On farm dirversification - the management perspective

Abstract

The subject of this paper is to describe the on-farm non-agricultural diversification in Finland from the management perspective. The data of the study was collected by postal survey to in spring 2001. Data was analysed by using, multivariate data analysis. Starting non-agricultural activities is often connected to the succession in agriculture. Farmers had certain expectations for the diversification. Balancing yearly income, higher income, gaining business growth and risk management were the most common reasons to diversification. Non-agricultural activities in diversified farms were quite similar with 'regular' enterprises in the same business and size. The turnover in the diversified farms was a little lower, but entrepreneurs evaluated the future possibilities similarly. Diversified farms had more depths compared to others. Clearly good advantage of being diversified is that the entrepreneur is that the entrepreneur is less dependent on source of income.