Proceedings of the 2018 International Scientifi c Conference ‘Economic Sciences for Agribusiness and Rural Economy’ No 2, Warsaw, 7–8 June 2018, pp. 59–67 ISBN 978-83-7583-803-9 DOI: 10.22630/ESARE.2018.2.6 THE FARM TYPOLOGIES AND ITS PERFORMANCE IN ALBANIA (CASE OF ELBASAN) Maksim Meço, PhD, Associated Professor1; Ilir Kapaj, PhD, Associated Professor2; Ilir Tomorri, PhD3 Faculty of Economy and Agribusiness, Agricultural University of Tirana ABSTRACT The aim of this paper is to determine the farm typology in Elbasan region and orient policy maker’s agri- culture support scheme. Albania is divided into 12 regions and 61 municipality. Region of Elbasan is one of the intermediate ones4 and consists of 4 districts (district of Elbasan, Gramsh, Librazhd and Peqin). Elbasan ranked third by the availability of agricultural land in the country after Fier and Korca (72,872 ha or 10.4% of the agricultural land area at country level). Despite the size of the agricultural land area, it should be consid- ered that a good part of it lies in hilly and mountainous part especially in Librazhd and Gramsh districts. Besides construction and development services, there is observed a growing trend of agricultural activity especially in terms of olive and vegetables cultivation in open field and greenhouses. In this region operate about 32,439 farms. The average farm family size is 4.9 persons, while the national average farm size is 4.5 persons (MAFCP, 2012). The farm typology was determined using nine indicators. Based on these indicators are identified the fol- lowing type of cluster/typology for Elbasani district: poly-culture for market; livestock; leisure farms; fruit trees; arable crop farm; self-sufficiency. The farm performance was determined using factors productivity which reveals that farms that belong to the poly-culture for market, livestock and self-sufficient clusters are performing better than other clusters. Keywords: Elbasani region, farm typology, farm performance JEL code: Q10 INTRODUCTION the orientation and decision making of farmers can be mentioned: During the transition period, production structures as − Meeting the needs (it is clear that completion of well as other indicators that characterize the agricul- consumption needs, under the conditions of sub- tural sector of a country have changed significantly sistence farms, is one of the main motives in their in Albania. Among the factors that have influenced decision making). 1 Corresponding author: Rr. Pajsi Vodica, Kodër/Kamëz, Tirana, Albania, [email protected], +355 675 463 180 2 Corresponding author: Rr. Pajsi Vodica, Kodër/Kamëz, Tirana, Albania, [email protected], +355 684 013 722 3 Corresponding author: Rr. Pajsi Vodica, Kodër/Kamëz, Tirana, Albania, [email protected], +355 672 017 908 4 OECD Classification. PART 1. Transformations in agriculture and food economy in European countries 59 Proceedings of the 2018 International Scientifi c Conference ‘Economic Sciences for Agribusiness and Rural Economy’ No 2, Warsaw, 7–8 June 2018, pp. 59–67 − Availability of resources (farmers were engaged THEORETICAL BACKGROUND in production systems where needs for human re- sources are mainly provided by family farmers, During the economic transition the agricultural sector and in crops whose products resists for a long time of Albania has changed significantly. This process con- and have relatively low demands for purchased tinues parallel with global trends of periods of relative inputs). consolidation. The diversity of farm types is increasing − Incomes intensity (culture cultivation with high in terms of both their production structure and produc- income per unit of surface as well as higher mar- tion organization. Even though the farms are still small ket opportunities). in terms of the average size, there is an increasing ten- − Experience and tradition (the farmers were ori- dency of fallow land, due to emigration and migration ented towards activities well-known by them). of the rural population (Boeckhout and McClements, The impact of these factors combined with the 2010). This is mainly due to traditions, because house- mentality, level of information and geographic loca- holds composed of several families use greater parts of tion led to a total new orientation of Albanian farm farm land for subsistence. Region of Elbasani is part of production structures. In the first decade after the the central statistical region, according to second level 1990s it is noticed the adoption of complex and multi- of Eurostat. Annual income per capita in 2009 accord- cultural production systems, characterised by a large ing to Eurostat statistics for Elbasani Region is about number of agricultural crops and animals. 287 thousand ALL (EUR 2,0535), about 20% lower A part of the development barriers identified than the national average (LSMS, 2012). Meanwhile, above continue to be major obstacles to farm devel- the level of poverty in two mountainous districts of opment. Surface of agricultural land has relatively the region (Librazhd and Gramsh) is 2% higher than little decreased (according to the latest official statis- the national average (MAFCP, 2012). Besides con- tics). It results to be 696,000 ha, because of changing struction and development services, there is observed its destination into non-agricultural (mainly for urban a growing trend of agricultural activity especially in use), but an important issue remains the fallow land terms of olive and vegetables cultivation in open field mainly because of emigration and urban migration. and greenhouses. In this region operate about 32,439 Thus, the number of farms, which have left partially farms. The average farm family size is 4.9 persons, or completely fallow land are estimated at 91,251 while the national average is 4.5 persons (MAFCP, farms (MAFCP, 2014). 2012). As to the age structure of family farms, it is evi- During the last two decades of market economy, denced a relatively young age of the family farm with due to the major demographic movements and dis- about 66% of the population aged from 15 to 54 years. placement of population to urban areas, the number Determining the farm typology in Elbasani region can of farms with productive activity has fallen signifi- help the policy-makers to orient their support program cantly. Today, the number of farms in operation is towards specific type of farms contributing though to estimated to be nearly 350,654 (MAFCP, 2014). The enlarge their production and resource employment (la- average household size in Albania is high. This is bour included) and reduce poverty in rural area. mainly due to the living traditions where the house- hold is composed by several families. This indicator MATERIALS AND METHODS is on national average of 4.7 household/farm, and can be considered as a development barrier. Likewise, This study was focused on the assessment and analysis number of farm families has remained almost un- of detailed data that are collected through structured changed in the last 10 years with an average of 1.1 questionnaires in selected farms. The main source of families/farm. information for our study was: 5 Exchange rate EUR 1 = ALL 139.38. (http://ec.europa.eu/budget/contracts_grants/info_contracts/inforeuro/inforeuro_ en.cfm, Accessed 15.06.2014). 60 PART 1. Transformations in agriculture and food economy in European countries Proceedings of the 2018 International Scientifi c Conference ‘Economic Sciences for Agribusiness and Rural Economy’ No 2, Warsaw, 7–8 June 2018, pp. 59–67 − survey conducted with farmers of Elbasan district, RESULTS AND DISCUSSION to estimate and value rigorously according to the methodology of sample selection, Types of farms identified in Elbasan region is shown − data provided through official sources (District in Table 1. In this region the number of persons em- Statistics, INSTAT, MoAFCP), ployed in the farm is two to three people. In connec- − consultation with fields expert, tion to this indicator values from one cluster to another − similar studies conducted in this field. reflect insignificant changes. Simultaneously it is re- During the period foreseen for the action plan (data corded that almost all typologies for one to two farm collection) and based on study criteria and methodo- family members engage in activities outside the farm. logical framework, 497 face to face interviews with farmers were conducted throughout the region. This Table 1. Types of farms and their respective number phase was proceeded by presenting of questionnaires identified in the region of Elbasan and their adjustment according to the problems iden- Types of farms Number tified. Farm typology is determined based on the fol- lowing indicators: Poly-culture for market 47 − % of sold production / total production, Livestock 187 − % of watered surface / total surface, Leisure farms 35 % of livestock production / total livestock produc- − Fruit trees 19 tion, Arable crop farm 58 − % of agricultural production / total agricultural production, Source: calculations based on the survey. − % of orchards production / total agricultural pro- duction, This phenomenon is more pronounced in areas − costs / production, that are close to urban markets and employment op- − % of cropped surface / total area, portunities are greater, but on the other hand it is a − income outside the farm / total income, clear expression of insufficient capacity of farms in − ALL AWU / thousand produced. terms of ability to engage fully and with a calendar as This analysis will enable the withdrawal of con- perennial-farm labour force. clusions which can serve as a useful tool for evaluat- More detailed information about the structure of ing the policies pursued, as well as the design of fu- the family as well as persons engaged in farm activi- ture policies for agriculture and rural development. ties is presented in Figure 1. 7,0 5,8 6,0 5,3 5,0 4,8 4,7 5,0 4,3 4,0 2,8 2,9 2,9 2,8 3,0 2,7 2,6 2,0 1,3 1,3 1,4 1,0 1,0 1,2 1,0 0,0 123456 Farm family size Fam.members working in the farm Memebers working outside the farm Figure 1.