Ownership and generation change in agriculture

Horváth, Gábor – Palkovics, Miklós

Keywords: change of economic regime, legal control, ownerships, joint enterprises, generation change

According to public records 1360 cooperative farms and 130 state farms were operating at the time when the regime switched over from planned to free market economy. Cooperatives cultivated nearly 80% of arable land, produced more than half of total production and employed considerably more than a million employees and small producers. Since than during the last fifteen years significant changes occurred in the ownership of land and other properties that was accompanied by structural changes. These were induced by political will, governmental measures and economic necessities. This process is not yet complete. Looking forward from the present situation it can be prognosticated that in the near future new changes of generation will strengthen in farming enterprises. Now the question arises primarily because of aging owner management: who should step in their place? Should this be decided by market conditions or would it require government intervention?