Do EIP-AGRI operational groups improve farmers’ performance? An analysis of treatment effects in intensive farming systems

The Operational Groups (OGs) of the European Innovation Partnership for Agricultural Productivity and Sustainability (EIPAGRI) were introduced by the 2014-2020 Common Agricultural Policy to foster competitive and sustainable farming and forestry. The objective of this paper is to assess the economic and environmental impacts of participating in the EIP-AGRI OGs located in the Italian region of Emilia-Romagna. Performance of participants in OGs is compared with that of non-participants, who are selected by applying propensity score matching techniques to an Italian farm accountancy data network sample of 3204 farmers observed in the period 2017-2020. Logistic regressions are used to measure both propensity scores and the average treatment effect on the treated, while one-to-many optimal matching without replacement is adopted to form the control group. The resulting sample is composed of 270 observations, of which 45 are treated subjects. Results indicate that the OGs analysed might have contributed to improving fertiliser management and profitability levels in participating farms, but they failed to preserve biodiversity and reduce the consumption of pesticides and other inputs such as water, energy, and fuels. To increase the effectiveness of OGs, policy makers are advised to condition projects on the actual experimentation and implementation of agricultural innovations and apply a performance-based system of indicators for the assessment of the ex-ante and ex-post impacts of farm management.