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

Author

Listed:
  • Butinya, Lluis
  • Velazco, Jackeline
  • Rigall-I-Torrent, Ricard

Abstract

En las ultimas decadas, el sector agricola y ganadero en Espana ha experimentado una disminucion de su contribucion al PIB y al empleo. Dado que la industria alimentaria y el mantenimiento de los recursos naturales en las zonas rurales dependen de las explotaciones agricolas y ganaderas,, es relevante analizar la diversificacion de las explotaciones agricolas como estrategia para aumentar sy rentabilidad y evitar su abandono. Este trabajo analiza los factores que explican la participacion en actividades de diversificacion en las explotaciones agricolas en Cataluna. Un modelo teorico explica las decisioens de asignacion del tiempo de los agricultores. El analisis empirico se realiza con una muestra de 3.435 explotaciones de la Encuesta sobre la Estructura de las Explotaciones Agricolas del 2007. Los resultados de un modelo logit evidencian que la ubicacion en zonas desfavorecidas y un bajo peso del sector primario en el PIB favorecen la diversificacion agricola. Las explotaciones que son propiedad de personas juridicas, la extension de la tierra cultivable y el margen bruto tambien afectan positivamente a la diversificacion. Las explotaciones dedicadas tanto a la agricultura extensiva como a la intensiva diversifican. Por ultumo, la formacion y edad del responsable de la explotacion influyen positiva y negativamente, respectivamente, en la diversificacion. In recent decades, the agriculture and livestock sector in Spain has experienced a decline in its contribution to GDP and employment. Since the 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 the factors affecting participation by farmers in Catalonia in on-farm diversification activities. A theoretical model explains farmers' time allocation decisions. The analysis of the 2007 Farm Structural Survey with a sample size of 3,435 farms using a logit model reveals that location in disadvantage 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 carry out on-farm diversification. Finally, agricultural training and age of the farm manager positively and negatively influence diversification, respectively.

Suggested Citation

  • Butinya, Lluis & Velazco, Jackeline & Rigall-I-Torrent, Ricard, 2014. "Determinants of on-farm diversification: The case of farmers in Catalonia," Revista Espanola de Estudios Agrosociales y Pesqueros, Ministerio de Medio Ambiente, Rural y Marino (formerly Ministry of Agriculture), issue 238, pages 1-28.
    • Handle: RePEc:ags:spreea:187617
    DOI: 10.22004/ag.econ.187617
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    References listed on IDEAS

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