The EU’s mission impossible: Stopping young farmers giving up before they’ve even begun – politico.eu

Report on Challenges for Young Farmers in the European Union and Implications for Sustainable Development Goals

Economic Barriers to Entry and Land Access

A primary obstacle for young agricultural entrepreneurs in the European Union is the prohibitive cost of land, which directly impacts the achievement of several Sustainable Development Goals (SDGs). The inability to access affordable land presents a significant challenge to generational renewal in the agricultural sector.

• The average cost of one hectare of arable land in the EU is reported to be nearly €12,000.
• In specific member states, such as the Netherlands, this cost escalates to an average of over €90,000, a substantial increase from €56,000 a decade ago.

These economic conditions create systemic barriers that undermine key development objectives:

1. SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities): The high capital requirement for land acquisition limits entry into the farming profession to individuals with existing family wealth, thereby perpetuating economic inequality and limiting opportunities for poverty reduction in rural areas.
2. SDG 2 (Zero Hunger): Hindering new entrants into agriculture threatens the long-term sustainability of food production systems and jeopardizes future food security.

The Role of Financial Institutions and Access to Capital

Securing financial backing is a critical challenge for young farmers, who are often perceived as high-risk investments by financial institutions. This lack of access to capital forms a “vicious circle” that prevents aspiring entrepreneurs from establishing viable agricultural businesses.

• Florian Poncelet, head of the Belgian young farmers’ association FJA, notes that banks demand guarantees that young individuals and their families often cannot provide.
• Roy Meijer, chair of the Dutch young farmers’ group NAJK, states that financial institutions view young farmers as a risk, making land acquisition for individuals in their mid-twenties virtually unattainable.

This financial exclusion has direct implications for SDG 8 (Decent Work and Economic Growth), as it stifles entrepreneurship, job creation, and economic vitality within the agricultural sector and associated rural communities.

A Call for Policy Stability and Support for Innovation

The emerging generation of farmers views agriculture as a dynamic business sector poised for reinvention, rather than a tradition resistant to change. Their primary demand is not for subsidies but for a stable and predictable policy environment that fosters long-term investment and innovation.

1. Predictability: Young farmers require consistent, long-term rules to build a business and make capital investments.
2. Entrepreneurial Recognition: They seek to be acknowledged as entrepreneurs who contribute to economic growth.
3. Innovation: There is a strong desire to adopt modern technologies to improve efficiency and sustainability.

This forward-looking approach aligns with SDG 9 (Industry, Innovation, and Infrastructure). Young farmers are eager to integrate advanced tools, including:

• Drones
• Data analytics
• Artificial Intelligence (AI)

Investment in such technologies is crucial for advancing SDG 2 (Zero Hunger) by promoting sustainable agricultural practices and building resilient food production systems. However, as Roy Meijer emphasizes, “to invest, we need clear, long-term rules. You can’t build a business on shifting ground.” A stable policy framework is therefore essential to unlock this innovative potential.

Analysis of SDGs, Targets, and Indicators

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 2: Zero Hunger: The article focuses on the challenges faced by young farmers, who are essential for future food production and security. Their ability to start and maintain farms directly impacts sustainable agriculture and the food supply.
• SDG 8: Decent Work and Economic Growth: The article frames young farmers as “entrepreneurs” struggling to build a “business.” Their challenges with accessing land and finance are barriers to entrepreneurship, job creation, and economic growth in the agricultural sector.
• SDG 9: Industry, Innovation and Infrastructure: The desire of young farmers to use “drones, data, AI” highlights a push for innovation and technological upgrading within the agricultural industry. Their need for “clear, long-term rules” points to the importance of a stable policy infrastructure to support investment in this innovation.
• SDG 10: Reduced Inequalities: The article highlights the specific disadvantages faced by young people (“people my age”) in agriculture. They face age-based economic barriers, such as banks viewing them as a “risk,” creating an inequality of opportunity compared to established farmers.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Under SDG 2 (Zero Hunger):
  • Target 2.3: “By 2030, double the agricultural productivity and incomes of small-scale food producers… including through secure and equal access to land, other productive resources and inputs… [and] financial services…” The article directly addresses the struggle of young farmers to gain access to land (“struggle to find available and affordable land”) and financial services (“Banks look at young farmers as risk”).
• Under SDG 8 (Decent Work and Economic Growth):
  • Target 8.3: “Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation… including through access to financial services.” The young farmers’ call for “predictability — rules that don’t change” is a demand for supportive policies for their entrepreneurial activities. Their difficulty in getting loans from banks is a clear issue of lacking “access to financial services.”
• Under SDG 10 (Reduced Inequalities):
  • Target 10.2: “By 2030, empower and promote the social, economic and political inclusion of all, irrespective of age…” The article’s central theme is the economic exclusion of young farmers due to their age and lack of capital, as exemplified by the statement, “If you’re 25 and want to buy land, forget it.”

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• For Target 2.3 (Access to Land and Finance):
  • Indicator (Mentioned): The price of arable land. The article provides specific data points that can be tracked over time: “One hectare of arable land in the EU costs almost €12,000,” and in the Netherlands, the price rose from “€56,000 a decade ago” to “over €90,000.” This directly measures the affordability barrier to land access.
  • Indicator (Implied): The rate of loan approval for young farmers. The article states that banks view young farmers as a risk and that getting loans is a “vicious circle.” A measurable indicator would be the proportion of loan applications from young farmers that are approved.
• For Target 8.3 (Entrepreneurship and Innovation):
  • Indicator (Implied): The rate of adoption of new technologies in agriculture by young farmers. The article mentions a desire to use “drones, data, AI.” Tracking the investment in and use of these technologies would measure progress towards innovation in the sector.

SDGs, Targets and Indicators Table

Source: politico.eu