Pavlos Karanikolas Assistant Professor AUA, Dept. of Agr . Economics & Rural Development

1. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Factors contributing to the resilience of subsistence and semi-subsistence farms: evidence from Greece Pavlos Karanikolas Assistant Professor AUA, Dept. of Agr. Economics & Rural Development May 4-8, 2014, Montpellier, France

2. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Presentation Outline • Informal food networks in Greece • The incidence of subsistence (SFs) and semi-subsistence farms (SSFs) in Greece • Farm-level data from a local field survey

3. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development 1. Informal food networks in Greece In response to the crisis, since 2011:

4. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development 2. How many Subsistence & Semi-Subsistence farms in Greece? Farm Structure, 2010 Average Farm Size: 4,8 Ha 77% of farms, under 5 Ha Economic Size: 33% of farms with Standard Output less than 2000 € In 16,4% of farms: More than half of production is self-consumed by the holder Source: Eurostat, Farm Structure Survey, 2010

5. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development A detailed typology of All Greek Households: Source: Household Budget Surveys, Elaborated Data

6. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Poverty Rates (% in each category) Source: Household Budget Surveys, Elaborated Data

7. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Agricultural Self-Consumption: mitigates poverty rates 2012, Poverty Rates Source: Household Budget Surveys, Elaborated Data

8. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development 3. A Field Survey in Municipality of Ancient Epidaurus Detailed farm-level data in 2006 historical data (1950’s-2006) A follow-up survey in 2011

9. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development • Population: 1733 inhabitants • Average farm size: 2,4 ha • Total number of farms/farm households: 410 • Our representative sample: 70 farms

10. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development The local agro-system and rural economy

11. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development How many SFs and SSFs in this area? • All farms have a market participation rate >= 50% [None SF or SSF] • Four farms (5,7%) have an economic size < 1 ESU • Sixty-five farms (93%) with Utilized Agr. Area =< 5 ha, therefore we use the 3rd criterion to distinguish semi-subsistence farms

12. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Let’s focus on these 65 ‘semi-subsistence’ farms: These Farms/Farm Households follow various Livelihood Strategies:

13. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development ………………

14. A specific structure of the cost of production

15. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development

16. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development

17. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Oranges, Average Total Cost (€/Kg) Euros/Kg Production per Farm (Kg)

18. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Mandarines, Average Total Cost (€/Kg) Euros/Kg Production per Farm (Kg)

19. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Therefore, beyond a minimum level of production: • Costs remain essentially constant • Strong indications for constant returns to scale • No substantial differences in efficiency of farms

20. Farm Economic Sustainability

21. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development In the short-run: all farms are economically sustainable: (*) those who with their revenue cover their variable costs

22. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development In the long run: • UAA up to 2,3 ha: two-thirds of farms are economically sustainable • UAA>2,3 ha: all farms are economically sustainable long-term economically sustainable farms* (*) those who with their revenue cover their total [variable+fixed] costs

23. On-Farm Labour

24. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Only 8 out of 65 farms (12%) employ >1 Annual Work Units

25. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development ……………… See also: EU-RD Report 2013, pp. 119-121

26. Household’sStandard of Living Equivalent Household Income, in comparison to: Average Equivalent Household Income of Peloponnesus Region Poverty Line

27. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Percentage of Households in each category 83,1% Average Equivalent Household Income of Peloponnesus Region 15,4% Poverty Line 1,5%

28. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Some persistent problems • A very low degree of co-operation among farmers • An agro-tourist festival in the area, since 1998, which has never been used from the locals for the promotion of their products • Change in land use, from fertile cultivated land, to land for construction

29. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Resilience to the current crisis (I): 2006-2011: Although product prices have fallen, farms remain economically sustainable and households retain medium and high income, mainly due to: • Further farm expansion and improved management (e.g. increased yields per ha), combined with • conversion to organic farming, or • farm succession • Increase of direct sales to Athens’ open-air markets (29% of farms in 2006, 38% in 2011) • Unabated demand for tourist services

30. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Resilience to the current crisis (II): farm expansion: before the advent of the crisis (in 2006-2009). Now, the farmers have not any other potential for new farm investments

31. ΓΕΩΠΟΝΙΚΟ ΠΑΝΕΠΙΣΤΗΜΙΟ ΑΘΗΝΩΝ AGRICULTURAL UNΙVERSITY OF ATHENS Department of Agr. Economics & Rural Development Conclusions Increased stability of Farms/Farm Households and potential to recover after external shocks, due to: • A farm economy well integrated with the broader regional and local economy • Diverse viable livelihood strategies pursued from Farm Households • A concrete cost structure for farm products, indicating constant returns to scale