Draft Report on Generational Renewal Calls for Strategies to Support Young Farmers

Young farmers face numerous challenges and barriers that can make it difficult for them to enter into and succeed in the agricultural sector. These challenges range from access to land and financing to generational succession and the impacts of climate change. To address these challenges, the European Parliament has commissioned a report on generational renewal in EU farms of the future. The report, submitted by MEP Isabel Carvalhais, seeks to provide recommendations for improving the conditions for young farmers in the EU.

One of the most significant challenges that young farmers face is access to land. This is especially true for those who are entering the agricultural sector from outside a family context. Land is a finite resource, and its availability for sale or rent is limited. Moreover, rising prices for land have made it more difficult for young farmers to obtain access to it. The report calls on Member States to regulate agricultural land markets to promote land access for young farmers. This could include measures such as pre-emptive rights in favour of young farmers, price controls, acquisition caps or obligations to maintain agricultural activity.

Another significant challenge is access to financing. Young farmers are often seen by banks as high-risk investments, which can result in a higher rejection rate for loan requests. The report calls for public support to help young farmers overcome these barriers, such as grants, low-interest loans or loan guarantees, as well as a strong focus on improving young farmers' financial literacy, knowledge and skills for drawing up business plans.

The report also highlights the importance of generational succession in the agricultural sector. Many farmers are aging, and there is a need for young people to enter the sector to ensure its long-term sustainability. The report calls for the development of coherent strategies to promote generational change, combining different measures in a complementary way, such as financial support, tax breaks and incentives. It also recommends providing access to a farm succession facilitator that can provide guidance during farm transfers, including intergenerational dialogue, legal and taxation frameworks, and financial support possibilities.

Finally, the report stresses the importance of preserving farmland and the objectives of sustainable food production. It calls for the establishment of an EU observatory on farmland to monitor trends and prices for land sale and rental, as well as changes in farmland use. The report also encourages the development and support of land banks and land mobility schemes.