Economic performance and profitability of agricultural holdings in Inner Areas

Abstract

The National Strategy for Inner Areas was launched by the Italian Government in 2014 to improve the quantity and quality of services (education, health and mobility) in these areas and to promote development projects enhancing the natural and cultural heritage and local production chains. To fulfil the strategy, specific funds have been provided to the Italian Regions and Autonomous Provinces. The Strategy highlights some critical elements and in particular the negative variation in Utilized Agricultural Area (UAA) and number of agricultural holdings. Despite the general abandonment of farmland, the performance and profitability of some agricultural systems in Inner Areas are comparable with those located in the Centres.

This paper analyses the economic results of the holdings surveyed through the Italian Farm Accountancy Data Network (FADN) during the period 2012-2014 and belonging to four Types of Farming: cereals, oilseed and protection crops (COP), viticulture, fruit sector, livestock. Holdings have been classified following the same criteria as the National Strategy in order to compare the performance and profitability of agriculture in Inner Areas and Centres. The main instrument through which the comparison is made is the Income Statement, a part of the Balance Sheet used in the assessment of holding profitability. The economic analysis is conducted at a subnational level (NUTS level 1) considering five macro-regions: North-West, North-East, Central Italy, South Italy and Islands. The paper highlights the difference in the most important budgetary outcomes and in a set of selected income indicators related to production factors (land and labour).