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The Influence of diversification on short-term and long-term viability in the Scottish and Swedish agricultural sector

Author

Listed:
  • Barnes, Andrew P
  • Hansson, Helena H.
  • Manevska-Tasevska, Gordana
  • Shrestha, Shailesh
  • Thomson, Steven G

Abstract

The long-term viability of farm businesses has been a stated goal for agricultural policy in most developed and developing economies. Recent investigations have found the level and type of diversification to be a significant factor in determining viability. This paper presents an index of short term and long term viability over the period 2000-2012 across Scotland and Sweden. Transition probabilities are presented using a balanced Markov chain approach. We find stability in both viable and non-viable farms over time, irrespective of policy and market change. A multinomial logistic regression finds the influence agaricultural diversification on determining higher levels of viability at the farm level.

Suggested Citation

  • Barnes, Andrew P & Hansson, Helena H. & Manevska-Tasevska, Gordana & Shrestha, Shailesh & Thomson, Steven G, 2014. "The Influence of diversification on short-term and long-term viability in the Scottish and Swedish agricultural sector," Working Papers 190937, Scotland's Rural College (formerly Scottish Agricultural College), Land Economy & Environment Research Group.
    • Handle: RePEc:ags:srlewp:190937
    DOI: 10.22004/ag.econ.190937
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    Cited by:

    1. Lakner, Sebastian & Kirchweger, Stefan & Hoop, Daniel & Brümmer, Bernhard & Kantelhardt, Jochen, 2015. "Impact of diversification on technical efficiency of organic farming in Switzerland, Austria and Southern Germany," DARE Discussion Papers 1508, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Sebastian Lakner & Stefan Kirchweger & Daniel Hoop & Bernhard Brümmer & Jochen Kantelhardt, 2018. "The Effects of Diversification Activities on the Technical Efficiency of Organic Farms in Switzerland, Austria, and Southern Germany," Sustainability, MDPI, vol. 10(4), pages 1-18, April.

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    Keywords

    Agribusiness;

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