A media analysis of agricultural income data reveals that the income gap between Europe’s largest and smallest farms has doubled over the past 15 years, coinciding with a steep decline in small farms. Data from the European Commission’s Farming Accountancy Data Network (FADN) and Eurostat show record profits for farmers across Europe, driven in part by the Ukraine war’s impact on food prices. However, while large farms benefit the most, small farms struggle with razor-thin margins, pushing some out of business.
These findings align with recent proposals from a coalition led by European Commission President Ursula von der Leyen, which call for urgent reforms to support struggling farmers and reduce pollution. This push for change comes amid a political shift in Europe, with populist governments increasingly opposing environmental regulations and gaining traction in rural areas where many small farms have shut down and young people are leaving for cities. Between 2010 and 2020, Eurostat data shows that farms smaller than 30 hectares declined by 25%.
Green MEP Thomas Waitz from Austria noted that the data “resonates deeply” with struggling rural communities, where farming families are becoming more vocal against an inequitable system dominated by big agribusiness. Although overall incomes in farming have risen, masking the disparity within the sector, the per-worker income gap between the smallest and largest farms widened significantly from 2007 to 2022.
Greenpeace EU ecosystems campaigner Sini Eräjää highlighted that smaller farms face intense pressure to “go big or go bust.” Recent farmer protests nearly derailed an EU law on nature restoration, leading some politicians to reduce green conditions tied to subsidies.
Small farmers argue that large agribusiness interests have overshadowed their concerns in the protests. Antonio Onorati from Via Campesina, a grassroots peasant organization, said that small-scale farmers, often marginalized or working without rights, aren’t adequately represented in Brussels.
Studies indicate that farm households in the lowest income quartile fare worse than similar non-farm households, while wealthier farm households do better. The growing income divide is largely attributed to technological advances, which larger farms can afford and deploy more efficiently, allowing them to cut labor costs significantly.
Agricultural economist Krijn Poppe points out that technology has drastically changed the sector since World War II. For instance, farm machinery has grown immensely, enabling farms to reduce staff. Similarly, Sebastian Lakner of the University of Rostock describes the sector as a “technological treadmill” that smaller farms struggle to keep pace with.
A European Commission-backed report recently called for a revamp of farming subsidies, establishment of a “just transition fund” for sustainable practices, and targeted support for those in need.
