κώστας καραντινινής

 Twelve and a Half Reasons That May Have Pushed Greek Farmers to Blockades

published in Greek

 

As usual, just before the end of the year, EUROSTAT released first estimates  of the economic accounts of agriculture. As commented by Allan Mathews, 2025 was a record year for farm income - “though not for all”. Greece was one of the nine MSs which experienced an actual decline of -12,5% in agricultural entrepreneurial income (AEI) between 2024-25 in current prices. The other eight MSs that experienced a decline in AEI between 2024-25 were: Belgium (-3.7%), Bulgaria (-6.4%), Estonia (-7.6%), Croatia (-13.7%), Cyprus (-4.3%),The Netherlands (-4.9%), Portugal (-16.6%), Slovakia (-31.5%).

EUROSTAT and national statistical services calculate “agricultural entrepreneurial income” (AEI) each year as the net revenue from agriculture after subtracting all costs—agricultural inputs, supplies, wages, rents, interest, and taxes—and adding CAP and other subsidies.

While EUROSTAT was publishing its recent estimates, French and Belgian farmers were demonstrating in Bussels, and Greek farmers had blockaded national highways in about 100 junctions with more than 5000 tractors. Greek farmers have been camping at the blockades form more than one month now. We argue that this decrease in income both short-term and long-term and especially the lagging behind EU-27 average, might be one of the many reasons behind the Greek farmer blockades.

This year, Greek AEI was down by 12.5% compared with 2024, while across the EU-27 it increased by 17% - albeit with nine exceptions. In 2025 AEI in Greece amounted to €5.7 billion, which is €814 million less than last year’s €6.5 billion. By contrast, in the EU-27 agricultural entrepreneurial income reached €147 billion, up by €22.5 billion from €125.7 billion in 2024.

This year’s decline widens the gap between Greek and European AEI by nearly 30% (EU-27 increase of +17% versus a −12.5% decrease in Greece = 29.5%). More importantly, it should be a concern that there is a long-term downward trend in the relative AEI of Greek farmers compared with their European counterparts. The seemingly parallel movement of Greek and European AEI in the chart does not reflect Greece’s relative position vis-à-vis the EU-27, because Greek growth consistently lags behind the European average. While Greek entrepreneurial income accounted for 7.3% of the EU-27 total in 2005, two decades later it has fallen to 3.8%—almost half—of the European total at current prices. In constant (2010) prices, the corresponding shares were 7.5% in 2005 and 4.5% in 2025.

The frequently repeated argument about small farm size (which supposedly must increase so that income is shared among fewer people—i.e., reducing the denominator of the fraction to raise per-capita AEI) is only half the truth. The number of agricultural holdings has already fallen dramatically, from 834,000 in 2005 to 486,000 in 2023—almost half—and continues to decline. The other half of the truth, however, is that the numerator of the fraction is rising only with difficulty, unable to keep pace with European trends. As a result, per-capita farm income in Greece is increasing, but at a slower rate than in the rest of Europe. Over the past 20 years, Indicator B (index of net agricultural entrepreneurial income per unpaid annual work unit) has more than doubled in the EU-27, from 80 to 200 (+150%), while in Greece it rose from 82 to 126 (+54%). Moreover, between 2024 and 2025 it fell by 12.7% in Greece, while increasing by 14.8% in the EU-27.

I will be surprised if they are not checking these figures closely while they are prepared for negotiations with farmers, at Vathi Square – at the headquarters of the Ministry for Agricultural Development and Food. I am not sure whether Greek farmers have read the EUROSTAT data. What is certain, however, is that this -12.5% drop was felt clearly, “lightening” their pockets and bank accounts. This unbearable lightness of the AEI likely weighed heavily on their decision to block national highway junctions and spend the Christmas holidays – and perhaps new year’s - beside their tractors.