An Assessment Of Rurality In Italian Farms And In Their Specialization Using A Quantitative Approach

The Farm Accountancy Data Network (FADN) is a dataset able to investigate in depth the impact of the Common Agricultural Policy in a sample of farms. The core purpose of this research was to assess by a quantitative approach an estimation of rurality in Italian farms part of FADN dataset investigating also if the specialization of farms has impacted on the rurality. In fact, this quantitative approach has assessed the cause-effect relationships among different items and endogenous variables. The methodology has used a non-parametric approach such as the Partial Least Square Structural Equation Model (PLS-SEM) due to a small numerousness of farms in the sample and a not codified and consolidated methodology aimed at investigating the rurality. The sample has compared all Italian farms part of FADN dataset since 2006 to 2016, grouping also farms in 8 main clusters based on their own productive specialization. Findings have pointed out as the endogenous variables cost, financial subsidies allocated by the Common Agricultural Policy and the different endowment in crops or livestock have influenced on the rurality with significant unbalances in function of the specialization. Drawing the conclusions, the land endowment, payments and indirect subsidies disbursed by the European Union have acted directly on the level of rurality in all investigated Italian farms.