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Determinants of farm diversification and interaction with the CAP. An application to FADN of Marche region (Italy)

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  • Finocchio, Romina
  • Esposti, Roberto

Abstract

This work analyzes farm diversification activities in an Italian region (Marche). The study examines 387 farms from Farm Accountancy Data Network (FADN) over a six-year period (2000-2005), applying Discrete Choice Models to identify their business. Recognizing the driving forces of such diversification strategy can be useful to better design those agricultural policies explicitly aimed at promoting agricultural multifunctionality as well as social and environmental sustainability. The linkage between diversification choices and CAP payments is thus also investigated.

Suggested Citation

  • Finocchio, Romina & Esposti, Roberto, 2008. "Determinants of farm diversification and interaction with the CAP. An application to FADN of Marche region (Italy)," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44251, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae08:44251
    DOI: 10.22004/ag.econ.44251
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    1. Arovuori, Kyösti & Kola, Jukka, 2006. "Multifunctional Policy Measures: Farmers' Choice," 2006 Annual meeting, July 23-26, Long Beach, CA 21400, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Ani L. Katchova, 2005. "The Farm Diversification Discount," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(4), pages 984-994.
    3. Edi Defrancesco & Paola Gatto & Ford Runge & Samuele Trestini, 2008. "Factors Affecting Farmers’ Participation in Agri‐environmental Measures: A Northern Italian Perspective," Journal of Agricultural Economics, Wiley Blackwell, vol. 59(1), pages 114-131, February.
    4. Earl O. Heady, 1952. "Diversification in Resource Allocation and Minimization of Income Variability," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 34(4), pages 482-496.
    5. Isabel Vanslembrouck & Guido Van Huylenbroeck & Wim Verbeke, 2002. "Determinants of the Willingness of Belgian Farmers to Participate in Agri‐environmental Measures," Journal of Agricultural Economics, Wiley Blackwell, vol. 53(3), pages 489-511, November.
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    Cited by:

    1. Dries, Liesbeth & Pascucci, Stefano & Gardebroek, Cornelis, 2011. "Pluriactivity in Italian Agriculture: Are Farmers Using Interlinked Strategies?," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114429, European Association of Agricultural Economists.
    2. Butinya, Lluis & Velazco, Jackeline & Rigall-I-Torrent, Ricard, 2014. "Determinants of on-farm diversification: The case of farmers in Catalonia," Revista Espanola de Estudios Agrosociales y Pesqueros, Ministerio de Medio Ambiente, Rural y Marino (formerly Ministry of Agriculture), issue 238, pages 1-28.
    3. Awlad Hosen Sagar & Md Abu Bakkar Siddik & Rubayet Hasan, 2020. "The Determinants of Risk-Sharing Strategies of Food-Retailers: A Study on Chittagong, Bangladesh," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(6), pages 337-347, December.
    4. Marino Davide & Giannelli Agostino & Mazzocchi Giampiero & Mastronardi Luigi & Giaccio Vincenzo, 2018. "Territorialisation dynamics for Italian farms adhering to Alternative Food Networks," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 40(40), pages 113-131, June.
    5. Salvioni, Cristina & Ascione, Elisa & Henke, Roberto, 2013. "Structural and economic dynamics in diversified Italian farms," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(3), pages 1-19, December.
    6. Orlando Cimino & Marco Vassallo & Roberto Henke & Francesco Vanni, 2021. "Income Diversification Strategies of Italian Peri-Urban Farms: A Structural Equation Modeling Approach," Land, MDPI, vol. 10(8), pages 1-23, July.
    7. Bohátová Zuzana & Schwarcz Pavol & Schwarczová Loreta & Bandlerová Anna & Tľčik Vojtech, 2016. "Multifunctionality – Interactions and Implications: The Case of the Podkylava Village (Western Slovakia)," European Countryside, Sciendo, vol. 8(2), pages 147-159, June.
    8. Ascione, Elisa & Henke, Roberto & Salvioni, Cristina, 2012. "An attempt to measure the economic sustainability of farm diversification," 126th Seminar, June 27-29, 2012, Capri, Italy 126013, European Association of Agricultural Economists.
    9. Salvioni, Cristina & Fontanella, Lara, 2013. "Diversification strategies and their impact on farm performance," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 7(2-3), pages 1-5.

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    Keywords

    Agricultural and Food Policy; Farm Management;

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