We must not allow arable land to be used as our predecessors have done so during previous years – announced Parliamentary State Secretary of the Ministry of Rural Development József Ángyán on the Land and Estate Policy Forum organised within the framework of the 75th National Agriculture and Food Exhibition (OMÉK).

Almost 80% of state-owned arable land is used by a handful of large corporations, and this is unacceptable – added the State Secretary.

Land is a limited resource; we can't increase the area of the county. This means we need a clear land and estate policy – stressed József Ángyán. Our goal is that the arable land at our disposal should provide work and livelihoods for the maximum number of people, and support the largest possible number of families. The National Rural Strategy builds the future of agriculture on small and medium-sized farms and their cooperation. The European agricultural model also follows this path – explained the State Secretary, and added: during the social debate on the Rural Strategy, we reached a wide consensus on the importance of the support and reinforcement of small and medium-sized farms.

József Ángyán stressed that the state must maintain its presence on the land market, amongst other reasons to control speculation. The review of unfavourable contracts has begun. It is insupportable that in several cases corporations have acquired the use of 2-5 thousand, and in one case even 8 thousand hectares of state-owned land for a monthly "rent" of 0 forints, while taking on hundreds of millions or even billions of forints in state subsidies. Of the important measures, József Ángyán stressed the fact that the National Land Fund Management Organisation will announce lease tenders for 60-80 thousand hectares of state-owned land this year, with small, medium-sized and family run farms receiving support. To underpin this fact he told those present that applicants would be able to lease relatively small, 20-30 hectare areas of land, as opposed to huge territories.

Chief political consultant of the Ministry of Rural Development József Alvincz explained in his lecture that the Hungarian farmland structure has a dual nature. It is characterised by a few large farms and many small enterprises that are often on the fringe of viability. Medium sized farms are very rare. The country need viable farms that also increase employment – stressed József Alvincz. Another serious problem that requires a solution is the fact that on the local land market disassociation is prevalent, meaning that plots belonging to a single owner are often separated and large distances apart. In his view, there is a definite need for an estate system, the possible modes of which will be discussed and developed by a group of experts.

Mihály Kurucz, Associate Professor at the Eötvös Loránd University, drew attention to the fact that the issues under discussion are of basic importance. How should we regulate land? Where should we class land ownership and land use, and should we remove the rights of use from those who do not comply with the conservational and ecological terms and conditions? What should we do to maintain state sovereignty? Can the Hungarian State prevent hostile land purchasing, and if so, how? The expert stressed that there is little time to answer all these questions, as the moratorium on land purchasing by foreigners will expire in 2014.

Mihály Kurucz is positive that the main principle behind any new system must be the regulation of work and operations. A local place of residence must not be the most important condition for receiving land, because local speculators exist too. Farmers must be examined to see if they have the required equipment and specialised knowledge needed to work the land they apply for. Mr. Kurucz also stressed that the Arable Land Trade Law, the Farm Regulation Law and the law on family-owned farms should all be formulated and put into force simultaneously.

Péter Roszík, Chairman of the Győr-Moson-Sopron County Chamber of Agriculture, stated that they know of the existence of 16 different types of so-called "pocket contracts", and that to the best of their knowledge 600 thousand hectares of Hungarian land are already owned by Austrian farmers. A total of almost 1 million hectares of land is foreign-owned. This means that around 40-50 billion forints of financial support leaves the country each year – as Péter Roszík put it. He also stressed that although the Chamber supports the National Rural Strategy, in their view "what it does with arable land policy and the pocket contracts will be a qualitative indicator of the Government."

The majority of farmers who gave voice to their opinions at the forum welcomed the government's internal affairs proposals, but pressed that concrete steps be taken as soon as possible with regard to the issue of land. Many of them are aware of the fact that huge areas of land are being exploited by large corporations or foreigners.
In his reply, State Secretary József Ángyán stated that the Ministry of Rural Development is intent on doing away with the abuse of the present system, and that according to plans the National Land Fund Management Organisation would be launching the land lease tenders within a few weeks.

(Press Office of the Ministry of Rural Development)