Most of the world's farms are small: FAO counts more than 608 million family farms, and five in six of them cover less than two hectares. Together these small farms grow roughly a third of the world's food on about an eighth of its farmland, often with family labour, little machinery and few purchased inputs. Many of the people who run them are poor. In most low- and middle-income countries with data, small-scale food producers earn less than USD 2,500 a year from farming and produce less than USD 25 worth of output per day of work (both in 2017 purchasing power parity dollars). With so little income, a failed harvest, a price drop or an illness can force families to sell livestock or land, take children out of school or cut back on food.
Small producers face higher costs and risks than large farms on almost every front. Plots are often too small to support a family, land rights are insecure, buyers and input suppliers are few, and credit, insurance and advice are hard to obtain. Women who head farm households earn less than men even where they are more productive. Climate change adds droughts, floods and new pests, but only 0.8% of tracked climate finance in 2019/20 went to small-scale agrifood systems. SDG target 2.3 aims to double the productivity and incomes of small-scale food producers by 2030, yet so few countries collect the necessary data that progress towards it cannot be measured globally.
Who counts as a small-scale producer
There is no single definition of a smallholder. Studies use farm size, the role of family labour or income, and the SDG framework combines several criteria. The main ways of measuring the group and its situation are:
Farm size
The simplest and most common measure counts farms below a fixed area, usually two hectares, using agricultural census data. It is easy to compare across countries but ignores differences in land quality, irrigation and crops: two hectares of irrigated vegetables are not the same as two hectares of dry grazing land.
Family farms
A family farm is run mainly by a household and relies mainly on family labour. Most family farms are small, but the category also includes many medium-sized and some large farms, so figures for family farms and small farms should not be mixed up.
SDG 2.3.1: labour productivity
The value of production per unit of labour, compared between small-scale and larger producers. FAO counts as small-scale those producers at the lower end of their own country's distributions of land, livestock and farm revenue, so the threshold differs from country to country.
SDG 2.3.2: income
The average annual income that small-scale food producers earn from agricultural production, broken down by sex of the household head and, where possible, indigenous status. Both SDG indicators need detailed farm or household surveys, which many countries do not carry out regularly.