Parliament has accepted the Report on the state of the Agricultural Economy for 2010 by a large majority. The document was put before the Members of Parliament by the Minister of Rural Development, in accordance with regulations.

When compiling the Report, which has a new structure, the Ministry took into consideration the recommendations of the Agricultural Economy Council and last year's parliamentary debate.

The Report contains information on agricultural performance, employment, the realisation of major agriculture political goals and the use of budget funding for the year 2010.

In the debate that preceded the decision, Members of Parliament voiced their appreciation of the fact that the report had taken a critical approach and painted a realistic picture of the state of the agricultural economy. They also welcomed the fact that separate chapters had been devoted to rural development and the environment. The Ministry prepared the Report comparing data from several years (usually five), instead of the usual two.

According to law, the Agricultural Economy Council was also required to review the document. The Council determined that the report places greater emphasis on the multifunctional role of the agri-economy and on the issue of employment. In addition to production aspects, it also firmly represents environmental and social issues. The evaluation of the state of family-run farms and the presentation of the Ministry's agriculture diplomacy activities were also awarded greater scope.

The goal of the Government, which was formed in 2010, was to prepare the agriculture report in the spirit of the new approach, with a renewed structure and fresh subject matter.

In the Report, the main achievements listed by the Ministry include the fact that the profitability of agriculture grew in 2010 with regard to both individual and corporate enterprises. The farm price index grew by 16.8 percent, the proportion of GDP represented by the agricultural economy within the national economy increased from 2.5 percent to 2.9 percent, and the sector's export surplus increased by 22 percent compared to the previous year.

At the same time, in addition to the negative effects of the world economic crisis, Hungarian agriculture was also hit by frost damage, hail damage, inland floods, torrential rainfall and the red sludge disaster. All these factors are responsible for production volume having fallen by 5.7 percent. The ratio of plant cultivation and animal husbandry was not successfully improved, the numbers of livestock continued to drop. Employment within the agriculture sector did not increase during last year, nor did the ratio of land used for ecological farming; the total sum of agricultural loans decreased.

The black and grey economies must be more efficiently combated in the future, and it is important to prevent the ageing of the rural population.

The Agricultural Economy Council and several Members of Parliament involved in the parliamentary debate viewed the fact that the moratorium on foreign ownership of Hungarian land had been extended by three years as an outstanding diplomatic success.

Another significant achievement is the fact that several sections of the new Constitution deal with rural development. It prescribes that the country should remain GMO-free, the preservation of our natural resources – arable land, forests, water resources, biodiversity – and the protection of the environment. It also includes the fact that the population must be provided access to healthy foods and drinking water.

Interest in the Agricultural Report is indicated by the fact that no less than 29 Members of Parliament took the floor during the nearly four-hour debate held before the resolution was passed, and several valuable ideas and constructive suggestions were put forward.

(Press Office of the Ministry of Rural Development)