"After the new Land Act comes into force on 1 May 2014, stricter conditions than previously will govern the acquisition of land ownership in Hungary", stated the Minister for Rural Development at a professional conference in Budapest.

Sándor Fazekas said that in the interests of weeding out speculative intent and protecting Hungarian farmland, according to the new land Act in future any contract that involves the ownership of farmland may only be concluded using a document that has been officially numbered by the state and is strictly recorded. The new amendment proposal is designed to weed out speculators, he added.

At the forum entitled Hungarian Agriculture 2013, organised by economic daily Napi Gazdaság, the Minister noted that Parliament's Agriculture Committee is likely to debate the unified proposal within the upcoming fortnight, and so the new Act is expected to be adopted before the end of its spring session.

"Farmland in Hungary will go to those who work it, meaning that it is farmers who will be able to purchase or lease farmland. This is a decision that will determine the future of rural Hungary for decades", announced Sándor Fazekas, adding that the protection of Hungarian farmland is also a priority issue in the Fundamental law.

Minister Fazekas indicated that the new act to regulate land acquisition is part of a legislative package that includes the new acts on business regulation and on integration. The latter pieces of legislation are also under development. The three new acts will involve many related supplementary regulations, such as for example the planned law on the domestic agricultural funding system, which would especially regulate the issue of agriculture-related taxation, he added.

The Minister stressed that the objectives of the new legislation are the reinforcement of family-run farms, the development of a European agricultural model and the establishment of a competitive agricultural economy. This is, for example, served by the modification of the current 50-50 percent ratio of small to large estates to the advantage of small and medium-sized farms, the Minister stated.

According to Minister Fazekas, small and medium-sized farms can also produce in a competitive manner, something which is supported by the example of Poland. He emphasised that the share of the agribusiness -- the sum total of economic activity related directly or indirectly to agriculture -- within the national economy is 25-30 percent, and so the state of rural Hungary is of extreme importance.

(MTI, Press Office of the Ministry of Rural Development)