European Rural Development Research Articles

Exploring Diversification Strategies among Italian Farms

The multifunctionality model is receiving more and more attention from policymakers as a result of recent initiatives to build more resilient and sustainable food systems as well as the potential for increased farm revenue. This paper explores the role of multifunctional farming in the Italian agriculture viewed through the lens of an entrepreneurial strategy grounded on-farm diversification. Farm diversification strategies, which broaden the farm’s traditional boundaries to include additional activities at the farm level, help the evolution towards multifunctionality. A policy-driven transition towards multifunctional farming has been noticed in Italy during the past few decades, which has prompted a strategic reconfiguration of the farm’s business models. Drawing on the identified activity of portfolio diversification, this study provides an overview of the analyzed 49,429 Italian farms, by articulating diversification strategies into four entrepreneurial activities, which are related to on/off-farm/farm-related or farm-diverse diversification strategies. This article has attempted to verify the presence of farm types that responded to portfolio diversification management strategies through the use of a cluster analysis on data from the general census of Italian agriculture. Supporting new patterns in the adoption of business models focused on multifunctionality should be considered in European rural development policies.

The political economy determinants of agri-environmental funds in the European Rural Development Programmes

The political economy determinants of agri-environmental funds in the European Rural Development Programmes

The European Rural Development Vision in Romanian Context

Rural areas need our implication more than ever, in Romania, we identify a large percentage of people leaving behind their homes. Without a strategy to support and create opportunities, we will lose the heartbeat of our economy and an important part of our identity. This paper aims to study ways to develop self-sustained communities and achieve economic potential by investing in our rural areas’ future through good policies. Based on debate between 25 participants from various professional backgrounds for 5 days, the focus group investigated the study cases of their nations to better grasp the future steps. The focus group is a dynamic mix of youth from European countries such as Greece, Ireland, Croatia, Ireland, and Romania with different educational backgrounds who took the opportunity to study the High value and rural areas in their countries. They identify the needs of different village stockholders and bring all the knowledge together. A great lack of trust in collaboration between farmers and the need for more practical policies was found, in addition to the need for education and a better understanding of how they can round their income. The objectives of this vision will be accomplished with the aid of a Rural Pact and an EU Rural Action Plan with concrete flagship projects and innovative tools.

Highlighting the Drivers of Italian Diversified Farms Efficiency: A Two-Stage DEA-Panel Tobit Analysis

Farm diversification is an important phenomenon in agricultural systems and rural development in Europe, pursuing economic, social and environmental goals. For the sustainability of diversified farms, it is important to analyse some drivers affecting farm efficiency, for instance, socio-economic, technical and policy drivers. The efficiency performance of a panel of Italian farms practising other gainful activities in the period 2012–2017 was investigated and regressed against the drivers that mostly affects farm performances. FADN data and a two-step approach were used. An output-oriented Data Envelopment Analysis was applied; in the second step, efficiency scores were used as a dependent variable in a panel Tobit regression analysis used to determine differences in the significance of drivers. Social, economic, technical and policy drivers were considered as explanatory variables. Results show margins for improving farms performances. The incidence of the output from other gainful activities has been proven to positively affect farms efficiencies, while intermediate costs are the most negatively impacting factor. As regards policy variables and implications, the significance of localization in mountain disadvantaged territories further supports the relevance of EU subsidies in less-favoured areas. Managerial implications in terms of technical, structural and economic indicators can be drawn from study findings.

Territorial Analysis of the European Rural Development Funds (ERDF) as a Driving Factor of Ecological Agricultural Production

The Europe 2030 project identified the need to create a growth model that is based on a dynamic balance between economic, social, and environmental dimensions. This involves, among other objectives, redirecting the resources that are allocated to the Common Agricultural Plan (CAP) toward more ecological agriculture and livestock. In recent decades, two packages of the European Agricultural Fund for Rural Development (EAFRD) approved funds for projects related to agriculture. This study carried out a regional evaluation of the effects on production and employment that were generated in the Spanish organic farming sector. For this, a methodology that is frequently used by researchers to analyze territorial differences was used, namely, the shift-share analysis. The main results showed important differences at the regional level in the production of crops. Likewise, constant shift and constant share analyses were used to forecast the evolution of the sector from the recent data. Pending the approval of the new EAFRD 2021–2030, the results obtained in this research allowed for the identification of the regions that showed a favorable evolution to change the agricultural model and to identify the projects that generated employment and ecological production in the sector.

How are ecological approaches justified in European rural development policy? Evidence from a content analysis of CAP and rural development discourses

How are ecological approaches justified in European rural development policy? Evidence from a content analysis of CAP and rural development discourses

How are ecological approaches justified in European rural development policy? Evidence from a content analysis of CAP and rural development discourses

Ecological approaches to farming are gaining increasing interest in the EU's Rural Development (RD) policy. From a societal perspective, these approaches are expected to deliver public goods in terms of environmental and social benefits for both consumers and rural actors. This study aims to investigate the policy discourses that are being used in the Rural Development Programmes (RDPs) of Sweden, France, Bavaria, Hungary, Poland and Romania to depict and justify the support for ecological approaches across three programming periods of the Common Agricultural Policy (CAP). For this purpose, a model integrating both CAP and RD discourses was developed and applied using deductive content analysis focused on the policy documents of RDPs. The results suggest that during the entire CAP period from 2000 to 2020, ecological approaches were mainly justified in a multifunctionality discourse, especially with the two RD discourses of i) nature conservation in all considered EU member states and regions, with the exception of Sweden, and ii) agri-ruralism, including Sweden. The neomercantilist discourse appears to be the third most dominant discourse in the two most recent CAP periods from 2007 to 2013 and 2014–2020, becoming more prominent between these two periods. Ecological approaches are almost never advocated along liberal lines as the neo-liberalist discourse is almost absent. These results highlight that these six EU member states and regions recognize the potential of these approaches for delivering public goods, despite a lesser emphasis on socio-economic benefits.

Evaluating the New Common Agricultural Policy: Improving the Rules

SummaryThirty years after their conception and adoption, European rural development policies are about to enter a new programming period, splitting away from the cohesion funds and showing, for the first time since the implementation of agricultural policies, real integration with the so‐called first Pillar of the Common Agricultural Policy (CAP). The proposal for the new CAP from 2023–2027 includes some improvements through a new delivery model and organisational approach, which may reinforce future evaluations. As to overseeing the implementation of the CAP, the Commission proposed to move from a compliance‐based to a performance‐based approach. Nevertheless, we can highlight some elements that may weaken evaluation processes, with the risk of repeating past failures, as is the case in the current CAP programming period from 2014–2020. This article analyses the new framework proposed for the evaluation of the future CAP and is intended to promote a discussion on how to make evaluations more usable, useful and reliable for their users and evaluation practitioners. The analysis concerns only the rules for evaluation and does not discuss other specific monitoring, performance framework and control requirements, which are interrelated with evaluation.

Farmers’ Participation in Operational Groups to Foster Innovation in the Agricultural Sector: An Italian Case Study

Recently, the interpretation of the innovation process has changed significantly. Its linear model has evolved to a dynamic and ongoing participatory approach where cooperation, oriented to generate co-ownership, is the essence to co-produce knowledge among multiple actors. Farmers’ direct participation in the process is widely accepted since they contribute with first-hand information, perceptions, field experiences, and feedback that are essential for the design and implementation of a project. The European Union encourages their participation through the European Rural Development Policy that promotes competitiveness and sustainability in the agriculture and forestry sectors, building bridges among heterogeneous stakeholders that complement each other to find an innovative solution to a given problem. Thus far, despite participation importance, few details have been provided about producer’s contributions within the process. Consequently, this paper attempts to explore the modus operandi of an Italian Operational Group to get insights about the farmers’ participation and identify the factors that could influence and foster the interactive innovation process. The results, based on a participatory observation, key informants’ interviews, and theory reflection, revealed that farmers are active players in the design and implementation phases. Yet, their participation is not constant throughout the entire process. Empower them to find solutions with different players is a complex challenge as it requires motivation, commitment, trust, and an open communication among different actors.

Rural Districts and Business Agglomerations in Low-Density Business Environments. The Case of Extremadura (Spain)

The strategy of the institutionalization and development of business agglomerations, in any of its analytical aspects (industrial district, local production system, cluster, etc.), has not had great results in Spanish regions with low business-density, probably due to the difficulty of finding an adequate implementation framework in administrative, geographic, and institutional terms. Based on the limitations presented by the identification methodologies of business agglomerations in low business-density territories, in this work we propose some methodological corrections that allow for reconciling these economic realities with the institutional and geographical framework offered by the local action groups (LAGs). This reconciliation is a useful tool to take advantage of the economies of agglomeration and, consequently, to explore the possibilities of endogenous development in rural areas, so that it can be a factor to take into account when planning and executing the public strategy of local and rural development. Finally, the results obtained for the specific case of Extremadura, the only Spanish region listed as a less developed one in European rural development policies, are presented.

Analysis of farms characteristics related to innovation needs: a proposal for supporting the public decision-making process

Innovation is considered as one of the key drivers for a competitive and sustainable agriculture and the European Commission highlights the importance of tailoring innovation support to farmers’ needs, especially in European Rural Development Policy (reg EU 1305/2013). The scientific literature offers a wide panorama of tools and methods for the analysis of innovation in agriculture but the lack of data on the state of innovation in the farms hampers such studies. A possibility to partially overcome this limit is the use of data collected by the Farm Accountancy Data Network (FADN). The aim of this study is to propose a method to deduce farms’ innovation needs, related to the macro objectives of European Rural Development Policy, using the economic and financial results of the Italian FADN survey. A list of farm management indicators has been identified connected with the innovation demand. Then, using FADN accounting data, indicators have been calculated for homogeneous groups of farms in terms of territory, economic size, and productive sector. In this way, critical farm issues related to innovation needs have been highlighted Finally, as an example of application, measures of the Rural Development Programs (RDP) have been proposed for each farm critical issue. This method can facilitate policy makers and Agricultural Knowledge and Innovation System (AKIS) organizations in identifying some targeted interventions, thanks to a deep analysis of rural contexts and farm systems. The current FADN does not provide specific information concerning the implementation of innovation by farms; for this purpose, new and suitable variables should be added to the annual survey.

Leader as a European Policy for Rural Development in a Multilevel Governance Framework: A Comparison of the Implementation in France, Germany and Italy

Abstract Parts of European rural development policies are meant to empower local decision makers. These policies are implemented in very different multilevel governance contexts in the member states. We question the extent to which the institutional differences at the different levels affect the implementation of LEADER (an approach for Community-led Local Development). This contributes to a better understanding of the causes and consequences of different types of LEADER implementation. The research is based on ten case studies in France, Germany and Italy. First, there is an examination of the three different administration systems and the variations of Rural Development Programmes. Based on analyses of documents and interviews with stakeholders, we analysed institutional differences in the LEADER implementation at local level.

Evaluation of the Economic Impacts of the European Rural Development Program in Austria

The results of an ongoing evaluation process of EU subsidies of the European Rural Development Programme 2014-20 are presented (2nd intermediary report). By means of personal interviews of subsidised companies in the Austrian food and beverage sector, the impact of subsidies on profitability, competitiveness, and related variables are approximated. Data sources are, amongst others, conventional business data collected by personal face-to-face interviews, as well as financial statements of companies. The results show that subsidies in general have positive effects. In addition, two third of the sample would change their investments significantly or even refrain from investing at all without public support.

Evaluating Innovation in European Rural Development Programmes: Application of the Social Return on Investment (SROI) Method

The quest for innovation lies at the heart of European rural development policy and is integral to the Europe 2020 strategy. While social innovation has become a cornerstone of increased competitiveness and the rural situation legitimizes public intervention to encourage innovation, the challenges of its effective evaluation are compounded by the higher ‘failure’ rate implied by many traditional performance measures. Social Return on Investment (SROI) is employed to assess the social innovation outcomes arising from implementation of Axes 1 and 3 of the 2007-13 Rural Development Programme for England (RDPE). Analysis of primary data gathered through structured face-to-face interviews from a weighted sample of 196 beneficiaries reveal that social innovation outcomes generate a total of £170.02 million of benefits from Axis 1 support measures, compared to £238.1 million of benefits generated from innovation outcomes from Axis 3 measures. Benefits are generated through four social innovation outcome categories: individual, operational, relational, and system; and range from changes in attitudes and behaviour to institutional change and new ways of structuring social relations. The paper calls for more comprehensive evaluation approaches that can capture, and value, the multiple benefits arising from social innovation, and further bespoke applications of SROI to help develop and legitimise innovation indicators that will enable stronger linkages back into the policy process.

Transnational Inter-Territorial Cooperation in the LEADER Approach. The Cases of Finland and Spain

This research focuses on the LEADER approach, the practice of neo-endogenous rural development inside the European Union (EU), and inside of this, one of its basic specificities, transnational cooperation projects (TNCP), specifically for Finland and Spain, and for the 2007-2013 programming period, what implementation problems have these projects faced? What effects have been derived from their application? To obtain quantitative information, the reports from the European Rural Development Network have been analyzed; and to extract detailed information, the reports of the National Rural Network of Spain, of Nordic-Baltic LEADER Cooperation Award, have been consulted, in addition to for some projects, the reports of these TNCPs of each Local Action Group; and in the cases that those responsible for these TNCPs have been found, the data extracted from a questionnaire, answered by 19 of them. The data show that PCTNs have not obtained the needed expectations, mainly due to bureaucratic, economic problems, and even, due to the lack of willingness of the initial and last stakeholders and managers in charge to implement them. Therefore, the potential for transnational cooperation remains underutilized in terms of knowledge sharing and skills development, to provide new ideas and inspiration that strengthen rural development strategies, and even to foster solidarity between different rural areas.

Place-Based Policies for Sustainability and Rural Development: The Case of a Portuguese Village “Spun” in Traditional Linen

In recent decades, European rural development policies have transitioned toward a more place-based approach. This claim rests on the assumption that the diversity of resources within rural areas can be a potential source for place-shaping practices and sustainability. Moreover, this shift away from a top-down sectorial toward a more territorial focus has also shed light on the importance of agency, relations, and how people engage. Many rural areas in Europe, and particularly in Portugal, have seen a withdrawal of focus away from agriculture toward more diversified activities, where place-based approaches can untap local potential, stimulate sustainable place-shaping practices, and create significant well-being. However, some rural communities have difficulties in capitalizing on them due to unfavorable demographics such as depopulation and aging, a focus on traditional industries, and a lack of technical knowledge. The aim of the article is to discuss the role of place-based policies for enabling place-shaping practices revolving around traditional resources in rural areas and their contribution to sustainability. The study briefly highlights the recent debate around European rural development policies and illustrates their implementation through place-shaping practices via a case study in a Portuguese rural village—Várzea de Calde. The village revalorized itself and is trying to tackle marginalization processes through its traditional linen, which is a local material and immaterial resource, via collective agency and a strong sense of identity. The case study will provide empirical insights in discussing the effects of sustainable place-shaping practices stimulating by place-based policy instruments. Our conclusions highlight the positive contributions toward sustainability through improvements in social (e.g., identity) and economic well-being.

European Rural Development Policy Approaching Health Issues: An Exploration of Programming Schemes.

Malnutrition, obesity, type 2 diabetes, micronutrient deficiencies, and the increase in non-communicable diseases are among the future European key challenges in health and welfare. Agriculture and rural development policies can positively contribute to a healthier and nutritious supply of food. The objective of the research is to analyze to what extent European 2007–2013 and 2014–2020 rural development programmes address the nexus between agriculture, food, health, and nutrition to respond to the evolving dietary needs. The research carries out a quali-quantitative content analysis on all 210 European rural development programmes. Results show that the interconnection between agriculture, food, health, and nutrition is present, with differences in the European agricultural and rural policy programming periods. The main interlinking issues of the nexus are food safety, food quality, diseases, nutritional aspect, animal health and welfare, plant health, and environmental health. Healthier and nutritious food-related issues are emerging, addressing dietary needs, and sustaining consumer food trends. Healthy and nutritious food is pursued by combating foodborne communicable diseases and non-communicable diseases. The future Common Agricultural Policy, including its rural dimensions, should support the consumption of healthy foods produced in ways that are environmentally and economically sustainable.

Development Opportunities of Homesteads in Rural Areas a Social or an Economic Question?

Abstract The survival of special Hungarian settlement forms (homesteads), due to the increasing urbanization phenomena, raises more and more questions. Are these forms of settlements of special, natural, landscape and cultural value? Or are the empty spaces that have lost their original function, which are relocating to the growing urban agglomerations? In our research, we sought to find out what kind of vision the Hungarian ‘farm’ could have on the 21st century Hungarian Great Plain. On the one hand, our empirical research focused on a homestead survey in the Bács-Kiskun County, where we surveyed the general condition of the farms, and on the other hand we carried out an opinion survey of the population. We have tried to compare the opinion of the urban population and the vision of the people living on the farms, to identify new functions that will fit in with the European rural development policy, financial and professional support in the future. Our results show that diversified developments can help the survival and development of homesteads.

Reviewing Counterfactual Analyses to Assess Impacts of EU Rural Development Programmes: What Lessons Can Be Learned from the 2007–2013 Ex-Post Evaluations?

Counterfactual analysis has been recommended as a means of assessing the impacts of European Rural Development Programmes (RDP) over recent years, although its application has been scarce to date. This paper examines the use of counterfactual analysis to assess socioeconomic impacts in a set of 2007–2013 ex-post evaluations. The analysis undertaken shows that a wide variety of counterfactual approaches have been applied, although certain barriers still remain to address the estimation of RDP impacts following the EU evaluation standards. Furthermore, we noted that impacts provided by individual RDP evaluations may hardly be aggregated, making it difficult to draw clear conclusions about the effectiveness of rural development policy at the EU level.

Social capital in rural development projects in Europe – Three LEADER cases in Wallonia analysed

This article investigates the role in practice of social capital in the success and perennity of European rural development projects, taking three Walloon LEADER projects as case studies. In the context of rural areas, that carry innate characteristics – proximity, sense of community – social capital is expected to play an important role in the success or failure of development projects. Yet, in theory, social capital is mentioned by the European Commission only when referring to outputs of the approach, never as an input. By investigating three LEADER projects that were developed between 2007 and 2013 in Wallonia through qualitative analysis, from the conception of the Local Development Strategy to the current situation of projects – more than 5 years after the end of funding – we confirmed the significance of trust as a lever for development, highlighted the importance of human capital and discussed the relevance of project time-scales.