IDEAS home Printed from https://ideas.repec.org/a/bla/eurcho/v20y2021i2p70-75.html

Farm Diversification: Drivers, Barriers and Future Growth Potential

Author

Listed:
  • Claire Jack
  • Austen Ashfield
  • Adewale Henry Adenuga
  • Conall Mullan

Abstract

Family farm businesses throughout Europe are facing new economic, environmental and social challenges. In order to deliver a more resilient primary agriculture sector, national and regional governments are identifying mechanisms to support farm businesses to adapt to these changing demands. This qualitative study explored the drivers of and barriers to farm diversification and its potential as a strategy to make farms more sustainable. Although there are a range of farm diversification strategies being pursued regionally, farm diversification is under‐exploited as an opportunity to achieve additional household income. Areas considered to have the potential for growth included, agri‐tourism, care services (including social farming), professional services and developing artisan food products. Beyond the need to generate new income sources, creating employment for other family members was considered an important motivation. Those factors identified as constraints to diversification included internet access, planning, business rates, support around skills development, networks and a farmer's own fear of failure. For smaller scale, family farm businesses located in more marginal areas, there is a need to identify a range of policy levers which support local farming systems and capture the multifaceted nature of the products and services that these farm businesses could provide and may be asked to deliver in the future. A travers toute l'Europe, les entreprises agricoles familiales sont confrontées à de nouveaux défis économiques, environnementaux et sociaux. Afin de rendre le secteur agricole primaire plus résilient, les pouvoirs publics nationaux et régionaux identifient des mécanismes pour aider les entreprises agricoles à s'adapter à ces demandes changeantes. Cette étude qualitative a exploré les moteurs et les obstacles à la diversification agricole et la capacité de cette stratégie à rendre les exploitations plus durables. Bien qu'il existe au niveau régional une gamme de stratégies à cet égard, le potentiel de la diversification des exploitations à générer des revenus supplémentaires pour les ménages est sous‐exploité. Les domaines considérés comme prometteurs comprennent l'agrotourisme, les services de soins (y compris l'agriculture sociale), les services professionnels et le développement de produits alimentaires artisanaux. Au‐delà de la nécessité de générer de nouvelles sources de revenus, la création d'emplois pour d'autres membres de la famille était considérée comme une motivation importante. Les facteurs identifiés comme des obstacles à la diversification comprenaient l'accès à Internet, le planning, les tarifs commerciaux, le soutien au développement des compétences, les réseaux et la peur de l’échec des agriculteurs. Pour les entreprises agricoles familiales à plus petite échelle situées dans des zones plus marginales, il est nécessaire d'identifier une gamme de leviers d'action publique qui soutiennent les systèmes agricoles locaux et capturent la nature multiforme des produits et services que ces entreprises agricoles pourraient fournir et pourraient être invitées à offrir dans le futur. Landwirtschaftliche Familienbetriebe stehen in ganz Europa vor neuen wirtschaftlichen, ökologischen und sozialen Herausforderungen. Um die Widerstandsfähigkeit des primären Landwirtschaftssektors zu verbessern werden von nationalen und regionalen Regierungen Anpassungsmaßnahmen zur Unterstützung landwirtschaftlicher Betriebe an diese sich wandelnden Anforderungen identifiziert. Die vorliegende qualitative Studie untersucht die Anreize, Hindernisse und Potenziale im Zusammenhang mit einer Diversifizierung, die als Strategie dazu dienen kann, landwirtschaftliche Betriebe nachhaltiger zu gestalten. Obwohl auf regionaler Ebene eine Reihe von betrieblichen Diversifizierungsstrategien verfolgt werden, wird die Diversifizierung als Möglichkeit, um zusätzliches Haushaltseinkommen zu erzielen, zu wenig genutzt. Zu den Bereichen, denen Wachstumspotenzial zugeschrieben wurde, gehörten der Agrar‐Tourismus, Pflegedienste (einschließlich sozialer Landwirtschaft), professionelle Dienstleistungen und die Entwicklung handwerklich hergestellter Lebensmittel. Abgesehen von der Notwendigkeit, neue Einkommensquellen zu erschließen, wurde die Schaffung von Arbeitsplätzen für andere Familienmitglieder als wichtige Motivation genannt. Zu den Faktoren, die als Hemmnisse für die Diversifizierung genannt wurden, gehörten Internetzugang, Planung, Unternehmenssteuern, Unterstützung bei der Entwicklung von Fachkenntnissen, Netzwerke und die Angst der Landwirtinnen und Landwirte vor dem Scheitern. In kleinerem Maßstab, d.h. bei Familienbetrieben in eher abgelegenen Gebieten, besteht die Notwendigkeit eine Reihe verschiedener politischer Maßnahmen zu identifizieren, welche die landwirtschaftlichen Systeme vor Ort unterstützen. Diese Maßnahmen sollten darüber hinaus die Vielschichtigkeit der Produkte und Dienstleistungen erfassen, die diese landwirtschaftlichen Betriebe bereitstellen könnten und die in Zukunft möglicherweise von ihnen verlangt werden.

Suggested Citation

  • Claire Jack & Austen Ashfield & Adewale Henry Adenuga & Conall Mullan, 2021. "Farm Diversification: Drivers, Barriers and Future Growth Potential," EuroChoices, The Agricultural Economics Society, vol. 20(2), pages 70-75, August.
  • Handle: RePEc:bla:eurcho:v:20:y:2021:i:2:p:70-75
    DOI: 10.1111/1746-692X.12295
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/1746-692X.12295
    Download Restriction: no

    File URL: https://libkey.io/10.1111/1746-692X.12295?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Meuwissen, Miranda P.M. & Feindt, Peter H. & Spiegel, Alisa & Termeer, Catrien J.A.M. & Mathijs, Erik & Mey, Yann de & Finger, Robert & Balmann, Alfons & Wauters, Erwin & Urquhart, Julie & Vigani, Mau, 2019. "A framework to assess the resilience of farming systems," Agricultural Systems, Elsevier, vol. 176(C).
    2. Jack, Claire & Miller, Ana Corina & Ashfield, Austen & Anderson, Duncan, 2019. "New entrants and succession into farming: A Northern Ireland perspective," International Journal of Agricultural Management, Institute of Agricultural Management, vol. 8(2), August.
    3. Arnout R.H. Fischer & Meike T. A. Wentholt & Gene Rowe & Lynn J. Frewer, 2014. "Expert involvement in policy development: A systematic review of current practice," Science and Public Policy, Oxford University Press, vol. 41(3), pages 332-343.
    4. Peter Howley, 2015. "The Happy Farmer: The Effect of Nonpecuniary Benefits on Behavior," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 97(4), pages 1072-1086.
    5. Lobley, Matt & Butler, Allan, 2010. "The impact of CAP reform on farmers' plans for the future: Some evidence from South West England," Food Policy, Elsevier, vol. 35(4), pages 341-348, August.
    6. Alem, Habtamu & Lien, Gudbrand & Kumbhakar, Subal C. & Hardaker, J. Brian, 2019. "Are Diversification And Structural Change Good Policy? An Empirical Analysis Of Norwegian Agriculture," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 51(1), pages 1-26, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oksana Žabko & Talis Tisenkopfs, 2022. "New Entrants Need Tailored Farm Advice," EuroChoices, The Agricultural Economics Society, vol. 21(1), pages 63-69, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Blazquez-Soriano, Amparo & Ramos-Sandoval, Rosmery, 2022. "Information transfer as a tool to improve the resilience of farmers against the effects of climate change: The case of the Peruvian National Agrarian Innovation System," Agricultural Systems, Elsevier, vol. 200(C).
    2. Shingo Yoshida & Hironori Yagi, 2021. "Long-Term Development of Urban Agriculture: Resilience and Sustainability of Farmers Facing the Covid-19 Pandemic in Japan," Sustainability, MDPI, vol. 13(8), pages 1-23, April.
    3. Wicki, Ludwik & Wicka, Aleksandra, 2024. "Changes in the Macroenvironment and New Threats to Farms," Roczniki (Annals), Polish Association of Agricultural Economists and Agribusiness - Stowarzyszenie Ekonomistow Rolnictwa e Agrobiznesu (SERiA), vol. 2024(2).
    4. Kuhmonen, Irene & Kuhmonen, Tuomas, 2023. "Transitions through the dynamics of adaptive cycles: Evolution of the Finnish agrifood system," Agricultural Systems, Elsevier, vol. 206(C).
    5. Evelien Cronin & Sylvie Fosselle & Elke Rogge & Robert Home, 2021. "An Analytical Framework to Study Multi-Actor Partnerships Engaged in Interactive Innovation Processes in the Agriculture, Forestry, and Rural Development Sector," Sustainability, MDPI, vol. 13(11), pages 1-19, June.
    6. Barnes, Andrew P. & Thomson, Steven G. & Ferreira, Joana, 2020. "Disadvantage and economic viability: characterising vulnerabilities and resilience in upland farming systems," Land Use Policy, Elsevier, vol. 96(C).
    7. Blake-Rath, Robyn & Grote, Ulrike, 2022. "Resilienz und Digitalisierung in der deutschen Agrarwirtschaft: Lehren aus der COVID-19-Pandemie," 62nd Annual Conference, Stuttgart, Germany, September 7-9, 2022 329610, German Association of Agricultural Economists (GEWISOLA).
    8. Godfred Addai & Jungho Suh & Douglas Bardsley & Guy Robinson & Lawrence Guodaar, 2024. "Exploring sustainable development within rural regions in Ghana: A rural web approach," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(4), pages 3890-3907, August.
    9. Leduc, Gaëlle & Billaudet, Larissa & Engström, Ebba & Hansson, Helena & Ryan, Mary, 2023. "Farmers' perceived values in conventional and organic farming: A comparison between French, Irish and Swedish farmers using the Means-end chain approach," Ecological Economics, Elsevier, vol. 207(C).
    10. Richard KOENIG & Marielle BRUNETTE, 2023. "Subjective barriers and determinants to crop insurance adoption," Working Papers of BETA 2023-25, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Manh Hung Do, 2023. "The Role of Savings and Income Diversification in Households’ Resilience Strategies: Evidence from Rural Vietnam," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 168(1), pages 353-388, August.
    12. Meyer, Maximilian & Contzen, Sandra & Feller, Michael & Pauler, Caren M. & Probo, Massimiliano & Röösli, Alexander & Schmidt, Remo S. & Schneider, Manuel K., 2025. "Resilience of Swiss summer farms: An interdisciplinary analysis of key challenges and adaptations," Agricultural Systems, Elsevier, vol. 227(C).
    13. Low, Guy & Dalhaus, Tobias & Meuwissen, Miranda P.M., 2022. "Reviewing the costs, benefits, and resilience impacts of mixed farming and agroforestry systems on value chains," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322300, Agricultural and Applied Economics Association.
    14. Adewale Henry Adenuga & Claire Jack & Ronan McCarry, 2023. "Investigating the Factors Influencing the Intention to Adopt Long-Term Land Leasing in Northern Ireland," Land, MDPI, vol. 12(3), pages 1-18, March.
    15. Luciana Laborda & Marcos H. Easdale & Abigail Fallot & M. Paula Ocariz & Pablo A. Tittonell, 2024. "Rise from the ashes! Resilience patterns in Patagonia pastoralist communities," Sustainable Development, John Wiley & Sons, Ltd., vol. 32(2), pages 1428-1445, April.
    16. Abdollahzadeh, Gholamhossein & Sharifzadeh, Mohammad Sharif & Sklenička, Petr & Azadi, Hossein, 2023. "Adaptive capacity of farming systems to climate change in Iran: Application of composite index approach," Agricultural Systems, Elsevier, vol. 204(C).
    17. Alina-Petronela Haller & Larisa Loredana Dragolea & Ioan-Sebastian Bruma, 2025. "The dynamics of European agri-food sector and environmental challenges in Europe: An economic perspective," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 13(1), pages 1-36, December.
    18. repec:ags:cfcp15:344258 is not listed on IDEAS
    19. Herrera, H & Schütz, L & Paas, W & Reidsma, P & Kopainsky, B, 2022. "Understanding resilience of farming systems: Insights from system dynamics modelling for an arable farming system in the Netherlands," Ecological Modelling, Elsevier, vol. 464(C).
    20. Rezbova, Helena & Tomsík, Karel, . "Impact of Complementary National Direct Payments on Cattle Breeding Sector," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 4(4 Special), pages 1-11.
    21. Veysset, Patrick & Boivent, Célia, 2025. "Climatic hazard resilience assessment on livestock farms: Application to organic ruminant farms in the French Massif Central," Agricultural Systems, Elsevier, vol. 222(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:eurcho:v:20:y:2021:i:2:p:70-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/eaaeeea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.