THE GLOBAL WINDOW OF TURKISH FOOD AND AGRICULTURE The Global Window of Turkish Food and Agriculture Sector
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The Guardian’s analysis of agricultural income data shows that the income gap between Europe’s largest and smallest farms has doubled in the last 15 years.
At a time when the number of small farms is shrinking, large farms are making record profits, while small farms are struggling to survive on low margins. Although the hike in food prices due to the Russia-Ukraine war has raised farm incomes in general, large farms are taking the lion’s share of this increase.
BIG FARMS EARN RECORD REVENUES, SMALL FARMS STRUGGLE
According to Eurostat, the number of farms smaller than 30 hectares decreased by a quarter in the 2010s. These data show that small-scale farms in particular are facing major sustainability challenges.
THE BACKGROUND TO INCOME INEQUALITY: TECHNOLOGICAL ADVANCES AND THE DOMINANCE OF LARGE FARMS
Behind the widening income gap lies the fact that large farms benefit from rapidly developing agricultural technologies. According to agricultural economists, large farms benefit more from technological investments by spreading their costs over large land and livestock investments. Across Europe, small farms are declining, while large farms are controlling more land and increasing their productivity by using machines instead of labour.
Advances in technology are also leading to a reduction in the number of farmers and the absorption of small farms by large ones. For example, small farms that cannot afford to invest in large equipment are unable to compete in the market and are forced to close.
LARGE DIFFERENCES IN FARM HOUSEHOLDS BY INCOME LEVEL
Research reveals that the income levels of farming households are quite different, even when demographic factors are taken into account. Farmer households in the bottom quartile of the income distribution have a lower standard of living than non-farming households, while farmer households in the top quartile are better off than their counterparts in non-agricultural occupations.
CALL FOR SUPPORT FOR THE FUTURE OF SMALL FARMS
A report backed by the European Commission in September called for a review of farming subsidies and the establishment of a ‘just transition fund’ to support farmers to adopt sustainable farming practices. The fund would aim to provide financial support to small farms, particularly those most in need of assistance.
In order to overcome income inequality in the agricultural sector, new sustainability-oriented policies need to be developed. The European Commission’s proposals for a ‘just transition fund’ and targeted financial support are seen as a promising step towards the survival of struggling small farms and the reduction of inequality in the sector…
