The profitability of agricultural enterprises in the European Union and in Hungary

Kovács, Gábor and Udovecz, Gábor (2003) The profitability of agricultural enterprises in the European Union and in Hungary. Hungarian Statistical Review, 81 (SN8). pp. 62-79. ISSN 0039-0690

Preview

Text 2003_K8_062.pdf Download (883kB) | Preview

Abstract

The study analyses the recent development of the profitability of Hungarian agricultural enterprises in comparison to those of the present EU member states and discusses what to expect after the accession. The comparison of the incomes of the past was based on the data of the Hungarian and the EU Farm Accountancy Data Network while in the forecasts for the period after the EU accession the models of the Re-search and Information Institute for Agricultural Economics (RIIAE) were applied. Among others the comparison shows that the net income per hectare of agricultural area is only one third that of the EU average. This lagging behind is due to several factors; such as, low input efficiency, low level of subsidies, unfavourable farm structure, poor machinery etc. The price mechanism of the markets will probably slightly change the incomes to be expected after the EU accession. The income generating capacity of agriculture will remain subsidy-dependent. The authors state if the producers react appropriately to the changes and if the direct payments from the EU budget are supplemented from the national budget then the entrepreneurial incomes might increase by 7-9 percent in 2004 compared to 2001. The increase might be even larger if further subsidies to be granted in national authority will also be made available. In the sectors not covered by CAP subsidies (pig, poultry and most fruit and vegetable production) profitability increase can only be ensured by increasing considerably the competitiveness and by implementing the restructuration, which has been delayed for a long time.

Actions (login required)

Edit Item