In Eastern Europe most farm prices are centrally fixed (minimum Hungary 60% of output). Thesame applies to retail prices, semi-processed goods and inputs. To compensate for the rise in input prices, increase the profitability of farm units and improve farm incomes, major farm prices increases have been decided upon during recent years. As retail price rises were much slower, considerable subsidies are granted. In addition inputs and crédit are subsidized. (Ed.)
