A report has revealed that the income for farms in the EU located in Areas of Natural Constraint (ANCs) compared to farms outside ANCs, is considerably less.
The report was completed by the European Commission, and is the first time it has conducted such an overview of the socio-economic and environmental features of commercial farms in ANCs compared with farms outside of an ANC.
Despite considerable Common Agricultural Policy (CAP) support, the income gap between farms located in ANC and non-ANC locations in the EU amounted to 20.4% less in mountain areas and 26.5% less in ANCs, other than mountains.
The report stated that “without public support, a significant share of these farms would have to cease their activity”.
ANCs
ANCs are areas where farming is more difficult due to unfavourable conditions such as altitude, slope, dryness, low temperature, unfavourable texture and stoniness, or areas that are impacted by other factors that put them at risk of land abandonment.
Designated ANC areas cover 59% of the EU Utilised Agricultural Area (UAA), of which:
- 33% are areas other than mountains;
- 17% are mountain areas;
- 8% are areas with specific constraints.
In the period 2023-2027, ANC support is provided for by 23 CAP Strategic Plans with a planned public expenditure of €18.7 billion covering 47 million hectares.
This amount represents 17% of the total public funding for rural development and 6% of the CAP total public funding.
Farms in ANCs are on average less performing, with lower income, lower economic size and receive higher subsidies per hectare compared with other farms.
Farms with natural constraints other than mountain had the largest average UAA (46.8ha).
As for workforce intensity, holdings in mountain and non-mountain ANCs use on average 15.9% and 11.8% less annual work units, than farms outside ANC.
Total stocking density is also significantly lower in ANCs compared to non-ANC areas, the difference being -45.8% in mountain ANC and -39.3% in non-mountain ANC.
When compared to farms located outside ANC, farms located in both types of ANCs have larger shares of:
- Protein crops on total arable land (calculated as the share of protein crops (beans, combination of lentils, lupines, other leguminous crops);
- Grassland calculated as the share of temporary and permanent grassland on total UAA);
- Low productive land (calculated as the share of fallow land, set asides, rough grazing on total UAA).
of ANC, 2018-2020 Source: European Commision
Farms specialised in field crops in mountain and non-mountain ANCs use 55% and 26% less mineral nitrogen fertilisers compared to the same kind of farms outside ANC.
For farms specialised in permanent crops, expenditures per hectare on pesticides and other crop protection products in mountain and non-mountain ANC holdings are 56% and 49% lower than in non-ANC farms.