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Registration of family farms and Market accessibility by short food supply chains

Saturday, 05 December 2015 13:35 Written by 
  • Location(s): Hungary
  • Type(s): Solution
  • Theme(s): Agriculture , Land Management
  • SDG(s): 11. Sustainable cities and communities, 15. Life on land
  • Locations of Agro Solutions: Hungary
  • Types of Agro Solutions: Solution
  • Themes in Agro Solutions: Agriculture , Land Management
  • SDGs in Agro Solutions: 11. Sustainable cities and communities, 15. Life on land
  • Locations in Europe and the CIS: Turkey
  • Types in Europe and the CIS: Solution
  • Themes in Europe and the CIS: Agriculture , Land Management
  • SDGs in Europe and the CIS: 11. Sustainable cities and communities, 15. Life on land

Solution achievements:

  1. The register of family farming since 2001. The Hungarian regulations provide favourable taxation for family farms that are preferred in the case of land accessibility. Just private persons can be member of family farms that stress the role of small farmers in the Hungarian economy.
  2. From 2010 the registered small farmers can process their raw materials at home in safety and transparent hygienic conditions and sell their products on local farmers markets. This kind of new governmental approach and the EU support system facilitate the access to markets for small and family farmers. In the last 4 years more research projects were conducted to get to know more details about short food supply chains, consumers’ and farmers’ demands. These projects tried to measure the sustainability the multifunctional family farming as well as the new markets and channels in the local food systems. 

Solution outcomes:

  1. The definition of family farming was introduced by the Law of 2001 with the goal of strengthening the private farming based on family labour force as well preferring the access to land by family farmers. This approach shall consider that it is not allowed to narrow the possible landowners in discriminative way. The number of the registered family farmers and small famers grew in the last years. Now in Hungary 20 000 family farms are found that means 50 000 persons as member of family farming.
  2. Specialized financial support does not exist in Hungary but the family farms are preferred in the case of allocation of EU subsidies or land buying. The small farms may have resort to accessible credit construction and they are the main beneficiaries of Rural Development Programs. 

Solution’s impact: 

The economic strengthening of small farmers/family farmers may contribute to increase their negotiating power: more weight in contract negotiations, ensuring fair terms and conditions, gaining access to public and larger scale markets. The whole regulation of family farming is currently under review in Hungary that extends to tax policy, land policy, civil law and support policy. The collaboration between family farmers who are strong and adequate for legal standard may reduce competition between many small un-coordinated supply chains. 

Finally in term of this kind of moral and mutual support can combat isolation felt by small-scale producers; it can assist the integration of newcomers into food and farming sectors. 

Solution budget: 

Currently it is not possible to esteem concrete budget although it would be worthwhile to looked at the following costs: 

Research institutions, governmental and civil collaboration needed. 

First of all ground-level studies are requested and then law, tax and agricultural administration experts can work on local legal framework.

Presentation (download)

Contact information: 
Ministry of Agriculture of Hungary 
Department for EU and FAO Affairs 
Department for Agriculture 

Anikó HETYEI, expert 
Tel: +3617953861 
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Katalin Olga KUJANI expert 
Tel: +3617954232 
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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