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Abstract
The purpose of the present work is to analyse the economic
performance and financial standing of a group of farms during the 2002-
2005 period, thus providing an opportunity to evaluate ex-post the effects
of the new common agricultural policy orientations.
The twenty agricultural enterprises studied occupy a total area of
8,000 acres and are situated in two regions of central-northern Italy: ten of
the farms are in Emilia-Romagna and characterised by a prevalence of
arable crops, while the remaining ten farms are in Tuscany and produce
grapevines and olives in addition to arable crops.
This paper presents the results of a profitability and balance sheet
analysis of the agricultural enterprises, and examines the reliance of their
overall business performance on EU payments. In line with the new
directions of community policy, the role of diversification in creating
value is specifically addressed, not just in terms of multifunctionality but
also from the broader perspective of multiple business activities.