An overview of state subsidies in Italian agriculture in the period 2000-2019

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Abstract: This paper provides an analysis of the trends and the main components of public support in agriculture in Italy over the last twenty years (2000-2019). For this analysis, the rich information contained in the CREA database "Agricultural expenditure of the Regions" was used, the most updated and constant source of information on public spending in agriculture, with regional details that distinguish it from other official statistical sources (Sotte, 1993; Sotte, 2000).Overall public support for the agri-food sector in the period under consideration decreased by about EUR 4 billion (from EUR 15.613 billion in 2000 to just below EUR 12 billion in 2019). The share of support in agricultural added value has also decreased: from 55% in 2000 to about 34% in 2019. Looking at the individual categories of support (EU CAP 1st and 2nd pillar funds, tax and social security reliefs, state transfers and regional funds) taken into consideration in the analysis, it is clear that this decrease is due to the halving of tax and social security reliefs (from 27 % to 17%), and the significant reduction in the support provided by the budgets of the Regions and Autonomous Provinces (from over 4 billion euros in 2000 to 1.7 billion euros in 2019). To this adds the reduction in governmental transfers (from 4.3% to 3.9%). As a result, EU support was consequently stable in the first decade and increased in the last ten years (from 43% in 2000 to 64% in 2019).