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Diversification Decisions in Agriculture: The Case of Agritourism in Kansas

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  • Amanor-Boadu, Vincent

Abstract

The thesis of this paper is that diversification decisions may be described by a three-stage sequential framework. The framework begins with the choice between on-farm and off-farm investments and ends with the selection of activities that decision-makers believe would be more effective in addressing their needs. The paper tests this thesis using data collected from participants in an agritourism workshop in Kansas. The test begins at the framework’s second stage, where decision-makers decide between intensifying current operations to take advantage of scale and/or size economies, and diversifying to deploy slack resources in other businesses. The third stage involves the selection of alternative enterprises to meet decision-makers’ desired objectives. It is hypothesized that the second stage decision choice is defined by decision-makers’ demographic characteristics and their motivational factors. Demographic characteristics, such as age and education, also serve as proxies for decision-makers’ embedded capabilities. The results show that for this case study, all demographic characteristics but gender are statistically significant, with education exhibiting the highest positive impact on the decision to diversify at the second stage. Economics was also determined to be a positive motivating factor in the intention to choose marketing, tourism and fishing and hunting enterprises at the third stage. However, personal satisfaction was a positive motivating factor for all enterprises except fishing and hunting. The impact of community as a motivation for any of these enterprises was split. It was negative for marketing and positive for accommodation and food service and statistically insignificant for tourism and fishing and hunting. The study provides an empirical foundation for exploring the diversification decision process and choices among smallholder producers as well as challenging policymakers to carefully determine how these decisions and choices actually get made given people’s situations and characteristics.

Suggested Citation

  • Amanor-Boadu, Vincent, 2013. "Diversification Decisions in Agriculture: The Case of Agritourism in Kansas," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-17, May.
    • Handle: RePEc:ags:ifaamr:148583
    DOI: 10.22004/ag.econ.148583
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    2. Khairabadi, Omid & Sajadzadeh, Hassan & Mohammadianmansoor, Saheb, 2020. "Assessment and evaluation of tourism activities with emphasis on agritourism: The case of simin region in Hamedan City," Land Use Policy, Elsevier, vol. 99(C).
    3. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.
    4. Hojjat Varmazyari & Seyed Hamid Mirhadi & Marion Joppe & Khalil Kalantari & Alain Decrop, 2022. "Ecolodge Entrepreneurship in Emerging Markets: A New Typology of Entrepreneurs; The Case of IRAN," Sustainability, MDPI, vol. 14(14), pages 1-25, July.
    5. Khanal, Aditya R. & Mishra, Ashok K. & Omobitan, Omobolaji, 2019. "Examining organic, agritourism,and agri-environmental diversification decisions of American farms: are these decisions interlinked?," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 100(01-4), October.
    6. Bartolini, Fabio & Brunori, Gianluca & Galli, Francesca, 2016. "Understanding motivations and determinants of direct sale strategy. The case of Tuscany Region," 149th Seminar, October 27-28, 2016, Rennes, France 244896, European Association of Agricultural Economists.
    7. Chadley R. Hollas & Lisa Chase & David Conner & Lori Dickes & R. David Lamie & Claudia Schmidt & Doolarie Singh-Knights & Lindsay Quella, 2021. "Factors Related to Profitability of Agritourism in the United States: Results from a National Survey of Operators," Sustainability, MDPI, vol. 13(23), pages 1-17, December.
    8. Alvarez, Antonio & Garcia-Cornejo, Beatriz & Perez-Mendez, Jose A. & Roibas, David, 2016. "Diversification in Spanish Dairy Farms: Key Drivers of Performance," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-26, August.
    9. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2014. "Explaining determinants of the on-farm diversification: empirical evidence from Tuscany region," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-21, August.
    10. Shingo Yoshida & Hironori Yagi & Akira Kiminami & Guy Garrod, 2019. "Farm Diversification and Sustainability of Multifunctional Peri-Urban Agriculture: Entrepreneurial Attributes of Advanced Diversification in Japan," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    11. Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo, 2018. "Structural factors of labour allocation for farm diversification activities," Land Use Policy, Elsevier, vol. 71(C), pages 204-212.

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