Thematic Group on Farm Diversification
This Thematic Group (TG) explored the opportunities and challenges for farm diversification in the EU, share examples that illustrate the success factors for effective farm diversification, and assessed the effectiveness of current CAP interventions and wider policy frameworks for supporting farm diversification.
Many European farmers are facing challenges in sustaining their livelihoods. The degree of economic vulnerability increases significantly, particularly for smaller farms, farms in certain sectors and farms located in economically disadvantaged or geographically challenging regions. For these farmers, one way of stabilising or increasing their income is to use their assets (land, buildings, equipment) to diversify into non-agricultural activities, such as leisure, tourism, value-added processing, retailing, land rentals, renewables, and others.
The CAP can play a role in strengthening business competitiveness and diversification in various ways through productive (agricultural production and processing, forestry, promoting other non-agricultural activities) and non-productive farm investments, including the development of short supply chains and local food systems.
The main goal of this TG was to identify what lessons can be learned from current approaches, and how policies and support mechanisms can be better tailored to improve farm resilience and economic sustainability through diversification.
Objectives
The objectives of this TG were to:
- Explore the opportunities and challenges for farm diversification in the EU;
- Share examples that illustrate the success factors for effective farm diversification;
- Assess the effectiveness of current CAP interventions and wider policy frameworks for supporting farm diversification; and
- Identify opportunities for enhancing the role of the CAP in farm diversification.
Activities
Two TG meetings were organised. The first meeting (Brussels, 4 February 2026) focused on business opportunities for farm diversification, Member States’ support for diversification, and the effectiveness of the CAP interventions in unlocking the potential of farm diversification. At the second meeting (Rome, 6-7 May 2026), members continued to assess the effectiveness of the CAP and wider policy frameworks for farm diversification. A significant part of the session was devoted to the development of proposals and support mechanisms for farm diversification.
TG members shared various examples, illustrating how farms and rural businesses are expanding their activities, developing multifunctional business models, and engaging with new markets and stakeholders to address common economic, social, and environmental challenges.
A Managing Authority survey was also undertaken to help TG members understand the state of play across the EU on various aspects of farm diversification.
Key findings
TG members developed nine proposals for farm diversification:
- Clear definition of farm diversification
- A clear policy framework and supporting landscape that targets farm diversification
- Establishing dedicated mechanisms in the CAP for farm diversification
- Financial incentives for farm diversification through clusters
- Professionalism of people living in rural areas
- Clusters as drivers of smart specialisation, innovation and territorial development on farm specialisation
- Use of finance and financial instruments
- Future opportunities for young people and family members
- Dedicated network, advisory services, skills development, knowledge exchange and innovation support for farm diversification
TG members also identified four key areas for action to design coherent, long-term policy frameworks that support farm diversification:
- strategy and data
- policy and funding alignment
- place-based implementation
- skills, services and cooperation
Scroll down this page to find all the outputs of this Thematic Group and relevant resources related to this topic.
Learn more
You can find other useful resources about this theme in our Publications section and in our Good Practice database.
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