Generational renewal in agriculture is high on the EU political agenda for achieving the ecological transition (1). Currently, the phenomenon encounters various barriers of an economic, educational and social nature. Providing an analysis of the causes and consequences of a reduced access of young people to the agricultural profession can help in defining the necessary requirements for a possible reform of public policies useful for reversing the trend towards a more solid and sustainable agriculture (2).
Introduction
In 2021 agricultural enterprises represented a significant part of the national production fabric with 12% of the total number of companies (about 733 companies) (3).
In the last few years, however, we are witnessing a progressive downsizing of the agricultural production fabric: the consistency of agricultural businesses decreased by 2016% from 2021 to 31, i.e. almost 4.000 businesses were lost.
UAA too (usable agricultural area) decreased by 2,5% (4), and at the same time Italian companies increased the share of land becoming ever larger on the model of the EU ones.
The data which however emerges as more interesting is the presence of one generational imbalance in the sector, average values in the EU indicate that the majority of farmers (56%) are over 55, around 30% are over retirement age and less than 6% are under 35 (5).
Why is generational turnover important in agriculture?
The settlement of young people in agriculture it plays a fundamental role in the development of more solid and alternative value chains to the conventional ones, as they are more open to new stimuli and new knowledge in the agricultural field such as agroecology.
Young people moreover, they conceive the farm not only as a center for the generation of land products, but as a place where value can be generated in a variety of ways.
Current issues on generational turnover
A general difficulty has emerged for young farmers to start agricultural businesses. In fact, some factors coexist that block the generational turnover in agriculture and are attributable to various areas, first of all the economic one with the difficulty of accessing credit for starting a company but also of a bureaucratic nature up to the training one.
The main problems that young people have to face for their first access to Italian agriculture to date are mainly the following.
1) Access to land
The rental costs and purchase of arable land in Italy rank among the highest in the EU.
The average cost of a hectare of rented land amounts to 837 € (in first place in the EU) while the purchase is on average around 21 thousand € (in third place in the EU) (6).
A possible resource it is represented by public lands owned by the state, put up for sale because they are in a state of abandonment and/or unused. On the other hand, the tools to access these lands are few and inadequate.
One of these it is the Land Bank managed by Ismea (7), the access bank to public lands contains some lands of the Institute and of the regions and local bodies that ISMEA makes available for purchase at auction.
In the last five editions 320 lands for a total of about 12.000 hectares have been assigned to companies in the tender for public lands, each company has an average area of 37 hectares and the cost is around €10.000/ha. It is therefore a question of land that is too large and of an unaffordable price for a first settlement.
2) Start-up costs
To add up to the cost to be faced for the purchase or rental of the land, there are the costs for starting up the business.
It's all about costs particularly high and which in many cases require financing or loans which, however, are disbursed with extreme difficulty due to price volatility and the impossibility of making concrete long-term forecasts characteristic of the primary sector.
3) Policies to support generational turnover
current policies in support of generational renewal they find part of the space in the Common Agricultural Policy (CAP) and in particular in the second Pillar on Rural Development.
Actions taken by the CAP
The CAP it allocates approximately 2023 billion euros in the 27-1 programming, i.e. 3% of total direct payments and is on the rise, up until the last programming, in fact, it amounted to 2%.
CAP measures more relevant for generational turnover are represented by support
- supplementary income for young farmers,
- to investments,
- for the first settlement.
However,, the first two measures tend to increase the socio-economic sustainability of farms after young farmers have set up their business, rather than contributing to farm succession while the third is not sufficient to cover start-up costs. Furthermore, the generational renewal measures of the CAP are not well adapted to real takeovers for young people from non-agricultural backgrounds.
The funds of the CAP analyzed therefore do not take the form of a generational replacement tool but of support for young agriculture (8).
Support for cooperation for generational renewal
A new tool introduced by the CAP 2023-27 which bodes well is instead the support for cooperation for generational renewal.
The intervention it is aimed at promoting the development of youth entrepreneurship in agriculture through forms of support and cooperation between farmers over the age of XNUMX or pensioners and young people, who do not own agricultural land, with the aim of gradually transferring the management of agricultural business activities to young people.
The support it is granted to farmers who have reached retirement age and who enter into a support contract with young people under-40, also in associated form.
The support contract commits the elderly agricultural entrepreneur to transfer his own skills to the young, on the other hand the young to contribute directly to the management, even manual, of the business, with intent with the owner and according to what was agreed in the business plan presented jointly with the coaching contract act of submitting the application.
4) Bureaucratic barriers
A strong barrier bureaucracy is represented by the requirements required to apply for funds from the CAP.
The funds foreseen, in the majority of Italian regions, are in fact allocated only if the beneficiary is already qualified as an IAP (Professional Agricultural Entrepreneur), a fact which requires the exercise of the profession full-time.
The other aspect critical bureaucracy is the need to present a business plan at the time of application in which a projection of the business to be launched and expected earnings must be drawn up.
The projection it is based on a standard production parameter, consequently forcing the applicant to overestimate future earnings.
5) Poor access to knowledge
Although the level of training of young farmers under-35 has increased over time across Europe, access to knowledge and advice is still considered insufficient. In 2016, only 43% of young farm managers at EU level had experience beyond practice, compared to an overall average of 32% (9).
Most of the under-40 who wants to enter the agricultural sector, moreover, has a background of study different from the agricultural one.
Conclusion
Open an agricultural business in Italy today it is easily granted only for the under-40 children of farmers with an intergenerational turnover, i.e. from family member to family member who does not need any facilitation tool.
Problems which instead arise for all non-children of farmers are many but must be read as needs in order to favor change in favor of generational turnover in agriculture.
Secure entry of young people in agriculture is of primary importance to encourage the introduction of new production methods and practices such as agroecology, which impact less on the environment and support the development of a healthy economy in the primary sector (10).
Giulia Pietrollini
Cover cartoon by François Frapar, February 12, 2007 http://frapardessindepresse.blogspot.com/2007/02/le-bonheur-est-dans-le-pr-d-ct_8176.html?m=1
Footnotes
(1) Alessandra Mei. Ecological transition and innovation, what opportunities in Italy? GIFT (Great Italian Food Trade). 26.1.23
(2) Dario Dongo. National action plan for pesticides, sustainable agriculture and PNRR. #Clean shovels. GIFT (Great Italian Food Trade). 4.2.22
(3) Farms in Italy economic and productive results, structural, social and environmental characteristics. Revenue Report 2021 | period 2016-2019 https://rica.crea.gov.it/le-aziende-agricole-in-italia-rapporto-rica-2021-803.php
(4) Istat. 7th General Census of Agriculture: first results https://www.istat.it/it/files//2022/06/REPORT-CENSIAGRI_2021-def.pdfENSIAGRI_2021-def.pdf (istat.it) 28.11.22
(5) European network for rural development, Young people and generational renewal, https://enrd.ec.europa.eu/sites/default/files/enrd_publications/publi-eafrd-brochure-08-it_2019.pdf
(6) Eurostat-Agricultural land prices: huge variation across the EU – Products Eurostat News. Eurostat https://ec.europa.eu/eurostat/web/products-eurostat-news/-/ddn-20211130-2
(7) https://www.ismea.it/banca-delle-terre
(8) Dario Dongo. Common Agricultural Policy, what controls on the management of the Member States? Interrogation. GIFT (Great Italian Food Trade). 26.4.23
(9) PSR Planet – Youth, the role of the CAP in generational turnover http://www.pianetapsr.it/flex/cm/pages/ServeBLOB.php/L/IT/IDPagina/2552
Graduated in industrial biotechnology and passionate about sustainable development.
