In the Hungarian People's Republic, agricultural collectivization was attempted a number of times in the late 1940s, until it was finally successful in the early 1960s. By consolidating individual landowning farmers into agricultural co-operatives, the Communist government hoped to increase production and efficiency, and put agriculture under the control of the state.
In early 1945, the provisional Hungarian government had appointed “land claimants” committees to examine the situation of the peasantry and develop a plan for land reform. When the proposed legislation was passed in March, it merely acknowledged the seizures the peasants had already undertaken. Prior to the reforms, half of agricultural land had controlled by large, privately owned “hacienda-type” estates. The provisional government legislation redistributed 35% of Hungary's territory, some 93,000 square kilometers of land. While the wealthy who lost their land in the deal had obviously lost out, the problems of smaller peasant landholders were by no means solved. Many of them saw only slight increases in their property size to 11,000 square meters, “too small to provide a livelihood, let alone the basis for efficient agricultural production.” These smallholders formed a political party which won a significant majority in the November election, but political maneuvering and election fraud by the Communists led to its failure in the following election.
While it remains unclear how the Smallholders Party would have solved the problems resulting from their dwarf properties, the plans of the Hungarian Working People's Party (MDP) soon became clear. The model of Stalinist collectivization would be adopted and applied with physical force if necessary. In July 1948, government regulations allowed the seizure of larger landholdings from nagygazdák (Hungarian [kulak]s). These regulations enabled over 800 square kilometers of land to be confiscated, 60% of which went to recently formed farming co-operatives, the rest going to private peasants. This first serious attempt at collectivization corresponded with the first Five Year Plan, and both bore the marks of Stalinist agricultural policy. Both economic and direct police pressure were used to coerce peasants to join co-operatives, but large numbers opted instead to leave their villages. In the early 1950s, only one quarter of peasants agreed to join co-operatives. Even once collectivized, farms were subject to harsh compulsory deliveries (production quotas in physical units passed down from central planning) and incredibly low agricultural producer prices. Although individual families were allowed a small private household plot intended to serve their own personal needs, decrees passed in 1949 and 1950 limited these plots with an absolute limit of 4,300 square meters, and its output was also subject to compulsory deliveries. The Five Year Plan initially promised 11 billion forints of credit for co-operatives (later downscaled to 8 million) but by 1953, less than half of that had been made available. Without credit from the government, or any reasonable ability to earn a surplus, peasants were unable to invest in their own farms and the co-operatives began to crumble.