User:Dr Gangrene/Agriculture in Luxembourg

The development of agriculture and livestock breeding in Luxembourg has several characteristics:
 * The percentage of the population active in agriculture is declining.
 * The size of farming businesses is increasing.
 * Businesses' specialisation is increasing.
 * Mechanisation, and hence the required amount of capital, are increasing.
 * Without state support, agriculture is no longer viable.

Fewer farmer
In 2010, there were 1,981 farming businesses in Luxembourg, employing 3,497 people (1 % of the workforce).

In 2004 there were 2,400 such businesses, and in 1990 about 3,200. In 1907 there were 15,000 farms. Then, including the family members, almost 40 % of the population lived off farming. As has been described by Colin Clark, Jean Fourastié and W.W. Rostow, the importance of agriculture to a country is indicative of the level of economic development. In 2010, agriculture only contributed 0,3 % of Luxembourgish Gross Domestic Product. (This had been 2 % in 1985).

Larger units
In order to remain competitive and viable, small farming businesses have closed and pursued other activities. The young especially have ceased to work in agriculture. The average size of farms has grown:

Average size of farms in hectares: Since 2003, over 50 % of farms have been bigger than 50 hectares.
 * 1980: 29,63
 * 1990: 38,37
 * 2000: 53,22
 * 2001: 55,17
 * 2002: 57,18
 * 2004: 59,64
 * 2010: 66,01

Specialisation
Farms have increasingly specialised. Farms making all kinds of produce such as milk, eggs, meat and crops are no more. Apart from dairy production, still the main activity of Luxembourgish farmers, many farms have specialised exclusively in livestock breeding, crops, fruit or egg production.

Increased investment
A competitive production was only possible through increased mechanisation. The government, the agriculture ministry and its institutions such as the Administration des Services agricoles or the European Commission have provided advice and financial support, especially in establishing development plans for farms. For a better and more rational use of capital investments in agriculture, the creation of agricultrual machinery cooperatives was encouraged.

Subsidies
In all countries, farming profited from subsidies, mostly direct subsidies before the European Economic Community came into effect in 1958. These were then no longer permitted, as the EEC operated on the principle that all national measures that hindered competitivity were banned. The allocation of subsidies was therefore transferred to the Community; either in the form of direct subsidies or the fixing of minimum prices, along with the creation of a balancing system between import and export of European agricultural products to or from third party countries. Therefore the prices of agricultural productes were detached from prices on the world market. This brought criticism from third-party countries such as the United States. The system has been alleged to create overproduction. This was the case for dairy production, and in 1984 the Community had to introduce a quota system for milk production. Agricultural policy was communitarised through a Common Agricultural Policy.

In 2010, 34,5 million euros were paid in Luxembourg in farm premiums, 15,6 million for disadvantaged areas, 10,9 million to maintain th countryside, 2,6 million for agricultural environment measures, 1,3 million for maintaining bio-diversity and 0,6 million in direct aid to dairy producers, for a total of 65,5 million Euros.

Institutions
D'Landwirtschaft profitéiert, wéi iwwerall, vum engem staarken Encadrement:
 * Specific training measures for young farmers and gardeners (Akerbauschoul)
 * Collective use of agricultural machinery (Maschinneréng),
 * Services from the Administration des Services Agricoles,
 * Duerchféiere vun engem Remembrement vun de Parzellen,
 * Strong occupational representation, such as the Bauerenzentral and the Bauerenallianz,
 * Promotioun duerch e System vu privilegéierte Landwirtschaftlesche Genosseschaften, inklusiv d'Raiffeisekeesen,
 * Schaffen, am Kader vum Lëtzebuerger System vu Beruffskummeren vun enger eegener, gewieltener Landwirtschaftskummer,

Literature

 * Carlo Hemmer:L'économie du Grand-Duché de Luxembourg - Les conditions sociales - La production primaire, Editions Joseph Beffort, Luxembourg, 1947
 * Paul Weber: Histoire de l'Economie luxembourgeoise, Imprimerie de la Cour Victor Buck, Luxembourg, 1950,430 p.