Hungarian agriculture faces drought and farm consolidation

Agricultural operations in Hungary are facing significant structural and environmental challenges. According to the National Agricultural Chamber, the Homokhátság region is experiencing severe uncertainty due to declining water reserves and persistent atmospheric drought. Extreme summer heat and lack of precipitation have led to crop stress, smaller yields, and significant losses, particularly in areas lacking irrigation capabilities.

Simultaneously, data from the Hungarian Central Statistical Office (KSH) reveals a major shift in the agricultural landscape. Over the last decade, the number of agricultural holdings has decreased by 41 percent, while the average land area per farm has grown by 18 percent to approximately 33 hectares. There is a notable trend toward consolidation, with mixed farming and larger livestock operations increasing.

Demographic challenges also persist, as 37 percent of agricultural leaders are aged 65 or older, while those under 40 represent only 10 percent of the sector, highlighting a long-term need for generational succession.