Hungary's international business daily

February 05, 2010, 10:44 CET

Socialist says ban on land sales to foreigners should continue

Socialist party prime-minister candidate Attila Mesterhazy said on Thursday that he had asked the Hungarian government to lobby for an extension of the suspension of farmland purchases by foreigners.

Mesterhazy, who is urging a three-year extension beyond May 2011, said Prime Minister Gordon Bajnai supported the idea.

The decision is in the hands of the European Union.

Experts told business daily Vilaggazdasag earlier that it was highly unlikely Hungary would be able to extend the suspension which was negotiated when the country joined the European Union in 2004.

Today around 40-50 hectares costs 600,000-800,000 forints (EUR 2,200-2,900) compared to around 2.5 million forints in neighbouring Austria.

Mesterhazy said the suspension was introduced in the first place to allow time for Hungarian farmland to integrate with European Union structures. This, however, has yet to succeed fully, he added.

Many Hungarian farmers will face hardship when foreigners start buying farmland and pushing up prices. Leaseholds will also become pricier, he said.

Currently six member states have similar suspensions in place and extensions are not unprecedented.

Mesterhazy said he hoped a three-year extension period would help Hungary's farmers to close the gap with the EU.

9 Comments

Of course the fact that this is a central plank of Jobbik's policy, and has been for years, curiously escaped the attention of MTI... I wonder why?

It is increasingly clear that Jobbik are the only party with policies the nation wants, and it will be interesting to see the extent to which the next few weeks will consist of the other two parties piching these policies, and pretending that they have done nothing of the kind!

@Bob:

You should read what was written - there could be an extension maybe - but in the long run this is nonsense!

As I wrote somewhere, it is like forbidding people from one county to buy land in another county!

The EU is one "state" where everybody is equal under the law (just like the USA).

So if Jobbik doesn't want this - they have to leave the EU, very nice prospects for Hungarian, most people in the rest of the EU would give a shit ...

So what's it going to be ? Take advantage of the possibilities (and the money) the EU brings - or leave it to stay on the side of Europe with all the consequences: No free travel, no export/import business with the Common Market ...

OF course you don't (want to) understand all this living in your bunker ...

What are termed as the "inner" and "outer" areas
at the Hungarian Land Offices have different rules
as far as land purchase is concerned.
There is massive abuse at the moment even among Hungarians who buy agricultural land and build on it without express permission. You can see examples of this across the country.
Those who flout the law say their buildings are merely "Pince/k" cellars. Go see for yourself if you don't believe me.
Hungary has to make its mind up as to what percentage of its GDP it wants to allocate to agriculture.
Wolfi. You and I know that there are large tracts of land up for sale because most of the young people don't want to work the land like their forebears did.
It is a shame but a reality also.
Hungary needs to seriously look at its agricultural policy and commit to it by offering incentives.
What Hungary doesn't need is more supermarkets supplying us with cheap, tasteless imports, that
impact on local produce.
Foreign investment should be encouraged for agricultural and building purposes. Set in place a strict set of laws for the domestic market and foreigners (alike) that protects agricultural land for that purpose only. EU could help our growers and farmers and we would be the beneficiaries with fresh, homegrown, meat and vegetables.

@catch22:

Some "outer land" which I don't own, but was asked to rent for a nominal sum (for an indefinite amount of time) near my house has been used by some of my neighbours who says he doesn't want/need it anymore, getting too old for that.

Now we're trying to find someone else - of course I don't even expect to get money out of it, just so the land isn't bare ...

If we were younger we might use at least part of it but we know that agriculture is hard - it's not much joy being a farmer working the land, my bones aren't up to it anymore.

So we do the next best thing: buy or vegetables and fruit from our neighbours or on the local market.

I found this document which refutes Bob and his beloved Jobbik's ideas that they are 'first' with the question of landownership.
It has been a trend from the old Hungarian feudal class, that got bankrupt and blamed the Jews and other 'aliens' for their own short-comings
This is how 'Rural Nationalism' was born in Hungary
-
http://ageconsearch.umn.edu/bitstream/24554/1/cp05bu06.pdf
-
"Rural nationalism, as part of nationalism as a whole, has survived in the transition countries. Although the role of agriculture has diminished, the number of people working in agriculture has significantly fallen, and land scarcity has decreased, land has remained a crucial point in the ideology. Protecting it from aliens means protection of “mother earth” and of national being. Protecting small farmers means suppressing large farms and hampering land concentration. It is true that only a part of the population supports rural nationalism, but politicians must pay attention to it, even when they do not agree with it. This is the reason why, in the negotiations about accession to the EU, an important question concerned exemption from EU rules with respect to the acquisition of land by foreigners"
-
In addition:
* Fidesz fixed in 1998-2002 a 7 years moratorium (2004-2011)
.
* MSZP fixed (2004-2006) an additional 3 years extension, if if land prices remains lower than the EU average still after 7 years
.
So, then it would be possible to get extension to 2014, then MSZP already fixed it

@Wolfi. I have land too which I rent out for a nominal sum. The neighboring farmer grows corn etc.
There is a local produce but it is fast disappearing. I live in a village and have had enough of city life.
I have to work hard too because I have a large house and garden.
I am happy. I hope Hungary can succeed. Big problems at the moment but they can be solved with the right government. The politicians act as if they are still part of the soviet bloc. They must learn, and quickly, to adapt to free market eneterprise and the EU. Otherwise we are all doomed.

Could someone please tell me where it is possible
to find arable land at a price of just 600,000
forint for 40 hectares?!?

yeah, that is cheap for 40 hectares...

As usual,a total lack of monitoring what is written,that price is PER HECTARE for good quality,currently worked agricultural land.

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