1. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges International Conference "The Common Agricultural Policy – The role of small farms and food safety" The role of small scale farms Considerations from the Italian experience Franco Sotte – Emilio Chiodo

2. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The ambiguity of the agricultural sector: are all farms entrerprises ?  In Italy (Rural Development National Strategical Plan - april 2006):  « “agricultural enterprises”, in spite of a reduction of 14% between 1990 and 2000, are still more than 2,5 million (21% of production units in EU 25) »  47% of farms use less than 2 ha agricultural area  The average farm?  5,3 ha agricultural area  9.200 Euro of Standard Gross Margin (SGM) per year  Is this average farm an enterprise?

3. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The ambiguity of the agricultural sector: are all farms entrerprises ?  Some standard income in the Italian context  8 ESU (European Size Units) = € 9.600 (SGM): the average income of a retired person  16 ESU = € 19.200 (SGM): the average wage of a dependent worker  Is this the outcome of 50 years of national and EU policies?

4. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges How many farms there are in Italy (more than 2,5 million or less than 500 thousand)? Italy (000)% Farms (Italian definition) 2.507100,0 (Agricultural Census,2000) Farms (UE definition) 2.13585,2 (Agricultural Census, 2000) Farms with commercial activity 1.59463,6 (Agricultural Census 2000) Agricoltural entrprises 1.05942,3 (Chambers of Commerce, 2000) Agricoltural entrprises 96538,5 (Chambers of Commerce, 2005) Agricultural Entrepreneurs 48819,5 (Population Census, 2001)

5. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges “Enterprise” farms and “non-enterprise” farms FarmsAgricultural areaSGM Thousand%(000) ha% (000) ESU% Non-enterprise< 8 ESU2.07582,83.63527,63.92620,3 Small8-161947,71.79313,62.18511,3 Medium16-401496,02.72120,73.70519,2 Large40-100632,52.29617,53.82919,8 Very large> 100 ESU251,02.70220,65.66829,3 TOTAL 2.50710013.14710019.313100 > 8 ESU43217,2951272,41538779,7 > 16 ESU2389,5771858,71320268,4

6. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges A comparison between “enterprise” and “non-enterprise” farms

7. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges Economical dimensions Non entreprise Small size entreprise Medium size entreprise Large size entreprise

8. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges Some others data…  % of young people:  Non-entreprise farms: 9%  Entreprise farms: 15%  Working days per farm  Non-entreprise farms: 73  Entreprise farms: 417  SGM / day per farm  Non-entreprise farms: 31.3 Euro  Entreprise farms: 102.5 Euro

9. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges What can we conclude ?  Average values: don’t give the right picture of Italian agriculture  Agriculture is a sector in a deep transformation  A large number of farms  But a small number of “enterprise” farms and entrepreneur farmers  In particular a small number of young farmers  Wich consequences for farm strategies and for policies?  …Differentiation !

10. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The necessary conditions for an enterprise farm 1.Economic dimension - even small, but neither irrelevant nor occasional 2.market orientation 3.Attention to public policies 4.Risk 5.Efficiency – professional engagement in the farm – qualification and education – opposition to rents 6.Strategy – long term objectives – business planning

11. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The strategies for enterprises: where is the “value” in agriculture today? Source: Van der Ploeg

12. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The strategies for enterprise farms: where is the “value” in agriculture today?  Deepening  Typical and quality products  New patterns of certification and valorisation  New kinds of products (new varieties, organic products, etc.)  Processed products  Associated management of the supply chain  Short supply chain between production and consumption  Direct selling (farm shop, farmers market)  Direct picking-up (pick-it yourself)

13. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The strategies for enterprise farms: where is the “value” in agriculture today?  Broadening  Machine contracting  agritourism  culture (school farms)  wellness (fitness, sport)  social (social agriculture, agricultural therapy)  environment  Nature and landscape management  bio-energy  publics services for territory management

14. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges The strategies for “non-enterprise” farms:  Regrounding  Integration in the rural economy  Craft lab  Art lab  Rural shop  Rural fairs and folklore  Pluri-activity  In the farmer family  For the farmer itself  Residential functions and rural villages  repair and management of typical buildings  management of rural landscape and territory

15. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges From traditional farms to agricultural enterprise farms … aggregation !!!  The critical dimension  association in land management  association in production  Integration between different functions  production and selling (chain integration)  breeding and farming  specialisation and product range (i.e.: agritouristic system, direct marketing)  agricultural and non-agricultural skills  Valorisation of the overall image of rural areas

16. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges From traditional farm to agricultural enterprise farms … wich services ?  Integration between research and farm needs  Universities – research centers – agricultural organisations  Technical assistance and agricultural extension  multi-disciplinary technical assistance  news matters: management, marketing, etc.  multi-disciplinary competences  Examples and best practices  business ideas  good practices  business planning

17. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges Associated management in the wine sector: the italian cooperatives wineries system  Italian wine growers: 191.599 (2003)  115.435 associated in cooperatives  76.164 non associated  Average agricultural surfaces  4/5 of associated wine growers cultivate less than 2 ha of vineyard  Cooperatives (wine makers):  547 units (1,4% of wine cellars)  24 million hectolitres (50% of italian production)

18. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges Associated management in the wine sector: the italian cooperatives wineries system  The wine sector: quality and typical products  354 denomination of origin (DOC and DOCG): 31% of total production  123 geographical indication (IGT): 26% of total production  Can small producers stay on the market (variation 99/03 – associates in cooperatives):  5 ha: -18%  but:  -34% non quality wine growers  +14% quality wine growers

19. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges Wich policies for “enterprise” farms?  Market policies (key word: competition)  Quality: IG, DO, organic, traceability  Traditional products: exception in UE food safety rules for traditional products  Aggregation and supply programming  Consumer education  Rules and controls  Second pillar (key word: enterprise)  incentives to competitiveness  payments for environmental services  diversification

20. agriregionieuropa associazioneAlessandroBartola studi e ricerche di economia e politica agraria Groupe de Bruges Wich policies for “non-enterprise” farms:?  Aggregated services for farmers  consortia and farmers associations  production standards  Traditional products: exception in UE food safety rules for traditional products recognized by Regions  Quality: IG, DO, organic, traceability  Associated management of the supply chain (farmers markets, etc.)  Rural development  pluriactivity for the farmer family  diversification in rural areas