"The Government is handling the protection of Hungarian farmland as a priority, and the New Land Act, which determined the fundamental principles of land trade, makes it clear that Hungarian farmland belongs to locally resident farmers, and as such has brought to a close a 1100-year debate", The Ministry of Rural Development's Minister of State for the State Land Programme Márton Bitay said at a press conference on Monday.
Mr. Bitay pointed out that the Government had set down the legal definition of a farmer and has "cemented" the protective systems which guarantee that neither domestic nor foreign speculators can get their hands on Hungarian farmland.
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These guarantees include protective legislation, such as the proscribed order of first refusal for both purchasing and leasehold, the existence of local land committees, and the fact that land can only be acquired by farmers. These are all new elements of the new Land Act, which did not exist in previous legislation.
The Minister of State stressed that the goal of the Government was that Hungarian farmland should not be worked by large corporations, but rather by smaller, family-run farms. Improving the status of family farms was also an important criterion during the development of the new Land Act, he added.
Combating illegal, so-called "pocket contracts" is also an important aspect of the protection of Hungarian farmland, he said. A solution to this latter problem may be found on Monday, if the National Assembly adopts the related legislation, he emphasised.
The success of the fight against land speculation is also guaranteed by the new law on land trade, which states that in future land purchase contracts may only be concluded on a specially marked document provided by the state. A further guarantee is the introduction of the state's right to first refusal and, in the case of conservation areas, the provision of opportunities for state appropriation. In addition, the summer amendment of the penal code means that participation in the conclusion of illegal land purchase agreements is now a separate penal category. The new legislation aimed to facilitate action against legal land purchase contracts, and which is expected to be adopted by Parliament on Monday, is another element in this list, Mr. Bitay stated.
He also felt it important to mention that the "Land for Farmers" Programme is also part of the Government's new land policy. Within the framework of the Programme, the Ministry of Rural Development has launched tenders for locally resident family farmers who wish to begin or expand their animal husbandry activities. The Programme is nearing its end and some 250 thousand hectares of state-owned land will be used by family farms as a result. The Programme is expected to close at the end of this year, or in January of next year at the latest. Within the framework of the Land for Farmers programme, farmers may acquire an average of 25 hectares of arable land and some 60 hectares of grassland each. The number of contracts signed so far exceeds 3000 and is approaching 4000. The reason this is important, the Minister of State explained, is because prior to 2010 the 600 thousand hectares of state-owned land assets were covered by a total of only 600 contracts. In contrast, the planned number of contract to be signed within the framework of the current programme is over 6000.
(Ministry of Rural Development)
