Analysis of farms characteristics related to innovation needs: a proposal for supporting the public decision-making process

•The study provides a tool for recognizing farmers’ innovation needs using Italian FADN data.•The farms’ objectives are associated to three main macro-objectives of rural development.•A list of indicators has been identified and they have been elaborated for homogeneous groups of farms.•The critical management aspects might have a suitable response from the adoption of specific innovations.•The results help to define interventions for innovation diffusion at farm level. Innovation is considered as one of the key drivers for a competitive and sustainable agriculture and the European Commission highlights the importance of tailoring innovation support to farmers’ needs, especially in European Rural Development Policy (reg EU 1305/2013). The scientific literature offers a wide panorama of tools and methods for the analysis of innovation in agriculture but the lack of data on the state of innovation in the farms hampers such studies. A possibility to partially overcome this limit is the use of data collected by the Farm Accountancy Data Network (FADN). The aim of this study is to propose a method to deduce farms’ innovation needs, related to the macro objectives of European Rural Development Policy, using the economic and financial results of the Italian FADN survey. A list of farm management indicators has been identified connected with the innovation demand. Then, using FADN accounting data, indicators have been calculated for homogeneous groups of farms in terms of territory, economic size, and productive sector. In this way, critical farm issues related to innovation needs have been highlighted Finally, as an example of application, measures of the Rural Development Programs (RDP) have been proposed for each farm critical issue. This method can facilitate policy makers and Agricultural Knowledge and Innovation System (AKIS) organizations in identifying some targeted interventions, thanks to a deep analysis of rural contexts and farm systems. The current FADN does not provide specific information concerning the implementation of innovation by farms; for this purpose, new and suitable variables should be added to the annual survey.