative factors. Within the functions other than agricultural production, we specifically addressed public services other than the provision of goods. Apart from their natural desire to develop their farm in a safe manner, the farmers interviewed were motivated mostly by a desire to improve the financial situation of the family. Most of them thought that purchasing more land would be the most important step towards this goal. With respect to employment, family members were mentioned, while the creation of employment opportunities for other was ranked very low, even by diversified farms. The promotion of flexible forms of employment was specifically seen a governmental responsibility. The findings highlight the contradictions existing between centrally announced goals, regional and industry processes and the attitude of farmers in the field of employment.

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