Factors influencing the competitiveness of Hungarian agriculture and rural areas prior to joining the EU

At present a state of crisis is characteristic of Hungarian agriculture, and, together with it, of the rural areas. As much as 60 % of those previously employed in the agricultural sector, 607,000 employees, have lost their jobs. Since agriculture is closely linked to rural life, it is in the rural areas that the resultant problems primarily occur. One third of the population of Hungary lives in the rural areas, but unemployment in these areas constitutes a half of the total number of unemployed in the country. During the privatisation process the land areas of Hungary were divided up to a great extent. The area of most of the individual farms is under one hectare. A substantial proportion of small plots, having been displaced from the produce supply market, now serve only the subsistence requirements of their owners. A large proportion of the agricultural structures still in operation and their successors can no longer serve the function which they previously fulfilled in their given region, while the stimulation of state intervention required is still awaited.