Tulip Digest 22 January 2025: Beyond Family Farms, A Global Landscape Of Farm Size

The farming landscape has somewhat evolved in the last decades, with a remarkable variability in farm structures worldwide. With more than 570 million farms overall, about 12% are classified as small and controlling around 12% of total farmland while family ownership constitutes the vast majority with an estimated 428 million farms which is 75% of the world’s agricultural land. The trends observed underline dynamic shifts in emerging regions.

Asia

Asia houses 74% of the world's farms (with 4 countries in the top 5 : China, India, Indonesia and Bangladesh), translating to approximately 422 million farms. This region exhibits a striking dichotomy: while average farm size decreased across much of the continent during the1960-2000 period, countries like China have witnessed continuing decline in average farm size in the more recent periods 2000-2010. Suggesting complex dynamics influenced by factors such as population growth, urbanization, technological advancements, and policy changes.

India represents 24% of the world’s farms and despite small average sizes, there is a dynamic drive to improve productivity and modernize operations. The momentum reflects the commitment to increase efficiency while benefiting from innovations, making India a global agricultural pivot.

Oceania

Australia is recognized for holding 456 million hectares of farmland which represents 9% of the total agricultural land, the second largest in the world. Over the last decades, Australian farm sizes increased. Due to its outsized average farm sizes data are hardly comparable due to their statistical outlier status.

North America:

While North America is part of the high-income cluster and accounts for 4% of the world’s farms. The continent boasts high average farm sizes and growth in efficiency.

The United States alone accounts for a whopping 414 million of hectares, which represents 8% of the agricultural area. Both the United States and Canada showcase concentrations of agricultural land, this trends has driven upward average farm sizes, reflecting modernization and technological adoption.

Europe

Europe accounts for around 7% of farms, roughly 40 million holdings. Although a significant proportion of holdings are small, the region benefits from efficient large-scale farms that play a vital role in the overall farming ecosystem by operating a disproportionate share of agricultural land. Europe is in line with high income average, whereby farms larger than 20 hectares operate up to 70% of land.

Africa

Africa contains about 9% of the 570 million farms, roughly 51 million, with around 70–80% of farms smaller than 2 hectares constituting 35% of the farmland.

Average farm size decreased in several African countries up until 2000 highlighting massive potential for investments and technological enhancements to boost productivity in a region that counts 60% of world total arable land.

South America

Latin America and the Caribbean, which represents around 4% of global farms, approximately 23 million, display a distinctive pattern: fewer very small farms and a dominance of large-scale operations. Between 1960 and 1990, average farm sizes in the region declined until the 1990s, when an upward trend emerged in key players such as Brazil. This fluctuating pattern reflects the diverse agricultural systems and varying levels of development across the continent.

Global data present a positive outlook for global agriculture, with enormous potential embedded within diverse farming systems. Emerging markets in Asia, Africa, and Latin America are adopting dynamic strategies to uplift productivity even within small-scale operations. The immense prevalence of family farms and the strategic investments targeted at small farms ensure a promising future for food security and sustainable growth worldwide.

Source :

https://www.sciencedirect.com/science/article/pii/S0305750X15002703