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Investigating determinants of agricultural income diversification: an exploratory case study in Tuscany

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  • Boncinelli, Fabio
  • Bartolini, Fabio
  • Casini, Leonardo
  • Brunori, Gianluca

Abstract

This paper investigates on-farm income diversification determinants, using data from the Italian 2010 census. The determinants are investigated by simulating farmers’ behaviors as a two-step process through the application of the Heckman sample selection model. Model results are quite consistent with previous literature findings and confirm the relevance of risk exposure reduction as on-farm diversification strategy determinants. Results stress also that, besides farm characteristics and structures, spatial location and distances play a prominentrole in explaining the diversification process. Our results seem contrary to the demand-driven effects of diversification but stress that diversification could be considered a broader process driven by territorial potentiality and quality.

Suggested Citation

  • Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo & Brunori, Gianluca, 2014. "Investigating determinants of agricultural income diversification: an exploratory case study in Tuscany," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182849, European Association of Agricultural Economists.
    • Handle: RePEc:ags:eaae14:182849
    DOI: 10.22004/ag.econ.182849
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    References listed on IDEAS

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    1. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2013. "Explaining the determinants of on-farm diversification: The case Study of Tuscany Region," 2013 Second Congress, June 6-7, 2013, Parma, Italy 149903, Italian Association of Agricultural and Applied Economics (AIEAA).
    2. Andersson, Hans & Ramamurtie, Sailesh & Ramaswami, Bharat, 2003. "Labor income and risky investments: can part-time farmers compete?," Journal of Economic Behavior & Organization, Elsevier, vol. 50(4), pages 477-493, April.
    3. Heckman, James, 2013. "Sample selection bias as a specification error," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 31(3), pages 129-137.
    4. McNamara, Kevin T. & Weiss, Christoph, 2005. "Farm Household Income and On- and Off-Farm Diversification," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 37(1), pages 37-48, April.
    5. Bartolini, Fabio & Viaggi, Davide & Ronchi, Davide & Gomez y Paloma, Sergio & Sammeth, Frank, 2011. "Assessing the impact of future CAP reforms on the demand of production factors," 122nd Seminar, February 17-18, 2011, Ancona, Italy 99593, European Association of Agricultural Economists.
    6. Bartolini, Fabio & Viaggi, Davide, 2012. "An analysis of policy scenario effects on the adoption of energy production on the farm: A case study in Emilia–Romagna (Italy)," Energy Policy, Elsevier, vol. 51(C), pages 454-464.
    7. Mishra, Ashok K. & Erickson, Kenneth W. & Harris, James Michael & Hallahan, Charles B. & Uematsu, Hiroki, 2010. "Determinants of Farm Household Income Diversification in the United States: Evidence from Farm-Level Data," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61632, Agricultural and Applied Economics Association.
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