Small farms in Italy between decline and innovative formula: an entrepreneurial model analysis (original) (raw)

Profile of the Italian farmer: The main entrepreneurial types

Food Economics - Acta Agriculturae Scandinavica, Section C, 2010

The aim of this work was to schematise the main strategic profiles found in Italian farming. In a scenario of widespread structural weakness in Italy's agricultural sector, we found a broad entrepreneurial area where farmers with a high risk of extinction work together with farmers who are able to allocate their family resources efficiently both within and outside their farms. In this context, it would be appropriate to implement a new framework of public intervention in the agricultural sector in Europe, which would consider the overall features belonging to the family's objective function in decision-making, such as the presence of work outside the farm. In Italy, the rationale of the farmers' decision-making process is chiefly consistent with the overall socioeconomic environment surrounding the family, as confirmed by our econometric analysis. Although the income level of the different types introduced in the analysis is positively affected by the presence of public support, total aid appears unable to provide a stimulus for farmers, generating considerable farm revenue dependent of offfarm income for their survival.

111 EAAE-IAAE Seminar ‘Small Farms: decline or persistence’

2009

During the three-year period of our investigation, we found that the weight of familyrun farms declined and there was an increase in the role of farms integrated in the market and in integrated low-impact farm. This is a partial change which may be an indicator of a greater capacity of the entrepreneurial fabric to come to the market and the ability to capitalise on the relationship between farm and territory. Comparison between the two periods observing the behaviour of common farmers confirmed the substantial stability of the reference framework and offered further scope for interpretation. First, only about 22% changed their strategic profile. Shifts between strategic profiles especially affected family-run farms and light weighted specialised farms (17%). In particular, there was a major shift from the family-run type to the small, specialised farm. By contrast, the shift from the area of specialisation to the family-run type was less marked, and mostly concerned farms situated in marginal areas with less labour employed on the farm. Another element to be taken into consideration is that the second strategic profile, which has a positive balance of some importance, is that of integrated low-impact farms.

Small farms in Italy: public support, diversification and economic sustainability

The paper explores the role and the significance of multifunctional activities for small farms in Italy, by analyzing both farming and non-farming activities present on farm on the basis of the Italian FADN database (Farm Accounting Data Network), covering the period from 2003 to 2009. Small farms were classified into six mutually exclusive and homogeneous groups (two groups of micro-farms and four groups of small farms) according to their degree of diversification and differentiation of production and, for each group, the economic sustainability as well as the role of public support were assessed through a set of indicators. The results of the analysis confirm the non-economic role of micro-farms, whose justification needs to be rather found in territorial and social objectives. With regard to the small farms, the results show that, even though conventional profiles are still predominant, most farms demonstrate some sort of interest towards diversification and multifunctionality. T...

Farm diversification strategies in response to rural policy: a case from rural Italy

A B S T R A C T Entrepreneurial turns, serendipitous events, entrepreneurial skills and values are critical to the success of rural SMEs. Likewise, 'Resource Orchestration' is an important element of strategic, entrepreneurial activities. An analysis of a case study of a rural family farm business in Italy is provided demonstrating an innovative model of 'rural entrepreneurship' focused on farm diversification to valorise full employment of family members and increased productivity as a direct response to rural policy. The analysis shows how collective family en-trepreneurship can exploit 'clusters of opportunities' through updating entrepreneurial skills. 'Serendipitous acts' are integrated into localised diversification strategies.

Diversification strategies in small farms in Italy

2009

Using the data gathered by the Business Survey on Agriculture survey on a stratified random sample of Italian farm businesses below 4 European economic size units as a case study, this paper explores the diffusion of diversification strategies among small farms. The analysis has shown that more than a half of small farms is adopting some form of diversification. Small farms are more strongly involved in pluriactivity, while their involvement in broadening and deepening strategies appears only marginal. This latter result is partly due to the underevaluation of diversification caused by the lack of detailed statistical information about diversified activities used by farms, and, partly, due to the structural characteristics of small farms. Smaller farms are usually characterized by a lack of capital; as a consequence they can often redeploy only their labour off the farm. The characteristics associated with the targeted group of farms show that small farms using broadening strategies...

Structural and economic dynamics in diversified Italian farms

2013

Objective of this work is to investigate the structural change and economic dynamics of farms pursuing diversification and differentiation strategies in Italy. The analysis was performed on a panel of data built on the basis of information collected by the Italian FADN between 2003-2009. For the purpose of the analysis, we divid- ed the population of commercial Italian farms into a five-fold farm typology based on size and the extent of diversification and differentiation strategies adopted by the farms. In detail, farms are defined as differentiated when they make use of a system of quality certification, while they are defined as diversified when they take up non- farming activities (agritourism, social farms etc.). The findings show that conventional farms remain by far the largest category within the population of Italian commer- cial farms, while only 13% of the total commercial farms are classified as differenti- ated and/or diversified. Farms adopting product differentiation ...

Gender differences in farm entrepreneurship: comparing farming performance of women and men in Italy

New Medit, 2020

Gender differences in rural enterprise are a relevant field of analysis which calls for a deeper investiga-tion concerning key variables affecting farm’s performance and on the basis of gender. This paper tries to explore eventual gender gaps in the farms of Italy. Two variables are investigated: “Who” variable discriminate farm’s manager on the basis of gender under a constituent perspective of female entrepre-neurship. “Where” context is articulated in business, social and spatial context, with the aim of excavat-ing the multiple dimensions of farm entrepreneurship. In order to bring out the differences between male and female condominium farms in Italy, an econometric model was applied, with the aim of identifying context-related differences. The results confirm gender gaps related to farm performance, networking, diversification strategies and access to rural policies, by enlightening diverse paths of development in rural enterprises on the basis of explanatory variables. Theref...

Explaining determinants of the on-farm diversification: empirical evidence from Tuscany region

On-farm diversification towards multifunctional activities is perceived as central in the Common Agricultural Policy (CAP) reform and in the Horizon 2020 strategies, because it strengthens territorial and social cohesion of rural areas. While from a “macro” point of view relations between farm-household diversification and rural economies are central in the process of multi-functionality and in the provision of public goods through agricultural activities, from a “micro” point of view onfarm diversification activities can represent a relevant share of farm income. Agricultural Economics and Rural Sociology have developed models aiming to explain the determinants of on-farm diversification thus providing a set of variables potentially influencing on-farm diversification. The paper applies a count model to explain the number of on-farm diversification activities that are implemented by farms in Tuscany. Since the high number of agricultural holdings that do not apply any diversification activity, we propose a two-step model where, firstly a simulation of adoption of diversified strategy as binary variable is considered and secondly, a model analysing the determinants of diversification intensity among the farms that have decided to diversify is implemented. Results confirm that location near main touristic areas and vicinity to urban markets are important determinants of on-farm diversification intensity. Results highlight a positive contribution of the Pillar 2 agricultural policies both in determining the diffusion of on-farm diversification activities and in influencing the intensity of adoption, while high per hectare Single Farm Payments have a negative influence on diversification intensity.

Type of farming and female entrepreneurship in agriculture: The case of Trentino (Italy

This paper analyses female entrepreneurship in agriculture in the province of Trento (Italy). To carry out this analysis, both the available statistics and qualitative information gathered from in-depth interviews are examined. The quantitative data shows that the frequency of female entrepreneurs is higher in outlying districts where farming is less heavily mechanised and agricultural land is more extensively utilised. Qualitative information allows us to focus more clearly on the constraints that women face to become -and to be recognised asentrepreneurs, particularly where agriculture is capital intensive. In spite of this situation, specific business strategies have been developed by female farmers.

The Diversification of Sicilian Farms: A Way to Sustainable Rural Development

Sustainability

Rural areas still suffer from a lack of sustainable development, and the diversification of farms may be a step in the right direction. The paper provides a detailed picture of the diversification of Sicilian farms into tourism services. Specifically, we propose a simple indicator of localization intensity of agritourism farms and explore their spatial distribution at municipality level. Our study highlights that Sicilian farms rarely diversify into tourism services, despite being situated in attractive areas. That said, some significant spatial clusters of municipalities where agritourism farms are highly concentrated do emerge from the study.