Beside the refugee crisis there is another major topic on the political scene. I am going to write about the Hungarian soil issue.
Let’s see the facts. The Hungarian agriculture can use about 4 695 000 acres of soil that belongs to the country. 11% are owned by the state, and the government wants to privatize this slice. After this transaction the government expects around 1 billion euros in income. It is quite a huge number - we are talking about 1% of the Hungarian GDP.
Why does the government want to sell the land? According to them, they can't handle this huge property and the government doesn't take good care of these farms. They also argued that nobody should be afraid of this transaction, because one person can buy only around 740 acres. Therefore they are helping the small farmers and not the big landowners. They also say that this is going to be a huge revenue for the budget.
There are two sides of the same coin, even regarding this topic. According to the news, the government plans to sell the properties by the end of this year, which raises the question: why hurry so much? However, it is not necessarily a bad thing when a government wants quick action in any case. In this case – as they say – the new owners of the properties will be the same farmers who have been working on them for years, so this deal will be profitable for both the selling and the buying party.
Chances are high that this plan would result in prosperity regarding the sold property itself, as in most cases the farmers know well the properties they have been leasing – and are now buying, so they know how to handle them well. The plan has also long-term advantages: the farmers buying lands will still have a job and income, which they might increase with hard work and good strategies, so it means new opportunities for them. The money, which would go to the government in exchange for the lands – and we are talking about a LOT of money – would be used for developing the country.
Yes, it needs to be admitted, this is going to be a huge revenue for the buget, but only once. However, the government shoud only lease these properties for the small farmers, so they could receive income every year.
Also, the rule which says that one person can buy only 740 acres could be good - on the other side, the oligarchs can hire people to represent their interest, and with their help they can buy a bigger property.
Furthermore, if the state is usually not a good owner as they said, why did they nationalize industries in the past few year?
I think everyobody who's interested in Hungarian politics is worried about these kinds of questions, and nobody has a satisfying answer, and that is why this is a concerning issue. Maybe the government should not hurry in this case, and should consider accepting some suggestions regarding the issue.
