HAZELNUT FARM INCOME AND PROFITABILITY IN AN IMPORTANT CULTIVATION AREA IN ITALY

The paper focuses on the economic impact of the Mid-Term Review of the Common Agricultural Policy on the hazelnut farms in the Viterbo province, one of the main Italian producing areas. The impact was defined on the profitability levels of four representative farms. It was estimated by applying the new support scheme. The results show that the reform should not affect the farms’ income. A relevant impact would instead be suffered by the Producers’ Associations, whose quality programs will no longer be financed. Abolishing these aids will eliminate the economic incentives to the farms to join the Associations and to comply with the quality requirements of their programs. This could weaken the competitiveness of Italian production. The Associations have to improve the effectiveness of their quality protection and of their market strategies in order to maintain the adhesion level of the farms and the contractual strength gained in the last years.