Large-scale farming--made up of state and cooperative
focused on such activities as grain and fodder production,
were capital-intensive and in which economies of scale
significant. A 1985 law transformed state farms from
state-administered organizations into self-governing
under the supervision of the Ministry of Agriculture and
However, state farms were subject to more state control
cooperatives in such matters as appointment of managers
use of profits, and state-farm employees were government
employees who worked for fixed wages and bonuses.
A cooperative farm was owned and managed by its
elected a chairman to manage the farm according to its
Although cooperative farms could employ workers,
members were technically not "employees." The cooperative
employees a set wage; members received a base salary and a
year-end dividend based on net profits. Cooperatives were
freer than state farms in deciding how to use their
many cooperatives delegated certain operations to
teams or individuals who divided the operation's net
cooperative farms owned only about half the land they
state and individuals owned the rest.
In the late 1980s, the government still fixed prices
large portion of agricultural production, including corn,
and beef cattle. In addition, all state and cooperative
received some form of state subsidy, and about 27 percent
received fixed-rate subsidies for farming low-quality
Hungary's large-scale farming sector has become
concentrated as state and cooperative farms have merged.
1960 and 1986, the number of agricultural cooperatives
72 percent to 1,260. The amount of arable land per
stood at 3,024 hectares in 1986.
Data as of September 1989