The role of small farms in Italy: between subsistence and diversification

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The paper explores the role of small farms in Italy, by analyzing the significance of on-farm farming and non-farming activities on the basis of the Italian FADN database (Farm Accounting Data Network), covering the period from 2003 to 2009. Small farms were classified into six mutually exclusive and homogeneous groups (two groups of micro-farms and four groups of small farms) according to their degree of diversification and differentiation of production and, for each group, the economic sustainability as well as the role of public support were assessed through a set of indicators. The results of the analysis confirm the non-economic role of micro-farms, whose justification needs to be rather found in territorial and social objectives. With regard to the small farms, the results show that, even though conventional profiles are still predominant, a significant number of small farms shows some sort of interest towards diversification and multifunctionality. The majority of farms in the panel focused on the strategy of differentiation through quality products, which is a key aspect for Italian agriculture performance and competitiveness. Finally, the indicators on public support seem to confirm the complementary role of rural development policies to the first pillar of the CAP, by highlighting the need of implementing more effective policy tools aimed at preventing the exit of small farms from the sector, also by supporting the entrepreneurial skills necessary to react and reverse the marginalization process.