Economic performance of agritourism: an analysis of farms located in a less favoured area in Italy

Abstract

Farms that operate in less favoured areas (LFAs) often suffer in achieving adequate profits. Diversification strategies, such as direct selling and offering recreational services, can play an important role in integrating earning sources and, as a consequence, increasing farm profitability. Such opportunities would depend on the efficient distribution and use of farm resources among different activities as well as the added value creation of farm output. However, achieving positive results is not obvious in LFAs due to different types of inherent constraints (geographical, social, economic). The paper aims to evaluate the role of agritourism in affecting the economic performance of multifunctional farms located in a less favoured area of Sardinia (Italy). To be more precise, using so-called working farm income as the main indicator resulting from balance sheet analysis, production factor rewards are determined for 15 agritourism farms. The results show controversial performance but basically highlight the difficulty agritourist farmers have both remunerating their work at market price levels and being profitable. This research contributes to the debate on LFAs and offers useful reflections for policy-makers and practitioners about the potential and critical aspects of agritourism in LFAs.

Tackling Protein-Calorie Malnutrition during World Crises

“…Short-term and long-term suspension of food businesses severely hit businesses of fresh food supplies like fruits and vegetables, fish, and cheese which were replaced with supermarket standard products [49]. Agri-tourism that also provides opportunities to local farmers and food entrepreneurs to diversify their income resources has also been collapsed with suspension of tourism, severely affecting economies which heavily rely on the tourism industry [50]. Unlike small- and medium-size food businesses, fast-food business operators and beverages industries aggressively marketed ultra-processed foods and beverages whose regular consumption is associated with increased risk of obesity, noncommunicable diseases, and a higher rate of contract with the COVID-19 and associated mortality [51, 52].…”

Economic Aspects of JBT Agri Farm: Basis for Proposed Action Plan

“…The study "Economic Performance of Agritourism: An Analysis of Farms Located in a Less Favoured Area in Italy'' by Arru et al (2021) analyzed the status of farms operating in less favored areas (LFAs) in terms of profit. Moreover, the study aimed to evaluate the role of agritourism in having an influence on multifunctional farms situated in LFAs.…”

“…The study used a methodological approach called balance sheet analysis; to systematically analyze the farm's profit. The study showed controversial performance regarding the agritourism farmers and their local product's price levels and truly profitable in markets (Arru et al, 2021). "The motives of South African farmers for offering Agri-tourism" by Zyl and Merwe (2021) study's objective is to determine the motives of the farmers for offering Agri-tourism.…”

Impacts of Agritourism Revenues on Farm Incomes in 2004–2020 – The V4 Experience

“…Rural tourism has been extensively analysed from various aspects and for various locations. These aspects include tourist motivation and satisfaction, the service providers's personal and material endowments, their financial position (Klufová and Šulista, 2018;Gajić et al, 2021;Chase et al, 2018;Žibert et al, 2022;Lamie et al, 2021;Stanovčić et al, 2018), their socioeconomic characteristics (Joo, Khanal and Mishra, 2013), and the contribution of agritourism activities to rural livelihoods (Žibert et al, 2022;Augère-Granier and McEldowney, 2021;Arru et al, 2021). However, empirical economic impact analyses of agritourism on farm profitability or farm incomes have been mainly done in the United States, because of the lack of data and the lack of a standard definition of agritourism (Chase et al, 2018;Lamie et al, 2021, Lupi et al, 2017.…”