Deformations of structure and enterprise connections in agriculture

Nemessályi, Zsolt

Keywords: enterprises, structure of production, system of farm management, extensive-intensive farming, net margin of enterprises

The study deals with the structural deformations of Hungarian agriculture. It focuses primarily on the structural change of private and joint ventures from a farm business management aspect. Due to the declining profitability of animal breeding enterprises and the EU subsidy policy, the number of farms specialised in crop production is definitely increasing in contrast to animal breeding and mixed farming. The author cites and calls for the help of professors and researchers in the field of classical farm business management, to strengthen his viewpoint that Hungarian agriculture cannot omit mixed structure farming and the utilisation of the advantages of enterprise connections. He highlights the danger of important intensive crop production enterprises dropping out of the structure. Forcing back sugar beet and tobacco production and the forced closure of their related processing industries may start a process in Hungarian agriculture, which cannot be reversed. A loss of profits and jobs may just further aggravate the condition of rural populations already in a difficult situation.