The activities diversification in rural areas a chance for poverty reduction

Etleva DASHI (AgricultureUniversity of Tirana)

Fatmir GURI ( AgricultureUniversity of Tirana)

Introduction

The economic, political and social development of our country also influenced the agriculture as one of the main sectors of our economy. The establishment of a considerable number of micro agriculture farms brought to the attention of the researchers the duty of the strategies analysis to be followed in the future by these farms, aiming the life quality improvement in the rural zones.[1]

The issue becomes more complex and interesting, if the tourism factor is involved in the farms life. The involvement of this factor is a key element in the diversification of the agriculture activities, as a main alternative in the poverty reduction in the rural areas[2].

This methodshown schematically, which will be discussed later on can be considered as a helping form in poor people’s life improvement and poverty reduction.

As all methods it is a reality simplification, but tries to show a new way of thinking and it can be understood throughout the quantitative analysis and participation at the local level.

The environment also influences the life strategies, in the way of combining and using of assets looking for livelihood essential income so that the rural population can achieve its set of objectives regarding poverty reduction.

This can be achieved not only through external support (support outside the house), but even through internal one, throughout the functioning the rural society in accordance with actual strategies in livelihood methods and adoption of the socio-economic environment.

Livelihood approaches help linking different factors or show how they are linked with each other. In this way the model tries to take a truthful meaning that can regulate the livelihood and how different factors can be regulated in order to produce useful outputs for the farmers. So people will become stronger in achieving their objectives.

Research methodology

To study the agriculture farms strategies in a coastal zone as mentioned above, we used the typology method, a method based on surveys made in our research area, which in our case is the Durres-Kavaje area. The surveys have been made in two areas (Shkallnur, Rreth-Greth, and Spillej) including 10% of the agriculture farms in the above mentioned areas, creating a statistically representative group for all the farms in these areas. Based on the collected information from the surveys we divided the agriculture farms in groups with similar strategies.

The second part of the used methodology used in this article is linked the trajectory of the actual and future functioning of the area agriculture farms.

Analysis of the existing types of farms in the area

Collected information through the surveys made in the area, leaded us to the conclusion that the strategies of the agriculture farms were not an output depending from any socio economic or agro economic factor, but as a result of the above mentioned elements, which alternated with each other leaded to a certain strategy of the agriculture farms. The most important factors which individualize a group of farms from the other are:

  • Spatial characteristic which is linked with two important factors as: farm conditions from the agro economic point of view of land, tools and the geographic positioning of the farms with road axis and seacoast.
  • Economic characteristic, in ratio with the level of non agriculture income of the family hood. Professional characteristic. This characteristic is linked with the farmer’s occupation before the 90s.
  • The ratio between the farms and its spatial location is one of the main important elements which determine the farm’s future and the strategies that it will follow. It is widely accepted that the quality of the agriculture farms and the possibilities of irrigation are two main factors that either directly influence the strategy chosen by the farm or the types of the agriculture and pastoral production. The second characteristic is the location of the agriculture farms in ration with the road axis and indirectly with the markets and tourism access and the possibility to develop the agro tourism or pure tourism. Our survey results have shown that the change of any of this factors leads to different strategies in the area farms.
  • Another very important factor which is directly linked with the life quality improvement has to do with the non agriculture level of income in the agriculture farms. In the frame of our country crediting system a priori the non agriculture income can serve as income flows which can fulfill the gap of the Albanian banking system. The existence of considerable investments in our focused area of the farmers, generally in house construction projects that serve as a chance to develop agro tourism or pure tourism. In fact during our work we noticed that the difference of strategies among those in disposable of non agriculture income and those not in disposable of them was noticeable and present.
  • The third characteristic is linked with the occupation of the farmer and the willing of the continuation of the agriculture tradition in the area (it is important to say that before the 90s agriculture was the main activity for this area). During the research it has been noticed that the farmers which had agriculture as the main activity had a stronger relationship with the land and meanwhile they had stronger will to make investments in agriculture compared to the rest of the farmers that agriculture was not the main activity (their tendency is to substitute agriculture with another activity which in major cases is the tourism).

These three characteristics explained above have affected the creation of six groups of agriculture farms which are:

  1. Subsistence farming and land abandonment. These farms are mainly located in the hilly zones. In these cases the agriculture infrastructure is not developed and the tourism sector is almost inexistent. The main feature of this group is that it is isolated so it has no access to the automotive and from the seacoast. These group can survive only through the non agriculture income (agriculture income make only 6% of the total income). Agriculture income is earned only from well preserved products (such as raki, raw meat etc). The level of the planted lands is very low for two reasons:

-The first reason is that land in this area is not productive, hilly, not irrigated and the second reason is that the income level of the farm is low. These two reasons lead farmers to cultivate the land nearby their homes, or favorable from the agronomic side. This group uses only an extensive agriculture (main cultures are cereals, vegetables, etc). If an alternative solution for life improvement in these areas will not be found, this type of farm will tent to disappear as a result of lack of income.

  1. Subsistence farms and sale developing. This group has some similar characteristics with the first one. Their agronomic conditions are not favorable, while the distance from the road or seacoast is shorter, which make the farms access easier the market place. Although the distance allows farmers to go everyday to the market and sell their products still the gap to develop agro tourism is still very huge. The level of non productive land is still very high (33%) but it is smaller compared to the first group. This positive change is a result of huge surfaces planted with fodders which testify also the influence of farming; milk remains the only tradable product for these farms. Still agriculture remains a minority resource of the total family income (only 12% of the total family income). As we can observe the level of income from tourism is still inexistent which can be explained by huge distance of the farms from the seacoast. There is a satisfactory level of investments belonging to the resident buildings belonging to the farmers. These type of farmers can still be considered poor, but in a surviving stage due to their farming work. The production of typical products in serve of tourism could be a chance for life improvement in those areas.
  2. Developing agriculture: Talking about the “developing agriculture” group this farms are in better economic status. These farms have the possibility to sell their own products either in cities or turistic zones. Also the farmers preferred to make investment in farms toward agriculture. This way of investment shows the strong relationship among farmers and the market. Mainly it has been invested for producing products highly demanded from the market, but meanwhile they also produce specific varieties. The level of non productive land is low (28%) and the agriculture income has started to increase (78% of the total income). Due to the fact that the tourism area is far from their farms, they concentrated their potentials in producing and selling the agriculture products. A strong point in this direction is either the good reputation of the Albanian products or the existence of non highly demanded market because of the price factor.
  3. Developing agriculture and agro tourism. Agriculture farms belonging to the fourth group are nearer to the seacoast that the farms of the abovementioned groups. For the first time we can observe the earning of income from tourism. Farmers earn more than 35% of their total income from room renting during the tourist season. This group faces a dilemma either to continue the agriculture activity or to fully abandon it, due to the contradiction among the new and old generation. The new generation wants to abandon agriculture to deal with tourism, while the old generation wills the continuation of the agricultures activities. In this framework it is important to mention the lack of investments in the agriculture sector (it has been made only few improvements in wine yards etc) compared to the greater investments in the tourism sector. Also we can say that agriculture can be prompt through a market inside the farmer’s house through product selling to home renters. Despite the problems arising the agriculture remains an important activity and this is shown by the high level of land exploitation, which is approximately 69%. This group has reached a stable livelihood level through the diversification of the agriculture activities.
  4. Dominative agriculture and agro tourism. In this group the agriculture activity is not important (only 16% of total income) as the tourist one (45% of total income). It differs from the previous one because its farmers have greater possibilities for investments, which in the future will substitute income generated from agriculture activities. Being near to the sea coast this group finds itself more open for the tourism development than the four previous groups.
  5. Tourism. The last group of our typology is a group that almost substituted agriculture sector with the tourist one. Income generated from agriculture is almost inexistent (they earn money only from products sold to the leaseholders). 27 % of the arable land is abandoned, quantity which is more elevated than in the other groups. The particularity of this group is that the breadwinner usually is not directly involved in agriculture, so it does not exist a strong connection among the farmer and the land, therefore he easily substitute the agriculture activity with other ones, such as tourism. The members of this group are totally involved in the construction activity, such as building residences for their own living and tourism purposes. They consider this activity as the only way of income for themselves and families.

Trajectory of the agriculture farms in the area

As we already mentioned, the second part of the article is linked with the actual and future trajectories of the agriculture farms. The forecasting of the agriculture farms trajectory in the area represents a particular interest in its study. To build these trajectories, we prefer the method developed by Capillon and Sebillotte (1980) regarding agriculture farms. The advantage of this method is that it allows us to actualize a typology made before and follow the changes that occurred in our area. The main issue of this kind of presentation as Landais (1996) stresses “is that it does not take into consideration the changes that might occur when the farms passes from a generation to another” a very highlighted problem in our focused area for the fact that young generation prefer more tourism sector when it is possible from circumstances as financing distance from the sea cost etc. Other arising problems might be linked with the external environment as the (legislative environment, state relationship, crediting policies etc) which could unpredictably change the agriculture farms strategies. The scheme itself contains three big phases which are:

  1. The past, which is the period of the socialist cooperatives. These cooperatives were similar to each other, except the fact that some of them have their land nearby the coastal area and the others far away from it (isolated ones).
  2. The present that is represented from the typology already explained.
  3. The future is based on the information collected by the questionnaires and meanwhile in the achievement of the future projects and goals.

From the six groups denoted in the area, only two of them can be called stabilized groups for the future. These two groups are developing agriculture and tourism.

Spontaneously we come up with the question why these two groups can survive in the future.

The fourth group “developing agriculture” will continue to exist because of the development of tourism is accompanied with the development of tourism market, because it will always exist the demand for fresh products. Still an important part of the income will be generated from agriculture, because a part of their farms are far from the tourist area and the chance for lease during summer time are few. Also a chance for higher income will be the farms surface enlargement. At this point it is important to mention that the added surface it will be only for lease, because farmers do not want to sell because of tradition reasons and lack of funds.

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While the second surviving group will be the tourism one. Tourism development is a secure and continuous trend, which will push agriculture farms more toward it. This trend is more noticed to the farms undecided among agriculture and tourism. The turn of the farm to the young generation which is not strongly connected with the land will immediately turn them into tourism. All that we already mention it is valuable during the long term period. At a nearer time, the changes is typology of the agriculture farms will be linked with the disappear of the first groupwhich is unstable to continue the economic activity in the area. Some of the farms have already abandoned the area for emigration or migration reasons. The second group will continue to exist and he will be more profitable because from the acquirement of the farms from the first group.

For the third group the only chance for the future is the development of the agriculture because they are far way from the tourist area.

The fourth and the fifth group will be more tourism oriented totally abandoning agriculture and the sixth group of course will continue at the same direction.

Conclusions

The transition was accompanied with important changes in the way the agriculture farms functioned, which from the land surface characteristic have preferred the subsistence strategies. The conjunction of these elements with other developing elements such as tourism, leads the changing of these strategies into strategies more linked with the market, development of other economic activities inside the farms which lower the role of the agriculture in the area.

Last in the focused area the role of agriculture will decrease more during time and the turning of the farms to the new generation with a different mentality it will be accompanied with the total abandonment of agriculture in favor to other activities, when it is possible through emigration or work in cities.

Setting of alternative strategies that use non conventional sources in the area (tourism) constitute automatic answers of the agriculture farms in the rural areas toward poverty. The strong liaisons that exist among natural resources and farms strategies show a strong reaction toward positive created conditions.