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. • Significant disparities in labour productivity emerge across macro-regions and Type of Farming. • Medium-sized farms face higher abandonment risks compared to larger farms, particularly in the South. • Subsidies are critical for oliviculture, with declining real productivity despite Common Agricultural Policy support. • Over one-third of Italian farms fall below the labour profitability threshold, with olive farms showing the highest risk. • The study underscores the need for targeted CAP policies to address rural exodus and desertification risks.