Small farms are a key component of the EU rural economy. In fact, over three quarters of farms in the EU are classified as small with holding sizes below 10 hectares, and a large proportion of these small farms are below five hectares in size. The Common Agricultural Policy (CAP) recognises that these small farms are a cornerstone of Europe’s agri-food sector. Member States’ CAP Strategic Plans (CSPs) offer many opportunities for reinforcing the long-term resilience of small farms through improved knowledge, enhanced productivity, and coordinated cooperation. Different types of small farms operate in the EU and these range from commercial units specialised in niche products to more-loosely structured holdings operating mainly on a subsistence basis. Together, this large fabric of small farm holdings provides EU citizens with many benefits. They play vital roles in sustaining ecosystem services including food supplies, supporting rural employment and conserving rural culture, as well as contributing to territorial development in rural areas. Despite these clear benefits, the number of small farms in Member States has been declining due to a mix of socio-economic and environmental factors. Market pressures, peripherality, limitations on scale, scope and critical mass can all accumulate and be exacerbated by constraints on land ownership, climate impacts, lack of access to advice, skills and equipment or financing, as well as adverse demographic changes. The European Parliament considers that small farms suffer disproportionately from these development challenges which result in a continuation of farm land being consolidated into larger holdings, abandoned or lost from agricultural use.