Hungary's Prime Minister Victor Orbanhas said the country is to adopt a new law banning foreigners from buying agricultural land in the country. He pointed to what he described as similar legislation in France and Austria.

While speaking at a congress of the Hungarian Agriculture Association, he promised a revolution in farming the like of which the country has not seen in the last 50 to 100 years. Plans also include modernizing the farming sector and “turning the page on the communist era agriculture.” He said the new law being considered by Parliament would protect farm land from bankers and speculators, as well as encouraging small and medium sized agricultural holdings over larger farms.

Also included in the bill are provisions to reclaim land “stolen via dubious procurement contracts.” Orban added that the a bank would be set up to fund irrigation projects in the country.

Foreign land ownership has been an issue in Romania for some time. Earlier in the year French newspaper Le Monde highlighted the growing popularity of Romanian farmland for French farmers, pointing to the low prices and potential for yields.

At present, over 700,000 ha (just under 9 percent) of Romanian farmland is foreign owned and various plans to protect the agricultural sector from foreign speculators have been suggested. During Mihai Ungureanu's short lived government a land bank plan was discussed. The planned fund would have first refusal on farmland, which it could then lease to young Romanian farmers. From next year, Romania must lift current restrictions, after EU laws allowing foreigners to buy farmland directly come into force.

Liam Lever, liam@romania-insider.com