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The growth of family farms in Hungary

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  • Lajos Zoltán Bakucs
  • Imre Fertő

Abstract

The article investigates the validity of Gibrat's Law for Hungarian family farms using FADN data collected between 2001 and 2007. Gibrat's Law states that the growth rate of firms will be independent of their initial size. Regression results allow us to reject Gibrat's Law for all quantiles. Evidence suggests that smaller farms tend to grow faster than larger ones. Results do not support the hypothesis of “disappearing middle” in Hungarian agriculture. We study a number of socio‐economic factors that can help to explain farm growth. We find that total subsidies received by a farm and the farm operator's age are the most significant factors correlated with farm growth.

Suggested Citation

  • Lajos Zoltán Bakucs & Imre Fertő, 2009. "The growth of family farms in Hungary," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 789-795, November.
    • Handle: RePEc:bla:agecon:v:40:y:2009:i:s1:p:789-795
    DOI: 10.1111/j.1574-0862.2009.00415.x
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    2. Kimhi, Ayal & Tzur, Nitzan, 2011. "Long-Run Trends in the Farm Size Distribution in Israel: The Role of Part-Time Farming," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114759, European Association of Agricultural Economists.
    3. A. Bailey & S. Davidova & P. Hazell, 2009. "Introduction to the special issue “small farms: decline or persistence?”," Agricultural Economics, International Association of Agricultural Economists, vol. 40(s1), pages 715-717, November.
    4. Viktoria Graskemper & Xiaohua Yu & Jan‐Henning Feil, 2021. "Analyzing strategic entrepreneurial choices in agriculture—Empirical evidence from Germany," Agribusiness, John Wiley & Sons, Ltd., vol. 37(3), pages 569-589, July.
    5. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 62(01), pages 1-13, February.
    6. Viira, Ants-Hannes & Pöder, Anne & Värnik, Rando, 2013. "The Determinants of Farm Growth, Decline and Exit in Estonia," Journal of International Agricultural Trade and Development, Journal of International Agricultural Trade and Development, vol. 62(1).
    7. Heath Henderson & Leonardo Corral & Eric Simning & Paul Winters, 2015. "Land Accumulation Dynamics in Developing Country Agriculture," Journal of Development Studies, Taylor & Francis Journals, vol. 51(6), pages 743-761, June.
    8. Ayal Kimhi & Nitzan Tzur-Ilan, 2021. "Structural Changes in Israeli Family Farms: Long-Run Trends in the Farm Size Distribution and the Role of Part-Time Farming," Agriculture, MDPI, vol. 11(6), pages 1-15, June.

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