Large-Scale Farmers in Denmark Dominate EU Subsidies, Impacting Prices and Young Farmers

In Denmark, the largest landowners receive the lion's share of EU agricultural subsidies, a distribution that raises concerns about its impact on market prices and the progress of younger farmers.

The Common Agricultural Policy (CAP) of the European Union is designed to support farmers across member states, but in Denmark, the benefits are disproportionately skewed towards large-scale farmers. This imbalance has led to criticism that the policy drives up land prices and creates barriers for new entrants into the farming sector.

Statistics indicate that 82% of farmer subsidies under the CAP go towards animal agriculture, with the livestock sector receiving 1,200 times more public funding than alternative proteins between 2014 and 2020. This heavy investment in traditional farming methods further entrenches the position of established large-scale farmers, making it difficult for younger, smaller-scale farmers to compete.

The European Vegetarian Union (EVU) has highlighted the need for a shift in subsidy allocation. According to their poll, 54% of political parties support redirecting subsidies away from the livestock sector towards whole foods and plant-based products. This shift could potentially level the playing field for younger farmers who are more inclined towards sustainable and innovative farming practices.

Why this matters: The distribution of EU agricultural subsidies has significant implications for the environment, food security, and the livelihoods of farmers. If left unchecked, the current system could exacerbate climate change, hinder sustainable farming practices, and limit opportunities for young farmers.

James Gaffey, a project coordinator and co-director of CircBio MTU, emphasized the strategic opportunity for the EU bioeconomy in grassland valorization and emerging grass-based value chains. He noted that Denmark's advanced experience in implementing such technologies could serve as a model for other regions. However, he also pointed out the economic challenges, especially in making protein production viable for the animal feed market.

The World Bank has also advocated for a transition towards plant-based products, citing benefits for food security and environmental sustainability. Research suggests that supportive policies for alternative proteins in Europe could help achieve self-sufficiency levels last seen 30 years ago, reduce carbon removal costs, and expand nature restoration projects.

With the EU elections approaching, and voting scheduled from June 6-9, the future of agricultural subsidies and their distribution remains a critical issue. The EVU's Plant-Based Manifesto, released ahead of the elections, calls for binding targets to improve the climate impact of the CAP. Nearly 79% of political parties support these targets, reflecting a growing consensus for change.

Currently, the allocation of EU agricultural subsidies in Denmark favors large-scale farmers, contributing to higher land prices and obstacles for younger farmers. A shift towards more equitable distribution and support for sustainable practices could promote a more inclusive and environmentally friendly agricultural sector.

Key Takeaways

• In Denmark, large landowners receive most EU agricultural subsidies.
• 82% of subsidies go to animal agriculture, hindering alternative proteins.
• Most political parties support redirecting subsidies to plant-based products.
• Current subsidy distribution favors large-scale farmers, limiting opportunities for young farmers.
• A shift towards sustainable practices could promote a more inclusive agricultural sector.