A Comparative Analysis of Organic and Conventional Farming trough the Italian FADN

This paper presents some results from a wider research on economic and environmental sustainability of organic farming. It aims to compare organic and conventional farming in order to identify some of the main differences between those groups of farms that participated in the official Farm Accountancy Data Network (FADN)-2003. The study is organized in two sections. The first part, after a brief literature review of the most recent statistical methodologies applied to identify the two similar groups of farms, presents some key economic variables (production, costs and revenues) and the most widely-used structural, economic and balance sheet indexes. The second part describes findings from a case study on the Italian fruit-growing sector. A non-parametric input-oriented frontier analysis (Data Envelopment Analysis, DEA)was used to evaluate which technique makes better use of their disposable productive inputs. Findings show that organic farmers can (partially) overcome the productivity gap (with respect to conventional ones) by more efficient use of their inputs (with respect to their own frontier)

Organic and Conventional Farming: a Comparison Analysis through the Italian FADN

This paper shows some results arisen from a wider research on economic and environmental sustainability of organic farming. It focuses on organic and conventional farming comparison through an investigation of Italian FADN data. In order to identify some of the main differences between organic and conventional farms a “distance analysis” has been carried out. The study aims to highlight some of the main characteristics of those two groups of farms to better address differences (if any) in production technology, costs and revenues. Furthermore it shows the findings of a non-parametric efficiency analysis on the Italian olive-growing farms. The purpose is to estimate difference in efficiency and productivity between organic and conventional olive producers. Results reveal that looking at the average values on Invested Areas, conventional farms’ Gross Production is significantly higher than the organic ones, as the Net Margin, as the Net Product and Costs. The average values on Total Labour Force instead, shown that, even if conventional farms still have higher values than organic ones, the “distance” become shorter. That means that the two groups are quite similar and that, even if organic farms still produce a lower “economic value”, they better compensate productive factors, especially in terms of Labour Force. Regards to efficiency analysis, we found that organic olive-growing farms are more able in using their disposable resources (with reference to their own frontier), and the higher efficiency permits them to compensate the lower productivity with respect to the conventional farms

Organic and Conventional Farming: a Comparison Analysis through the Italian FADN

This paper shows some results arisen from a wider research on economic and environmental sustainability of organic farming. It focuses on organic and conventional farming comparison through an investigation of Italian FADN data. In order to identify some of the main differences between organic and conventional farms a “distance analysis” has been carried out. The study aims to highlight some of the main characteristics of those two groups of farms to better address differences (if any) in production technology, costs and revenues. Furthermore it shows the findings of a non-parametric efficiency analysis on the Italian olive-growing farms. The purpose is to estimate difference in efficiency and productivity between organic and conventional olive producers. Results reveal that looking at the average values on Invested Areas, conventional farms’ Gross Production is significantly higher than the organic ones, as the Net Margin, as the Net Product and Costs. The average values on Total Labour Force instead, shown that, even if conventional farms still have higher values than organic ones, the “distance” become shorter. That means that the two groups are quite similar and that, even if organic farms still produce a lower “economic value”, they better compensate productive factors, especially in terms of Labour Force. Regards to efficiency analysis, we found that organic olive-growing farms are more able in using their disposable resources (with reference to their own frontier), and the higher efficiency permits them to compensate the lower productivity with respect to the conventional farms.FADN Sampling Organic Farming Distance Efficiency Analysis

Structural and Economic Overview of the Italian Agri-food System: A Focus on Food Prices

An analysis of the main items characterizing the agri-food system highlights the existence of a strong demand for a politically-correct decisional process. This paper analyzes the value of the agri-food sector at national level in terms of Gross Domestic Product, Value Added at basic and current prices (ISTAT), comparing data with the EU level (Eurostat). Farms’ structure and production are analyzed in order to highlight the current situation and future development of the agri-food sector. After an overview of the main structural characteristics of farms, the study focuses on a direct survey (FADN/RICA sample): in order to collect specific data an “ad hoc” questionnaire was drawn up to identify farm characteristics, productive potential and main market regulatory mechanisms. With the objective of highlighting the farmers’ point of view, a case study on an Italian region is presented to evaluate three main topics: a) sales prices: main factors occurring in the price fixing phase; b) distribution channels and commodities prices: perception of strength in terms of trade agreement; c) rules and checks: actions to enhance and increase price transparency through supply chain rings.Agri-food System, Farms, Market, Prices., Agricultural and Food Policy,

Designing Rural Policies for Sustainable Innovations through a Participatory Approach

The added value coming from involvement of stakeholders in changing attitudes and cultures towards a more sustainable-oriented society has been repeatedly emphasized in documents of the European Union. Those documents emphasize the advisability of creating a more inclusive system from the early planning stages and for the whole process with regard to the development of EU policies, involving the stakeholder as a referring partnership both at the national and regional levels. This paper focuses on a case study related to an Italian region where the local partnership has been involved during the setting up of the Rural Development Program 2014–2020 and where a participatory approach has been applied. In order to create an effective output coming from these open consultations, a participatory approach has been carried out using a dynamized Strengths and Weaknesses, Opportunities and Threats analysis (SWOT Analysis). The results presented here come from a specific thematic table where experts and stakeholders discussed a specific priority focused on innovation, training and advisory in rural areas. As expected, sustainable innovations and services as well as training courses need to be improved, while financial resources addressing those issues need to be increased

Potential and Complexity of Implementing Financial Instruments in the Framework of Rural Development Policies in Italy—The Friuli Venezia Giulia Revolving Fund

Although in recent years some credit institutions have shown a willingness to support agricultural entrepreneurs, there is still a lack of private financing or co-financing in the agricultural sector. Many farms, in fact, are not able to meet the indicators or to provide the fees required by banks to obtain investment loans. The financial instruments introduced by the European Commission within the Rural Development Programme aim at supporting access to credit for farms to make them more economically viable, competitive, and suited to market requirements. The objective of this paper is to analyze the role played by the financial instruments introduced by the European Union to support and encourage the improvement of farms and, in general, the agriculture, forestry, human capital, and rural development in Italy. The paper explores the topic in detail by presenting a case study of a region that has successfully applied these instruments using a revolving fund with a special background. The quantitative data used in this study are administrative; some information was obtained through a survey. Regional information on the implementation of this fund is examined in terms of both opportunities and limitations to highlight the best practice. The findings suggest that certain conditions are required to develop and implement effective financial instruments: a real and effective collaboration between regional administration, banking institutions, and farms that are willing to grasp the newness; a reasonable period of time (some years); know-how because knowledge and experience are crucial, together with the ability to face complexity both in terms of normative issues and financial engineering instruments themselves. Several implications derive from these findings

Potential and Complexity of Implementing Financial Instruments in the Framework of Rural Development Policies in Italy—The Friuli Venezia Giulia Revolving Fund

Although in recent years some credit institutions have shown a willingness to support agricultural entrepreneurs, there is still a lack of private financing or co-financing in the agricultural sector. Many farms, in fact, are not able to meet the indicators or to provide the fees required by banks to obtain investment loans. The financial instruments introduced by the European Commission within the Rural Development Programme aim at supporting access to credit for farms to make them more economically viable, competitive, and suited to market requirements. The objective of this paper is to analyze the role played by the financial instruments introduced by the European Union to support and encourage the improvement of farms and, in general, the agriculture, forestry, human capital, and rural development in Italy. The paper explores the topic in detail by presenting a case study of a region that has successfully applied these instruments using a revolving fund with a special background. The quantitative data used in this study are administrative; some information was obtained through a survey. Regional information on the implementation of this fund is examined in terms of both opportunities and limitations to highlight the best practice. The findings suggest that certain conditions are required to develop and implement effective financial instruments: a real and effective collaboration between regional administration, banking institutions, and farms that are willing to grasp the newness; a reasonable period of time (some years); know-how because knowledge and experience are crucial, together with the ability to face complexity both in terms of normative issues and financial engineering instruments themselves. Several implications derive from these findings

Structural and Economic Overview of the Italian Agri-food System: A Focus on Food Prices

An analysis of the main items characterizing the agri-food system highlights the existence of a strong demand for a politically-correct decisional process. This paper analyzes the value of the agri-food sector at national level in terms of Gross Domestic Product, Value Added at basic and current prices (ISTAT), comparing data with the EU level (Eurostat). Farms’ structure and production are analyzed in order to highlight the current situation and future development of the agri-food sector. After an overview of the main structural characteristics of farms, the study focuses on a direct survey (FADN/RICA sample): in order to collect specific data an “ad hoc” questionnaire was drawn up to identify farm characteristics, productive potential and main market regulatory mechanisms. With the objective of highlighting the farmers’ point of view, a case study on an Italian region is presented to evaluate three main topics: a) sales prices: main factors occurring in the price fixing phase; b) distribution channels and commodities prices: perception of strength in terms of trade agreement; c) rules and checks: actions to enhance and increase price transparency through supply chain rings

Rural quality districts in Italy as a tool of sustainable governance

The aim of this study is to point out the opportunities to improve the competitiveness of rural areas using new tools of governance. For this purpose we firstly identify the specific rules adopted in Italy in favour of a specific tool – the district – in order to analyse its guidelines to support rural sustainable development governance. We then describe the implementation of integrated programming approaches, referring data to the Friuli Venezia Giulia Region. The results give us the opportunity to identify a number of projects that were developed among several stakeholders to potentially create and promote a local district