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An Analysis of the Performance of Commercially Oriented Farms in Hungary


  • Matthew Gorton
  • Barna Kovacs
  • Tamas Mizik
  • Sophia Davidova
  • Tomas Ratinger
  • Belen Iraizoz


As a result of the economic restructuring and political reforms undertaken during the 1990s, Hungary has a varied set of farm types that encompass a wide array of different sizes, degrees of capital intensity and forms of ownership. This article explores the performance of Hungarian farms and concludes that, in contrast to other Central and Eastern European (CEE) countries, the majority of commercially oriented farms are profitable. However, estimates are sensitive to the valuation of own land and labour inputs. From the application of factor and cluster analysis, eight clusters of farms are profiled and the most competitive group identified. While the most profitable cluster also has the highest mean farm size, farm consolidation should not be treated as a panacea for dealing with low agricultural returns in the region.

Suggested Citation

  • Matthew Gorton & Barna Kovacs & Tamas Mizik & Sophia Davidova & Tomas Ratinger & Belen Iraizoz, 2003. "An Analysis of the Performance of Commercially Oriented Farms in Hungary," Post-Communist Economies, Taylor & Francis Journals, vol. 15(3), pages 401-416.
  • Handle: RePEc:taf:pocoec:v:15:y:2003:i:3:p:401-416 DOI: 10.1080/1463137032000139070

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    References listed on IDEAS

    1. Erik Mathijs & Liesbet Vranken, 2001. "Human Capital, Gender and Organisation in Transition Agriculture: Measuring and Explaining the Technical Efficiency of Bulgarian and Hungarian Farms," Post-Communist Economies, Taylor & Francis Journals, vol. 13(2), pages 171-187.
    2. Gorton, Matthew & Davidova, Sophia, 2004. "Farm productivity and efficiency in the CEE applicant countries: a synthesis of results," Agricultural Economics, Blackwell, vol. 30(1), pages 1-16, January.
    3. Franks, Jeremy R, 1998. "Predicting Financial Stress in Farm Businesses," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 25(1), pages 30-52.
    4. Petrick, Martin, 2000. "Land reform in Moldova: how viable are emerging peasant farms? An assessment referring to a recent World Bank study," IAMO Discussion Papers 28, Leibniz Institute of Agricultural Development in Transition Economies (IAMO).
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    Cited by:

    1. Ferto, Imre & Fogarasi, Jozsef, 2005. "The Choice of Farm Organisation. A Hungarian Case," 94th Seminar, April 9-10, 2005, Ashford, UK 24420, European Association of Agricultural Economists.

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