Agricultural and rural development

The Hungarian soil and climate gives its agricultural sector a natural advantage in production. However, the post Communist years have seen a substantial set back for the industry as it has struggled to achieve the transformation from a command economy to a market orientated one. Livestock numbers declined dramatically in the early 1990s and this reduced substantially the demand for feed grains. However the past four years show the decline to have bottomed out and a gradual recovery has begun. The new Government seeks to bring the long recession in agriculture and the food industry to an end and to ensure that the industries are redeveloped on a sound foundation that will enable them to build a vibrant and prosperous sector for the future. To this end effective, tangible and secure improvements will be launched in the agricultural sector. These developments should become one of the main factors in the general renewal and growth of the economy...
    The current level of agricultural and food production is well below the sector's potential output. The government will, therefore, seek to stimulate the industry's recovery so as to ensure that the industry can meet the demands of both the internal market and export markets.
    One of the most important tasks of the forthcoming for years is to prepare Hungary for EU accession. The Government wishes to prevent agriculture from losing out on joining the EU. Qualitative and quantitative development and the stabilisation of the market are essential in order to ensure a successful preparation for integration. In the coming months the Government will try to speed up the process of adopting the "Acquis Communautaire.. - the body of EU rules".
    The Government recognises the increasing importance of family farms. The most important social task of family farms is to encourage the civil life of the country.. They promote public benefit not only by contributing to agricultural production. Their role is a lot more: family farms can keep rural communities in the countryside;, they maintain traditions;, they accept responsibility for landscape management and the stewardship of the countryside. Therefore it is the emphasised objective of the Government to support family farms. In this regard Hungarian national policy is very much in tune with the EU commission's concept of the European model of agriculture. In order to achieve a stable and harmonic development in the agricultural sector the Government deems necessary to reduce the uncertainties in the ownership. The issue of the proprietorship of arable lands is important for every citizen. The Government is determined that our arable land shall remain Hungarian property.
    The Government wishes to see better credit provision for the agricultural sector and is , considering the advantages of a separate agricultural bank network instead of the present system of trade credits from merchant banks.
    The Government wishes to promote and support investments in the agricultural sector. Considering the diversity in the structure of property and management types, the Government supports the establishment of businesses specialising ion machinery utilisation, food storage and processing. The process of technical improvement may initiate a market for the renewal of the domestic production of agricultural machinerys.
    The Government wishes to strengthens the role of agriculture both in international trade and in the domestic market. Improved information and management systems would reduce uncertainty in the evaluation of market circumstances.
    The Government recognises that agricultural activities alone are insufficient to ensure the development of the Hungarian villages and their ability to maintain the population of the countryside. Therefore the Government will co-ordinates agricultural subsidies and other sources to be used for rural development. Given the proportion of the population living in the countryside, greater emphasis should be laid on rural development. For many of those living in rural areas, living and working conditions and the opportunities for employment and education have been disgraceful.
    Rural development involves the dynamic development of the agriculture and food industry, because either directly or indirectly this is the main source of living for the rural population. In areas needing increased support, the Government will launches comprehensive development projects. New jobs are to be created, essential services improved and the start up and operation of new businesses encourage. The evaluation of safe sources of living, the widening of country tourism and infrastructure developments are important objectives of these projects.