IDEAS home Printed from https://ideas.repec.org/a/gam/jagris/v14y2024i10p1772-d1493953.html
   My bibliography  Save this article

Does the European Union Start-Up Aid Help Young Farmers to Innovate and to Join Networks?

Author

Listed:
  • Anna Carbone

    (Department for Innovation in Biological, Agro-Food and Forest Systems, University of Tuscia, 01100 Viterbo, Italy)

  • Felicetta Carillo

    (CREA-Council for Agricultural Research and Economics, 00187 Rome, Italy)

  • Pavel Ciaian

    (EU Joint Research Centre Seville, 41092 Seville, Spain)

  • Roberta Sardone

    (CREA-Council for Agricultural Research and Economics, 00187 Rome, Italy)

  • Federico Antonioli

    (EU Joint Research Centre Seville, 41092 Seville, Spain)

  • Juan Tur Cardona

    (EU Joint Research Centre Seville, 41092 Seville, Spain)

Abstract

The endurance and vitality of European agriculture are threatened by the aging of farmers, together with the lack of generational change. The small share of young farmers also impacts on the innovative capacity and competitiveness of the sector. The Common Agricultural Policy of the European Union started addressing the issue long ago by providing financial aid to help young farmers to start up. Over time, the aid increased and packages of measures were set to reinforce the aid and to promote investments, innovations, and networks at the farm level. While the literature focuses on analyzing the effectiveness of the start-up aid in fostering new entries, this paper assumes an original perspective as it seeks to assess whether this aid has actually promoted innovations and networks in the beneficiary farms. The analysis relies on sample data collected in 2021 in Italy and Poland via interviews of 500 farmers under 40 who had entered the sector both with and without the aid. A probit model estimates whether the beneficiaries have a higher probability to innovate and network. Then, the contribution of the aid to the intensity of the adoption of innovations and networks is estimated via an Average Treatment Effect on the Treated model (ATT). Results suggest that the start-up aid increased the adoption of innovations and networks. The ATT indicates that this positive effect holds even after correcting for self-selection bias. By adopting an original perspective, our analysis suggests that the start-up aid for young farmers goes beyond rejuvenating agriculture by fostering innovation at the farm level and by promoting networking, thus enhancing agricultural change. However, farmer behaviors in the two countries are different, suggesting quite complex patterns for the impact of this measure.

Suggested Citation

  • Anna Carbone & Felicetta Carillo & Pavel Ciaian & Roberta Sardone & Federico Antonioli & Juan Tur Cardona, 2024. "Does the European Union Start-Up Aid Help Young Farmers to Innovate and to Join Networks?," Agriculture, MDPI, vol. 14(10), pages 1-23, October.
  • Handle: RePEc:gam:jagris:v:14:y:2024:i:10:p:1772-:d:1493953
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2077-0472/14/10/1772/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2077-0472/14/10/1772/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alexandros Gkatsikos & Dimitrios Natos & Christos Staboulis & Konstadinos Mattas & Michail Tsagris & Apostolos Polymeros, 2022. "An Impact Assessment of the Young Farmers Scheme Policy on Regional Growth in Greece," Sustainability, MDPI, vol. 14(5), pages 1-12, March.
    2. Foster, Andrew D & Rosenzweig, Mark R, 1995. "Learning by Doing and Learning from Others: Human Capital and Technical Change in Agriculture," Journal of Political Economy, University of Chicago Press, vol. 103(6), pages 1176-1209, December.
    3. John Antonakis & Samuel Bendahan & Philippe Jacquart & Rafael Lalive, 2010. "On making causal claims : A review and recommendations," Post-Print hal-02313119, HAL.
    4. Carillo, Felicetta & Carillo, Maria Rosaria & Venittelli, Tiziana & Zazzaro, Alberto, 2013. "Aging and succession on Italian farms," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2013(1), March.
    5. Carillo, Felicetta, 2014. "Young farmer and farm performance," Politica Agricola Internazionale - International Agricultural Policy, Edizioni L'Informatore Agrario, vol. 2014(4).
    6. McBride, William D. & Daberkow, Stan G., 2003. "Information And The Adoption Of Precision Farming Technologies," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 21(1), pages 1-18.
    7. Läpple, Doris & Renwick, Alan & Thorne, Fiona, 2015. "Measuring and understanding the drivers of agricultural innovation: Evidence from Ireland," Food Policy, Elsevier, vol. 51(C), pages 1-8.
    8. Áron József Borda & Balázs Sárvári & Jeremiás Máté Balogh, 2023. "Generation Change in Agriculture: A Systematic Review of the Literature," Economies, MDPI, vol. 11(5), pages 1-15, April.
    9. Amir K. Abadi Ghadim & David J. Pannell, 1999. "A conceptual framework of adoption of an agricultural innovation," Agricultural Economics, International Association of Agricultural Economists, vol. 21(2), pages 145-154, October.
    10. Paul Diederen & Hans Van Meijl & Arjan Wolters & Katarzyna Bijak, 2003. "Innovation adoption in agriculture : innovators, early adopters and laggards," Cahiers d'Economie et Sociologie Rurales, INRA Department of Economics, vol. 67, pages 29-50.
    11. Monica Fisher & Paul A. Lewin & Ryanne Pilgeram, 2023. "Gender differences in the financial performance of U.S. farm businesses: A decomposition analysis using the Census of Agriculture," Applied Economic Perspectives and Policy, John Wiley & Sons, vol. 45(2), pages 1233-1253, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Francesco Licciardo & Roberto Henke & Francesco Piras & Barbara Zanetti, 2024. "The Setting-Up Measure to Support Generational Renewal in Agriculture: The Italian Experience," World, MDPI, vol. 5(4), pages 1-18, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Läpple, Doris & Renwick, Alan & Thorne, Fiona, 2015. "Measuring and understanding the drivers of agricultural innovation: Evidence from Ireland," Food Policy, Elsevier, vol. 51(C), pages 1-8.
    2. Yari Vecchio & Giulio Paolo Agnusdei & Pier Paolo Miglietta & Fabian Capitanio, 2020. "Adoption of Precision Farming Tools: The Case of Italian Farmers," IJERPH, MDPI, vol. 17(3), pages 1-16, January.
    3. Can, E. & Shrestha, S. & Wilson, P. & Barnes, A. & Ramsden, S., 2015. "Pr - Uptake Of Agricultural Innovations In Scottish Beef Farms: A Review Of Concepts, Challenges And Scientific Approaches," 20th Congress, Quebec, Canada, 2015 345767, International Farm Management Association.
    4. Bjerke, Lina & Johansson, Sara, 2022. "Innovation in agriculture: An analysis of Swedish agricultural and non-agricultural firms," Food Policy, Elsevier, vol. 109(C).
    5. Yari Vecchio & Marcello De Rosa & Gregorio Pauselli & Margherita Masi & Felice Adinolfi, 2022. "The leading role of perception: the FACOPA model to comprehend innovation adoption," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-19, December.
    6. Fang, Di & Richards, Timothy, 2016. "New Maize Variety Adoption in Mozambique: A Spatial Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235388, Agricultural and Applied Economics Association.
    7. Micheels, Eric T. & Nolan, James F., 2016. "Examining the effects of absorptive capacity and social capital on the adoption of agricultural innovations: A Canadian Prairie case study," Agricultural Systems, Elsevier, vol. 145(C), pages 127-138.
    8. L. Toma & A. P. Barnes & L.-A. Sutherland & S. Thomson & F. Burnett & K. Mathews, 2018. "Impact of information transfer on farmers’ uptake of innovative crop technologies: a structural equation model applied to survey data," The Journal of Technology Transfer, Springer, vol. 43(4), pages 864-881, August.
    9. Chowdhury, Iftekhar Uddin Ahmed & Wang, Tong & Jin, Hailong & Smart, Alexander J., 2020. "Exploring the Determinants of Perceived Benefits of Rotational Grazing in the U. S. Great Plains," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304487, Agricultural and Applied Economics Association.
    10. Marra, Michele & Pannell, David J. & Abadi Ghadim, Amir, 2003. "The economics of risk, uncertainty and learning in the adoption of new agricultural technologies: where are we on the learning curve?," Agricultural Systems, Elsevier, vol. 75(2-3), pages 215-234.
    11. Faruque-As-Sunny & Zuhui Huang & Taonarufaro Tinaye Pemberai Karimanzira, 2018. "Investigating Key Factors Influencing Farming Decisions Based on Soil Testing and Fertilizer Recommendation Facilities (STFRF)—A Case Study on Rural Bangladesh," Sustainability, MDPI, vol. 10(11), pages 1-24, November.
    12. Tessema, Yohannis Mulu & Asafu-Adjaye, John & Kassie, Menale & Mallawaarachchi, Thilak, 2016. "Do neighbours matter in technology adoption? The case of conservation tillage in northwest Ethiopia," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 11(3).
    13. Vecchio, Yari & Di Pasquale, Jorgelina & Del Giudice, Teresa & Pauselli, Gregorio & Masi, Margherita & Adinolfi, Felice, 2022. "Precision farming: what do Italian farmers really think? An application of the Q methodology," Agricultural Systems, Elsevier, vol. 201(C).
    14. BLAZY Jean-Marc & CARPENTIER Alain & THOMAS Alban, 2008. "An ex ante adoption model of low input innovations applied to banana growers in the French West Indies," LERNA Working Papers 08.32.276, LERNA, University of Toulouse.
    15. Nicholas M. Gotts & J. Gareth Polhill, 2009. "When and How to Imitate Your Neighbours: Lessons from and for FEARLUS," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(3), pages 1-2.
    16. Blazy, Jean-Marc & Carpentier, Alain & Thomas, Alban, 2011. "The willingness to adopt agro-ecological innovations: Application of choice modelling to Caribbean banana planters," Ecological Economics, Elsevier, vol. 72(C), pages 140-150.
    17. Franz Sinabell & Fabian Unterlass & Peter Walder & Jochen Kantelhardt, 2017. "Österreich 2025 – Innovation: der Motor für Wachstum und Beschäftigung in der ländlichen Wirtschaft," WIFO Studies, WIFO, number 60801, March.
    18. Franz Sinabell & Fabian Unterlass & Peter Walder & Jochen Kantelhardt, 2017. "Austria 2025 – Innovation: A Motor of Growth and Employment in the Rural Economy," WIFO Studies, WIFO, number 60604, March.
    19. Peter Walder & Franz Sinabell & Fabian Unterlass & Andreas Niedermayr & Denisa Fulgeanu & Martin Kapfer & Michael Melcher & Jochen Kantelhardt, 2019. "Exploring the Relationship between Farmers’ Innovativeness and Their Values and Aims," Sustainability, MDPI, vol. 11(20), pages 1-15, October.
    20. Hunecke, C. & Meyer, S. & Brummer, B., 2018. "Technology Diffusion through Networks - Adoption of automatic milking systems in Germany," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277543, International Association of Agricultural Economists.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jagris:v:14:y:2024:i:10:p:1772-:d:1493953. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.