Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698055040778.pdf (Georgia)
The Role of Family Farming in the Sustainable Development of Agriculture Sector and Poverty Reduction in Georgia Dialogue on Inclusive Growth December 11, 2014 What is Family Farming?
2 Economic and social Economic and social unit (family) unit (family) Predominant use Predominant use of family labor of family labor Important source of Important source of household income household income o l l i l l e P m a d A : o t o h P Small scale and diversified Small scale and diversified APRC at ISET Policy Institute 12/11/2014 2014 International Year of Family Farming 3 Family Farming supports three dimensions of sustainable development Economic Social Environmental APRC at ISET Policy Institute 12/11/2014 Study goal 4  Understand the role of Family Farming in sustainable development of agriculture and poverty reduction in Georgia  Economic, environmental and social benefits provided by family farms  Current challenges facing family farms  Influence of family farming on poverty reduction and inclusive growth  Derive policy recommendations APRC at ISET Policy Institute 12/11/2014 Methodology 5  Literature review  37 interviews with stakeholders  Farmers, Agribusinesses, Representatives of the MoA, Financial institutions, Donor community, Independent experts  Case study of a village community APRC at ISET Policy Institute 12/11/2014 Importance of Family Farming in Georgia 6 Shares of different holdings in agricultural production Family Holdings Agricultural Enterprises 8 8 10 10 92 92 90 90 12 88 % 100 80 60 40 20 0 2009 2010 2011 2012 2013 Source: Geostat, 2014 APRC at ISET Policy Institute 12/11/2014 Types of farms in Georgia 7 According to a USAID report, 2011: 1.
Subsistence farms 1.

Subsistence farms • average size: 0.42 ha • average size: 0.42 ha • 20% of agricultural land • 20% of agricultural land Majority of rural population (75%) 2.

Semi-commercial farms 2.

Semi-commercial farms • average size: 1.7 ha • average size: 1.7 ha • 26% of agricultural land • 26% of agricultural land 3.

Commercial farms and 3.


Commercial farms and agribusinesses agribusinesses • average size: 34 ha • average size: 34 ha • 54% of agricultural land • 54% of agricultural land 2.5% of rural population Source: Sommerville et al., 2011: 31.

12/11/2014 APRC at ISET Policy Institute Wither Family Farming in Georgia?
8  Economic sustainability  Food security (macro) and social insurance (micro)  But often not competitive (low commercialization)  Environmental sustainability  Eco-friendly if well managed and diversified  But lack of knowledge and awareness about environmentally friendly practices  Lack of coordination in managing natural resources  Social sustainability  Preserving the countryside and traditional ways of life  But under threat because of poverty, outmigration and low image of agriculture APRC at ISET Policy Institute 12/11/2014 Challenges faced by Family Farms in Georgia 9 Privatization-induced Privatization-induced land use patterns land use patterns Access to finance Access to finance Knowledge, skills Knowledge, skills Innovation and adoption Innovation and adoption of new technologies of new technologies Low quality of services and Low quality of services and amenities in rural areas amenities in rural areas Access to markets Access to markets and services and services Enhance role of woman and youth Enhance role of woman and youth APRC at ISET Policy Institute 12/11/2014 Current policy framework 10 Broad-based/unimodal strategy  Covers the large majority of small farms without favoring particular types  Motivation: alleviation of poverty Polices adopted:  agriculture related subsidies  development of infrastructure  promotion of cooperation  general income support Outstanding challenges: • Increase productivity • Improve quality of services and amenities • Promote transition to non-farm employment APRC at ISET Policy Institute 12/11/2014 Towards a European model?
11 “European Model of Agriculture”  Modern and competitive family farms conforming to the European model can be a great complement to larger scale commercial agribusinesses  Can provide high quality goods (e.g.
organic, hygienic, region-specific) desired by consumers  Can capitalize on DCFTA to gain external market share  Will help preserve the countryside and unique regional cultures  Will have great synergies with the tourism sector APRC at ISET Policy Institute 12/11/2014 Recommendations (1) 12  To promote a modern Family Farming sector Georgia would have to employ targeted agricultural policies focusing on successful commerical and semi-commercial farmers (farmers «by vocation»).
The following measures could be employed to improve farmers’ productivity:  Enabling environment for innovation and commercialization  Agricultural education and research  Advisory services  Awareness raising  Public-private partnerships  The quality of services and amenities available to rural dwellers should be dramatically improved to overcome the stigma of agricultural employment.

This is essential in order to keep strong population in rural areas and overcome the rural-urban divide.
APRC at ISET Policy Institute 12/11/2014 Recommendations (2) 13 Broader regional development policies should be employed to facilitate economic diversification and modernization  Promote transition to non-farm employment for less successful farmers (“farmers by default”)  Shift from narrow agricultrual development models to integrated and territorial models for sustainable development, considering synergies with tourism, energy and other sectors of the economy  Territorial rural development policies  Comprehensive, mostly place-based, multi-sector, bottom-up  In rural areas they should include agriculture (...but if too much, they loose effectiveness) APRC at ISET Policy Institute 12/11/2014 14 Thank you!
APRC at ISET Policy Institute 12/11/2014 Panel Discussants Nino Zambakhidze Georgian Farmer Association Carsten Schulz MOLI Project in Kakheti Sascha Ternes Bank of Georgia Kateryna Poberezhna Caucasus Environmental NGO Network (CENN) Simon Appleby YFN Georgia LLC Foundation for Regional Development Rezo Chinchaladze Gocha Tsopurashvili Ministry of Agriculture of Georgia _____ Introductory and framing remarks Moderation Phatima Mamardashvili Eric Livny Head of APRC at ISET-PI ISET Director