How are Europe’s small and family farmers doing? A literature review of economic and social factors

Smallholder family farms dominate Europe’s rural landscapes and account for over 90% of the continent’s agricultural holdings. Thus, they shape rural areas and have a significant impact on landscapes. We review recent literature in order to improve the understanding of what drives their decisions and thereby support the design of mechanisms to support sustainable landscapes. Looking at economic performance, emerging opportunities, and social relevance, our analysis identifies considerable heterogeneity across regions in land use, subsidy allocation, access to markets, and diversification potential. Economic viability remains precarious for most of these farms, especially where market infrastructure is limited and regulations are more stringent. Many attempt to overcome limited economies of scale through diversification strategies that integrate agritourism, food processing or a more mixed farming system. Public support remains vital for these farms and subsidies (e.g. through the EU Common Agricultural Policy (CAP)) currently sustain this critical part of the rural landscape. These findings further underscore the critical role the CAP and other subsidy schemes play in how rural landscapes might evolve in the future and which avenues can be pursued in order to harmonise social and environmental goals. Maintaining and advancing vibrant rural spaces requires context-sensitive approaches and a clear recognition of family farmers and their economic and social status. Future research can support this process by providing a more comprehensive picture of the decision making space of farmers and combining economic and social aspects.

National Assurance Schemes and Market Recognition: Emerging Opportunities and Takeaways in the FACT Dialogue and Beyond

This infobrief explores the role of national assurance schemes that serve to verify the sustainability of forest and agricultural commodity value chains in driving sector-wide improvements and enabling market recognition with respect to such products (e.g., palm oil, cocoa, coffee, soy, beef and timber). While such schemes draw on the precedents set in the timber sector, this brief primarily focuses on forest and agricultural commodities with a view of informing decision makers, including policymakers, about sustainability benefits and levers of already established national assurance schemes. It analyses such schemes in terms of practical design features – governance, traceability, verification, incentives, and recognition pathways – that influence effectiveness as well as market and policy uptake. The analysis is grounded in discussions within the Forest, Agriculture and Commodity Trade (FACT) Dialogue, where producer and consumer country participants and the Dialogue co-chairs identified strong interest in sharing practical learnings on national schemes. This work responds to this demand, synthesizing experiences and questions raised across the Dialogue about what works, what does not, and how national approaches can further interface with, and complement or supplement international standards and trade requirements.

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