The Farm’s Orientation towards Sustainability: An Assessment Using FADN Data in Italy

Abstract

The new Common Agricultural Policy (CAP) for the period 2023–2027 commits farmers towards achieving ambitious environmental objectives through farm organization and management. This European agricultural policy has adapted to the contemporary challenges faced by the new model of agricultural development. It aims to enhance the contribution of agriculture to the EU’s environmental and climate objectives while providing better targeted support to small-scale farmers to promote farms’ competitiveness. The main objective of this paper is to describe Italian farms and classify them into groups based on their main characteristics, as well as to analyze their performance and behavior in terms of sustainability and competitiveness. The novelty and innovativeness of this study are found in the data used; a 2020 dataset from the Italian Farm Accounting Data Network (FADN) was used. The quality of FADN data in farm sustainability assessment is widely acknowledge in the literature. To achieve the purpose of this study, a multivariate analysis, in particular, the Principal Components Analysis (PCA), and a Cluster Analysis (CA) were applied. These analyses helped us to obtain the factorial axes which then enabled us to identify economic information on farms, and a better interpretation of farmers’ aptitude to undertake environmentally friendly actions. As a result, eight groups of farms were identified, and their characteristics and performance were described at Italian district level. The results of the study reflect the influence of European interventions towards encouraging farmers to use more environmentally friendly agricultural practices. Under this perspective, the findings contribute to the current debate on green architecture pursued by the future European agricultural policy.