IDEAS home Printed from https://ideas.repec.org/a/ags/aieabj/182907.html
   My bibliography  Save this article

Explaining determinants of the on-farm diversification: empirical evidence from Tuscany region

Author

Listed:
  • Bartolini, Fabio
  • Andreoli, Maria
  • Brunori, Gianluca

Abstract

On-farm diversification towards multifunctional activities is perceived as central in the Common Agricultural Policy (CAP) reform and in the Horizon 2020 strategies, because it strengthens territorial and social cohesion of rural areas. While from a “macro” point of view relations between farm-household diversification and rural economies are central in the process of multi-functionality and in the provision of public goods through agricultural activities, from a “micro” point of view onfarm diversification activities can represent a relevant share of farm income. Agricultural Economics and Rural Sociology have developed models aiming to explain the determinants of on-farm diversification thus providing a set of variables potentially influencing on-farm diversification. The paper applies a count model to explain the number of on-farm diversification activities that are implemented by farms in Tuscany. Since the high number of agricultural holdings that do not apply any diversification activity, we propose a two-step model where, firstly a simulation of adoption of diversified strategy as binary variable is considered and secondly, a model analysing the determinants of diversification intensity among the farms that have decided to diversify is implemented. Results confirm that location near main touristic areas and vicinity to urban markets are important determinants of on-farm diversification intensity. Results highlight a positive contribution of the Pillar 2 agricultural policies both in determining the diffusion of on-farm diversification activities and in influencing the intensity of adoption, while high per hectare Single Farm Payments have a negative influence on diversification intensity.

Suggested Citation

  • 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.
    • Handle: RePEc:ags:aieabj:182907
    DOI: 10.22004/ag.econ.182907
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/182907/files/12994-28972-2-PB.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.182907?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. S. R. Johnson, 1967. "A Re-examination of the Farm Diversification Problem," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 49(3), pages 610-621.
    2. 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.
    3. Paxton, Kenneth W. & Mishra, Ashok K. & Chintawar, Sachin & Roberts, Roland K. & Larson, James A. & English, Burton C. & Lambert, Dayton M. & Marra, Michele C. & Larkin, Sherry L. & Reeves, Jeanne M. , 2011. "Intensity of Precision Agriculture Technology Adoption by Cotton Producers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 40(1), pages 133-144, April.
    4. Amanor-Boadu, Vincent, 2013. "Diversification Decisions in Agriculture: The Case of Agritourism in Kansas," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 16(2), pages 1-17, May.
    5. 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.
    6. 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.
    7. Mullahy, John, 1986. "Specification and testing of some modified count data models," Journal of Econometrics, Elsevier, vol. 33(3), pages 341-365, December.
    8. Jean-Christophe Bureau & Stefan Tangermann & Alan Matthews & Davide Viaggi & Christophe Crombez & Louise Knops & Johan Swinnen, 2012. "The Common Agricultural Policy after 2013," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 47(6), pages 316-342, November.
    9. 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.
    10. Uematsu, Hiroki & Mishra, Ashok K., 2011. "Use of Direct Marketing Strategies by Farmers and Their Impact on Farm Business Income," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(1), pages 1-19, April.
    11. McNamara, Kevin T. & Weiss, Christoph R., 2005. "Farm Household Income and On-and-Off Farm Diversification," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 37(1), pages 1-12, April.
    12. Hardaker, J. Brian, 2000. "Some Issues in Dealing with Risk in Agriculture," Working Papers 12912, University of New England, School of Economics.
    13. Ashok K. Mishra & J. Mathew Fannin & Hyunjeong Joo, 2014. "Off-Farm Work, Intensity of Government Payments, and Farm Exits: Evidence from a National Survey in the United States," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(2), pages 283-306, June.
    14. 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.
    15. Chavas, Jean-Paul, 2001. "Structural change in agricultural production: Economics, technology and policy," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 5, pages 263-285, Elsevier.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hisham S. El-Osta, 2018. "Strategies to Manage Risk and their Role in Impacting Economic Performance among Farm Households," Applied Economics and Finance, Redfame publishing, vol. 5(2), pages 49-64, March.
    2. Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo, 2018. "Structural factors of labour allocation for farm diversification activities," Land Use Policy, Elsevier, vol. 71(C), pages 204-212.
    3. Khanal, Aditya R. & Mishra, Ashok K. & Omobitan, Omobolaji, 2019. "Examining organic, agritourism,and agri-environmental diversification decisions of American farms: are these decisions interlinked?," Review of Agricultural, Food and Environmental Studies, Institut National de la Recherche Agronomique (INRA), vol. 100(1-4), October.
    4. Bonfiglio, Andrea & Abitabile, Carla & Henke, Roberto, 2022. "A choice model-based analysis of diversification in organic and conventional farms," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    5. Ochoa. M, W. Santiago & Härtl, Fabian H. & Paul, Carola & Knoke, Thomas, 2019. "Cropping systems are homogenized by off-farm income – Empirical evidence from small-scale farming systems in dry forests of southern Ecuador," Land Use Policy, Elsevier, vol. 82(C), pages 204-219.
    6. 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.
    7. Shingo Yoshida, 2020. "Effects of Urbanization on Farmland Size and Diversified Farm Activities in Japan: An Analysis Based on the Land Parcel Database," Land, MDPI, vol. 9(9), pages 1-23, September.
    8. 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.
    9. Giuseppe Gargano & Francesco Licciardo & Milena Verrascina & Barbara Zanetti, 2021. "The Agroecological Approach as a Model for Multifunctional Agriculture and Farming towards the European Green Deal 2030—Some Evidence from the Italian Experience," Sustainability, MDPI, vol. 13(4), pages 1-23, February.
    10. Khanal, Aditya & Mishra, Ashok, 2015. "Interlinked diversification strategies: Evidence from farm business households," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196977, Southern Agricultural Economics Association.
    11. Adele Coppola & Alfonso Scardera & Mario Amato & Fabio Verneau, 2020. "Income Levels and Farm Economic Viability in Italian Farms: An Analysis of FADN Data," Sustainability, MDPI, vol. 12(12), pages 1-18, June.
    12. Fabio Bartolini & Daniele Vergamini, 2019. "Understanding the Spatial Agglomeration of Participation in Agri-Environmental Schemes: The Case of the Tuscany Region," Sustainability, MDPI, vol. 11(10), pages 1-18, May.
    13. Rike Stotten & Michaela Maurer & Hannes Herrmann & Markus Schermer, 2019. "Different Forms of Accommodation in Agritourism: The Role of Decoupled Farmer-Based Accommodation in the Ötztal Valley (Austria)," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    14. Shingo Yoshida & Hironori Yagi & Akira Kiminami & Guy Garrod, 2019. "Farm Diversification and Sustainability of Multifunctional Peri-Urban Agriculture: Entrepreneurial Attributes of Advanced Diversification in Japan," Sustainability, MDPI, vol. 11(10), pages 1-21, May.
    15. Hayatullah Ahmadzai, 2017. "Status, patterns, and microeconomic drivers of the extent of diversity in crop production: Evidence from Afghanistan," Discussion Papers 2017-07, University of Nottingham, CREDIT.
    16. Fabio Bartolini & Luciana G. Angelini & Gianluca Brunori & Oriana Gava, 2015. "Impacts of the CAP 2014–2020 on the Agroenergy Sector in Tuscany, Italy," Energies, MDPI, vol. 8(2), pages 1-22, February.
    17. Bolier Torres & Cristian Vasco & Sven Günter & Thomas Knoke, 2018. "Determinants of Agricultural Diversification in a Hotspot Area: Evidence from Colonist and Indigenous Communities in the Sumaco Biosphere Reserve, Ecuadorian Amazon," Sustainability, MDPI, vol. 10(5), pages 1-21, May.
    18. Fastelli, Laura & Landi, Chiara & Rovai, Massimo & Andreoli, Maria, 2017. "A spatial analysis of terrain features and farming styles in a disadvantaged area of Tuscany (Mugello): implications for the evaluation and the design of CAP payments," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 6(1), May.
    19. Larcher, Manuela & Engelhart, Reinhard & Vogel, Stefan, 2019. "Agricultural Professionalization of Austrian Family Farm Households the Effects of Vocational Attitude, Social Capital and Perception of Farm Situation," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 68(1), March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Boncinelli, Fabio & Bartolini, Fabio & Casini, Leonardo, 2018. "Structural factors of labour allocation for farm diversification activities," Land Use Policy, Elsevier, vol. 71(C), pages 204-212.
    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. 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.
    4. 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.
    5. 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.
    6. Radosław PASTUSIAK & Magdalena JASINIAK & Michał SOLIWODA & Joanna STAWSKA, 2017. "What may determine off-farm income? A review," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 63(8), pages 380-391.
    7. Khanal, Aditya R. & Mishra, Ashok K. & Honey, Ummey, 2018. "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.
    8. Blank, Steven C., 2005. "Hedging with off-farm income: implications for production and investment decisions across farm sizes," 2005 Annual Meeting, July 6-8, 2005, San Francisco, California 291741, Western Agricultural Economics Association.
    9. Amine, Benmehaia Mohamed & Fatima, Brabez, 2016. "Determinants Of On-Farm Diversification Among Rural Households: Empirical Evidence From Northern Algeria," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 4(2), pages 1-13, April.
    10. Landi, Chiara & Bartolini, Fabio & Rovai, Massimo, 2014. "A spatial analysis of the farm structural change: the case study of Tuscany region," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182938, European Association of Agricultural Economists.
    11. Bouchakour, Radhia & Saad, Mohammed, 2020. "Farm and farmer characteristics and off-farm work: evidence from Algeria," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(2), April.
    12. Nicholas A. Lancaster & Ariana P. Torres, 2019. "Investigating the Drivers of Farm Diversification Among U.S. Fruit and Vegetable Operations," Sustainability, MDPI, vol. 11(12), pages 1-20, June.
    13. Fałkowski, Jan, 2016. "Promoting change or preserving the status quo? - the consequences of dominating local politics by agricultural interests. Some evidence on structural change in Poland during the transition period," 149th Seminar, October 27-28, 2016, Rennes, France 245115, European Association of Agricultural Economists.
    14. Jianmei Zhao & Peter Barry, 2013. "Implications of different income diversification indexes: the case of rural China," Economics and Business Letters, Oviedo University Press, vol. 2(1), pages 13-20.
    15. Štefan Bojnec & Kristina Knific, 2021. "Farm Household Income Diversification as a Survival Strategy," Sustainability, MDPI, vol. 13(11), pages 1-16, June.
    16. Fabio Bartolini & Luciana G. Angelini & Gianluca Brunori & Oriana Gava, 2015. "Impacts of the CAP 2014–2020 on the Agroenergy Sector in Tuscany, Italy," Energies, MDPI, vol. 8(2), pages 1-22, February.
    17. Dono, Gabriele & Buttinelli, Rebecca & Cortignani, Raffaele, 2022. "Financial performance of connected Agribusiness activities in Italian agriculture," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 11(2), July.
    18. Floridi, Matteo & Bartolini, Fabio & Peerlings, Jack & Polman, Nico & Viaggi, Davide, 2013. "Modelling the adoption of automatic milking systems in Noord-Holland," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), vol. 2(01), pages 1-18, April.
    19. 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.
    20. Vassalos, Michael & Lim, Kar Ho, 2016. "Farmers’ Willingness to Pay for Various Features of Electronic Food Marketing Platforms," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(2), pages 1-19, May.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:aieabj:182907. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/aieaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy