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Deliverable 2 1 Status Quo FINAL Ref. Ares(2018)6069672 - 27/11/2018 NEWBIE: Deliverable 2.1 August 2018 Desktop research: national literature reviews and analyses of educational resources Authors: Ch ristian Helms, Bernd Pölling, Thomas Curran, Wolf Lorleberg Lead : Fachhochschule Südwestfalen Co -Lead : Teagasc 1 Table of content Executive summary ................................................................................................................................. 3 1 Introduction .......................................................................................................................................... 4 2 Literature reviews ................................................................................................................................. 8 2.1 European overview ........................................................................................................................ 8 2.2 Newbie partner countries’ reports .............................................................................................. 18 2.2.1 The Netherlands ................................................................................................................... 18 2.2.2 Belgium ................................................................................................................................. 27 2.2.3 France ................................................................................................................................... 31 2.2.4 United Kingdom .................................................................................................................... 35 2.2.5 Ireland ................................................................................................................................... 43 2.2.6 Slovenia ................................................................................................................................ 53 2.2.7 Bulgaria ................................................................................................................................. 60 2.2.8 Portugal ................................................................................................................................ 65 2.2.9 Germany ............................................................................................................................... 70 3 Educational resources ........................................................................................................................ 75 3.1 European overview ...................................................................................................................... 75 3.2 Newbie partner countries’ reports .............................................................................................. 78 3.2.1 The Netherlands ................................................................................................................... 78 3.2.2 Belgium ................................................................................................................................. 84 3.2.3 France ................................................................................................................................... 88 3.2.4 United Kingdom .................................................................................................................... 90 3.2.5 Ireland ................................................................................................................................... 94 3.2.6 Slovenia ................................................................................................................................ 97 3.2.7 Bulgaria ............................................................................................................................... 103 3.2.8 Portugal .............................................................................................................................. 110 3.2.9 Germany ............................................................................................................................ 113 References ........................................................................................................................................... 117 Appendix I: Guidelines for conducting the national desktop research on new entrant business and entry models........................................................................................................................................ 128 Appendix II: Guidelines for analyzing educational resources pf agricultural colleges and universities ............................................................................................................................................................. 138 2 Executive summary Several hurdles occur for new entrants throughout Europe. These are in particular access to land, capital, labour, markets, and housing as well as business skills, knowledge development, and social networks. Access to land is consistently found to be the largest barrier to new entrants to farming across Europe. Not only the successors face hurdles, but also that outgoing farmers face barriers relating to housing, retirement financing, losing the farmer’s role, identity, and status. Farm income is identified as one key hurdle. Most farm types experience years where income is marginal or even negative. Within these periods, new entrants are vulnerable with regard to farm viability and remaining in business. Both successors and new entrants face significant challenges when becoming farmers. The development of new and promising entry models and business models and measures to support new farmers are necessary to maintain a viable and sustainable European farming sector for the future to come. Throughout Europe family succession is the main route for the younger generations into agriculture. Parallel to the dominance of family succession, an increasing number of (potential) newcomers / non-family entrances into farming can be detected throughout Europe. Inheritance from parents to children is the most common way of family succession, which includes ownerships as well as tenancies of farmland and/or farm buildings. However, succession and inheritance can be very complex and depends largely on intra-family dynamics and individual personalities involved. Agricultural tenancies are the most common and well-established mechanism to provide access to land for new entrants to farming, while purchases are less frequent due to the comparable high costs when starting the farm business. Parallel to entering / starting a farm business as a new entrant, working outside the farm (off-farm employment) may help to manage the initial risks when starting a business as well as providing a buffer against financial shortages – especially in the early stages of the takeover/start of the farm business. Newcomers without a family background in farming can be grouped into three categories of financing: self-funding (purchase, partnerships), external funding (crowd-funding, customer financed, investors), and sharing (share farming or partnership with land owners). Besides tenancy arrangements, joint venture models are highlighted in the national reports for what reason this brief summary focuses specifically on tenancies and joint venture models. Suitable business models are the key to provide sufficient income for the members of the farm family or collaborators with the farm owner. Family successors typically either carry on the status quo or they try something new that is a variation of the current farm activity. Business strategies depend very much upon the current status of the farm and the capacity of the new entrant to invest time and money in developing the business further. New entrants typically do not have the resources to start a large-scale farm business (economies of scale), so that they are primarily looking for and entering niche products and niche markets. Niche production aims to achieve higher financial returns with lower capital investments. Besides well-known niche products and markets, like organic farming, on-farm processing, and direct sale, Alternative Food Networks based on co-production, participation, strong relationships, and being part of the of the local community are named to be another feasible path for new entrants into farming. When taking the overall picture of all nine Newbie countries in mind, new entrants’ business models are primarily belonging to (or are a mixture of) differentiation (niche products and markets: organic farming, short chains, direct sale), Alternative Food Networks (Community Supported Agriculture, co-production), and on-farm diversification (pedagogical, social, recreation). Many of these new entrants’ business models are locally bound and highly socially integrated. This relates mainly to newcomers into farming and family successors who are changing the main farm business model when taking over the parents’ farm. However, it has to be mentioned that quite a 3 large number of new entrants from family succession continue the farm business of their parents without major changes – at least within the first years after takeover. While up to the 1980s, most farmers entered the business with only practical experiences, since than an increasing number of farmers enter the farm business with higher education levels. Nowadays, higher education is often a must for economic, fiscal, legal, technical, and administrative topics, tasks, and obligations. When reviewing the national reports it becomes obvious that online
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