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The multifunctionality model is receiving more and more attention from policymakers as a result of recent initiatives to build more resilient and sustainable food systems as well as the potential for increased farm revenue. This paper explores the role of multifunctional farming in the Italian agriculture viewed through the lens of an entrepreneurial strategy grounded on-farm diversification. Farm diversification strategies, which broaden the farm's traditional boundaries to include additional activities at the farm level, help the evolution towards multifunctionality. A policy-driven transition towards multifunctional farming has been noticed in Italy during the past few decades, which has prompted a strategic reconfiguration of the farm's business models. Drawing on the identified activity of portfolio diversification, this study provides an overview of the analyzed 49,429 Italian farms, by articulating diversification strategies into four entrepreneurial activities, which are related to on/off-farm/farm-related or farm-diverse diversification strategies. This article has attempted to verify the presence of farm types that responded to portfolio diversification management strategies through the use of a cluster analysis on data from the general census of Italian agriculture. Supporting new patterns in the adoption of business models focused on multifunctionality should be considered in European rural development policies. [ABSTRACT FROM AUTHOR]

This study dealt with multifunctional farming, which is meant as a dynamic strategy that is carried out by Italian farms. The path alongside the multifunctional paradigm is carried out through both supply chain and territorial strategies, which deserve more attention. These strategies reinforce sustainable business models characterized by the presence of both deepening and broadening strategies. The first ones are centered around product differentiation and valorization through geographical indications, organic farming, etc. Broadening strategies are implemented through new on-farm activities, such as agritourism, and other gainful activities carried out at the farm level. Set against this background, the article discusses the evolution of farms according to the Farm Accountancy Data Network (FADN) database by putting forward an empirical analysis, which considered the evolution of farm typologies oriented toward multifunctionality in the last decade. The analysis underlined the positive dynamics and the evolution of farms adhering to the multifunctional paradigm. Moreover, as evidenced in the econometric analysis, the adoption of multifunctional farming activities provided a sound contribution to income formation. This addressed some policy issues that were identified at the beginning of the new programming period for rural development of the EU and their resolution aims to reinforce the virtuous trajectory toward multifunctional farming. [ABSTRACT FROM AUTHOR]

The assessment of economic and environmental sustainability of agricultural systems represents a critical issue, which has been addressed in this work with a multi-objective programming model to explore the abatement costs (AC) of CO2 for a set of representative contexts of Italian arable land agriculture. The study was based on the FADN-compliant Italian database RICA and estimates the abatement costs of CO2 emissions in a short time horizon, using linear multi-objective programming and compromise programming. RICA data were used to quantify technical parameters of the model, adopting an innovative concept of a cropping scheme to simulate land-use adaptation. The study shows a quite diversified situation regarding income and emission levels per hectare across the Italian region and farm classes. A reduction of CO2 emissions higher than 5 kg/ha at an AC lower than 1 EUR/kg is affordable only in seven regions, among which Abruzzo, Lombardy, and Puglia show the highest potential. Comparing the estimated abatement costs for CO2 emissions with the corresponding European Trade System prices highlights a difference of 1 order of magnitude, proving that emission reductions for Italian arable crops still require research and innovation to lower adaptation costs. [ABSTRACT FROM AUTHOR]