Determinante of on-farm diversification: The case of farmers in Catalonia

摘要

In recent decades, die agricultural and livestock, sector in Spain has experienced a decline in its contribution to GDP and employment. Since die food industry and the maintenance of natural resources in rural areas largely depend on agriculture and livestock farms, analising on-farm diversification as a strategy to increase profitability and to try to avoid their abandonment is a relevant issue. This paper explores die factors affecting participation by farmers in Catalonia in on-farm diversification activities. A dieoretical model explains farmers' time allocation decisions. The analysis of the 2007 Farm Structural Survey with a sample size of 3,43.5 farms using a logit model reveals diat location in disadvantaged areas and a low weight of the primary sector in GDP encourage on-farm diversification. Holdings owned by legal persons, arable land size and gross margin also exhibit a positive impact on diversification. Holdings engaged in both extensive and intensive farming also cany out on-farm diversification. Finally, agricultural training and age of die farm manager positively and negatively influence diversification, respectively.