A gently undulating relief and moderately warm and dry climate make the land around Bábolna very fertile. The village is most famous for the state horse-breeding estate founded by Holy Roman Emperor Joseph II in 1789, which remains the Hungarian centre for the breeding of full- and half-blooded Arabian horses and Lipizzaners. The farm (now converted into a joint-stock company) also developed an international reputation for its mechanized broiler chicken breeding and corn (maize) growing operations. Pop. (2001) 3,933.