Decomposition of semi-subsistence farms income inequality by income sources

The study analyzed income inequalities status of European semi-subsistence farms, with a special focus on the effect of different income sources. Our research was based on FADN data and utilized Gini coefficients and related concentration indicators. Results show a low concentration and a tendency toward equity in the period 2007-2012. Our analysis revealed that subsidies have a low inequality-decreasing effect, the agricultural income has an inequality-increasing effect, the market support measures increase inequality and rural development support has a higher inequality-decreasing effect while decoupled payments have a smaller increasing effect. The study recommends that government policies for semi-subsistence farmers should be strengthened to reduce the disparities regarding the incomes at European level. In addition to this, rural development policies have to promote measures especially for semi-subsistence farms that can be applied in all member states with a special focus on reducing farm income inequality.