Extinction of (smallholder) farming

author: Architecture Workroom Brussels
date: November 30th, 2019

A dead-end street: Loss of smallholders

In Belgium, the amount of farms is continuously and dramatically decreasing: 68% of the farms have disappeared between 1980 and 2017 [1]. In other words, in the last 37 years, we have on average lost 40 farms per week. The reasons behind this rapid disappearance of both farmers and knowledge are abundant and interdependent. The lack of a fair pricing for food production is one of the main issues. A Belgian family today spends on average less than 12% on food, while 50 years ago, it was double. The market price of fruit and vegetables is through the auction system completely disconnected from the production price. It is no surprise that 1 in 3 farmers have stopped in the last ten years when figures show that 4 out of 10 Flemish farmers live in poverty and 1 out of 7 has no income at all [2]. In Belgium, 62% of the jobs in the agricultural sector were lost between 1980 and 2016. Obviously, this affects the attractiveness of the profession, leading to a huge lack of successors. Only 13% of all farmers older than 50 have a probable successor and the average age is increasing [3]. Stated differently, this means that 87% of our farming land will change owner in the next ten to fifteen years.

Amount of holdings, surface, and labour force between 1980 and 2017 in Belgium, Flanders, Wallonia

There are no official suicide rates differentiated according to profession in Belgium, but the higher rates in the rural province of West-Flanders proves that suicide amongst farmers is a reality [Jassogne, 2012]. On both sides of the language border, organisations have emerged to accompany farmers with psychological, financial, social or technical problems. Mainly the isolation (23% of the farmers are single in Belgium) and the physical and financial burdens are major factors. As the Flemish non-profit Boeren op een Kruispunt (translated: farmers at a crossroad) witnesses: ‘A psychologist experiences on average one suicide per career, we already know of 28’ [4]. The lack of awareness around this issue is definitely related to the climate of scandal and shame amongst farmers. No farmer wants to admit that they were unable to continue working the land as their ancestors have, although they had lesser administrative burdens and more family and community support [Hens, 2018 & ILVO, 2018b]. Furthermore, even the farmers that want to transition to organic farming are in a lock-in. The CAP (Common Agricultural Land Policy) has led the farmers to make capital-intensive investments that are leaving a lot of them with huge financial debts. In Flanders, the entrepreneurial health of not only small-scale farming but also medium-sized farming is completely compromised by the specialisation investments of the CAP, the market-driven advice of the Boerenbond and the race to the bottom when it comes to pricing [VoedselAnders, 2019]. As dual-purpose cattle farmer Jarno Vandepoel pointed out during the Boerenforum of 2019: 

"The Holstein cow is being prioritised by the CAP as the most ideal cow. But Holsteins are really high maintenance. Their immune system has no reserve and they require a lot of fodder. Most farmers were pushed in this direction, started to introduce the Holstein next to their other cattle, had to increase their maintenance for these few cows anyway and decided to get rid of their dual-purpose cows and change their complete livestock. Those farmers are now on a highway towards specialisation, mass production, increase their scale and are, more and more, farming non-land-based. But they cannot get off this track. They have specialised in just one branch of farming, in just one set of products. They got on the highway, and now can only go forward fast. That is the ‘lock-in’. The challenge of the next CAP is to create opportunities for farmers that want to exit. I might be taking the much slower and bumpier country road, but at least I can change at every intersection. [5]"

Also in the regional translation of the CAP or Natura2000 goals, repressive effects arise unintendedly. In the legitimate enforcement of environmental legislation in Flanders, an indispensable flanking policy is, more often than not, lacking. In 2014, for example, many farmers received an orange or red stamp in the context of nitrogen (or PAS) legislation, but often lacked guidance in the transition that was to be made. It rather had a repressive effect as farmers were unwilling or unable to make new investments, especially in places where innovation was essential from a societal perspective. Many of these farmers had to quit their activities, filed for bankruptcy or sold their farms [ILVO, 2018b, p.3].

[1] Statistics Belgium, ‘Kerncijfers Landbouw 2018’ 

[2] ‘Pano: Boerenbedrog’, April 2018. 

[3] ‘Uitdagingen voor de Vlaamse land- en tuinbouw’, Departement Landbouw & Visserij, 2018. 

[4] Tine Hens, ‘Boer zkt leven’, Dossier: welke toekomst voor de boer, MO* magazine, March 2018. 

[5] Moyaert W. et.al., ‘Boerenforum klimaatadaptieve landbouw’, July 2019. 

Land concentration: Loss of smallholdings

While the amount of farmers is plummeting at an incredible pace, the loss of farmed land decreases more slowly. Who, then, is still surviving? Bigger fish in the pond. While the amount of farmers is rapidly decreasing, the average plot size per farm has almost tripled. The average farm size is now 40 ha. Land concentration is a European trend, but the high population density of the Belgian territory, the historical small-scale land division and the scarcity of land explains the higher pace here than in other European countries [Roels, 2017]. 

Scheme illustrating the number of agricultural holdings and average area per holding, 2007-2017

In the dispersed and fragmented urban tissue of the Belgian context, where the price of agricultural land is off the charts, the hectare-based logics of the Common Agricultural Policy are actually supporting the biggest farms to buy out the more numerous small and medium-sized family-owned farms. But not only farmers profit from the CAP system. Research has shown that part of the subsidies are skimmed by loan-providing banks, employers’ organizations and large landowners (such as ecclestial organizations, municipalities and noble families) [VRT]. Money that does not end up with individual farmers and takes away access to land opportunities. The post-war trend of up-scaling and specialisation has not ceased to exist: the individual farmer is disappearing, the production is rising and the scattered plots are bought by the biggest players.

Scheme representing the evolution of the average size of agricultural holdings in Wallonia (left) and Flanders (right)

The commodity formerly known as land

Rising land prices

In the last five years, the average price per hectare of agricultural land in Belgium has risen with 26,6% [6]. In urban areas, the price differences between farming land and buildable land are enormous. In this way, the real estate market pushes for changes in land use, turning the cheaper agricultural land into buildable land. As such, the scarcity of agricultural land keeps increasing and, along with it, the price of the land. From an agro-economic point of view, the average return of agricultural activity is 25.000 to 30.000 € per hectare over a period of 35 to 40 years [VILT, 2017]. It is today, however, totally impossible to find land that is cheaper than 25.000 € per hectare in the whole of Belgium. In West-Flanders, where the average plot size is higher than the rest of Flanders, the price is even double, with an average of 64.272 € per hectare. What is more, these numbers are based on the return of the two most common types of farming in Flanders in terms of amount of land, being specialized livestock farming and grain production.

[6] ‘Landbouwgronden’ Notarisbarometer, 2018.

Lease law

It is therefore not surprising that it is, today, financially more interesting to rent farmland than to own it. Not owning farmland is not uncommon in Belgium. About 70% of the agricultural land is not owned by farmers [7]. The lease law dates from 1900 [8], and though it has been reformed several times throughout the 20th century, the main principle remained, namely legal certainty for the tenant. One of the most important reforms was the fixing of the lease price in 1951. The lease price was thus set by law and therefore not subject to short-term fluctuations in the market. In the past twenty years, lease prices have more slowly but steadily risen approximately 70%, but this is not at all comparable to shifts in land price [9]. The average lease price of arable land is 309 €/ha and of grass land 277 €/ha. So, while the intentions are good, and still offer proper rights to the tenant holder, the low leasing price is in total discrepancy with the ever-higher land price. Leasing, therefore, is no longer attractive for many landowners,  causing a decrease in new or renewed leases, or pushing landowners to turn to other forms of often informal and legally questionable user agreements where the rental income is higher (e.g. horse ranches). As such, access to land for farmers is not secured while it was the very reason for fixing the leasing price by law in the first place [10]. In addition, strict protection of the farmer is also considered an obstacle for government intervention. By defending a free market logic, freedom of cultivation is an absolute right in Flanders. In order to intervene there, due to environmental objectives or due to the proximity of urbanization, local or supra-local authorities could intervene by subjecting the use of their land property to stricter conditions. This is, however, not evident in practice because conventional farmers are often protected by the ‘endlessness of the lease contract’ [VILT, 2018]. These two main reasons, the displacement of agriculture and the limited intervention potential of the (local) government, prompted a revision of the lease legislation. During the previous administrative period (2014-2019), a revision procedure was started, but it did not come to a decision [VILT, 2018]. Many farmers’ organisations feared the loss of rights present in the lease law. The subject is put back on the agenda for the new governance period (2019-2024), prioritising a balance between tenant and landowner, a timeliness of the contracts, the possibility for preconditions while at the same time, almost contradictory, guaranteeing absolute freedom of cultivation [Vlaamse Regering, 2019, p. 65].

[7] Bouchedor Astrid, ‘Naar een betere toegang tot grond in België en in Europa’, FIAN, September 2014. 

[8] But, according to Rowntree, a leasing system comparable to the one of 1900 was already in place as early as the 12th century. See also chapter 2. 

[9] Statistics Belgium, ‘Pachtprijs stijgt op 20 jaar’, January 2019. 

[10] ‘Hogere pachtprijs is win-winsituatie voor eigenaar én landbouwer’, in VILT, February 2013. 

  • Hens, Tine (2018): ‘Boer zkt leven’, in Dossier: welke toekomst voor de boer, MO* magazine, March 2018

  • ILVO et. al. (2018): ‘Manifest Pilootprojecten Productief Landschap’, Kabinet Minister-president, Team Vlaams Bouw- meester, ILVO, Departement Landbouw & Visserij, Agentschap Ruimte Vlaanderen, Brussel

  • Jassogne, Pierre (2012): ‘Les chiffres inconnus du suicide chez nos agriculteurs belges’, in Apache, December 2012.

  • Voedsel Anders (2019): Vijf principes voor een Vlaams strategisch landbouwplan.

  • Roels, Maarten (2017): ‘Country Studies: Belgium’, in Supporting access to land for farmers in Europe, pp. 31-36.