Analysis of Hungarian Agricultural Subsidies on the Basis of FADN Database

Krisztian Keszthelyi, Peter Nemeth and Csaba S. Pesti

No 24689, 2005 International Congress, August 23-27, 2005, Copenhagen, Denmark from European Association of Agricultural Economists

Abstract: On the basis of the micro-economic data of the Hungarian FADN system we analysed the role of subsidies in the profitability of farms, we aimed to reveal which types of farming and economic sizes are effected more by subsidies related to efficiency and profitability. The agricultural enterprises' balance of taxes and subsidies counted from the micro-economic data of FADN enterprises was also analysed in the different type of farming categories and economic size classes. Our aim was to find out what types of farms are subsidized and what types are net payers to the central budget. Examining the pre-tax profit we made the conclusion that with the increase of economic size not only the proportion of profitable farms rises, but the profit per size unit increases and the loss decreases. Analysing the effect of production based subsidies and interest subsidies on the pre-tax profit we made the conclusion that the sum of subsidies received from government per size unit is almost equal in all economic size classes.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Pages: 11
Date: 2005
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaae05:24689

DOI: 10.22004/ag.econ.24689

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