Thematic Group on Farm Diversification
This Thematic Group (TG) will explore the opportunities and challenges for farm diversification in the EU, share examples that illustrate the success factors for effective farm diversification, and assess the effectiveness of current CAP interventions and wider policy frameworks for supporting farm diversification.
A significant number of European farmers are facing challenges in sustaining their livelihoods due to income instability, natural disasters, extreme weather events, environmental degradation, geopolitics, cost-price pressures, and increased market competition. 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, thus creating sources of income that are independent from an agricultural income which is inherently unstable.
Diversification can help farmers by means of stabilising or increasing their on-farm incomes, creating employment and contributing to the local economy through non-agricultural activities such as leisure, tourism, value-added processing, retailing, house and land rentals, renewables, and others. Farm resilience through diversification can be hampered by weak property markets, lower market opportunities due to remoteness, lower levels of tourism, farm size, financing, organisational readiness, labour, seasonality, or conflict with the core farming activity, all of which may impact what individual businesses can do.
The CAP can play a role in supporting diversification through productive (agricultural production and processing, forestry, promoting other non-agricultural activities) and non-productive farm investments, including in the development of short supply chains and local food systems. The CAP also supports the strengthening of business competitiveness and diversification in other ways, including through cooperation actions, including LEADER and EIP. Business development may also be supported through farm advisory services or differentiated support rates for investments made by small-sized farms. Many Member States foresee higher support rates for small farms, mostly for productive and non-productive farm investments, as well as investments for processing/marketing agricultural products and for non-agricultural diversification.
The main goal of this TG is 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
To achieve this, the TG's objectives will be 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;
- Identify opportunities for enhancing the role of the CAP in farm diversification.
The TG will consist of a small group (around 40) of informed and engaged stakeholders, including farm businesses, farmer organisations, rural entrepreneurs, farm advisers, Managing Authorities, Paying Agencies, National Networks, researchers, and Local Action Groups, alongside other relevant stakeholders. Participants will commit to engaging in two meetings and related activities, ensuring diverse perspectives and active contributions to achieving the TG's objectives.
- The first meeting took place in person in Brussels, Belgium, on Wednesday, 4 February 2026.
- The second meeting will take place in person in Rome, on 06-07 May 2026.
There is no charge for attendance at these meetings. However, for the in-person meetings, travel and accommodation costs may only be covered for TG members representing farmers, farmer organisations, LEADER Local Action Groups, European and national non-governmental organisations, and researchers/Universities. All other TG members will need to pay for their own travel and accommodation costs.
The meetings will be held in English without interpretation.
If you have any questions, please contact us at thematicgroup4@eucapnetwork.eu.
To follow the work of this Thematic Group, please visit this page regularly, subscribe to our monthly newsletter, and follow us on social media (#FarmDiversification).
