Publication - Member State Evaluation |

Thematic report on helping young farmers set up

The thematic report analyses the effectiveness of support provided to help young farmers establish themselves in agriculture under the Lazio Rural Development Program (RDP) for 2014-2022.

  • Italy
  • 2014-2022
  • Socio-economic impacts
Farmer collecting tomatoes

The thematic evaluation report is carried out in the framework of the independent evaluation service of Lazio's 2014-2022 RDP and covers the implementation period up to October 2022.

The thematic report, published in 2023, assessed the RDP’s contribution to the CAP objective related to generational renewal of the agricultural sector (Focus Area 2B), focusing on the effectiveness of support provided to help young farmers establish themselves in agriculture (Measure 6.1). The Lazio RDP awarded the highest financial allocation in Italy for set-up support and granted the maximum support allowed by EU regulations (EUR 70 000).

The methodology adopted stems from the evaluation matrix that identifies the evaluation questions, evaluation criteria, indicators and data sources.

The evaluation analysis is carried out with a mixed method, integrating quantitative techniques for the collection and processing of primary and secondary data with qualitative methods, such as focus groups for discussion and deepening and triangulation of quantitative evidence.

The main source of secondary data used is the regional monitoring system. A system for business development plan data is also used to reconstruct some characteristics of the business plans presented by beneficiaries when setting up. Official statistical data (INPS, ISTAT and UNIONCAMERE) is used for contextualisation of RDP action and evaluation of program effects. Primary data was collected at the level of beneficiaries through surveys (395 responses collected) and through a focus group with beneficiaries in mountain areas.

The evaluation concludes that the Lazio RDP is encouraging the generational renewal of the regional agricultural sector. A relevant confirmation comes from data from the recent census of agriculture: in contrast to the national data, the Lazio region shows an incidence of farm holders under 40 years slightly increasing (+0.8 percentage points).

Regarding factors that hinder the entry of young farmers, the report notes that while most young farmers take over existing family farms, the proportion of new enterprises is relatively high compared to other national surveys (RRN, 2018). This trend is consistent with data from the 2020 census, which indicates that young people are more inclined to start new farms compared to farmers over 40 years old. The support provided under Measure 6.1.1 is crucial in setting up a farm, particularly for young people creating start-ups. Access to credit remains a problem regardless of setting up a new farm or taking over an existing one. This is considered the most important factor preventing entry into the sector, together with income expectations, the complexity of the procedures for obtaining support with public funds and the difficulty in accessing land.

Regarding the qualification and experience of the young farmers supported by Measure 6.1.1, the report concludes, among other aspects, that the RDP action supported the entry into the agricultural sector of qualified farmers.

Generational renewal supported by the RDP played a significant role in developing the Lazio region, particularly in its most marginal areas. The program's focus on territorial priorities helped counter the ageing farming population in these regions. According to the results of the focus group, there are several elements that make it difficult to carry out economic activity alongside the personal and family life of new entrepreneurs. However, despite conditions not always being optimal, the entry of young farmers generated investments which, based on the forecasts contained in business plans, amounted to approximately EUR 37.4 million in rural and mountain areas. Investments generated with the support of the RDP also have an effect in terms of work, particularly for the most disadvantaged and marginal areas of the region

Moreover, the analyses show young farmers are strongly committed to strengthening and developing their farms. Land consolidation was promoted by calls for tenders and young farmers responded positively. In general, business plans submitted by eligible young people foresaw a total increase in the utilised agriculture area (UAA) of about 586 hectares (ha), in particular in smaller farms (up to 5 ha). The survey confirmed that supported young farmers carried out a significant expansion, which increased UAA.

After establishing their enterprises, young farmers most commonly focus on activities that enhance the sustainability of their agricultural operations. These activities include adopting organic farming practices, introducing water-saving methods (such as growing less water-intensive crops or using more efficient irrigation systems), investing in energy efficiency and reducing energy consumption, purchasing or renting machinery to reduce soil erosion, and improving the use of synthetic products and fertilisers. In addition to increasing sustainability, these investments are also aimed at minimising production costs.

Equally important are activities related to conversion processes that relate to the generational transition, particularly activities which reflect young entrepreneurial commitment to more market-oriented paths. Furthermore, based on a comparison of census data for the region, as well as from the analysis of the delivery mechanism, the report concludes that Measure 6.1.1 of the Lazio RDP pushed farms to innovate.

It should be noted that the support of the first-settlement premium is considered adequate to cover the costs of setting up, particularly for start-ups, but the realisation of the investments is often more costly and requires a long process.

More than a year after setting up a new enterprise, the beneficiaries continue their business development by investing in sustainability. Young companies have also requested support under other investment measures, in particular through Measure 4.1.1 and 3.1.1, confirming that they continue to focus on increasing farm competitiveness.

Finally, the report concludes that the presence of young managers on the farm results in greater attention towards environmental issues. Young owners focus their efforts on actions aimed at sustainable management of natural resources and climate, as well as consolidating and increasing competitiveness. Young farmers consider that the agricultural activity they carry out positively affects the quality of the environment, confirming the conclusions of the thematic environmental and climate assessment of the 2014-2020 RDP (COGEA, 2021).

Author(s)

COGEA s.r.l

Resources

Italian language

Thematic report on helping young farmers set up

(PDF – 967.35 KB – 48 pages)