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Structural Changes in Polish and Hungarian Agriculture Since Eu Accession: Lessons Learned and Implications for the Design of Future Agricultural Policies

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Structural Changes in Polish and Hungarian Agriculture Since Eu Accession: Lessons Learned and Implications for the Design of Future Agricultural Policies STRUCTURAL CHANGES IN POLISH AND HUNGARIAN AGRICULTURE SINCE EU ACCESSION: LESSONS LEARNED AND IMPLICATIONS FOR THE DESIGN OF FUTURE AGRICULTURAL POLICIES Research Institute of Agricultural Economics, 2014 Editors: Norbert Potori Paweł Chmieliński Andrew F. Fieldsend Reviewed by prof. dr hab. Włodzimierz Rembisz, University of Finance and Management, Warszawa, Poland Editor-in-Chief: István Kapronczai Editorial Board: Szabolcs Biró Ibolya Lámfalusi Károly Dublecz Károly Pető János Felföldi Norbert Potori Imre Fertő László Rieger Miklós Herdon Ildikó Stummer Csaba Illés B. Zoltán Szakály István Kapronczai István Szűcs József Káposzta István Takács Gábor Kemény József Tóth Róbert Kertész Tamás Tóth Szilárd Keszthelyi Szabolcs Vágó Publisher: Research Institute of Agricultural Economics H-1093 Budapest, Zsil utca 3-5. Mailing address: H-1463 Budapest, Pf.: 944 Telephone: (+36 1) 476-3060 Fax: (+36 1) 476-3304 ww.aki.gov.hu [email protected] ISBN 978-963-491-588-1 ISSN 2061-8204 (Agricultural Economics Books series) Printed by Primerate Kft. © Research Institute of Agricultural Economics All rights reserved. Reproduction of any parts of this publication as well as storing, transmission or use of data (in written or electronic format) with any kind of database manager is only possible with the prior written permission of the publisher. Contents Foreword ............................................................................................................................................ 7 POTORI Norbert, Paweł CHMIELIŃSKI and Bożena KARWAT-WOŹNIAK A comparison of the agro-food sectors in Poland and Hungary from a macro perspective ...... 9 Introduction ..................................................................................................................................... 9 Agricultural production ................................................................................................................... 9 Share of agriculture and food processing industry in the GDP ..................................................... 13 Share of agriculture and food processing industry in employment ............................................... 15 Value of agricultural production .................................................................................................... 16 Land use changes ........................................................................................................................... 20 Share of agriculture and food processing industry in investments ................................................................................................................................ 21 Support to agriculture .................................................................................................................... 23 Incomes in agriculture ................................................................................................................... 25 Agro-food trade ............................................................................................................................. 26 Consumer spending on food .......................................................................................................... 29 Conclusions ................................................................................................................................... 30 References ..................................................................................................................................... 31 BIRÓ Szabolcs, Adam WASILEWSKI and TÓTH Orsolya Land tenure ..................................................................................................................................... 33 Introduction ................................................................................................................................... 33 Historical background ................................................................................................................... 33 Farm structure ................................................................................................................................ 35 Land ownership ............................................................................................................................. 38 Land ownership restrictions ............................................................................................................ 42 Land use restrictions ...................................................................................................................... 43 Land market ................................................................................................................................... 44 Effect of land policy ...................................................................................................................... 50 Vision of the future ........................................................................................................................ 52 Conclusion ..................................................................................................................................... 53 References ..................................................................................................................................... 53 FOGARASI József, Barbara WIELICZKO, Marek WIGIER and TÓTH Kristóf Financing of Agriculture and Investment Supports in Agriculture ........................................... 55 Introduction ................................................................................................................................... 55 The structure of financing agriculture in Hungary and Poland .................................................... 55 The role of subsidies in financing the agriculture ........................................................................ 57 CAP funds and instruments ............................................................................................................ 58 National funds and instruments ....................................................................................................... 63 Investment supports in agriculture ................................................................................................ 66 Hungary ....................................................................................................................................... 66 Poland .......................................................................................................................................... 69 Conclusion and discussion ............................................................................................................ 73 References ..................................................................................................................................... 74 3 LÁMFALUSI Ibolya, TÓTH Kristóf and Joanna PAWŁOWSKA-TYSZKO Taxation in the Polish and Hungarian agriculture and health care systems ............................. 77 Introduction ................................................................................................................................... 77 Income taxation of Polish agriculture ............................................................................................ 77 Legal framework of family farms in Poland ..................................................................................... 77 Taxation of farms in Poland ............................................................................................................ 78 Income taxation of Hungarian agriculture ..................................................................................... 81 Individual farms ............................................................................................................................ 81 Corporate entities .......................................................................................................................... 84 Value added tax .............................................................................................................................. 84 Value added tax in Polish agriculture ............................................................................................... 85 Flat-rate VAT in agriculture ............................................................................................................ 87 Value Added Tax in Hungarian agriculture ....................................................................................... 88 VAT regulation in Hungarian agriculture ......................................................................................... 89 Social insurance in agriculture ...................................................................................................... 90 Social insurance in Polish agriculture .............................................................................................. 90 Social care in Hungarian agriculture ................................................................................................ 92 Conclusion ..................................................................................................................................... 95 References ..................................................................................................................................... 96 Zbigniew FLORIAŃCZYK, SZÉKELY Erika and Andrew F. FIELDSEND Institutional preparations for the implementation of the European Innovation Partnership . 97 Introduction: innovation in
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