Understanding the diversification and specialization of farm businesses

Abstract

This paper addresses the development of farm businesses in Sweden, 2000-2007, with regard to their specialization in single farm enterprises, diversified agricultural production and diversification with new income-generating ventures. Furthermore, regression analysis is used to study the impact of farm characteristics on the observed specialization and diversification. The study is based a panel data set of about 900 farms participating in the Swedish Agricultural Economics Survey. Results show that farms are increasingly engaging in diversified activities, though in most firms these activities make only minor contributions to total revenue. Results also show that the degrees of specialization and diversification are influenced by characteristics of firms' business structure, financial and demographic conditions. These results contribute to the understanding of farm business development, as well as show the need for policy makers and farm advisors to consider the differences between farms pursuing different development strategies in their efforts to influence behavior.

Keywords

Business structure; demographic conditions; diversification; financial conditions; specialization; Sweden

Published in

Agricultural and Food Science
2010, volume: 19, number: 4, pages: 269-283
Publisher: AGRICULTURAL RESEARCH CENTRE FINLAND

SLU Authors

• Hansson, Helena

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Ferguson, Richard

  • Department of Economics, Swedish University of Agricultural Sciences
    

• Olofsson, Christer

  • Department of Economics, Swedish University of Agricultural Sciences
    

Global goals (SDG)

SDG8 Decent work and economic growth

UKÄ Subject classification

Social Sciences
Agricultural Science
Economics and Business

Publication identifier

• DOI: https://doi.org/10.2137/145960610794197605

Permanent link to this page (URI)

https://res.slu.se/id/publ/60745