Differentiation In The Production And Economic Performance Of Farms In The Eu

In EU countries, the main producers of agricultural products are farms. In 2020, there were around 9.1 million farms in the EU-28, two thirds of which were less than 5 hectares in size. Farms in the EU used 157 million hectares of land for agricultural production in 2020, 38% of the total land area. In European countries, the number of farms tends to decrease, with the number of farms declining by 3-6% each year. In general, there are three distinct groups of farms in the EU: (1) subsistence farms, where the focus is on growing a high proportion of food to feed farmers and their families; (2) small and mediumsized farms, which are generally family-run businesses; and (3) large farms, which are more likely to be legal or cooperative. According to the European Parliament policy the aim of the paper will be to analyze EU farms according to their size, production and economic differences. An important outcome indicator of farm activity is income. Supporting farm incomes is one of the key objectives of the Common Agricultural Policy (CAP), which is defined in the Treaty of Rome as "ensuring an adequate standard of living for farmers".