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Beyond the single farm – A spatial econometric analysis of spill-overs in farm diversification in the Netherlands

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  • Vroege, Willemijn
  • Meraner, Manuela
  • Polman, Nico
  • Storm, Hugo
  • Heijman, Wim
  • Finger, Robert

Abstract

Farm diversification is an important component of rural development and policy in Europe. We examine the influence of neighbouring farms on farm diversification decisions. Our analysis investigates spill-over effects between farms and different activities in a spatial econometric framework. Using census data from about 66,000 farms in the Netherlands, we find significant correlations of diversification activities between spatially proximate farms. These are positive for some activities, for example for nature conservation. On a local level, positive spatial dependencies between farms may result from (tacit) cooperation and information sharing within neighbourhoods. However, for other activities, such as on-farm sales, we find negative correlations on a higher spatial level, i.e. within the region, which could result from competition. Spatial aspects of cooperation and competition have important consequences for the success of policies supporting the uptake of farm diversification. Our findings thus reveal that policy measures promoting farm diversification require implementation beyond the scale of individual farms and single activities.

Suggested Citation

  • Vroege, Willemijn & Meraner, Manuela & Polman, Nico & Storm, Hugo & Heijman, Wim & Finger, Robert, 2020. "Beyond the single farm – A spatial econometric analysis of spill-overs in farm diversification in the Netherlands," Land Use Policy, Elsevier, vol. 99(C).
    • Handle: RePEc:eee:lauspo:v:99:y:2020:i:c:s026483771931988x
    DOI: 10.1016/j.landusepol.2020.105019
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    Cited by:

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    3. Sebastian Neuenfeldt & Alexander Gocht & Thomas Heckelei & Klaus Mittenzwei & Pavel Ciaian, 2021. "Using Aggregated Farm Location Information to Predict Regional Structural Change of Farm Specialisation, Size and Exit/Entry in Norway Agriculture," Agriculture, MDPI, vol. 11(7), pages 1-22, July.
    4. Cordelia Kreft & Mario Angst & Robert Huber & Robert Finger, 2023. "Farmers’ social networks and regional spillover effects in agricultural climate change mitigation," Climatic Change, Springer, vol. 176(2), pages 1-21, February.

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    More about this item

    Keywords

    Farm diversification; Spatial regression; Spill-over effects;
    All these keywords.

    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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