INCOME-GENERATING CAPACITY OF FARMS, CHANGES IN ASSET AND CAPITAL EFFICIENCY

KESZTHELYI, SZILÁRD

Keywords: Keywords: Agriculture, profitability, efficiency JEL codes: Q12, Q18, Q19

Teljes cikk
Hungary's accession to the European Union in 2004 marked a milestone for the country's agriculture. In addition to EU subsidies and technological advancement, changes in market conditions and climatic factors have also significantly transformed the functioning of the sector. The aim of this study is to provide a comprehensive overview of the changes in income situation and efficiency of Hungarian agricultural holdings between 2004 and 2023.
Over the two decades examined, profitability improved significantly overall; however, this growth was not linear. Three distinct periods of decline divide the timeframe into separate phases. Investment dynamics were largely driven by subsidies, with farms typically aligning their developments to available calls for proposals. This did not always result in immediate efficiency gains, as the newly acquired assets were not always fully utilized.
In international comparison, Hungary has made progress in several indicators—particularly in terms of income-generating capacity and the improvement of the output/input ratio. At the same time, significant lagging remains in livestock efficiency compared to other EU member states. DOI: https://doi.org/10.53079/GAZDALKODAS.69.5.t.pp_371-381