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Explaining the determinants of on-farm diversification: The case Study of Tuscany Region

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  • Bartolini, Fabio
  • Andreoli, Maria
  • Brunori, Gianluca

Abstract

The on-farm diversification toward multifunctional activities is perceived as central in the CAP policy reform and in Horizon 2020 strategies, because it strengthen territorial and social cohesion of the rural areas. While relations between farm-household diversification and rural economies are central into the process of multifunctionality and provision of public goods through agricultural activities, on-farm diversification activities could represent a relevant share of farm income. Agricultural Economics and Rural Sociology literatures have developed models to explain the determinants of on-farm diversification. In this paper the determinants and the motivations to onfarm diversification toward activities different from crops and animal production are investigated The paper applies a count model to explain the amount of on-farm diversification alternatives that are applied in Tuscany farms. Results confirm that location to main touristic areas and closeness to urban markets are strong determinants of on-farm diversification. Results highlight also, a positive contribution of agricultural policies (both first pillar and second pillar policies) in determining diffusion of on-farm diversification activities.

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Bibliographic Info

Paper provided by Italian Association of Agricultural and Applied Economics (AIEAA) in its series 2013 Second Congress, June 6-7, 2013, Parma, Italy with number 149903.

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Date of creation: Jun 2013
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Handle: RePEc:ags:aiea13:149903

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Keywords: on-farm diversification; multifunctionality; determinants; Tuscany; Agricultural and Food Policy; Farm Management; Q18; Q10;

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  1. Paxton, Kenneth W. & Mishra, Ashok K. & Chintawar, Sachin & Roberts, Roland K. & Larson, James A. & English, Burton C. & Lambert, Dayton M. & Marra, Michele C. & Larkin, Sherry L. & Reeves, Jeanne M. , 2011. "Intensity of Precision Agriculture Technology Adoption by Cotton Producers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), April.
  2. Karantininis, Kostas & Sauer, Johannes & Furtan, William Hartley, 2010. "Innovation and integration in the agri-food industry," Food Policy, Elsevier, vol. 35(2), pages 112-120, April.
  3. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), April.
  4. Bartolini, Fabio & Latruffe, Laure & Viaggi, Davide, 2011. "Assessing the effect of the CAP on farm innovation adoption. An analysis in two French regions," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99594, European Association of Agricultural Economists.
  5. Vogel, Stephen J., 2012. "Multi-Enterprising Farm Households: The Importance of Their Alternative Business Ventures in the Rural Economy," Economic Information Bulletin 138015, United States Department of Agriculture, Economic Research Service.
  6. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
  7. Andersson, Hans & Ramamurtie, Sailesh & Ramaswami, Bharat, 2003. "Labor income and risky investments: can part-time farmers compete?," Journal of Economic Behavior & Organization, Elsevier, vol. 50(4), pages 477-493, April.
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Cited by:
  1. Fabio Bartolini & Gianluca Brunori & Laura Fastelli & Massimo Rovai, 2013. "Understanding the participation in agri-environmental schemes: evidence from Tuscany Region," ERSA conference papers ersa13p1084, European Regional Science Association.

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