Farming in Spain: Factors, CAP Impact, and Reforms
Farming in Spain
Definition
Farming is a set of activities performed by humans to produce food and raw materials for various industries. It encompasses three main sectors: agriculture, livestock, and forestry.
Physical Factors
Relief
The high average altitude and slope of the Iberian Peninsula make mechanization challenging. Steep slopes contribute to topsoil erosion.
Weather
High altitudes result in low temperatures, especially during winter, hindering the growth of certain species. Droughts and dry spells are frequent, and rainfall distribution is irregular in both time and intensity.
Soils
Spanish soils are generally not very fertile.
Human Factors
The Farming Community (Social)
The farming community has shrunk significantly since the early 20th century, declining from 63% to 7% of the total population today. Madrid and the Basque Country are the most industrialized regions, while Extremadura, Galicia, and Andalusia have farming populations exceeding 16%. This decline is a consequence of rural exodus driven by the mechanization of farm work and the allure of part-time industrial jobs. These trends have led to an aging rural population.
Exploitation of Land (Economic)
Agricultural land is divided into plots, which can be fragmented or consolidated, affecting land use and mechanization. Land can be exploited directly by the owner or indirectly through tenant farming. The average farm size is 21 hectares.
Land Ownership (Economic)
In Spain, medium-sized farms are predominant (small: <10 ha / medium: 10-100 ha / large: >100 ha). Two types of large estates (>100 ha) can be distinguished:
- Large Estates: These comprise 50% of the land but are owned by only 0.8% of landowners. They are prevalent in upland areas, a legacy of land confiscation and the Reconquista. These estates are often not directly managed by the owners, resulting in low productivity and reliance on laborers.
- Smallholdings (<10 ha): These account for only 10% of the land but are owned by 50% of landowners. They are common in northern Spain and irrigated areas. Mechanization is difficult on these plots, and they are often operated on a part-time basis.
Land Tenure (Economic)
Land tenure refers to the degree of control over the land. It is direct when the owner and the farmer are the same person and indirect when they are different.
Agricultural Production Techniques (Technical)
Agricultural production has increased significantly since 1960 due to the reduction of fallow land and technological advancements, including increased mechanization, fertilizer use, irrigation expansion, and the adoption of new irrigation systems.
Common Agricultural Policy (CAP)
Since Spain joined the European Economic Community (EEC), its agricultural policy has been governed by the CAP, established in 1962 to boost agricultural production and reduce food dependency. The CAP aimed to ensure a fair standard of living for farmers and stabilize prices.
Market and Price Mechanisms
Internal Market: The Common Market Organisation (CMO) created a common market for agricultural products and established guide prices for each product, ensuring purchases at guaranteed prices.
External Market: Community preference was implemented, imposing tariffs on products from non-EU countries to protect European farmers.
EAGGF (European Agricultural Guidance and Guarantee Fund):
- Subsidized exports to compensate for the difference between EU and world prices.
- Provided aid to farmers for farm improvements.
Consequences of the initial CAP:
- Prices rose, making the EU a relatively expensive food producer.
- Surpluses increased, straining the Community’s agricultural budget.
- Exports were boosted to manage surplus production.
- Environmental damage occurred due to intensified farming practices.
- The EAGGF was replaced in 2006.
CAP Reform in 1992
The 1992 reform introduced new objectives and mechanisms:
- Price reductions to enhance competitiveness in the international market.
- Surplus reduction and decreased EAGGF expenditure.
- Focus on rural development to curb rural exodus.
- Promotion of environmentally friendly, less intensive agriculture.
CAP Reform in 1999
The 1999 reform aimed to further reduce prices, improve productivity, increase quotas for certain products, and allocate more funds for rural development.
Impact of the CAP on Spain
Upon joining the EEC, Spain underwent a seven-year transition period for products with conditions similar to the EU and a 10-year transition for products with significant differences. Spain had to adapt to the following requirements:
- Lower prices, necessitating increased production or price freezes.
- Trade liberalization, adopting the Community tariff for non-EU countries.
- Alignment of agricultural subsidies with European standards.
Spain’s full integration into the CAP required investments in modernization, productivity, and quality improvements. A major challenge for Spanish farmers is the lack of market access and the need to prioritize environmental protection, potentially at the expense of their livelihoods. The CAP has had a mixed impact on Spain. Surplus regions have faced difficulties, while others, such as the Mediterranean coast and Andalusia, have found lucrative markets for horticultural products.