• Energy Research

Small farms are gaining space and importance within the agricultural policies implemented by the European Union, mainly for the role that they play for the preservation of the territory and for the economic development of local rural areas. Small farms represent a new opportunity to guarantee the permanence of populations and agricultural workers in rural areas, contributing to the formation of the income of farming families. Therefore, in this study, after identifying small farms as those farms that have a Standard Output (SO) of less than EUR 25,000, their structural characteristics were defined, as well as their economic and financial situation. The analysis was performed using the Italian FADN data for the years 2018–2020 and using a set of structural and economic–financial indicators. Furthermore, the study analyzes the relationship between farm performance and agricultural resources and also with farmer demographics and farm size. The principal Component analysis was used to reduce the number of variables used in the Ordinary Least Square (OLS) regression model which was applied to identify the factors contributing to the small farms’ profitability. The territorial distribution of small farms shows a polarization: 37% of them are in Southern Italy, and more than 34% of them are in Northern Italy. The analysis also reveals that about 67% of the Italian small farms are specialized, in particular, in arable land (37.6%) and herbivores (16.8%). They are mainly conducted by men with a high school education level and with an age that is between 40 and 65 years. The economic results also show a good performance, however, there is a wide district differentiation: while the Northern regions have the best results in terms of farm net income, those of Southern Italy are more dependent on the public support they receive. The results of the multiple linear regression analysis revealed which variables (e.g., land size, labor, public aid, etc.) had a direct relationship with the profitability of small farms. The research provides interesting insights to stakeholders on the public support (specific measures) that needs to be designed and implemented to favor the survival of small farms in rural areas.

This study dealt with multifunctional farming, which is meant as a dynamic strategy that is carried out by Italian farms. The path alongside the multifunctional paradigm is carried out through both supply chain and territorial strategies, which deserve more attention. These strategies reinforce sustainable business models characterized by the presence of both deepening and broadening strategies. The first ones are centered around product differentiation and valorization through geographical indications, organic farming, etc. Broadening strategies are implemented through new on-farm activities, such as agritourism, and other gainful activities carried out at the farm level. Set against this background, the article discusses the evolution of farms according to the Farm Accountancy Data Network (FADN) database by putting forward an empirical analysis, which considered the evolution of farm typologies oriented toward multifunctionality in the last decade. The analysis underlined the positive dynamics and the evolution of farms adhering to the multifunctional paradigm. Moreover, as evidenced in the econometric analysis, the adoption of multifunctional farming activities provided a sound contribution to income formation. This addressed some policy issues that were identified at the beginning of the new programming period for rural development of the EU and their resolution aims to reinforce the virtuous trajectory toward multifunctional farming.

In recent years, the certification of environmental sustainability has been adopted by a large number of farms. A wide range of recent literature proved consumers’ preference and willingness to pay (WTP) for certification claiming for reduced environmental impact of food production, whereas the literature on farmers’ preference for a specific scheme design is scant. This study aims at investigating the possibilities of developing an environmental certification (EC) for agricultural products that is more tailored to farmers’ expectations. Data from an original survey among 116 producers from Italy, Croatia, and Greece were used to investigate the most preferred elements of a hypothetical EC for a general agricultural product, by means of a choice experiment. Although differences emerge in relation to the nationality of respondents, the results on average suggest a clear preference and a higher WTP by farmers for a certification that may guarantee an efficient use of water resources. Furthermore, farmers are found to be more inclined toward a public certifying body and the possibility to receive technical assistance for the scheme adoption.