An analysis of the efficiency in a sample of small Italian farms part of the FADN dataset

Abstract

Italian farms have an average surface lower than 10 hectares and they are predominately scattered in the upland rural areas. The most important aspect of small family farms is to protect the rural environment against the socio-economic marginalization of rural territories and reducing the out-migration from the countryside as well. Since the 1960s, the European Union has arranged a microeconomic survey on a sample of farms aimed at estimating the impact of the Common Agricultural Policy strategies on farmers called the Farm Accountancy Data Network or the FADN. The purpose of the analysis was to assess by a quantitative approach using the FADN dataset the technical, economic and allocative efficiency in Italian family farms over the time 2000–2012. In particular, the aim of the paper has been to investigate if the legal typology of property has influenced the efficiency of Italian farms. Some findings have pointed out that the co-operatives and family farms during the five year time 2008–2012 have had the same level of efficiency. Italian small farms smaller than 5 hectares need adequate financial supports allocated by the II. pillar of the Common Agricultural Policy and these subsides are pivotal in particular towards family farms located in the upland and hilly areas.