The methodological approach developed in this study allows us to fully use the FADN information in order to develop useful appraisals of the farm dynamics induced by market evolution and agricultural policy mechanisms. The results show different capabilities to react to policy measures and to market conditions by farms belonging to the same farm type in three different European regions where efficiency is related to the capacity to adapt to new market scenarios. In addition, it is clear how regionalization may contribute to reducing the differences among farms by introducing a more equitable CAP instrument than was planned by the Health Check. However, the redistribution effects among regions may lead some farms finding it more difficult to manage the challenges provided by the market and to a drastic reduction in the meaning of the “safety net” for many farms.
- 1. Department of Economics, University of Parma. Financial support received from the European Commission (Research project FACEPA — Farm Accountancy Cost Estimation and Policy Analysis of European Agriculture, FP7/2007-2013 contract No. 212292) and from the Italian Ministry of Education, University and Research (Scientific Research Program of National Relevance 2007 on “European Union policies, economic and trade integration processes and WTO negotiations”) is gratefully acknowledged.
- 2. The regions considered represent the sample used in the context of the EU-FACEPA research project, of which this paper is an output.