Factors affecting farm enterprise diversification

Ashok Mishra, Hisham S. El-Osta, Carmen L. Sandretto

Research output: Contribution to journalArticle

45 Citations (Scopus)

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.

Original languageEnglish (US)
Pages (from-to)151-166
Number of pages16
JournalAgricultural Finance Review
Volume64
Issue number2
StatePublished - Nov 1 2004
Externally publishedYes

Fingerprint

farms
debt to asset ratio
sole proprietorship
commodity programs
farm operators
off-farm employment
crop insurance
farmers
large farms
urban areas
households
Factors
Farm
Diversification
Farms
Insurance
Farmers

Keywords

  • Debt-to-asset ratio
  • Enterprise diversification
  • Farm size
  • Government payments
  • Insurance
  • Location
  • Off-farm income
  • Soil productivity

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Agricultural and Biological Sciences (miscellaneous)
  • Strategy and Management

Cite this

Mishra, A., El-Osta, H. S., & Sandretto, C. L. (2004). Factors affecting farm enterprise diversification. Agricultural Finance Review, 64(2), 151-166.

Factors affecting farm enterprise diversification. / Mishra, Ashok; El-Osta, Hisham S.; Sandretto, Carmen L.

In: Agricultural Finance Review, Vol. 64, No. 2, 01.11.2004, p. 151-166.

Research output: Contribution to journalArticle

Mishra, A, El-Osta, HS & Sandretto, CL 2004, 'Factors affecting farm enterprise diversification', Agricultural Finance Review, vol. 64, no. 2, pp. 151-166.
Mishra A, El-Osta HS, Sandretto CL. Factors affecting farm enterprise diversification. Agricultural Finance Review. 2004 Nov 1;64(2):151-166.
Mishra, Ashok ; El-Osta, Hisham S. ; Sandretto, Carmen L. / Factors affecting farm enterprise diversification. In: Agricultural Finance Review. 2004 ; Vol. 64, No. 2. pp. 151-166.
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