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The Nature of the Diversified Farm Household

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  • Mann, Stefan

Abstract

This paper presents a theoretical approach that explains farm household diversification decisions by the relative attractiveness of both food production and family businesses. The empirical analysis of diversified activities of Swiss farm households shows that a low household income leads to diversification by off-farm activities, while a high income leads to diversification by on-farm activities. It is also shown that arable farms, mountain farms and farm households with a non-agricultural education are more likely to enter off-farm activities.

Suggested Citation

  • Mann, Stefan, 2009. "The Nature of the Diversified Farm Household," Working Papers 56726, Agroscope Reckenholz Tanikon (ART).
  • Handle: RePEc:ags:artawp:56726
    DOI: 10.22004/ag.econ.56726
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    References listed on IDEAS

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    1. Lips, Markus & Gazzarin, Christian, 2008. "What are the preferences of Dairy Farmers regarding their Work? A Discrete Choice Experiment in the Eastern Part of Switzerland," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44132, European Association of Agricultural Economists.
    2. Schmitt, Gunther, 1991. "Why Is the Agriculture of Advanced Western Economies Still Organized by Family Farms? Will This Continue to Be So in the Future?," European Review of Agricultural Economics, Foundation for the European Review of Agricultural Economics, vol. 18(3-4), pages 443-458.
    3. Yaohui Zhao, 1999. "Leaving the Countryside: Rural-to-Urban Migration Decisions in China," American Economic Review, American Economic Association, vol. 89(2), pages 281-286, May.
    4. Michael Lubatkin & William S. Schulze & Richard N. Dino, 2002. "Altruism, Agency and the Competitiveness of Family Firms," Post-Print hal-02311705, HAL.
    5. Jill Windle & John Rolfe, 2005. "Diversification choices in agriculture: a Choice Modelling case study of sugarcane growers," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 49(1), pages 63-74, March.
    6. Schmitt, Gunther, 1989. "Simon Kuznets' "Sectoral Shares in Labor Force": A Different Explanation of His ( I + S)/ A Ratio," American Economic Review, American Economic Association, vol. 79(5), pages 1262-1276, December.
    7. William S. Schulze & Michael H. Lubatkin & Richard N. Dino, 2002. "Altruism, agency, and the competitiveness of family firms," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 23(4-5), pages 247-259.
    8. Niehof, Anke, 2004. "The significance of diversification for rural livelihood systems," Food Policy, Elsevier, vol. 29(4), pages 321-338, August.
    9. Jane Wheelock & Elizabeth Oughton & Susan Baines, 2003. "Getting By with a Little Help from Your Family: Toward a Policy-Relevant Model of the Household," Feminist Economics, Taylor & Francis Journals, vol. 9(1), pages 19-45.
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    Keywords

    Consumer/Household Economics; Industrial Organization; Labor and Human Capital;
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