News Eurostat figures

Most companies are smaller than 5 hectares

1 July 2018 - Kimberly Bakker

In 2016, the European Union (EU) had 10,3 million agricultural companies. Strikingly, 66% of them own less than 5 hectares and only 11% of farm managers are under 40 years of age. This is evident from recently published figures from Eurostat.

About 171 million hectares of land in the EU were used for agricultural purposes in 2016. Out the numbers shows that this is about 40% of the total area of ​​the EU. It is striking that the majority of these farms (66%) are less than 5 hectares in size. In addition, only 3% of the 10,3 million farms in the EU have an area of ​​more than 100 hectares. 

Eurostat also notes that the agricultural sector in the European Union can be divided into 3 groups:

  1. Subsistence farming. The emphasis is on producing as much food as possible for own use.
  2. Small and medium-sized agriculture. These companies are generally a family business.
  3. Large farms.

The EU has many small companies
If we look at the Eurostat figures, we see that 33% of European farms were located in Romania in 2016. Poland (14%), Italy (10%) and Spain (9%) also have a large share. Although there are many agricultural companies in the EU, they were mostly small in nature. About 65% of the companies had an area of ​​less than 5 hectares. 

The companies with a surface however, of 50 hectares or more (7%) use 68% of the utilized agricultural area in the EU. In short, the average size of an EU farm is 16,6 hectares, but the median is less than 5 hectares.

Large farms (more than 50 hectares) in the EU are mainly found in Luxembourg (51%), France (41%), the United Kingdom (39%) and Denmark (35%). This shows that the majority of the surface cultivated land can be found in the largest companies. 

21,5

percent

of the companies have more than 50 hectares

The Netherlands seems to be an exception
It is striking that The Netherlands an exception seems to be the rule. Our country has more large agricultural companies (more than 50 hectares) than small companies (less than 5 hectares). In the Netherlands, the percentage of small companies is 20,2%, while the percentage of large companies is 21,5%. 

It is also striking that most business leaders in the Netherlands are aged between 40 and 54 (43,6%). The percentage of young farmers is in line with the rest of Europe (8,7%). The number of company managers older than 65% in the Netherlands is lower than the average (18,7%).

Size determines economic size
The major differences in the size of the farms is also reflected in the economic size of these companies. Of the 10,3 million companies in the EU, 4 million had a production value of less than €2.000, making them only responsible for 1% of the total agricultural production value.

The 296.000 large companies, each with a production value of €250.000 or more, were responsible for 2016% of total agricultural production in 55. It is striking that the majority of production comes from France (17%), Germany (13%), Italy (12%) and Spain (11%). Although Romania has almost 33% of the companies, the country only accounts for 3,4% of the production in the EU.

France has the most agricultural land
In 2016, France had the most European farmland in use (27,8 million hectares, or 16% of the total area in the EU). Spain is second with 23,2 million hectares (14%) and the United Kingdom is third with 16,7 million hectares (10). Germany is in fourth place with 15,2 million hectares (9%) and Poland closes the top 5 with 14,4 million hectares (8%).

In addition, it is also striking that agricultural land is predominant in some countries. For example, 69% of the total area in the United Kingdom is used for agricultural purposes. This share is also particularly high in Denmark (62%). However, Finland (8%), Sweden (7%) and Cyprus (12%) are in stark contrast.

Relatively few young farmers
The Eurostat figures also show that the EU has relatively little young farmers counts. In 2016, 11% of business managers were under the age of 40, while 32% were over 65. Especially in Cyprus (3,3%), Portugal (4,2%) and the United Kingdom (5,3%) there were few young business leaders. These were more common in Austria (22,2%), Poland (20,3%) and Slovakia (19,0%).

In addition, it appears that the sector is dominated by men; only 29% of all business leaders in 2016 were women. The share of young Vrouwen (under 40 years) was even lower (23%).

Country Less than 5 hectares More than 50 hectares Younger than 40 year Older than 65 years
Total EU 65,4% 7% 10,9% 31,9%
The Netherlands 20,2% 21,5% 8,7% 18,7%
Belgium 13,9% 25,3% 10,2% 20,3%
Germany 8,7% 30,5% 14,6% 8,2%
France 24,3% 41,3% 15,6% 15%
Poland 54,3% 2,4% 20,3% 11,7%
Romania 91,8% 0,5% 7,6% 44,3%
VK 10,2% 38,6% 5,3% 34,1%
Spain 51,6% 10,8% 8,6% 31,2%
Denmark 4,4% 35,3% 6,6% 24,9%
Hungary 81,4% 3,7% 12,6% 30,6%

For more figures, see the Eurostat file.

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Kimberly Baker

Kimberly Bakker is an all-round editor at Boerenbusiness. She also has an eye for the social media channels of Boerenbusiness.

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