One in three Swiss farms may be endangered

The report suggests one in three Swiss farmers face financial difficulties Keystone Archive

A new survey shows about a third of Switzerland's farms will not survive much longer as the country's agriculture industry undergoes market reforms.

The report, published by the Federal Office for Agriculture on Monday, said one in three farmers is facing financial difficulties and will be forced to give up in the long run.

The government’s policy of gradually changing the system of subsidies towards more extensive agriculture led to a growing gap between rich and poor farmers, according to the federal authorities.

The number of farms dropped by nearly a third to 70,500 last year compared with figures from 1985, but the ratio of full-time farmers and those who earn only part of their income from agriculture remained stable at seven- to- 3.

The report also found that prices and farmers’ income vary considerably from one year to the next.

Slowing down reforms

The Office said the findings showed that despite difficulties for some farmers the reforms were well on track to make Switzerland’s agriculture more environmentally friendly.

In response, the main agriculture association has called for a slower pace in reforms. It said the figures showed that many farmers and their families were concerned about their future.

As a result of the new agricultural policy, which took effect during the 1990s, more farmers switched to environmentally friendly methods.

The number of farms using certified organic production methods gradually increased to 5,000 over the past few years. The method is particularly popular in mountainous regions of the country, according the Federal Office for Agriculture.

Hefty government subsidies

Switzerland’s farmers have been among Europe’s top beneficiaries of government subsidies, despite a policy change away from production-related payments.

Last year the federal government spent SFr3.7 billion ($2.2 billion) on agriculture.

This accounted for nearly eight per cent of government expenditure, according to the Federal Office for Agriculture.

swissinfo with agencies