In recent years small farms have received increased attention in the political debate, recognizing the role they play in rural areas and the need to improve their economic and social conditions in times of structural change of the agricultural sector towards fewer and larger farms. However, the wide variation in farm structures across the EU-27 and the lack of consistent data for all Member States are amongst the main reasons why a commonly agreed definition of 'small farms' does not exist. The present note briefly analyses possible criteria which could be used to define 'small farms', including the definition of appropriate thresholds in order to use common criteria for statistical analysis and policy purposes.

The question of "what is a small farm?" has many answers, depending on the context in which it is posed. To analyse farm structures and compare them across different countries, regions, or over time, physical measures such as hectares of UAA or labour input per farm can be used. However, these measures are highly dependent on the type of farming and provide little information on the economic situation of a farm. If small farms are to be identified with the aim of highlighting their need for special support measures, the economic farm size seems to be most appropriate criterion.