Selected Indicators of the Agricultural Sector in the European Union

Abstract

Agriculture plays a key role in the modern world due to its multifaceted impact. In the last three decades, global, as well as Slovak, agricultural enterprises have undergone significant changes driven by socio-economic transformations, shifts in agricultural policy, institutional reforms, and the adoption of new tools. An analysis of selected indicators of the agricultural sector in the European Union points to significant differences in the structure and performance of agricultural holdings between Member States. In 2020, there were a total of 9.1 million agricultural holdings operating in the EU-27, with the highest shares in Romania (31.8%), Poland (14.4%), Italy (12.5%), and Spain (10.1%). Most of these entities (94.8%) were family farms, though France and Estonia had notable proportions of non-family farms. Almost two-thirds of farms operated on an area of less than 5 ha, while only 7.5% of holdings with an area of 50 ha or more managed 68.2% of the utilised agricultural area (UAA). Slovakia had one of the smallest shares of farms (0.2%) but one of the largest average farm sizes (81 ha) and a high concentration of land in large farms. The grouped Gini coefficient reached approximately 0.81, confirming a high degree of concentration of UAA among agricultural holdings in the EU-27. 3.3 million holdings with standard output below EUR 2,000 produced only 1% of the total standard output, while the 3.3% of the largest farms accounted for more than half of the output. Between 2005 and 2020, the number of farms in the EU-27 decreased by 37%, with the decline mainly affecting small holdings, while total UAA remained broadly stable. These results highlight ongoing consolidation in European agriculture and the growing dominance of large farms. They also underline the need for CAP instruments that balance competitiveness with support for smaller farms, rural resilience, and inclusive structural development.