Financing agricultural holdings: Evaluation of the measure 'setting up of young farmers', based on the rural development programme of greece 2007-2013

The object of this paper is to examine the relevant investment plans, and to evaluate the effectiveness of the financing programme for young farmers. Hierarchical cluster analysis is applied in the present study on a sample of agricultural holdings that submitted an investment plan, in order to be included in the programme 'Rural Development 2007-2013, Measure 1.1.2. Setting up of Young Farmers'. In order to evaluate the effectiveness of the programme, two investment plan typologies are formulated. These typologies are defined according to the human work units and the gross value added, as presented in the current status of the holdings (first typology) and in the future target-level status (second typology) following the completion of the investment plans. The second level profile of the clusters was examined using tests of independence (χ ²-test), and the additional parameters introduced were: the geographical location of the agricultural holdings, the level of realised investments and the type of production. The inclusion of young farmers in this specific programme, apart from attracting young people to rural regions, also leads to an increase in the size of the holdings, based on the performed labour, and to an improved agricultural income. However, it is observed that the implementation of the investment plans does not seem to have affected the type of production applied at the holdings.