Supporting Development of Agriculture Land Markets to Bring Abandoned Land into Production - TCP/MCD/3802
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Farm structure in North Macedonia features numerous small family farms with an average farm size of between 1.8 and 1.9 hectares and a few larger corporate farms. Around 40 percent of the total arable agricultural land is state-owned. Excessive fragmentation is evident, with on average five to seven land parcels per farm. Although the average farm size decreased after independence in 1991, recent trends show a rebound. Factors such as excessive land fragmentation and small farm sizes are resulting in low productivity, competitiveness and profitability of farms. Rural outmigration contributes to widespread abandonment of arable agricultural land, with, on average, 32 percent of the arable land in North Macedonia being unutilized. The Government of North Macedonia recognized the potential of bringing back into production both private and state-owned unutilized agricultural land to boost local food production, improve family farm competitiveness and productivity, and stimulate agricultural land markets amid the COVID-19 crisis and multiple crises in the region.