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Determinants and Dynamics of Farm Diversification

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  • Weiss, Christoph R.
  • Briglauer, Wolfgang

Abstract

This paper examines the impact of various farm and household characteristics (such as farm size, the off-farm employment status, the farm operator's age and schooling and the number of family members) on the level as well as the dynamics of on-farm diversification. Using linked census data for Upper-Austria from 1980, 1985 and 1990 we provide evidence that smaller farms are more specialised and also tend to increase the degree of specialisation over time more quickly than large farms. A significantly lower degree of diversification (higher degree of specialisation) as well as a stronger reduction in diversification over time is also reported for businesses operated by older, less educated, part-time farm operators. The analysis of diversification dynamics also suggests that (a) farms adjust to changes in their environment by steadily approaching their long-run equilibrium level of diversification ( B-convergence), and (b) the variance of the diversification distribution declines over time ( O-convergence).

Suggested Citation

  • Weiss, Christoph R. & Briglauer, Wolfgang, 2002. "Determinants and Dynamics of Farm Diversification," 2002 International Congress, August 28-31, 2002, Zaragoza, Spain 24929, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae02:24929
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    References listed on IDEAS

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    3. Wolfgang Briglauer, 2000. "Motives for Firm Diversification. A Survey on Theory and Empirical Evidence," WIFO Working Papers 126, WIFO.
    4. Christoph R. Weiss, 1999. "Farm Growth and Survival: Econometric Evidence for Individual Farms in Upper Austria," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(1), pages 103-116.
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    9. Quiroz, Jorge A. & Valdes, Alberto, 1995. "Agricultural diversification and policy reform," Food Policy, Elsevier, vol. 20(3), pages 245-255, June.
    10. S. Martin & F. McLeay, 1998. "The Diversity of Farmers' Risk Management Strategies in a Deregulated New Zealand Environment," Journal of Agricultural Economics, Wiley Blackwell, vol. 49(2), pages 218-233.
    11. R. W. Fraser, 1990. "Producer Risk, Product Complementarity And Product Diversification," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(1), pages 103-107.
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    Citations

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    Cited by:

    1. Raju Mandal, 2014. "Cropping Pattern Choice and Risk Mitigation in Flood Affected Agriculture: A Study of Assam Plains, India," Working Papers 1403, Sam Houston State University, Department of Economics and International Business.
    2. Ciaian, Pavel & Guri, Fatmir & Rajcaniova, Miroslava & Drabik, Dusan & Paloma, Sergio, 2015. "Land Fragmentation, Production Diversification, and Food Security: A Case Study from Rural Albania," 2015 Conference, August 9-14, 2015, Milan, Italy 211539, International Association of Agricultural Economists.
    3. Sichoongwe, Kiru, 2014. "Determinants and Extent of Crop Diversification Among Smallholder Farmers in Southern Zambia," Research Theses 243456, Collaborative Masters Program in Agricultural and Applied Economics.
    4. Lighton Dube & Revaux Numbwa & Emmanuel Guveya, 2016. "Determinants of crop diversification amongst agricultural co-operators in Dundwa agricultural camp, Choma district, Zambia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(1), pages 1-13, January.
    5. Weiss, Christoph R. & Thiele, Holger D., 2002. "Diversifikation und Wachstum landwirtschaftlicher Unternehmen," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 51(3).
    6. Ooms, Daan L. & Hall, Alastair R., 2005. "EU policy reform simulation based on panel data estimation of on- and off-farm labour supply equations for Dutch dairy farmers," 2005 Annual meeting, July 24-27, Providence, RI 19434, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Kimhi, Ayal & Rekah, Hila, 2005. "The Simultaneous Evolution Of Farm Size And Specialization: Dynamic Panel Data Evidence From Israeli Farm Communities," Discussion Papers 7170, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    8. Ooms, Daan & Hall, A.R. Alastair, 2005. "Panel Data Estimation of Labour Supply Equations for Dutch Dairy Farmers," 89th Seminar, February 2-5, 2005, Parma, Italy 234636, European Association of Agricultural Economists.
    9. Linderhof, Vincent & Powell, Jeffrey & Vignes, Romain & Ruben, Ruerd, 2016. "The influence of household farming systems on dietary diversity and caloric intake: the case of Uganda," 2016 AAAE Fifth International Conference, September 23-26, 2016, Addis Ababa, Ethiopia 246444, African Association of Agricultural Economists (AAAE).
    10. Francksen, Tammo & Hagemann, Martin & Latacz-Lohmann, Uwe, 2011. "Eine empirische Untersuchung zum Wachstum von Milchviehbetrieben mittels der Ereignisanalyse," 51st Annual Conference, Halle, Germany, September 28-30, 2011 114494, German Association of Agricultural Economists (GEWISOLA).
    11. repec:ags:cmpart:198521 is not listed on IDEAS
    12. Mandal, Raju & Bezbaruah, M.P., 2013. "Diversification of Cropping Pattern: Its Determinants and Role in Flood Affected Agriculture of Assam Plains," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 68(2).
    13. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Output Diversification Among Small-Scale Hillside Farmers In El Salvador," OVE Working Papers 1706, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).

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