Ritika Janiya
Imagine two farms in Europe. One is a huge operation, bringing in millions of euros, while the other is a small family farm barely making enough to survive. Over the last 15 years, the income gap between big and small farms has doubled, meaning the big farms are now making much more than the little ones. At the same time, the number of small farms has dramatically dropped, and many small farmers are finding it hard to keep going. Why is this happening, and what does it mean for Europe’s farms and countryside?
Big Profits for Big Farms
Big farms have seen their profits shoot up, especially when food prices go up. The war in Ukraine, for instance, pushed food prices to new highs, which made big farms even richer. According to data from the European Commission’s Farming Accountancy Data Network (FADN) and Eurostat, farmers across Europe earned record profits during this time, with average farm incomes going up faster than inflation. This means that while everyone else was paying more for food, the big farms were cashing in.
This boost in income for large farms has continued over the years, following a trend where large-scale farms benefit the most during tough economic times. When food prices rise, big farms can sell their crops or products for higher prices, bringing in more money. Small farms, on the other hand, usually don’t have the same advantage. They’re left struggling with higher costs and smaller profit margins.
Small Farms Face a Tough Battle
Small farms don’t have it easy. They often operate on thin margins, which means they don’t make much profit even when times are good. Unlike large farms that have access to better resources and machinery, smaller farms often rely on traditional methods and face more financial risks. When costs for things like seeds, fertilizers, and fuel go up, small farms feel the impact much more than big farms do. In tough times, they have less wiggle room to cover these costs and often end up with barely any money left after expenses.
Because of this, many small farmers find it difficult to keep their farms running. Some small farms have been forced to shut down or sell their land, as they simply can’t compete with larger farms. In the past 15 years, the number of small farms in Europe has significantly dropped, which not only affects the farmers but also the communities around them. Small farms add diversity to the countryside, and losing them can lead to fewer job opportunities and less variety in the local economy.
Are Subsidies Helping or Hurting?
One of the big debates around farming in Europe is about subsidies—money that governments give to farmers to help them out. In theory, these subsidies are supposed to support farmers, especially those who are struggling. However, in reality, a large portion of this money goes to big farms rather than small ones. This is why some people call these subsidies “welfare for the rich.”
Big farms, which already make high profits, are receiving a lot of financial support from the government, while small farms, which are the ones really struggling, often don’t get nearly as much help. This unequal distribution of subsidies has caused a lot of controversy. People argue that if more money went to small farms, it could help them survive and thrive, making the farming industry fairer.
The Environmental Cost
The impact of big farms isn’t just financial—it’s also environmental. Many of these large farms practice industrial farming, which often means using a lot of pesticides, fertilizers, and water. While these practices may increase production, they can harm the environment. Large-scale farming can lead to soil erosion, water pollution, and loss of biodiversity as large farms often prioritize efficiency over environmental care.
Small farms, on the other hand, often use more sustainable practices because they tend to focus on maintaining their land and producing diverse crops. If small farms disappear, we could lose a lot of these environmentally-friendly practices, which could further damage Europe’s natural landscapes.
Why Does This Matter?
The growing wealth gap between big and small farms doesn’t just affect farmers; it affects everyone. If small farms continue to vanish, large farms will dominate Europe’s farming landscape. This could mean less variety in our food, higher prices, and more damage to the environment. Also, with fewer small farms, rural communities might lose out on jobs and local businesses that rely on these farms.
For consumers, the changes in the farming industry may not seem obvious right away. But over time, the shift towards large-scale industrial farms could lead to fewer choices and higher costs at the grocery store. People may also lose access to locally-grown, fresh produce if small farms close down.
What Can Be Done?
To help small farms survive, some experts suggest changing how subsidies are distributed. They argue that if more subsidies were directed to small farms, it would level the playing field and give small farmers a better chance of competing. By supporting small farms, governments could help keep rural areas lively, protect the environment, and promote a fairer food industry.
Another idea is to create incentives for sustainable farming practices. This could mean rewarding farms that focus on environmental protection and penalizing those that don’t. If large farms had to follow stricter environmental rules, they might be less likely to use harmful practices that damage the land and water.
