Hungarian agriculture faces water shortages and shifting land values

The Hungarian agricultural sector is facing significant challenges due to climate change and fluctuating land values. Ede Timmel, managing director of MA-HAL, reports that the fish farming industry is struggling with severe water shortages. While the southwestern part of the country maintains relatively adequate water levels for fish ponds, producers in western and central regions, such as Somogy and Veszprém counties, are struggling due to insufficient precipitation. In the Alföld region, reliance on remote water channels has increased production costs significantly.

Simultaneously, the arable land market in Hungary shows mixed trends. The MBH farmland index rose to 350.3 points in 2024, a 3.3 percent annual increase, with the average price per hectare reaching 2.49 million forints. However, the real index adjusted for producer prices decreased to 145.8 points, as a 10.6 percent rise in producer prices outpaced land value growth. Experts note that water availability and weather-related risks are becoming increasingly critical factors in determining the long-term value of farmland, with more stable price growth observed in drought-prone regions like Békés and Bács-Kiskun compared to areas with better precipitation.