ARI REVIEW FOR 2016-2017

Value (NPV), Internal Rate of Return (IRR) and Benefit-Cost Ratio (BCR) was examined through sensitivity analysis; the switching values for the critical variable expressed as percentages (i.e. % reduction of price in order for the investment to only just break-even) were also estimated. The results showed that, under both scenarios, a relatively small reduction in price [>14% and >10% for scenario (a) and (b), respectively] makes Stevia cultivation economically unsustainable indicating a relatively high investment risk. It is strongly recommended that various endogenous and exogenous factors, including selected cultivated (Stevia) variety, high price volatility, market instability and the complete absence of processing facilities and producers’ organisations, should be seriously taken into account by the potential farmers-investors. ( A. Stylianou, C. Stavridou ) Agricultural Education and Training The Rural Development Section provides training to the staff of the Department of Agriculture and to farmers in topics related to agricultural economics, farm management and agricultural marketing. In 2015, the staff of the Section was responsible for developing an important part of the training material which will be used in the framework of the Rural Development Programme 2014-2020 for farmers training. The material developed by the Section concerns the thematic units “Agricultural Production Economics” and “Marketing of Agricultural Products”. During the period 2016-2017, the staff of the Section provided training to the staff of the Department of Agriculture (potential trainers) and to farmers participating in specific measures of the Rural Development Programme in two distinct training workshops. ( A. Stylianou, G. Papadavid ) EU FUNDED PROJECTS The staff of the Rural Development Section is actively involved in two LIFE+ projects. The first project titled “Adaptation to Climate change Impacts on the Mediterranean islands’ Agriculture” (ADAPT2CLIMA) aims to increase knowledge on the vulnerability of EU Mediterranean agriculture to climate change and to support decision making for adaptation planning. The methodology is based on the deployment of a set of climate, hydrological and crop simulation models for the assessment of climate change impacts on agriculture, as well as, on the development of a decision support tool for the elaboration of adaptation strategies for the agricultural sector. The National Observatory of Athens is the coordinator of the project, while the project partners are the 67 Rural Development Table 3. Cost-Benefit Analysis of Stevia cultivation without considering subsidies. Notes: Discount rate = 6%; year 0: crop establishment; NPV: Net Present Value; IRR: Internal Rate of Return; BCR: Benefit-Cost Ratio.