The motivation behind the ENRD's consideration of this topic and this background paper, which raises some key issues for further debate, is two-fold. Firstly, the last two enlargements in 2004 and 2007 brought millions of small farms into the EU, most of which are either subsistence farms (SFs) or semi-subsistence farms (SSFs). Their integration with markets is low and their competitiveness has been questioned. On the other hand, they populate rural areas, often the most fragile and disadvantaged regions. They also maintain local rural communities and provide important social, cultural and environmental services (public goods). Consequently, the present situation and the effects of structural change on their survival or disappearance are of great significance for rural areas in the EU. Secondly, similar issues in a broader sense affect all small farms in the EU, which may or may not be SSFs, but are equally important for local communities, cultural heritage and the agrienvironment.  In the recent (December, 2009) discussion paper “Why do we need a Common Agricultural Policy?”, DG Agriculture and Rural Development (DG AGRI) argues that specific farming practices may not be competitive or may have lost their competitiveness but they have helped to generate features such as “the functioning of [an] ecological system, the scenic view of landscapes, and the related notion of cultural heritage” (EC, DG AGRI, December 2009:2). These features may increase the attractiveness of rural areas for business, residence and leisure. However, in order to deliver such public goods, suppliers must be present and not disappearing due to low competitiveness. Referring again to the discussion paper: “...public money for public goods can only be delivered where there is an agricultural presence to which this condition can be attached”. Therefore, the current situation and future fortunes of SSFs and small family farms, which are the main farm structures in some rural regions, are central to rural development (RD) and associated policies in Europe. The other rationale is related to the continuing prevalence of small farms in most Member States (MS) in the EU-27, despite the fact that the process of farm restructuring and consolidation of holdings has been going on for quite a long time, albeit with different modalities and timing.