Family farming is the predominant form of agriculture in both developing and developed countries. According to Georgian law, family farming is defined as the set of agricultural activitiesthat aim to improve
family welfare by the joint use of housing and management and the distribution of required resources,
incomes and expenses for the benefit of the family (Law on Ownership of Agricultural Land). Family
holdings produce the majority of agricultural products in Georgia. Although there is no formal typology of Georgian farms, some studies have attempted to classify Georgian
farmers. For instance, a USAID study distinguishes between three categories of farmers in Georgia: (i)
subsistence farmers, (ii) semi-commercial farmers, and (iii) commercial farmers and agribusinesses
(USAID, 2011). This study assessed the role of family farming with regard to the three dimensions (economic,
environmental and social) of sustainable development in Georgia. A literature review, a SWOT analysis,
individual interviews with stakeholders, and case studies were conducted in order to define the role of
family farming in the sustainable development of Georgian agriculture.
In order to evaluate the economic sustainability of family farming, this study looked at the role family farms
play in providing food security and eliminating poverty. It also considered the productivity and
competitiveness of family farms. Although family farms cannot currently be considered a guarantee of food
security for the country, they still provide food for their own households and save the vast majority of the
population from poverty and hunger. The first reason for the low productivity of family farms is privatization-induced land use patterns. A large
majority of family farmers in Georgia own very little land, which is fragmented into several smaller plots.
Another main driver of low productivity is a lack of knowledge about modern technologies and a lack of
professionals in the field of agriculture. Apart from this, a lack of access to quality inputs and finance
contributes to the low productivity of family farms. Low productivity, paired with low commercialization
and weak linkages in value chains, reduces the competitiveness of family farms and hinders their chances
to capitalize on the opportunities presented by the DCFTA.
From the environmental point of view, the role of family farms was assessed with regard to biodiversity,
soil health, pollution and issues related to climate change. The impact of family farms on the environment
has raised controversial opinions among experts. Some argue that family farms have a small positive or a
negligible impact on the environment. Others emphasize a somewhat negative impact due to the lack of
knowledge among family farmers about environmentally sound agricultural practices. According to
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experts, family farms tend to have a positive effect on biodiversity, but a negative effect on soil health. Due
to the lack of knowledge about environmentally-friendly practices, family farms pollute the environment
and are vulnerable to natural disasters caused by climate change.
Lastly, this study looked at the social aspects of family farming by emphasizing the importance of the image
of agriculture in Georgia and people’s attitudes towards it. The experts we consulted emphasized that the
image of agriculture is rather poor. Rural life is associated with poverty and family farming is not perceived
as a job opportunity. Few people recognize that family farming is a main contributor to maintaining the
population in rural areas and preserving historic cultural values.
This study showed that modern and competitive family farms conforming to the European model of
agriculture can be a great complement to larger scale commercial agribusinesses in Georgia. In order to
achieve this, targeted agricultural and rural development policies should be put in place. Targeted
agricultural policies should help semi-commercial and commercial family farmers upgrade their knowledge
and skills, become more integrated in value chains, and thus enhance their productivity and
competitiveness. Such policies should create an enabling environment for innovation and
commercialization, support agricultural education and research, develop advisory services, increase
awareness and focus on Public-Private Partnerships (PPP). Since these policies target semi-commercial and
commercial farms, other farms should be targeted by rural development policies. This would ensure a
sustainable transition of those non-commercial farms that lack the potential and willingness to work in
agriculture to non-farm employment. Modern family farming in the regions will advance Georgia’s goal of
moving towards integration with Europe.