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No. "Fattoria" is a tract of land cultivated for the purpose of agricultural production and/or tract of land devoted to the raising and breeding of domestic animals. The right translation is "Farm"
"Factory" is a building in which goods are manufactured; a plant. The right translation is "fabbrica".
It's like the word "camera". You'd think it meant, well, camera. But it actually means room. The reason for this, I believe, is that the English word camera comes from the Latin for "chamber", because a camera is a chamber that lets in only focused light.
The translation for camera is "macchina fotografica" or "telecamera".
Fattoria seems to come from "fatto/fare".
In Portuguese, "fazenda" (farm too) seems to come from "faz/fazer".
Fazer = fare.
Seems to be a place (at least in old times) where things are "done/made".
Probaly the same thought applies to the word "factory", but nowadays, things are done in a more technological way.