The survey results, gathered in 2023 but only published this year, indicate that the trend aligns with broader European patterns, as smaller farms producing what it calls “lower-value outputs” increasingly cease operations.
As smaller farms disappear from the landscape, the average size of farms has naturally grown, and production is becoming more concentrated. KSH points out that crop production has strengthened while soil-friendly farming techniques and irrigation use have expanded significantly.
However, livestock numbers have declined, with livestock farming now being more concentrated than crop production. The findings also reveal an aging population tending the land, with the average age of farm managers rising steadily. While the proportion of farm managers with basic agricultural training has increased, the overall agricultural labor force, both hired and family workers, has shrunk.
By June 2023, Hungary had approximately 198,000 active farms, marking an 18% decrease compared to the previous survey in 2020. Over a 10-year period, the number of farms has fallen by 33%, representing a decline of 99,000 farms.
The report highlights that this trend primarily affects farms with smaller agricultural areas and lower livestock numbers. As these farms shut down, the average size of the remaining farms and the number of animals per farm have increased.
The decline in farm numbers was recorded in nearly all Hungarian counties except Veszprém County, where the number of farms increased by 3.2% from 2020. The steepest declines were observed in Somogy County (a 26% decrease) and Borsod-Abaúj-Zemplén, Szabolcs-Szatmár-Bereg, and Hajdú-Bihar Counties, which all saw 24% fewer farms. The highest concentration of farms in 2023 was recorded in Bács-Kiskun County, with 24,000 farms, but even that was 13% fewer than in 2020.
While the number of crop specialist farms remained relatively stable over the past years, decreasing by just 5.8% since 2020, specialist livestock farms suffered a significant blow. The report shows it had nearly halved in just three years and is now a quarter of what it was a decade ago. Several factors have contributed to this decline, including the EU’s subsidy policies that favor crop production, recurring outbreaks of animal diseases, and rising feed and energy costs.
The shift toward crop production has continued, with crop specialist farms now accounting for 73% of all Hungarian farms, up from previous years. Conversely, livestock specialist farms have dwindled to just 14%, and mixed farms represent 7.9% of total operations, a figure that has remained relatively unchanged.
The concentration of agricultural production has accelerated over the past decade. Farms with the smallest standard output (SO) below EUR 4,000 saw the sharpest decline, shrinking by 54% between 2013 and 2023. Farms with an SO between EUR 4,000 and 8,000 also declined by 28% over the same period.
In contrast, the number of larger farms grew significantly. Farms with an SO between EUR 100,000 and EUR 500,000 increased by a striking 135% over the decade. Whereas farms in the two smallest size categories represented 80% of all farms in 2013, this proportion dropped to 61% by 2023. Meanwhile, farms with an SO above EUR 15,000 increased their share from 12% to 27% of the total farm population.
The trend toward concentration is evident in the structure of agricultural production. Nearly half (45%) of the smallest farms existing in 2020 closed within three years, while only 3.7% of farms with an SO above EUR 500,000 ceased operations.
By 2023, although 47% of Hungarian farms fell into the smallest category, the largest farms, just 1.1% of the total, accounted for 45% of the country’s total agricultural output.
The structural shift differs by type of farm. Livestock farming has seen the most pronounced concentration, particularly among farms specializing in granivores (seed-eating animals) and mixed animal husbandry. Among granivore farms, 78% were classified within the smallest size category, while the most significant category (with an SO of EUR 500,000 or above) accounted for 87% of total output.
Crop specialist farms, though also concentrated, remained more evenly distributed. About 39% of arable crop farms were in the smallest category, but 65% of their output came from medium and large farms. The distribution for permanent crop farming was relatively balanced, with 62% of farms in the smallest category and 64% of output generated by farms with an SO of between EUR 15,000 and EUR 500,000.
The report also highlights concerns about the aging farm workforce. The number of farmers decreased across all age groups, but the sharpest decline was among those aged 55 to 64, whose numbers fell from 91,000 in 2013 to 45,000 in 2023. Younger age groups also saw declines, with the number of farm managers under 35 dropping by 42% over 10 years.
As a result, the share of farm managers aged 65 and over increased to 37% in 2023, up from 29% in 2013. Sixty percent of farm managers were 55 or older, aligning with EU averages. However, only 4.9% of farm managers were under 35 in 2023, compared to 5.6% in 2013.
The decline in young farm managers was observed in nearly all Hungarian counties except Győr-Moson-Sopron, Veszprém, and Komárom-Esztergom. The highest proportion of senior farm managers was in Békés County, where 43% of farm operators were aged 65 or older.
This article was first published in the Budapest Business Journal print issue of March 21, 2025.
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