FACTORS INFLUENCING THE PRICE OF ARABLE LAND IN HUNGARY PUBLISHEDKaroly, BODNAR, Zoltan Istvan, PRIVOCZKI Hungarian University of Agriculture and Life Sciences, Agro-Assistance Kft. firstname.lastname@example.org
In this study, we looked for the answer to the question of what factors influence the development of the price of arable land with the help of Hungarian statistical data. Regular meeting with agricultural entrepreneurs also was source of actual information. The price of land in Hungary is rising by 5-10% on average every year. The average market price of arable land per hectare increased to HUF 1,969 million in 2021, which is a 14% increase compared to the previous year (HUF 1,727 million / ha) compared to last year. The average rent for arable land last year was HUF 81,957. The elimination of undivided areas has been preceded by huge expectations, but market experience shows that, despite the opportunity, the complicated administrative process is likely to deter many. Among the factors examined, natural factors (such as land quality, soil type, location, topography, natural waters) and economic and social factors (e.g. infrastructure, markets, labour supply, subsidies) are important. Prices are significantly affected by the irrigability of the area, for the development of which significant subsidies are currently available. It can also be considered a value-preserving investment for capital-intensive companies. The demand-supply relationship is modified by the fact that the pre-emption system in the current land trade legislation (Act CXXII of 2013 on the turnover of agricultural and forestry land) pursues the objective that land ownership should be acquired primarily by local farmers.
land trade, land price, regional differences, arable land