INDEPENDENT FARMING AND AGRICULTURAL COOPERATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A001100010004-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 15, 2016
• Document Release Date: September 9, 2002
• Sequence Number: 4
• Publication Date: May 13, 1953
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
Ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
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COUNTRY gungary
SUBJECT Independent Farming and
Cooperatives
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REPORT NO.
Agricultural DATE DISTR.
NO. OF PAGES
REQUIREMENT NO.
REFERENCES
13 Nhy
8
1953
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THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
1. The unit of land area .measurement still used in Hungarythe
--traditional "hold". Tv& classifications of this -measurement, based lais 25X1X
location and configuration of the land complex were:
a. Cadastral hOld (tatasztralis hold), comprising an area of 30200 sv
b. Hungarian hold (Magyar hold) or small holdt comprising an area of 2,4.0O sq,
All taxes were computed on the basis of a cadastral hold*
2. The agricultural policy of the Communist Hungarian government was based on the
principle of a centralized, state-owned and State-directed agricultural enterprise*
The first step in the implementation of this policy was :taken in 1945 with the.
confiscation and nationalization of all land formerly belonging to the CrOwn?
the Church,, and the nobility., including all latifundia, even to 100-hold complexes. -
In conformity with the slogan ,"The land belongs to thOse who work ie., the new
evernment distributed this land to landless farm workers, small and medium
landowners partisans and supporters of'tpartisans in the struggle for liberation.
from the Nazis. Some of the confiscated land was retained for State farm lands*
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3. As the second step in carrying out its principle of centralized
agriculture, in 1949-1950 the Communist government reorganited land
distribution by creating State Farms and introdUcing Agricultural .
Growers Cooperatives as a means of reducing the number of indepen-
dent farmers and with the ultimate aim of reducing all farming to
State farming, Many farmers who had been given land as their own
in 1945 were keenly disappointed when the government took away_
their farm l in 1949 to incorporate them into the new system.
about 60% of the population was engaged in
farming. Approximately half of this percentage were independent
farmers And half belonged to some kind of organized farmers' coop-
erative or State Farm. A breakdown according to land and farmers
belonging to State Farms, Agricultural Growers' Cooperatives, and
independent farmers is as follows: *bout 50% of the land in Hungary
belon d to the 50% Of the farmers Who remained'indePendent;,-
about 0% of the land and 15% of the farmers )4144604 to Agricultural
GroWorbl Cooperatives; about 30% of the land and-35% of the farmers
-boilorigis,dtoState Farms.
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independent Farmers
5.% Independent farmers (maggligazdeakod6) in Hungary thOoretically ?
could own up to 106 holds of land, but in practice the. maximum was
50 holds. The average land of an independent farmer was under 20
holds; holdings larger than that fell into the kulak category. An
independent farmer possessing 10 holds had to pay taxes of 200
forints per hold, about 100 forints on his house, 600 forints on a
pair of horses, and 200 forints on a yoke of oxen. The tax on
horses was raised An March 1952 to 1,800 forints and the tax on oxen
was raised:at the same time to 1,000 forints. The 16-hold indepen-
dent farmer had to make deliveries in kind as follows, and also in
wine if he had vineyards;
200 kg. of wheat per hold planted
150 kg. of barley per hold planted
100 kg. of oats perohold planted
180 kg. of rye per hold planted
500 kg.' of corn Ter ,aolt Pirv*V1
500 kg. of potatoer' per hold planted
70' kg. of pork (the pig must not weigh less than 210
130 kg. of beef (the animal must not weighlese than
15 kg. of poultry
800 eggs
6. All deliveries made to the State in kind were according to rigid
specifications for size and weight and, where animals were involved,
often the age.' /f a farmer did not have enough Produce,'he had to
purchase it on the black market at prices often 1'000 higher than
he would be paid by the State. I do not know of any case where
grain or produce deliveries to the State constituted the tax levied
on the farmer, which always Was paid in currency. To the beet of
my knowledge all payments to farmers for grain deliveries were made
in currency. The only case I know of where the full' amount was not
paid was one in which back taxes owed by the farmer ,Were deducted.
kg.),
350, kg.)
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7. Kulaks were any independent farmers who employed labor, and generally
who owned more than 20 holds of land. Taxes and delivery require-
ments for them were twice as high as for other independent farmers.
RvArv erfert was made by the government to eliminate the kulaks.
25X1 the RFE broadcasts that in July 1952 approximately
2,000 kulaks were deported to Hortobagy region from various parts
of Hungary. Causes for depoetation were given as anti-regime
statements Infraction of some law, poor production. 25X1X
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8. About half of the farmers in Hungary remained reluctant to join .
cooperatives unless abselutely forced to through confiscation of
their property by meansof excessive taxation0 I think the farmers
who refused to. join cooperative e tried to maintain themselves -in-
the hope that a war might come which would free them from the
oppressionof the Workers' Party. regime. However, they were grad-
ually losing theirbattle. This was especially conspicuous in 1951,
when a large number gave in. As a result of the deportation of .
kulaks in the summer of 1952, mentioned above, even larger numbers
of farmers wer expected to yield to the pressure. / do not
believe, however, that all independent farmers and kulaks will be
eliminated because they serve as the whipping boys for the Commu-
nists and an invaluable excuse for failures in the system.
9. In pressuring independent farmers into either State Farms or
Agricultural Growers Associatione, WorkerW-Party-agitators
emphasized reduced taxation on one hand and the constantly increase -
ing delivery demands on ?the other, in addition to the threat of
deportation for anti-regime attitude for farmers who did not grow ,
enough crope. Coercion took various economic, political and
Judicial forms. Farmers who could not meet the high deliveries ofgrain and livestock set by the State were arrested and charged with
sabotage. Farmers unable to pay the fine demanded for this offenst5xi
received prison sentences. A farmer was liable to receive a three
month sentence if he was unable to. turn, in the -required number
eggs, Oven if he lacked only a few of his quo f25X1
following examples of this type of coercion: -25X1X
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I an o5 year old resident of Aggtelek, was sentenced to six 25X1
months in prison for failure to surrender his complete compulsory
delivery of pork, although he had delivered all except 10 kilos.
His sentence was reduced to three months because of his age.
Political coercion was used to force kulaks (who were not accepted
in cooperatives because they were class enemies) out of their land.
One method of getting kulak holdings was to start a cooperative in
which the land was to be in one large block instead of comprised of
the scattered holdings of the peasants joining the cooperative.
The good land of a kulak was taken over to make this possible and
the kulak was given land elsewhere, always of inferior quality. /t
was a foregone conclusion that the land he got in place of his own
could not meet the required grain deliveries and therefore he
would lose his land and ultimately he interned. Kulakei and inde- 25X1X
pendent farmers were not authorized to purchase tractors and other
mechanized farm equipment. As a matter of fact. if they owned such
ment the State took it away from them.
'?25X1X who lived in Fuezesabony )4/45N-2025C, and who owned 25
o s of land. 'he expressed
concern for his future. Freviouely
mechanical farm equipment and in 14 had owned considerable 25X1X
9 had been obliged to surrender
his tractor and other equipment to a local cooperative farm to which
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he had had been refused membership. He received no compensation for
his tractor other than a requisition receipt. Independent farmers
were also fined very heavily for slight infractions of the law. A
fine was doubled for the second offense, tripled for the third, etc.
If the farmer could not pay the fine, he was taken into custody and
imprisoned, and obliged to work on a state-owned property withoUt
pay.
State Farms
10. All State Farms (Lllami Gazdasagok) and forests in Hungary,were
:controlled by the Ministry of Farming and Forestry (Mezoe es
Erdoegazdasigok Miniszteriuma)0 Alkotmany utca 120 Budapest.
11. The land complex of farm land and forests comprising a State Farm
could consist of a few thousand holds to 200,000 holds, and could
include several villages. Each State Farm was an independent
farming community with its own administration, including such things
as an agricultural machinery center, dairies, a stock raising
division, a poultry division, grocery stores, taverns, a physician,
and police guard. A typical example of the administration of a
State Farm was the administration at the Putnok State Farm Center
(Putnoki Allamgazdasagi Koevont) which was comprised of four or
five communities:
a. State Farm Manager
responsible for the entire
b. At agronomist, who advised
Mezoegazdasigi Vezetoe), who was
operation of the State Farm.
on the problems of farming and crops,.
c. Party Secretary of the Hungarian Workers? Party, who was
responsible for ideological propaganda on the State Farm, and
all Party matters.
d. An official eesponsible for norm fulfillment (Norma Feleloes).
e. Paymaster (Br Elszimo16).
f. Tractor Station Manager (Traktorillom&s Vezetoe), who was
responsible for the tractor park. A Tractor Station could have
15 tractors or more, Tractors were imported from the Soviet
Union, and many were not in usable condition.
g. Livestock raising manager (illat-tenyisztisi Feleloes) who was
responsible for the raising of livestock.
h. Official responsible for the growing of crops (Termeas
feleloes).
i. State Farm stores manager (Uezlet vezetoe), responsible for
State Farm grocery, clothing, and spirits stores.
j. Police guard post (Rendotor oers), responsible for public order
and peace.
12. In order to show the independent farming population the advantages
of being an agricultural worker on a State Farm, the State did
everything to make such positions desirable. State Farm workers
were given the extra social proistige of being called State Farm
Workers (Allamgazdasigi Dolgozo) instead of peasants (paraszt),
while farmers in agricultural cooperatives were ?ailed peasants
(Mezoegozdasagi Paraszt). This social distinction carried
considerable psychological weight among the rural population.
State Farm workers were supposed to belong to the Hungarian Workers'
Party (Magyar Dol;omok Pirtja) and therefore had the privilege of
being selected for outstanding work performance as model workers.
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This entailed much publicity, an award, and a Vacation at State
4kpenae. State Farm workers fared better financially than industrial
workers. On the basis of work unit norms they made 700-800 forints
per month, working eight hours a day, 48 hours a week, with a day
off (which seldom fell on Sunday). During the peak of seasonal work,
farm workers could earn as much as a total of 11500.r2000 forints per
MOnth for above-norm production. Farm workers were paid twice a
month'. They were entitled to a three-week paid vacation per year.
They also had the advantage of being able to buy necessities at
State Farm stores at reduced prices. Furthermore, they did not pay
taxes. (The only contribution in delivery they had to make was in
pig fat if they fattened a pig at home.) However, they were not
allowed to keep a cow.
13. When a State Farm worker traveled away from his place of work he
carrion] for his identific tion a Laborer's Certificate (Munkai-
gazolviny), a Certificate of Residence (Lakhatosigi Igazolviny)
and his Reservist's Service Record Book (Tartalikos Katona Koenyv).
The Certificate of Residence was issued to the worker by his
village council (Koezsegi Tanacs), the Laborer's Certificate was
issued by the manager of the State Farm. The Reservist's Service
Record Book was issued by his Regional Draft and Induction Center
(Katonai Kiegiszitoe as Bevonulisi Koezpont) upon his return holm
after completion of military service.
25X1 14.
State Farms (there are others):
a. Borsod Megye (Borsod County):
Raaly State Farm (Ragalyi Allami Gazdasag) -- 12,000 holds
including forest and meadowland,
Futnok State Farm (Putnoki Allami Gazdasag) -- 25,000 holds.
b. Heves Meg:
Eger State Farm (Egri illami Gazdasig) 200l000 holds.
Mezoekoevesd State Farm (Mezookoevesdi Allami Gazdas4) --
12,000 holds.
Hatvan State Farm (Hatvani Allami Gazdasig) -- 20,000 holds.
Gyoengyoes State Farm (Gyoengyoesi Allami Oazdasig).
c. Gyoer Komirom Megyes
Kisbir State Farm (Kisbori Allami Gazdasig)
d. Veszpr?M Moue;
Zirc State Farm (Ziroi A11ami Gazdasig) -- former Church lands.
5. asznagykunszolnok Megyes
Kelebia State Farm (Keleblai Allami Gazdasgs) -- former Crown
lands.
Karns State Farm (Karcagi Allami Gazdasag)
Turkey's City, Agricultural Growers' Cooperative (Turkeys
Mezoegazdasagi Termeloeszoevetkezoti Viros)
Toeroekszentmiklos City, Agricultural Growers' Cooperative,
(Tceroekszentmiklos Mezoegazdasagi Termeloeszoevetkezeti Viros).
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? f. Bekes Megye:
a
Oroshiza State Farm (Oroshazai llami Gazdasag)
Beke'scsaba State Farm (Bekescsabai Allami Gazdas'ag).
Hajdu Megye:
Debrecen State Farm (Debreeeni Allami Gazdasag).
h. - Szabe Megye:
Nyiregyhaza State Farm (Nyiregyhazi 411ami Gazdas?g)
Nyirbator State Farm (Nyirbatori Allami Gazdasag)
Agricultural Growers' Associations
15. Aware of the reluctance of the farmers to part with their land,
and in order to donceal its final goal of centralizing all agri-
culture under state management and ownership, the Hungarian
Government devised as intermediary steps Agricultural Growers'
Associations (Mezoegazdasagi Termeloe Szoevetkezet) which indepen-
dent farmers were urged to join. All Agricultural Growers' ]
Associations were under the administration of the Ministry of
Agriculture (FoeldmueVelesuegyi Miniszterium)s Kossuth ter,
Budapest. The stallest unit of the Agricultural Growers' Associa-
tion Was the Agricultural Growers' Association Group, which
consisted of six or seven independent farmers in a village. The
village group was suberdinate to the District Agricultural Growers'
Association Center Partial Termeloe Szoevetkezeti Koezpont), and
this in turn Was subordinated to the County Agricultural Growers'
Center (Progyei Termeloe Szoevetkezeti Koezpont). The main body of
the organazation was the State Agricultural Growers' Association
(Orszagos Termeloe Szoevetkezeti Koezpont), in Budapeat.
,The First Type of Agyicultaul_Greyers, Association droup,
16. The first type (Else. Tipus) of Agricultural Growers' Association
was an Agricultural Growers' Association Group (Mezoegazdasagi
Tetmeloeszoevetkezeti Csoport TSZCS), in which a few femme
pooled, without losing possession, their land, animals and agrie
? cultural tools on a voluntary basis for the purpose of working .
their land collectively and distributing the produce according to
their individual shares of the means of production. Only small ,
and medium landowners were allowed to Join this type. (A small
holder (kisgazda) possessed up to 10 holds of land; a medium
? holder (koezepgazda) possessed up to 20 holds of land.): The size
of the association was limited to not over 120 holds. Members of
this type of association administered their own affairs through a
chairman.
17. The advantages for farmers in this type of cooperative were; a
20% reduction in their delivery quotas and taxes; a loan for the ,
term of one year without interest (if unable to fulfil the delivery
quota); their stock was not taken away from them by,the State
when they fell short of quota deliveries.
18. The procedure on this type of collective farm after the crops had
been gathered was as follows:
Quotas for delivery to the State were taken out.
Seed grain was deducted
Produce was divided according to the number of holds each member
had in the collective (holdszamutani elosztas).
The crop was divided according to the work unit (munka egys6g) of
individual members (munkaegystigi elosztis)
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19. Each member (4 such an association had a Delivery Quota Booklet
(Beszolgiltatasi Koenyvecske), in which a record of all his deliv-
eries was kept. The standard delivery quotas in some items for
1951-1952, from Which members of the Type One association received
20% deduction, were as follows:
Wheat,?
Barley -
Oats --
200 kg. per each cadastral hold seeded by wheat.
- 180 kg. per each cadastral hold seeded by barley.
100 kg. per each cadastral hold seeded by oats.
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Corn on cob -- 500 kg. per each cadastral hold seeded.
Potatoes -- 500 kg. per each cadastral hold seeded.
Ido not know the delivery quota for hay and straw. Other deliv-
eries Were made in beef, pork, milk/ poultry, eggs, and fat from
each fattened pig.
20. Taxes, payable to the-State in kind, were paid from a common pool
of produce?and.livestock. Taxes on the houSes of members of Type
One associations were paid in money, according to the size of the
house. There was also a money tax amounting to 200 forints per
hold of land, 600 forints for a pair of horses, 200 forints for a
yoke of oxen. In March 1952 increases in taxes were announced as
follows:" tax on houses to be increased four-fold, on land four- '
fold, on horses three-fold, and on oxen five-fold. giteareprechlTdxiiiA
21.2.?2.241LaPia_11,....klavil.uralartionGrot'avi
21. The second type of Agricultural Growers' Association Group
(Masodik Tipusu Csoport) was composed of small and medium land-
holders and landless peasants. The average size was 120-200 holds.
The second type of association was administered by a chairman
(elnoek), a paymaster, and an official responsible for the fulfill-
ment of wqrk norms. Because the administration and organization
of this type was much closer to the State Farm type of organization,
members were entitled to more benefits from the State than members
of the first type. For example, the cooperative was entitled to
a five-year term loan without interest. The members of this coop-
erative yore paid-in money and in kind aceording.to the work unit.
Members gave up possession of their land, animals and agricultural
implements to the cooperative. The 'maximum personal property a
member was allowed to retain was one hold for a garden plot, his
house, and one cow. He paid taxes on the house on the average of
200 forints per year, and 200 forints per year on the one hold of
land. He had to deliver two liters of milk from his cow., If: the
cow had a calf', it had to be sold to the State when it matured.
22.
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The Third T e of A icultural Growers' Association Group (Harmadik
T pusu Mezoegaz asag Terme oeszoeve eze Csopor )
23. This was an agricultural cooperative closely resembling the State
Farm. The difference between this cooperative and the second type
of cooperative was that the members did not own their houses or
cows nor land for garden plots, but used all these things on loan:
The workers got better pay according to work unit norm and they
paid no taxes: ,This type of cooperative was composed mostly of
small farmers and landless farmers.
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