The Evolution of Multifunctional Agriculture in Italy

Abstract

This study dealt with multifunctional farming, which is meant as a dynamic strategy that is carried out by Italian farms. The path alongside the multifunctional paradigm is carried out through both supply chain and territorial strategies, which deserve more attention. These strategies reinforce sustainable business models characterized by the presence of both deepening and broadening strategies. The first ones are centered around product differentiation and valorization through geographical indications, organic farming, etc. Broadening strategies are implemented through new on-farm activities, such as agritourism, and other gainful activities carried out at the farm level. Set against this background, the article discusses the evolution of farms according to the Farm Accountancy Data Network (FADN) database by putting forward an empirical analysis, which considered the evolution of farm typologies oriented toward multifunctionality in the last decade. The analysis underlined the positive dynamics and the evolution of farms adhering to the multifunctional paradigm. Moreover, as evidenced in the econometric analysis, the adoption of multifunctional farming activities provided a sound contribution to income formation. This addressed some policy issues that were identified at the beginning of the new programming period for rural development of the EU and their resolution aims to reinforce the virtuous trajectory toward multifunctional farming.