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Economic profitability and long-term viability in Italian agriculture

Author

Listed:
  • Coppola, Adele
  • Scalera, Domenico
  • Tosco, Domenico

Abstract

The EU direct payments system is about to change and Italian agriculture will face a scenario of decreasing aid. The present work is an attempt to estimate the types of farm at risk in such a scenario by analyzing Italian FADN data. We have estimated a profitability index relating real net income to a reference revenue that takes into account the opportunity cost of resources. This has allowed us to highlight situations where farms are unable to remunerate fairly the factors employed and to identify areas of Italian agriculture at risk. By comparing profitability indices with and without public aid and by analyzing demographic factors and production characteristics, it is possible to investigate how EU payments affect the persistence of non-profitable farms.

Suggested Citation

  • Coppola, Adele & Scalera, Domenico & Tosco, Domenico, 2013. "Economic profitability and long-term viability in Italian agriculture," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2013(1), March.
    • Handle: RePEc:ags:eiapai:166007
    DOI: 10.22004/ag.econ.166007
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    Cited by:

    1. Artur Wilczyński & Ewa Kołoszycz, 2021. "Economic Resilience of EU Dairy Farms: An Evaluation of Economic Viability," Agriculture, MDPI, vol. 11(6), pages 1-14, May.
    2. Adele Coppola & Alfonso Scardera & Mario Amato & Fabio Verneau, 2020. "Income Levels and Farm Economic Viability in Italian Farms: An Analysis of FADN Data," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    3. Antonella Basso & Maria Bruna Zolin, 2023. "Analyzing the land and labour productivity of farms producing renewable energy: the Italian case study," Journal of Productivity Analysis, Springer, vol. 59(2), pages 153-172, April.
    4. Vassalos, Michael & Karanikolas, Pavlos & Li, Yingbo, 2015. "Investigating the Impact of Farm Characteristics, Socioeconomic Characteristics and of the Single Farm Payment on the Viability of Farms: The Case of Greece," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205423, Agricultural and Applied Economics Association.

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    Keywords

    Agricultural and Food Policy;

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