What is it about?
Farming is a vital part of Slovenia’s rural economy, but not all farmers earn the same income. This study examines how different sources of income—such as market earnings, government subsidies, and off-farm work—affect income inequality among Slovenian farm households. Using data from 2007 to 2013, the research finds that government subsidies help reduce income inequality, especially for farms in disadvantaged areas. However, reliance on market income can increase inequality. The findings highlight the importance of agricultural policies in supporting small farms and ensuring fair income distribution, which is crucial for sustainable rural development.
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Why is it important?
This study is unique because it examines how agricultural policy reforms impact farm income inequality in Slovenia, a country where small farms and disadvantaged rural areas rely heavily on subsidies. Using detailed farm-level data from 2007 to 2013, it highlights how different income sources—market earnings, off-farm work, and government support—affect income distribution. As the European Union reconsiders subsidy policies, these findings are timely and relevant for shaping future rural development strategies. By providing insights into income disparities, this research can help policymakers design fairer agricultural policies that support small farmers and promote economic stability in rural communities.
Perspectives
I find this study particularly important because it sheds light on the real-world impacts of agricultural policy on rural livelihoods. Farm income inequality is often overlooked in policy discussions, yet it has profound implications for rural communities, sustainability, and food security. This research provides evidence that well-targeted subsidies can reduce income disparities, ensuring that small and disadvantaged farmers remain competitive. Given the ongoing debates about the future of agricultural support in the EU, I believe these findings can contribute to more informed and fair policy decisions that balance economic efficiency with social equity in farming communities
Professor Imre Fertő
Eotvos Lorand Tudomanyegyetem
Read the Original
This page is a summary of: Farm household income inequality in Slovenia, Spanish Journal of Agricultural Research, February 2020, Instituto Nacional de Investigacion y Tecnologia Agraria y Alimentaria (INIA),
DOI: 10.5424/sjar/2019174-13996.
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