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Research article2012Peer reviewed

Psychological Constructs Underlying Farmers' Decisions to Diversify or Specialise their Businesses - An Application of Theory of Planned Behaviour

Hansson, Helena; Ferguson, Richard; Olofsson, Christer

Abstract

We use the theory of planned behaviour (TPB) to explain how underlying psychological constructs influence farmers decisions to extend their farm businesses to income-generating ventures outside conventional agricultural production. The analysis contrasts the influence of psychological constructs on this decision with those on decisions to specialise in a single farm enterprise or to have multiple farm enterprises. This is one of the first studies to introduce psychological constructs into the study of farm diversification. It is based on a sample of 929 Swedish farms participating in the official Swedish Farm Economic Survey. These data are supplemented with a detailed postal questionnaire to the participating farmers, generating a response rate of 73% and an effective sample size of 679 farmers and their businesses. Data are analysed with factor and multinomial logistic regression analyses. Results show that psychological constructs in TPB (attitude, subjective norm and perceived behavioural control) influence farmers decisions regarding the strategy they adopt. Attitude and subjective norm are found to be especially influential in these decisions. Given the prominent role agriculture still has in rural development policy, where the development of new ventures in farm businesses is perceived as the engine for rural economic growth and employment, these findings have clear policy implications.

Keywords

Diversification; factor analysis; farms; multinomial logistic analysis; psychology; rural policy; Sweden; theory of planned behaviour; Q12; M10

Published in

Journal of Agricultural Economics
2012, Volume: 63, number: 2, pages: 465-482
Publisher: WILEY-BLACKWELL

      SLU Authors

      • Sustainable Development Goals

        Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

        UKÄ Subject classification

        Economics and Business
        Agricultural Science
        Social Sciences

        Publication identifier

        DOI: https://doi.org/10.1111/j.1477-9552.2012.00344.x

        Permanent link to this page (URI)

        https://res.slu.se/id/publ/45564