Sustainability of Small Farms in Serbia: A Comparative Analysis with the European Union

Throughout the EU, small farms have varying degrees of importance, which points to the need to analyse the role of small farms. This study, in addition to EU countries, includes Serbia, a candidate country for EU membership. This study aims to provide an overview of agriculture's structural characteristics by creating an Index of Agricultural Structural Characteristics (ASC Index). The analysis was carried out at the regional level, which provides a more detailed overview of the structural characteristics of agriculture in the EU and Serbia. The results indicate several regional differences in the EU along north-south and west-east divisions. Serbian agriculture is predominantly made up of small farms and corresponds to the southern model of European agriculture. In terms of the west-east division, Serbian agriculture also corresponds to the structure of Central and Eastern Europe countries (CEEC), with which it shares a historical heritage of a centrally planned economy. Changes in Serbian agricultural policy must be directed toward regions with unfavourable structural characteristics. Special attention should be given to small farms in cases where there is potential to improve competitiveness and where there is a good basis for improving the social sustainability of rural areas.