Determinants of farm diversification in the Netherlands |
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| Institution: | 1. Bonn University, Production Economics Group, Germany;2. Wageningen University, Agricultural Economics and Policy Group, The Netherlands;3. Wageningen UR, LEI, The Netherlands;1. Department of Geography, Indiana University, Student Building 120, E. Kirkwood Avenue, Bloomington, IN 47405, United States;2. Center for the Study of Institutions, Population, and Environmental Change, Indiana University, 408 N. Indiana Avenue, Bloomington, IN 47408, United States;3. Vincent and Elinor Ostrom Workshop in Political Theory and Policy Analysis, Indiana University, 513 N. Park Avenue, Bloomington, IN 47408, United States;4. Environmental Studies Program, Dartmouth College, 6182 Steele Hall, Hanover, NH 03755, United States;5. Interdisciplinary Liberal Studies, James Madison University, Maury Hall, 800 S. Main Street, Harrisonburg, VA 22801, United States;1. The International Institute of Tropical Agriculture (IITA), Lilongwe, Malawi;2. The International Maize and Wheat Improvement Center (CIMMYT), Nairobi, Kenya;1. Department of Geography, San Diego State University, 5500 Campanile Drive, San Diego, CA 92182-4493, United States;2. Department of Environmental Science and Management, Humboldt State University, Arcata, CA 95521, United States;1. Agriculture Economics and Policy Research (NCAP), New Delhi, India;2. International Food Policy Research Institute (IFPRI) NASC Complex, New Delhi, India;3. Indian Statistical Institute, New Delhi;1. Nature Conservation and Plant Ecology Group, Department of Environmental Sciences, Wageningen University, PO Box 47, 6700AA Wageningen, The Netherlands;2. Institute of Biological and Environmental Sciences, School of Biological Sciences, University of Aberdeen, 23 St Machar Drive, Aberdeen AB24 3UU, UK;3. Strategic Communication group, Department of Social Sciences, Wageningen University, P.O. Box 8130, 6700 EW Wageningen, The Netherlands;4. Institute of Environmental Sciences, Leiden University, PO Box 9518, 2300 RA Leiden, The Netherlands |
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| Abstract: | Farm diversification has been prominently supported by agricultural policy makers aiming to support rural development. To increase the understanding of determinants influencing diversification and hence to increase the efficiency of policies aiming to support farm diversification this paper presents the results of an analysis of diversification determinants. The research investigates Dutch farms diversification strategies using Farm Structural Survey (FSS) data of 2011 including 70,392 farms. The study uses a binary logit model to determine the characteristics influencing the diversification decision in general. Furthermore, an in-depth analysis for six diversification strategies was conducted. Additionally the study categorised the specific diversification activities in order to estimate a multinomial probit model, analysing three choice categories simultaneously. This enables us to compare determinants of farm diversification in general with determinants of specific activities. The analysis includes socio- demographic, economic and geophysical farm characteristics assumed to influence the diversification decision. Even though diversification is largely influenced by similar determinants, we find differences that are most pronounced for the adoption of nature conservation strategies. Consequently, it is important for policy makers to target policies at specific diversification activities in order to increase efficiency. |
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| Keywords: | Farm diversification The Netherlands Farm characteristics |
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