From productivity to abandonment: Sub-national evidence from the Italian farm sector in the context of EU agricultural policy

Farmland abandonment is a growing concern, with labour productivity playing a central role. Using FADN (Farm Accountancy Data Network) data (2010–2022), segmented by type of farming, macro-area, and economic size, this study analyses Italian farm labour productivity, both gross and net of EU subsidies. Results show that more than one third of Italian farms, representing over 2 million hectares of Utilised Agricultural Area, present great difficulties in achieving levels of value added per worker adequate to sustain their activity. Olive farms are the most exposed, with more than half at risk of abandonment, particularly medium-sized farms in the South and Islands. While viticulture shows moderate resilience, arable farms have experienced persistent declines in real productivity, largely due to reduced subsidies. Convergence analysis highlights widening structural disparities, particularly between the Centre and the South. These findings stress the urgent need for a reflection on current strategies addressing the issue of farm abandonment.