Europe’s agricultural tapestry is fraying, marked by a widening gulf between its largest and smallest farms. A Guardian investigation, drawing on data from the European Commission’s Farming Accountancy Data Network and Eurostat, reveals that farm income disparities have doubled in the last 15 years, reaching unprecedented levels.
While soaring food prices fueled by the Ukraine war propelled farmers across the continent to record profits, this prosperity wasn’t evenly distributed. While larger farms reaped the lion’s share of these gains, their smaller counterparts found themselves struggling for survival. Razor-thin margins pushed many into financial distress, forcing some to abandon their farms altogether.
This widening gap adds fuel to a heated debate as a coalition of farmers, retailers, and environmentalists, led by European Commission president Ursula von der Leyen, tables a radical proposal to support struggling farms and curb pollution. This ambitious blueprint advocates for a comprehensive overhaul of contentious subsidies.
However, the tide of political sentiment in Europe is shifting towards the right. Populist governments, often fueled by discontent from rural regions ravaged by farm closures and migration, are challenging environmental regulations. Historian Geert Mak describes these communities as increasingly traditional, conservative, and anxious. Eurostat figures paint a stark picture: the number of farms under 30 hectares (75 acres) plummeted by a quarter in the 2010s.
Thomas Waitz, a Green MEP and Austrian farmer, highlights the resonance of these findings within struggling communities. “The frustration among farming families is growing,” he observes, ”and they are increasingly vocal about the unfair competitive environment dominated by large agribusinesses.”
The rise in average farm incomes challenges the narrative that farming is a low-paying sector squeezed by supermarkets, shoppers, and environmental regulations. Yet, lurking behind this rise lies a stark reality of inequality.
The per-worker income gap between farms earning between €2,000 and €8,000 and those surpassing €500,000 reached its highest or second-highest point in 2022, depending on the income calculation method.
This income disparity expanded from tenfold in 2007 to twentyfold in 2022 when measured by net value added per agricultural work unit, a metric suited to comparing farms of different sizes, and from thirtyfold to sixtyfold when measured by family farm income, which only considers farms with unpaid labor.
Calculating the gap between small farms and those with earnings between €50,000 and €100,000 reveals a 43% increase on the first measure and a 71% jump on the second.
However, regional income disparities and data compilation limitations partially explain these figures. A measure known as the Gini coefficient, which depicts overall income inequality, shows a slight decline in the sector as the smallest and poorest farms were forced to grow or close.
Sini Eräjää, an ecosystems campaigner at Greenpeace EU, emphasizes the plight of small farms. A recent Greenpeace analysis echoes these findings, concluding that EU farmers face immense pressure to “go big or go bust.” Eräjää urges policymakers to address these fundamental issues instead of scapegoating environmental rules.
Farmer protests earlier this year nearly derailed a crucial law aimed at restoring nature, prompting politicians to ease green conditions attached to farm subsidies after lobbying groups argued that the EU’s environmental agenda placed too heavy a burden on the sector.
But small farmers argue that large-scale farms present a skewed image of these protests, despite representing diverse concerns. Antonio Onorati, a farmer from the grassroots peasant farmer association Via Campesina, highlights this disconnect.
He notes that the public often romanticizes farmers as hardworking individuals tending to their fields, envisioning a disappearing cultural landscape. Yet this romanticized image masks the struggles of small-scale farmers who are often “invisible,” undocumented, and lacking rights.
Studies have demonstrated that farming households in the lowest income quartile fare worse than their non-farming counterparts when controlling for factors like age and education. However, farm households in the highest quartile enjoy higher incomes compared to their non-farming counterparts.
Agricultural economists attribute the widening income gap primarily to rapid technological advancements, the cost of which is distributed across larger landholdings and livestock on large-scale farms. Krijn Poppe, a retired agricultural economist, traces this trend back to rising labor costs after World War II, which encouraged farmers to rely less on manual labor and invest more in machinery.
“My father had a combine harvester in the 1960s that was 3 meters wide,” he recalls. “My nephews run a large farm in eastern Germany, and they operate machines that are 13 meters wide. They want to upgrade to a 15-meter model so they can reduce their staff from four to three.”
These technological advancements lie at the heart of a long-standing trend: the shrinking number of European farmers as large farms absorb smaller ones.
Sebastian Lakner, an agricultural economist at the University of Rostock, points out that productivity gains in farming have consistently outpaced other established industries, creating a “technological treadmill” on which small farms struggle to keep up.
“Growth is inevitable,” Lakner states. “Those farms that cannot grow – and who cannot afford the large tractors or innovative technologies – are forced to exit.”
A report endorsed by the European Commission, released in September, advocates for a comprehensive overhaul of farming subsidies, the establishment of a “just transition fund” to support farmers adopting sustainable practices, and targeted financial assistance for those who need it most.
Lakner emphasizes the dire situation for many farmers and calls for targeted support. “We have significant hardship in agriculture, and we need to support those farms in a very specific manner.”
Interview between Time.news Editor and Sini Eräjää, Ecosystems Campaigner at Greenpeace EU
Editor: Welcome, Sini. Thank you for joining us today to discuss the critical state of agriculture in Europe. The recent findings about the widening income gap between large and small farms are quite alarming. What do you believe are the primary drivers behind this inequality?
Sini Eräjää: Thank you for having me. The main drivers of this widening gap include rapid technological advancements and shifting market dynamics that heavily favor larger farms. These larger operations can absorb the costs of technology more efficiently, leading to greater productivity and profits, while smaller farms struggle to keep up. The pressures to “go big or go bust” are intense, leaving many small farmers in a vulnerable position.
Editor: It’s interesting to note that despite an overall increase in farm incomes, many smaller farms are facing dire circumstances. How does this disparity affect rural communities?
Sini Eräjää: The implications are profound. In rural areas, these smaller farms often serve as the backbone of local economies. Their decline leads to job losses, a decrease in local goods, and ultimately, a sense of despair within communities. As noted in the Guardian’s investigation, many farming families are growing frustrated, feeling unheard and unsupported as they see large agribusinesses thrive while they struggle to survive.
Editor: You mentioned that farmers are increasingly vocal about their frustrations. How do you see this evolving into political action or change, especially in light of rising populist sentiments?
Sini Eräjää: We are indeed seeing a new wave of activism among farmers, which could translate into political pressure. However, it’s crucial to note that the political landscape is shifting toward the right, which complicates the situation. These populist movements often capitalize on rural discontent but can exacerbate tensions around environmental regulations. It’s a delicate balance, and there’s a risk that farmers will be caught between a desire for support and actions that undermine their long-term sustainability.
Editor: The radical proposal put forth by Ursula von der Leyen to overhaul subsidies is certainly ambitious. Do you think it can balance the needs of both large and small farms?
Sini Eräjää: It’s a complex challenge. While the proposal aims to level the playing field, its success will depend on the execution and whether it genuinely addresses the systemic issues faced by small farms. Policymakers need to ensure that support mechanisms recognize the value of small-scale farming—not just as a quaint element of the landscape but as essential for food diversity, cultural heritage, and ecological health.
Editor: With the statistics revealing a significant decline in small farms, what do you think could be done to reverse this trend?
Sini Eräjää: A multifaceted approach is necessary. First, we need fairer pricing structures for farmers, ensuring that they receive adequate compensation for their products. Additionally, policies should encourage cooperative models, allowing smaller farmers band together for shared resources and marketing power. Lastly, addressing the environmental concerns without burdening small farms disproportionately is essential. We can’t scapegoat environmental regulations; rather, they should be designed to support all farmers in achieving sustainability.
Editor: That brings us to the public perception of farmers. Many romanticize the image of farmers as hardworking custodians of the land. How can we shift the narrative to highlight the real struggles faced by small-scale farmers?
Sini Eräjää: Public narratives must evolve. It’s vital to share authentic stories from small farmers, emphasizing not only their struggles but also their contributions to the community and the environment. We need to challenge the stereotype of the ‘invisible’ farmer and recognize their rights and value within the agricultural landscape. Campaigns that promote awareness and education can help shift perceptions and foster a greater understanding of the complexities involved in modern farming.
Editor: Thank you, Sini, for your insights today. The road ahead for European agriculture is certainly fraught with challenges but also opportunities for meaningful change.
Sini Eräjää: Thank you for having me. It’s essential that we continue this conversation and work collaboratively towards a more equitable agricultural system that supports all farmers.