From Small Farms to Large Holdings: The Growing Land Disparity in Estonian Agriculture

Rather than supporting small agricultural households and rural communities, governments frequently prioritise top-down, extractive, and resource-intensive approaches to agricultural development. This tendency promotes the expansion of large agricultural holdings, which increasingly undermines the viability of smaller farms. As access to land becomes more difficult and land-related inequality escalates, concerns regarding the sustainability of rural communities intensify. It is crucial for all stakeholders – policymakers, agricultural economists, researchers, and those involved in rural development and land use policies – to acknowledge their responsibilities and address these urgent issues proactively. This study employs the Gini coefficient to examine the fairness of accessibility to agricultural land use at the county level in Estonia. The findings indicate a decline in the number of agricultural households, coinciding with a rapid increase in the average land utilised per holding. Larger agricultural holdings are expanding their use of agricultural land, while smaller holdings are experiencing a reduction in their share. As of 2023, just 1% of all agricultural holdings in Estonia managed to utilise 31% of the total agricultural land area, whereas 74% of holdings accounted for only 9% of the area. These results underscore the pressing need to address issues of land concentration and inequality, underscoring the necessity for substantial changes in political, economic, and legal frameworks to ensure a fair and sustainable distribution of agricultural land.