European Agriculture: Transformation, Challenges, and Policy
The Shift from Traditional Farming
It often happens that in areas near industrial zones, many farmers prefer to engage in craft industries where salaries are more secure, and then dedicate their free time to their fields. This is known as part-time farming. The agricultural market depends on the law of supply and demand. Sometimes governments intervene to change prices.
Governments have mechanisms to regulate agricultural prices.
The Crisis of European Traditional Agrarian Society
Location of the Small Farm
After WWII, the European landscape changed. European agriculture became a kind of capitalist agriculture, where the priority is to maximize production and profits. One problem was that the plots were very small and could not compete with countries like the United States, which had mass production. The reunification of fields was a slow process. When a field is abandoned, the next owner can claim it. Another solution is to buy land next door or form a cooperative. Small parcels are now more difficult to manage, and agricultural prices tend to be low because multinationals tend to impose their prices. These multinationals buy in quantity, allowing them to dictate prices. Small farms suffer more from price reductions and crises, forcing them to spend more on fertilizers and feed. Ultimately, the great powers and large companies benefit the most.
Situation of Large Exploitations
Large exploitations, though not very common in Europe, have the advantage of their size. They do not need as much labor. There are periods of hard work and periods of little work, such as during collection and sowing. These types of exploitations are usually mechanized and aim to maximize production and performance. In this type of farm, the owner is more like a businessman than a farmer. They do not work the land directly but employ a number of workers. Production systems are also similar to a company. In Spain, this is especially found in southern areas like Extremadura, Castilla La Mancha, and Andalusia. However, in southern Spain, some land was not even cultivated. Additionally, land was not divided and shared among farmers. Even today, many farmers lack land or work, and these farmers are called laborers, working temporarily at particular times, such as collecting or planting.
The Decline in Traditional European Agricultural Production
Traditional agriculture requires a lot of labor. When industrialization appeared, people went to cities to find higher-paying jobs, causing a rural exodus. Meanwhile, there was less labor available in the fields, and that labor was cheap. When the fields became empty after the rural exodus, wages rose, so employers thought it would be more cost-effective to mechanize the fields. This led many entrepreneurs to industrialize agricultural fields. The few remaining farmers had to leave. Small farms that could not perform the machining were in crisis due to the large farms.
The Agricultural Policy of the European Union
The Agricultural Activity in the European Union
Generally, European agriculture is intensive, highly mechanized, and high-performing. It mainly produces quality products, apart from some lower-performing products. Southern Europe is dominated by the Mediterranean trilogy of olives, vines, and cereals. This Mediterranean area produces 70% of the world’s quality wines, such as Rioja, Bordeaux, Porto, and Champagne wines. Southern Europe also produces fruit juices and vegetables, particularly in Spain and Italy. Thanks to greenhouses, these can also be found in Holland, which is the leading exporter of flowers in the world. Across Europe, we find the cultivation of potatoes. Northern Europe is known for its cereals, and Germany is the main exporter of hops. Cotton can be grown in Spain and Greece, and France is known for its sugar beet plantations. In terms of livestock, the European Union is the leading producer of milk and milk products in the world and ranks second in beef cattle.
Towards a Common Agricultural Policy for the European Union
From the moment the European Union was born (1950), it tried to establish a common agricultural policy (CAP). The CAP aims to achieve self-sufficiency in Europe, producing what is needed and not having to import components from abroad. The CAP has a series of objectives. The CAP was established in 1960, and these are its main objectives:
- Increase production.
- Improve and equalize farmers’ incomes.
- Stabilize the markets.
- Ensure food resources in Europe.
- Provide food to European consumers at reasonable prices.
- Increase the area of farms.
- Gain productive specialization.
- Favor exports.
These were the main objectives of the CAP. From the 1980s, the CAP was primarily targeted at streamlining agricultural surpluses, especially milk, beef, wine, and cereals. This meant that there were surpluses of these four products, and therefore, production quotas had to be set. Since the 1990s, there have been measures such as encouraging early retirement of farmers and using methods that respect the environment. To put these into practice requires money, which comes from a fund called the EAGGF (European Agricultural Guarantee and Guidance Fund). The EAGGF accounted for much of the European budget until the 1980s and 1990s. This is criticized by developed countries, as they complain that Europe protects its agriculture too much. Rich countries like the United States and Japan also criticize the policy, since Europe does not want to buy their products. In order to buy products from the United States, Europeans impose a tax that makes them more expensive than in Europe.
Agriculture in Spain
The primary sector in Spain has declined over time in terms of labor force (1995: 19% of the Spanish population; 2009: 3% of the population). Spain has both irrigated and dry land, but dry land accounts for over 80% of the total. Dry land cultivation is focused on the Mediterranean trilogy of cereals, olives, and vines. Previously, much wheat was grown, but now it has been superseded by other grains used to feed animals, such as barley.