This report reviews recent research (both conceptual and empirical) on farm structural change and the role of agriculture in the rural economy, with a view to highlighting the key trends affecting different kinds of rural areas, identifying potential implications for the future, and drawing conclusions with respect to rural development policy.
As is common knowledge, the role of agriculture in the rural economy of Europe has been in steady decline for decades, indeed centuries. It is being superseded by various kinds of “New Rural Economy” (NRE). This change has proceeded to different degrees in different parts of the EU, generally it is more complete in the centre, north and west, and less advanced in the south and east. The NRE is a variable concept, and often shares many characteristics with the economy of adjacent urban areas.