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Unconventional adjustment strategies for rural households in the less developed areas in Greece

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  • Damianos, Dimitrios
  • Skuras, Dimitrios

Abstract

International competition in agricultural production is intensifying following the implementation of the 1993 accord of the General Agreement on Tariffs and Trade. The production of conventional farm products in surplus is being discouraged by means of indirect economic disincentives. The Common Agricultural Policy has already adjusted to unprotected national markets within the European Union and greater market orientation is being achieved mainly through price reductions. Farmers in the less developed areas in Greece, where agricultural activity is still the main source of income and employment, have been responding to policy reforms by seeking part-time employment and income in non-farm enterprises. The adoption of alternative, unconventional farm enterprises that use farm resources in an innovative and quantitatively different way does have the potential for bringing in a new source of income to farm business. For the purpose of this research three adjustment strategies were recognised. The 'conventional' (no change) pathway is based on traditional, region-specific products, production methods and services. The adoption of the 'new crop' pathway refers to the redeployment of resources into new agricultural products, whereas farms on the market integration pathway redeploy resources into new marketing services and agricultural product processing on the farm. The new crop and the market integration pathways are identified as unconventional adjustment strategies. Results derived from multinomial logit analysis highlight the major constraints and opportunities associated with the adoption of new crops and market integration practices. Farmers who have adopted unconventional practices are influenced by factors external to the farm, such as contacts with institutions, and have a high probability of having higher debts. These farmers are likely to depend heavily on seasonal labour and rented land. The fact that market integration activities are associated with smaller

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Bibliographic Info

Article provided by Blackwell in its journal Agricultural Economics.

Volume (Year): 15 (1996)
Issue (Month): 1 (September)
Pages: 61-72

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Handle: RePEc:eee:agecon:v:15:y:1996:i:1:p:61-72

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References

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  1. D. M. Shucksmith & R. Smith, 1991. "Farm Household Strategies And Pluriactivity In Upland Scotland," Journal of Agricultural Economics, Wiley Blackwell, vol. 42(3), pages 340-353.
  2. Lin, Justin Yifu, 1991. "The household responsibility system reform and the adoption of hybrid rice in China," Journal of Development Economics, Elsevier, vol. 36(2), pages 353-372, October.
  3. Lin, Justin Yifu, 1994. "Impact of hybrid rice on input demand and productivity," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 10(2), April.
  4. Daouli, Joan & Demoussis, Michael P, 1992. "Rents, Interest Rates and Real Agricultural Land Prices: An Application to a Greek Province," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 19(4), pages 417-25.
  5. M. Shucksmith, 1993. "Farm Household Behaviour And The Transition To Post-Productivism," Journal of Agricultural Economics, Wiley Blackwell, vol. 44(3), pages 466-478.
  6. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-98, January.
  7. Just, Richard E & Zilberman, David, 1983. "Stochastic Structure, Farm Size and Technology Adoption in Developing Agriculture," Oxford Economic Papers, Oxford University Press, vol. 35(2), pages 307-28, July.
  8. A. Kimhi, 1994. "Participation Of Farm Owners In Farm And Off-Farm Work Including The Option Of Full-Time Off-Farm Work," Journal of Agricultural Economics, Wiley Blackwell, vol. 45(2), pages 232-239.
  9. D. McFadden & J. Hausman, 1981. "Specification Tests for the Multinominal Logit Model," Working papers 292, Massachusetts Institute of Technology (MIT), Department of Economics.
  10. Lin, Justin Yifu, 1994. "Impact of hybrid rice on input demand and productivity," Agricultural Economics, Blackwell, vol. 10(2), pages 153-164, April.
  11. Feder, Gershon, 1980. "Farm Size, Risk Aversion and the Adoption of New Technology under Uncertainty," Oxford Economic Papers, Oxford University Press, vol. 32(2), pages 263-83, July.
  12. Babb, Emerson M. & Long, Burl F., 1987. "The Role Of Alternative Agricultural Enterprises In A Changing Agricultural Economy," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 19(01), July.
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Cited by:
  1. Dimara, Efthalia & Skuras, Dimitris, 2003. "Adoption of agricultural innovations as a two-stage partial observability process," Agricultural Economics, Blackwell, vol. 28(3), pages 187-196, May.
  2. Midmore, Peter & Whittaker, Julie, 2000. "Economics for sustainable rural systems," Ecological Economics, Elsevier, vol. 35(2), pages 173-189, November.
  3. Dimara, Efthalia & Skuras, Dimitrios, 1998. "Adoption of new tobacco varieties in Greece: Impacts of empirical findings on policy design," Agricultural Economics: The Journal of the International Association of Agricultural Economists, International Association of Agricultural Economists, vol. 19(3), December.

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