Individual Farmers and Land Renting in Hungary

This paper uses data from a survey of more than 1,400 farming households in Hungary to identify a set of profiles of farming households, which are active in the rental market and to estimate econometrically the impact of household characteristics, such as social, physical, and human capital, as well as regional and environmental characteristics on land rental activities. We show that the decision of farming households to lease in land is related to their land endowment, their access to capital assets, human capital variables such as age and education and their social capital. Environmental factors are also important.