Analysis of Specialisation and Management in Italian Farms Through a Partial Least Square-Structural Equation Modelling Approach

Abstract Using Italian data published by the Farm Accountancy Data Network, this study investigates whether certain variables such as labour, assets, crops, cost, and financial subsides allocated through the Common Agricultural Policy are able to act on the management and on the productive specialisation of Italian farms, and focuses on assessing the main relationships that exist between these variables and the items correlated to them in 8 main types of farming for the period 2004–2019. The results have revealed that while the type of farming practiced has had an influence on farm management, the impact of financial subsides allocated through the CAP has differed. This research fills a gap in the literature by investigating the main relationships that exist between farm specialisation and farm management through the PLSSEM. that enables the identification of which variables have the greatest influence on the management of Italian farms.