There is no clearly agreed European definition of agricultural marginalisation and several formulations of the concept can be found in the literature. Agricultural marginalisation could be considered to be a process, driven by a combination of social, economic, political and environmental factors, by which certain areas of farmland cease to be viable under an existing land use and socio-economic structure.
Areas which are most susceptible to marginalisation are likely to be found in extensive farming regions and those where small-scale farming is prevalent. Regions dominated by extensive farming include most of Spain, large areas of southern France, parts of the UK, Ireland and Italy. They cover about 30% of the utilized agricultural areas but only around 15% of agricultural holdings. These regions account for more than half of all holdings in EUR 12 and only 15% of the utilized agricultural area. Many of the farming systems of greatest importance for nature conservation and the landscape are found in the extensive agricultural regions.
The system of compensatory payments made to farmers within the group
of extensive farming regions are about a third of family farm income which
was about double that of the average for all farms in EU 12. The future
of these regions need to be considered alongside developments in agricultural
policy since the 1992 reform of CAP.
INTRODUCTION
There is no clearly defined and commonly accepted definition of what
is marginal land or marginal agriculture. Perhaps the most commonly accepted
definition of a marginal agricultural situation is one which is at the
margin of economic viability. Agricultural marginalisation could be considered
to be a process, driven by a combination of social, economic, political
and environmental factors, by which certain areas of farmland cease to
be viable under an existing land use and socio-economic structure. It may
consist of a combination of intensification and extensification of land
used agriculturally. Marginalisation takes a variety of forms and occurs
at different scales, ranging from the individual patch of land to sizeable
regions. It could eventually lead to abandonment, which limits management
of semi-natural areas.
Marginalisation of agriculture on European farms appears to be particularly
concentrated in the less fertile and drier zones in the Mediterranean.
In these regions there are large areas of agricultural land which is extensive
and largely traditional in character and relatively well integrated with
the natural environment. Animal production sectors including beef, sheep
and dairy are of major importance to nature conservation in these areas
as well, as they manage most of the areas with high nature values. They
may maintain viability of extensive farming systems and subsequently to
prevent abandonment of agricultural land.
The objectives of the paper are (i) to analyse current trends
and processes of marginalisation in Europe; (ii) to examine methods
for identifying areas within which agricultural land is marginal; and (iii)
to investigate agricultural policies which might contribute to the
mitigation of environmentally damaging effects of agricultural marginalisation
and encourage viable uses of land in marginal areas.
The paper derives from a recent project by the Institute for European
Environmental Policy (IEEP) in the United Kingdom and the Agricultural
Economics Research Institute (LEI-DLO) in the Netherlands (Baldock et al.,
1996).
CURRENT TRENDS AND PROCESSES OF MARGINALISATION
A possible definition of a marginal agricultural situation is one which
is at the margin of economic viability. For example, a marginal site could
be defined as one in which 'the present agricultural use yields a factor
income which cannot cover the costs of the factor amounts invested in it
or, given constant productivity and price trends, will cease to cover them
in the next few years' (CEC, 1980).
Clearly it is not economic factors alone which make a given agricultural situation marginal. Environmental factors, geographic location, agricultural structures, social factors and policy factors need to be considered as well. This is reflected in the terminology in some languages for referring to farmland abandonment (a phenomenon commonly associated with marginalisation). For example, in Germany there are terms for abandonment caused predominantly by social, structural or natural factors (see CEC, 1980):
- Sozialbrache refers to farmland which leaves agricultural use for social reasons, for example, agriculture near to cities which is abandoned as a result of the stronger income earning potential of employment in the city;
- Strukturbrache refers to marginalisation caused by structural weaknesses, such as very small and/or fragmented holdings or poor infrastructure;
- Grenzertragsbrache refers to land which is inherently marginal
due to physical conditions (soil, slope, altitude, climate, etc.).
In French, there are similar terms to differentiate between various
sorts of abandoned land, such as friche social, friche technique
(the result of technological change in farming systems), etc.
Marginal situations are the result of the interaction over time of a
combination of factors. Pinto-Correia and Sørensen (1995) stress
that marginalisation is a dynamic concept, which is related directly to
the conditions at the moment of analysis and which depends on a multitude
of factors, including the geographical situation and the age, financial
resources and character of the farmer in question.
Thus, a plot of land which, due to its physical characteristics and
poor yield potential, may be considered marginal in southern England, may
be regarded as good arable land in Spain. Similarly, a farm which is abandoned
by an aging farmer in southern Portugal may be converted into a highly
competitive holding by a young Dutch incomer with the necessary resources.
It is important to recognize that marginal situations may exist at different geographical levels, for example:
- Regional: in the European context, a region may be marginal in broad physical and socio-economic terms, with predominantly unfavourable conditions and uncompetitive forms of agriculture involving low productivity and income levels, remoteness from markets, aging population, etc. The possibility of widespread marginalisation in such a region may be considered high, although there may also be agricultural areas which are highly productive and competitive.
- Local areas: within a region, certain types of land use may become marginal as a result of changing socio-economic and technological conditions. Grazing marshes provide a good example. Such areas may exist even within generally very productive regions.
- Farm level: an individual farm may be uncompetitive for a variety of reasons, such as small size, fragmented land, degraded infrastructure and capital equipment, or the age of the farmer. Generally, such holdings are taken over by other farmers or land uses, depending on local conditions. In more marginal regions, total farm abandonment may occur.
- Within a holding, an individual plot of land may be marginal
due to physical handicaps, such as poor access, steep slopes, waterlogging
or distance from the main holding.
Marginalisation may be seen as a change in agricultural land from a
more profitable to a less profitable one (Bethe & Bolsius, 1995). This
might involve among others a change from arable cultivation to permanent
grassland or from grassland to forest. A process of agricultural marginalisation
with areas of farmland which cease to be viable may produce a number of
different responses from farmers. For example, some may attempt to improve
viability and combat marginalisation, whereas others may run down or abandon
agriculture altogether. In certain circumstances, it may be possible to
intensify production and to increase output per hectare, particularly when
significant financial incentives are available in the form of production-oriented
grants and subsidies, as was the case in most EU Member States during the
1960s and 1970s. During this period, there were many policy initiatives
designed to create more economically viable farm structures, especially
in areas of predominantly small-scale farming or minifundia, with
public funding for restructuring and consolidation of holdings - generally
transforming the landscape in the process. Publicly funded projects of
this sort continue to be undertaken in certain southern regions of the
EU, such as Galicia in Spain, often with a severe impact on the natural
environment and landscape.
Where greater agricultural productivity does not appear a viable option, a gradual running down or abandonment of agriculture is more likely. However, before this situation is reached, a range of different management choices can be made by farmers with the aim of staving off marginalisation and maintaining viability. Often these choices involve reducing labour intensive tasks, such as traditional hay-making, maintenance of walls, hedges, etc. The different responses of farmers will have a series of consequences for the land-use pattern, landscape and natural environment of a region. Possible responses include:
- a change from one agricultural land use to another, e.g. from crops to permanent grassland, typically involving the simplification of a mixed farming system into livestock production only;
- changes to farming systems which do not significantly alter the existing agricultural land use, e.g. reduced input use and/or stocking densities, reduced maintenance of infrastructure, etc., often known as 'extensification' in English;
- a 'contraction' of the farming system, usually involving an intensification of production on the better land and the running down or abandonment of poorer, less accessible parcels;
- restructuring of holdings as some farmers leave the land and others take it over in order to increase their farm size (often known as 'extensification' in French);
- complete farm abandonment, typically leading to natural succession and potentially to the development of scrub and woodland (sometimes referred to as wilderness);
- a change of land use out of agriculture, for example to forestry or
urban building.
Within a given area, a variety of changes may take place side by side,
in interaction with one another or quite separately. Marginalisation often
is a complex and dynamic process, proceeding at varying speeds. The outcome
is not necessarily abandonment - indeed, the process can be reversed. In
some cases, a significant decline in the number of farmers, accompanied
by the abandoned or reversion to grazing of some parcels of land, may subsequently
allow for the creation of larger and more viable holdings and hence to
periods of greater stability.
At the other extreme are regions where physical conditions may be favourable
for agriculture, but where a high level of economic development and increasing
urbanization of the countryside results in agriculture being driven out
by other land uses, such as out-of-town shopping centres and horse paddocks
('horsiculture') or, in certain situations, being replaced by specialized
recreation or conservation uses such as nature reserves or country parks.
Here, marginalisation is driven by external pressures and urbanization
rather than by agricultural decline. A slightly different phenomenon affecting
farmland in urban fringe areas is a combination of 'urban nuisance' (such
as vandalism) and the anticipation of urban development which can lead
to neglect and abandonment of farmland. A survey of London's Green Belt
in 1979, for example, found that one third of farmland there exhibited
signs of idling or urban nuisance (Whitby, 1992).
The phenomenon of land abandonment and its associated problems is a
common theme of research into agricultural marginalisation. However, the
notion of abandoned land is itself complex and often not clearly defined.
For example, some commentators from regions with predominantly intensive
forms of agriculture regard rough grassland and scrub managed under extensive
grazing regimes as a form of semi-abandonment (for example, see CEC, 1980).
There is often confusion over the term 'abandoned land', particularly when
translating between languages. It is important to differentiate between
situations such as spontaneous abandonment and planned withdrawal. Increasingly
in Europe, farmland is withdrawn from agriculture under schemes such as
set-aside (nevertheless commonly known as abandono de tierra or
'land abandonment' in Spain). Apparently abandoned land often is not truly
abandoned, but merely temporarily out of use and awaiting a new owner or
tenant. Even totally abandoned farmland in France and the Mediterranean
countries often has a legal owner, probably living in a town or city, who
may one day choose to put it to some use, such as building a holiday home.
Bandarra (1994) points out that it is often very difficult to identify
abandoned land. Particularly in marginal regions, such as parts of Alentejo
in southern Portugal, arable land may be left fallow for many years, with
only intermittent grazing during this time. Over very large areas of Iberia,
farmland is largely unfenced. Consequently, land which has been abandoned
by its owner may continue to be grazed by sheep and goats for many years,
thus preventing natural succession to woodland.
In general terms we can define abandonment as taking place when the
neglect of the main productive elements is allowed to decline beyond a
point at which recuperation is practical, or economically viable. The neglect
of retaining walls on terraces in semi-arid regions to the point where
landslips become established is a clear example. In the case of permanent
pastures, for most types of semi-natural sward it would be possible to
define a species composition which is indicative of appropriate grazing
pressure and more or less optimum productivity and nutritional value. In
the event of insufficient grazing pressure, sward quality will tend to
decline as litter accumulates and coarser and less palatable species become
dominant. Ultimately, undergrazing can be expected to result in a decline
in grazing value and hence abandonment, as well as in a significant loss
of species diversity. Neglect and declining management may be illustrated
equally by localized overgrazing, for example, by unshepherded flocks.
Furthermore, the results tend to be the same, in other words, declining
grazing value and ultimately abandonment.
AREAS WITHIN WHICH AGRICULTURAL LAND IS MARGINAL
So far, the available knowledge remains limited regarding the major driving forces of the occurrence of marginalisation and subsequent abandonment of agricultural land in Europe. It is mainly based on diverse small-scale case studies. A review is made here of potential statistical indicators from European databases which might represent some of the major driving forces behind the occurrence of marginalisation in the European Union. A broad set of indicators was selected, divisible into five general groups:
- indicators of biophysical conditions for agriculture, with environmental factors such as soil quality, climatic conditions, water supply, relief, altitude. Such biophysical conditions are major determinants of land utilisation;
- indicators of agricultural land utilization including the trends in land utilisation as well as the price of land used agriculturally;
- indicators of farm income to reflect income generated from farm activities, as well as the share of direct subsidies in family farm income;
- indicators of farm structure to reflect the intensity of agricultural production, as well as agricultural structures and social factors of agricultural holdings;
- indicators of rural and regional development in order to compare
viability of agriculture with the rest of the economy.
The indicators were used as a means of investigating the potential occurrence
of marginalisation and abandonment of agricultural land in the twelve EU
countries for which data is available. A limited number of key indicators
was selected in order to simplify the analysis. They were to reflect important
aspects of biophysical conditions, land use, farm income and structure:
Biophysical conditions
- Share of Less Favoured Areas (LFA) in Utilized Agricultural Area (UAA)
(%)
Land use
- Decrease in UAA (%)
Farm income
- Family Farm Income per Family Work Unit (FFI/FWU) (ECU)
Farm structure
- Standard Gross Margin per hectare (SGM/ha) (ECU)
- UAA per holding (ha)
- Share of farm holders of age 55 years and older (%)
Information was obtained from the Farm Structure Survey (FSS) of Eurostat,
the Farm Accountancy Data Network (FADN) of the Commission of the European
Communities (CEC) and the regional databank (REGIO) of Eurostat. FSS is
periodically conducted to collect data on the structure of farms. FSS data
refer among other things to land utilisation, livestock population, the
agricultural labour force and the number of full-time and part-time farmers.
FADN contains farm level data on farm structure, total output, intermediate
consumption and a profit and loss account. Finally, Eurostat's data REGIO
covers the principal aspects of the economic and social life of the EU,
such as demography, economic accounts and employment at a regional level.
On the basis of the indicators selected, a distinction was made between
five different groups of regions within the European Union. It is aimed
at contributing to an investigation of the potential occurrence of marginalisation
and abandonment of agricultural land in Europe.
The five groups were derived from the indicators by using a cluster analysis which was carried out to find a certain structure in a broad set of observations with various phenomena. The five regions identified can be characterized as follows:
- regions with highly productive agriculture, covering almost 40% of UAA in the EU 12 and about 20% of agricultural holdings. They cover most of the northwestern part of the EU, excluding Ireland and parts of the UK;
- regions of medium farming productivity, covering about 10% of total UAA and accounting for about 10% of all farm holdings. This group covers large areas of Germany and parts of France;
- regions dominated by extensive farming. They cover about 30% of the UAA but only around 15% of agricultural holdings and include most of Spain, large areas in southern France, parts of the UK, Ireland and Italy;
- regions where small-scale farming dominates. These regions account for more than half of all holdings in the EU 12 and only about 15% of the UAA. They cover most of Portugal, Italy and Spain;
- a small residual group where agriculture is more extensive than the
average in the EU. A substantial area of land lies outside the Less Favoured
Areas.
A graphical presentation of the five groups of regions distinguished is presented in Figure 1.
Figure 1 Classification of regions according to the cluster analysis
(click for larger map)
The cluster analysis provides two types of regions that are considered
to be susceptible for marginalisation. One type which is mainly characterised
by extensive agriculture (Extensive Farming Regions), the other one which
mainly includes small-scale farming (Small-scale Farming Regions).
Some characteristics of these regions are provided in the following
(see also Table 1 comparing quantitative figures of the five regions identified).
Table 1 Average of the indicators for the five clusters of regions
Indicator | Highly productive regions | Medium productive regions | Extensive farming regions | Small- scale farming | Other extensive regions |
Key indicators used to cluster regions | |||||
Share of LFA in UAA (%) | 16 | 83 | 85 | 65 | 38 |
Decrease in UAA (%) | 4 | 5 | 2 | 1 | 11 |
FFI/FWU (ECU) | 16,200 | 10,300 | 8,700 | 6,500 | 9,500 |
SGM/ha (ECU) | 1,730 | 980 | 430 | 1,660 | 530 |
UAA per holding (ha) | 33 | 19 | 37 | 5 | 33 |
Share of farm holders of age 55 years and older (%) | 46 | 42 | 51 | 60 | 43 |
Other indicators | |||||
Price of land per hectare (classes) | Medium | Medium | Low | Medium | Medium |
Share of direct subsidies in FFI/FWU (%) | 11 | 17 | 28 | 12 | 18 |
Change in SGM/ha (%) | 90 | 69 | 29 | 77 | 116 |
Share of farm holders with work time below 50% of AWU (%) | 36 | 47 | 49 | 65 | 18 |
GDP/inh. (ECU) | 15,100 | 12,800 | 10,400 | 9,500 | 9,400 |
Share of farm holders with other gainful activities (%) | 25 | 36 | 31 | 29 | 24 |
Source: FADN, Eurostat; Adaptation LEI-DLO
Extensive Farming Regions
This group of regions can be characterized by Extensive Farming Regions, with low intensity of farming on a per hectare basis since the SGM/ha is less than half of the average of EU 12. The share of LFA in UAA is very high (85%). The share of direct subsidies in FFI/FWU is high (28%), more than double that of the average of EU 12. The increase over time in SGM/ha has been small.
The extensive nature of farming is also reflected by the observation
that this group of regions cover about a third of total UAA in EU 12
and approximately 16% of all agricultural holdings. This cluster includes
many relatively big farms, since farm size is more than double that of
the average in EU 12. The extensive nature of agriculture is also
reflected by low density of livestock population. Stocking density of grazing
livestock is very low (0.6 LU per hectare of forage crops).
Small-scale Farming Regions
This cluster is characterised by Small-scale Farming Regions, with relatively
small farms (an average of 5 hectare) and rather intensive farming practice.
They only cover 17% of UAA in EU 12. The SGM/ha is relatively high
(1,650 ECU), but FFI/FWU is low (6,500 ECU), and still substantially below
GDP/inh. in that group of regions (9,500 ECU). The intensity of farming
is only slightly below that in the Highly Productive Regions, although
farm size is far below that in all other groups of regions. This group
of regions include more than half of all agricultural holdings in EU 12,
and about 40% of them belong to the farming types of permanent crops (including
vineyards) The share of farm holders of 55 years and older is about 60%,
which is above that in the other regions. The age distribution of farm
holders is rather uneven, since about a third of all farm holders are at
the age of more than 65 years. Also, only 6% of all farm holders in this
cluster are younger than 35.
The assessment presented in this section is based on conditions before
the reform of the Common Agricultural Policy (CAP) in 1992. Some background
information on the importance of agricultural policy to viability of regions
which are susceptible to marginalisation is provided in the next section.
THE ROLE OF AGRICULTURAL POLICY
The future of regions which are considered to be susceptible to marginalisation
must be considered alongside developments in agricultural policy since
the 1992 reform of CAP, which recognised the need for ' ... contributing
to an environmentally sustainable form of agricultural production and food
quality and formalizing the dual role of farmers, as food producers and
guardians of the countryside (CEC, 1992: 36).
In the period before the 1992 CAP reform direct subsidies were more
significant in regions with extensive farming systems than in the other
group of regions in the then twelve EU countries. Direct subsidies in regions
with extensive farming systems have been very important compared to the
group of other regions. These subsidies include grants and subsidies which
have been granted from public funds and have resulted in a specific receipt.
In 1990/91 about 20% of all direct subsidies in the EUR 12 were directed
towards the regions with extensive farming systems, although their share
in final production was only 9% (Table 2). Direct subsidies in this group
of regions on average are about a third of family farm income, corresponding
to almost 3,000 ECU per holding, which was about double that of the average
for all farms in EUR 12 at the time. The share of direct subsidies in FFI
exceeds 50% in several regions, including Corse (France), Valle d'Aosta
(Italy), Alentejo-Algarve (Portugal), Wales, Scotland and Northern Ireland
(United Kingdom). Direct subsidies for drystock farms exceed 10,000 ECU
in several regions of France (Midi-Pyrénées, Auvergne and
Corse) and of the United Kingdom (Wales and Scotland).
The share of direct subsidies in Family Farm Income was only 8% within
the group Small-scale Farming Regions (Table 2). They amounted to an average
of 640 ECU per farm. Among the Smallscale Farming Regions identified
this share is highest in Norte-Centro and Lisboa-Vale do Tejo (Portugal).
The share of direct subsidies in FFI is only 15% on drystock farms in the
Small-scale Farming Regions, compared with 70% in Extensive Farming Regions.
The average for all drystock farms in the EU 12 is almost 40%.
Table 2 Direct CAP agricultural subsidies by group of regions (1990/91)
Extensive farming regions | Small-scale farming regions | Other regions | Total | |
Average farm | ||||
Total direct subsidies (mln ECU) | 1,380 | 1,335 | 3,830 | 6,545 |
Direct subsidies per farm (ECU) | 2,991 | 641 | 2,009 | 1,471 |
Share direct subsidies in Family Farm Income (%) | 34 | 8 | 12 | 13 |
NonLFA | ||||
Total direct subsidies (mln ECU) | 170 | 506 | 1,944 | 2,620 |
Direct subsidies per farm (ECU) | 1,434 | 490 | 1,712 | 1,146 |
Share direct subsidies in Family Farm Income (%) | 16 | 5 | 8 | 8 |
LFA | ||||
Total direct subsidies (mln ECU) | 1,210 | 829 | 1,886 | 3,925 |
Direct subsidies per farm (ECU) | 3,529 | 791 | 2,447 | 1,815 |
Share direct subsidies in Family Farm Income (%) | 40 | 12 | 22 | 22 |
of which Mountain Areas: | ||||
Total direct subsidies (mln ECU) | 346 | 519 | 366 | 1,231 |
Direct subsidies per farm (ECU) | 5,364 | 759 | 1,902 | 1,308 |
Share direct subsidies in Family Farm Income (%) | 43 | 12 | 17 | 17 |
of which Other LFA: | ||||
Total direct subsidies (mln ECU) | 864 | 310 | 1,520 | 2,694 |
Direct subsidies per farm (ECU) | 3,103 | 850 | 2,627 | 2,206 |
Share direct subsidies in Family Farm Income (%) | 39 | 13 | 24 | 25 |
Source: FADN-CCE-DG VI/A-3; adaptation LEI-DLO.
- Less Favoured Area Scheme
The LFA scheme is oriented to allow for continuation of farming in less-favoured
areas by ensuring a minimum level of population or by conserving the countryside.
The LFA Directive (75/268) was the first common instrument of regional
agricultural structure policy. Less Favoured Areas are areas where agriculture
is hampered by permanent natural handicaps. The main objective of the LFA
Directive is the continuation of farming in those regions and thereby maintaining
a minimum level of population or conservation of the countryside. Three
types of LFAs can be distinguished, i.e. (i) mountain areas, (ii) areas
in danger of depopulation and where the conservation of the countryside
is necessary, and (iii) areas affected by specific handicaps in which farming
must be continued in order to conserve the countryside. Member States are
authorised to give farmers direct payments in order to support farm income.
The European Agricultural Guidance and Guarantee Fund (EAGGF) expenditure
on LFA compensatory payments have increased substantially during the past
couple of years. Most of it take the form of headage payments per Livestock
Unit (LU). However, this increase in support has been distributed very
unevenly within the EU. While payments in France, Ireland and Luxembourg
more than doubled, they fell in Portugal, Spain and Greece. Naturally,
there are variations between years but it is clear that the system of LFA
compensation payments is making only a modest contribution to the viability
of holdings in several Member States including Italy where the small size
of many farms has excluded them from the support sytem in the past. The
LFA Scheme is only applied to part of the area in case large areas are
under Objective 5a (Brouwer and Van Berkum, 1996). Objective 5a is applied
in large areas of Italy. Support to farmers is also channeled through other
instruments, including Objective 1 and 5b. Although the number of holdings
receiving payments is relatively high in Greece and Spain, both the level
of support per LU and the average allowance per holding is low (CEC, 1995a).
The allowances which were paid to EU 12 Member States in 1994 amount
to 1.38 billion ECU in total, which also includes the national contributions.
The amount paid per holding ranges between less than 500 ECU (Spain and
Portugal) and more than 4,000 ECU (Luxembourg). The allowance per LU is
lowest (36 ECU) in Spain and highest (113 ECU) in Luxembourg (Table 3).
Table 3 The application of the LFA Directive in 1994 (EU 12)
Country | Compensatory allowances granted for LFA | Share of holdings with compensation (% of total) (ECU/LU) | ||
Number of holdings | Amount paid per holding
(ECU) |
Allowance per LU | ||
Belgium | 6,873 | 1,329 | 86 | 8 |
Denmark | 3) | 3) | 3) | 0 |
Germany | 231,275 | 2,163 | 93 | 35 |
Greece 1) | 190,262 | 521 | 61 | 22 |
Spain | 183,561 | 447 | 36 | 12 |
France 1) | 139,435 | 2,127 | 70 | 15 |
Ireland | 105,619 | 1,575 | 88 | 62 |
Italy 2) | 39,056 | 689 | 57 | 1 |
Luxembourg | 2,515 | 4,437 | 113 | 63 |
Netherlands | 3,901 | 884 | 104 | 3 |
Portugal | 89,510 | 410 | 54 | 15 |
United Kingdom | 60,912 | 2,419 | 47 | 25 |
EU 12 | 1,052,919 | 1,310 | 67 | 13 |
1) Provisional data for the year 1994; 2) Not complete; 3) Not available.
Source: CEC, DG VI-F-II.1.
About one quarter of all the farms located in LFA in the EU receive
compensation under the LFA Scheme. Participation rates in the southern
Member States are below those in the northern Member States, primarily
because about half of all LFA holdings in these countries are smaller than
the minimum size for eligibility which is 3 ha (2 ha in the Italian Mezzogiorno,
the French overseas departments, Greece and Spain, 1 ha in Portugal and
0.5 ha in Madeira) (Terluin et al., 1993). This is especially the case
in Italy where 29% of the farms are less than 1 ha in size.
- Price support given under CAP
The distribution of the Guarantee Section expenditure has been assessed
in relation to the groups of regions identified in the previous section.
Total indirect subsidies to Extensive Farming Regions amounted to 2,670
million ECU. In comparison it amounted to 4,650 million ECU in Small-scale
Farming Regions. Extensive Farming Regions have a 11% share of indirect
subsidies, which is slightly above their share in total final production
of the EU12. However, this group of regions represents some 26% of total
UAA in the EU12.
Table 4 provides an assessment of the 'standard' ewe premiums after
the CAP reform, based on a categorization of farms with ewes in 1990/91,
including both Extensive Farming Regions and Smallscale Farming Regions.
About 26 million ewes are in regions with extensive agricultural systems,
mainly in large areas of Spain (Castilla-Leon, Aragon, and Castilla-La
Mancha) and the United Kingdom (Wales and Scotland). About 10 million ewes
are in regions with smallscale agriculture, mainly in parts of Greece
(Ipiros Peloponnisos Nissi Ioniou and Sterea Ellas Nissi Egaeou Kriti)
and Italy (Lazio). A very high proportion of all farms are eligible for
full compensation because the number of ewes does not exceed the limits
set into EU regulation. The 'standard' ewe premium in the group of regions
with extensive farming systems is on average 7,400 ECU per farm. It exceeds
10,000 ECU per farm in the region of Castilla-La Mancha (Spain), as well
as in parts of the United Kingdom (Wales and Scotland).
Table 4 'Standard' ewe premiums after 1992 on farms with ewes according
to the new CAP regime by group of regions (1990/91)
Extensive farming regions | Small-scale farming regions | Other farming regions | Total regions | |
Number of represented farms (x 1,000) | 114 | 227 | 194 | 536 |
Number of ewes per farm | 223 | 44 | 121 | 110 |
Normative ewe premiums per farm (CAP reform) (ECU) | 7,404 | 1,495 | 3,926 | 3,638 |
Regional number of ewes (x1,000) | 25,578 | 10,095 | 23,491 | 59,164 |
Regional normative ewe premiums (CAP reform) (m ECU) | 848 | 340 | 762 | 1,949 |
Sources: FADN-CCE-DG VI/A-3; adaptation LEI-DLO.
The development of the market support regime for meat from sheep and
goats is of particular importance in many more marginal areas where livestock
grazing predominates. Prior to 1992, the number of breeding ewes was expanding
rapidly in some regions including Ireland and parts of the UK and Spain.
However, production was less profitable in some traditional regions and
the number of breeding ewes and goats was stable or falling in parts of
France and Greece. Since 1992 and the introduction of a ceiling on the
number of ewes per farm eligible for the annual premium, numbers have stabilized.
The European Commission expects the total number of sheep and goats to
remain around its present level of approximately 98 million head and the
pattern of trade between EU countries is likely to remain broadly as it
is now (CEC, 1995b). The right to rear sheep and goats and claim an annual
premium has itself acquired a value, and is saleable, as are milk quota
in several Member States. This will provide some more marginal farms with
a new asset and affect management decisions in the short and long term.
Some producers may be reluctant to dispose of a potentially valuable asset
and may continue to farm for longer than they otherwise would have done.
Others may lease quota rights and try to keep open the option of a return
to production. In general, the rate of structural change can be expected
to be slower than otherwise would have occurred, although many farmers
may still have an incentive to concentrate stock on better land and reduce
the level of grazing on outlying areas and semi-natural vegetation where
management is a priority from an environmental perspective.
CONCLUDING REMARKS
1. Marginalisation on European farms takes a variety of forms and occurs at a range of different scales, from the individual patch of land no longer worth cultivating to sizeable regions. While most forms of marginalisation occur progressively over a period of time, not all result in a permanent change in land use and some are purely temporary, occurring for example on farms during a transition from one owner to another. Not only is the process of marginalisation itself dynamic, but the concept has taken on different meanings in both the academic literature and the wider political world since it came into use about a decade ago.
2. Within the typology of regions developed in this paper those which are most susceptible to marginalisation can be expected to be found in the 'extensive farming' and 'small-scale farming' group. In both group off-farm activities make an important contribution to family incom.
3. Agricultural policy plays an important role in maintaining the viability of farming in regions which are susceptible for change. Direct subsidies may even exceed Family Farm Income in some Extensive Farming Regions in the European Union. This applies mainly to drystock farms in Wales, Scotland and Northern Ireland (United Kingdom), as well as in Alentejo-Algarve (France) and Corse (France).
These regions have a limited share of the EU 12's total output. Changes in support measures may therefore have a limited impact on total production in the European Union. Their share in UAA however is substantially higher.
4. Compensatory payments per Livestock Unit under the LFA Scheme are
lowest in Spain (36 ECU) and highest in Luxembourg (113 ECU). The relative
dependence on subsidies of LFA farms is rather high. Direct subsidies are
highest on drystock farms within LFA.
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1) Agricultural Economics Research Institute
(LEI-DLO), P.O. Box 29703 , 2502 LS The Hague, the Netherlands
2) Institute for European Environmental Policy (IEEP), Dean Bradley House, 52 Horseferry Road, London SW1P 2AG, United Kingdom