Diversification and multifunctionality in Italy and the Netherlands: a comparative analysis Laura Aguglia INEA, Italy, Roberto Henke INEA, Italy Krijn Poppe, LEI Wageningen UR, The Netherlands Aide Roest LEI Wageningen UR, The Netherlands Cristina Salvioni University of Pescara, Italy

the product mix of farms is increasingly complex –agricultural commodities, –non agricultural commodities (energy) and services (educational, social, etc.) –non-commodity outputs (e.g. landscape, biodiversity conservation; farm resources are progressively deployed to non ag. and to off farm activities – pluriactivity – use land used for the production of wind or solar energy or for storage. Farms are increasingly complex

The farm problem price cost squeeze induced by – technological change and – small size/lack of bargaining power both respect to clients and providers. farm incomes –continuously eroded – lag behind average incomes.

Farm adjustments under productivism Farm adjustment Productivist Solution Production Specialization Increase Scale GROWTH MARGINALIZATION Pluriactivity Part time Ceasing ag. production Sell land to other farms Reallocate L and K in other sectors

More complex adjustment… still productivist poverty

Post-productivism and rural development STORAGE Rural space consumption poverty

Non-rivalry goods and services (indivisible) Rivalry goods and services (divisible) Impossibility of exclusion or rejection (1) Pure public goods open space / rest / biodiversity / natural habitat / cultural heritage (2) Common goods ground and surface water / fish in the ocean, rivers and canals / wildlife Possibility of exclusion or rejection (3) Quasi public goods nature / landscape (4) Pure individual goods agricultural products / agricultural tourism / health care farms Multifunctionality: typology of goods

Post-productivism, multifunctionality and rural development STORAGEGREENCARE Rural space consumption poverty MULTI FUNCTIONALIT Y

An operational classification Van der Ploeg, 2003 FARM ADJUSTMENT DeepeningBroadeningRegrounding Agricultural goods with unconventional characteristics (organic, quality, etc.), Acquisition of functions down the line from production (direct sales, processing, etc.). Expansion of income- producing activities, some of which can be completely independent of agricultural production (agriturism, energy production, ecc.) re-deploy farm resources, labour in particular, off the farm (pluriactivity)

Multifunctionaliy and diversification in the FADN The Netherlands Field of observation= commercial farms (>10 ESU) More information on broadening than deepening More information about the household Italy Field of observation= commercial farms (>4 ESU) More suited to measure deepening than broadening Off farm activity only for those hh. members working on farm

Diversification and multifunctional practices in the FADN

Diversification and multifunctionality Italy and the Netherland D B D B

Diffusion of broadening, deepening and re-grounding

OK with counting diversified farms... … but we also want to know if diversification is worthful to the farm

Economic impact of targeted strategies Net farm income for family AWU

Conclusions FADN is the only data base systematically gathered at the national level in all Member States Containing both structural and economic info The original design of the FADN survey has a productivist orientation it needs to evolve to include new non-productivist aspects of farms’ activities. Comparison between countries hampered by the differences in national FADNs. harmonisation, possibly directed by DG Agri, would help and is needed. What can be measured by using FADN data is diversification at the farm level. this information can then be complemented with external sources in view to define multifunctionality at the territorial level.