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Multi-Enterprising Farm Households: The Importance of Their Alternative Business Ventures in the Rural Economy

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  • Vogel, Stephen J.

Abstract

Almost a third of U.S. farm households generate income by engaging in business ventures independent of commodity production, with distinctly different community and household benefits. In 2007, 686,600 farm households engaged in 791,000 income-generating activities distinct from commodity production, creating $26.7 billion in household income. Onfarm diversification activities like agritourism and off-farm business ventures each accounted for about half of these activities, but off-farm businesses generated about 80 percent of total alternative (i.e., noncommodity) business income earned by farm households, creating the largest impact on the local economy. Off-farm businesses operated by farm households contributed an estimated $54.6 billion in value-added income to the gross regional products of their local economies and paid out $24.5 billion in wages and salaries to 853,100 part-time and full-time employees. In general, the share of the local employment base accounted for by farmer-owned off-farm businesses was higher in more rural counties.

Suggested Citation

  • Vogel, Stephen J., 2012. "Multi-Enterprising Farm Households: The Importance of Their Alternative Business Ventures in the Rural Economy," Economic Information Bulletin 138015, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersib:138015
    DOI: 10.22004/ag.econ.138015
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    References listed on IDEAS

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    1. Clare Gupta & Tamar Makov, 2017. "How global is my local milk? Evaluating the first-order inputs of “local” milk in Hawai‘i," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 34(3), pages 619-630, September.
    2. 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).
    3. Rachel M. Shellabarger & Rachel C. Voss & Monika Egerer & Shun-Nan Chiang, 2019. "Challenging the urban–rural dichotomy in agri-food systems," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 36(1), pages 91-103, March.
    4. Khanal, Aditya & Mishra, Ashok, "undated". "Interlinked diversification strategies: Evidence from farm business households," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196977, Southern Agricultural Economics Association.
    5. Aditya R. Khanal & Ashok K. Mishra, 2014. "Agritourism and off-farm work: survival strategies for small farms," Agricultural Economics, International Association of Agricultural Economists, vol. 45(S1), pages 65-76, November.
    6. Khanal, Aditya R. & Mishra, Ashok & Koirala, Krishna H., 2014. "Participation in Agritourism and Off-farm Work: Do Small Farms Benefit?," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162453, Southern Agricultural Economics Association.
    7. Aditya R. Khanal & Ashok K. Mishra & Omobolaji Omobitan, 2019. "Examining organic, agritourism, and agri-environmental diversification decisions of American farms: are these decisions interlinked?," Review of Agricultural, Food and Environmental Studies, Springer, vol. 100(1), pages 27-45, December.
    8. Mirzaei, Omid & Micheels, Eric T. & Boecker, Andreas, . "Product and Marketing Innovation in Farm-Based Businesses: The Role of Entrepreneurial Orientation and Market Orientation," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-32.
    9. Cristina Salvioni & Roberto Henke & Francesco Vanni, 2020. "The Impact of Non-Agricultural Diversification on Financial Performance: Evidence from Family Farms in Italy," Sustainability, MDPI, vol. 12(2), pages 1-14, January.
    10. Bartolini, Fabio & Andreoli, Maria & Brunori, Gianluca, 2014. "Explaining determinants of the on-farm diversification: empirical evidence from Tuscany region," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 3(2), pages 1-21, August.
    11. Khanal, Aditya R. & Mishra, Ashok K. & Honey, Ummey, "undated". "Impact of diversification strategies on financial performance: A Multinomial Endogenous Switching Regression Approach," 2018 Annual Meeting, August 5-7, Washington, D.C. 273808, Agricultural and Applied Economics Association.
    12. Sudip Adhikari & Aditya R. Khanal, 2021. "Economic Sustainability and Multiple Risk Management Strategies: Examining Interlinked Decisions of Small American Farms," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    13. Jason P. Brown & Stephan J. Goetz & Mary C. Ahearn & Chyi-lyi (Kathleen) Liang, 2014. "Linkages Between Community-Focused Agriculture, Farm Sales, and Regional Growth," Economic Development Quarterly, , vol. 28(1), pages 5-16, February.

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