A. Mishra, H. El-Osta, C. Sandretto
2004.11.1Agricultural Finance Review
tlooto Summary
This study examines how various farm characteristics affect on-farm enterprise diversification and its relationship with risk management strategies.
Abstract
Enterprise diversification is a self‐insuring strategy used by farmers to protect against risk. This study examines the impact of various farm, operator, and household characteristics on the level of onfarm enterprise diversification. Evidence exists that larger farms are more specialized. Also, farmers who participate in off‐farm work, farms located near urban areas, or farms with higher debt‐to‐asset ratios are less likely to be diversified. In contrast, evidence suggests there is a significant positive relationship between diversification and whether the farm business has crop insurance, is organized as a sole proprietorship, or receives any direct payments from current farm commodity programs.
Citation format
MISHRA, A.; EL-OSTA, H.; SANDRETTO, C. Factors affecting farm enterprise diversification. Agricultural Finance Review, 2004, 64: 151–166.