The decline of part-time farming in Europe: an empirical analysis of trends and determinants based on Eurostat panel data

Muhammad Abid Shahzad and Christian Fischer

Applied Economics, 2022, vol. 54, issue 42, 4812-4824

Abstract: This article studies the state of part-time farming in the European Union (EU) amidst recent developments in its agricultural structure. First, an in-depth descriptive analysis of the trends in farm other gainful activities (OGA) is delineated. Second, an econometric panel regression analysis employing fractional probit model is conducted to investigate the relationship between the share of OGA and different farmer and farm characteristics. The analysis utilizes a balanced panel of 27 EU countries extracted from the Eurostat database between 2005 and 2016. The results show that OGA as main activity significantly decreased between 2005 and 2016, whereas the proportion of sole holder-managers with OGA as secondary activity slightly increased. OGA are explained by economic needs and are mostly related to farm size and farm types with lower economic farm productivity. The main OGA are mainly related to farmer characteristics (e.g. age and gender). Secondary OGA are explained by farm specialization. These trends may continue into the future which may bring an even fewer number of larger, more specialized, and more professional farms that have little time to engage in other activities than their core business of farming.

Date: 2022
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DOI: 10.1080/00036846.2022.2036687

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