Turning point: Hungary quietly opens farmland market to financial investors with Christmas law change
Hungary’s long-standing restrictions on who can own agricultural land are being fundamentally reshaped by a little-noticed legislative amendment that takes effect on Christmas Eve. From 24 December, private financial investors will be able to buy Hungarian farmland more easily, a move critics say contradicts years of government rhetoric about protecting land from speculation.
The change was first highlighted by László Szabó, founder of Hold Asset Management and a former financial sector executive who now farms land in western Hungary. Writing on HoldBlog, Szabó described the amendment as a “turning point” that effectively opens the Hungarian farmland market to investment-driven buyers.
A small legal change with major implications
The amendment modifies Hungary’s 2013 Land Transaction Act, which governs the sale and use of agricultural and forestry land. Until now, one of the law’s central pillars was that buyers had to cultivate the land themselves and were not allowed to pass its use on to others. This requirement was designed to prevent land from becoming a purely financial asset.
However, a new sub-paragraph quietly added to Section 13 of the law introduces a crucial exception. Under the revised wording, land use is still considered “own cultivation” even if the owner leases the land out under a tenancy agreement.
In practice, this means that purchasing farmland and immediately renting it out no longer violates the law. According to critics, this removes the most significant barrier preventing investors with no intention of farming from entering the market.
“This is a legal fiction,” Szabó wrote. “Leasing out land is obviously not the same as cultivating it yourself. Yet from 24 December, the law will treat it as if it were.”
Opening the door to speculative buyers
While Hungary already requires land buyers to hold so-called “farmer status”, this has never been a major obstacle. The qualification can be obtained relatively easily by completing a short agricultural training course, often referred to as the “Aranykalász” (Golden Ear) programme.
Previously, the real deterrent for investors was the ban on leasing out land. With that restriction now lifted, critics argue that virtually anyone with modest capital and basic paperwork will be able to enter the farmland market.
“The Hungarian land market has effectively been opened to private financial investors,” Szabó warned, predicting strong interest from buyers who view farmland primarily as a long-term store of value rather than as a means of agricultural production.
How the amendment was introduced
The way the change was adopted has also raised questions. According to 444.hu, the amendment was not included in the original bill submitted to parliament in November. Instead, it appeared later as part of a package of committee amendments discussed by parliament’s agriculture committee on 25 November.
According to parliamentary records, the proposal was submitted by the governing Fidesz parliamentary group, with the support of the Ministry of Agriculture. The official justification attached to the amendment offered little explanation, largely restating the new legal wording without addressing its broader consequences.
Opposition politicians and independent commentators have criticised the lack of public debate, arguing that a change of this scale should have been preceded by consultations with farmers’ organisations and professional bodies.
Concerns among farmers
The amendment has triggered unease within Hungary’s farming community. Many fear that well-capitalised investors could drive up land prices, making it harder for local farmers to expand or even maintain their operations.
Szabó argues that the impact could be particularly damaging for small and medium-sized farmers, who already face intense competition from imported agricultural products.
“From next week, Hungarian farmers will not only be competing on global markets, but also at home against investors with far deeper pockets,” he wrote.
There are also concerns about land stewardship. Critics say owner-farmers are generally more invested in maintaining soil quality and long-term productivity than absentee owners who lease land purely for financial return.
A break with past government messaging
Perhaps the most striking aspect of the change is how sharply it contrasts with the government’s previous position. For more than a decade, the Orbán administration has repeatedly stated that Hungarian farmland should not become an object of speculation and should remain in the hands of those who actually work it.
Critics argue that the new rule directly undermines the stated goals of the Land Transaction Act itself, including its preamble, which emphasises protecting land as a national resource.
Whether the amendment will be reconsidered remains unclear. For now, however, from Christmas Eve onwards, Hungary’s farmland market will operate under fundamentally different rules – with consequences that may only become fully visible in the months and years ahead.