RISK MANAGEMENT THROUGH ENTERPRISE DIVERSIFICATION: A FARM-LEVEL ANALYSIS

Enterprise diversification is a self-insuring strategy used by farmers to protect against risk. This paper examines the impact of various farm, operator, and household characteristics on the level of on-farm diversification. Results provide evidence that larger farms are more specialized. Also, farmers who participate in off-farm income and farms located near urban areas are less likely to diversify. Additionally, results also show a significant positive relationship between diversification and farm/crop insurance and sole proprietorships. Finally, there is also evidence that farms that received government payments are more diversified than their counterparts.


Issue Date:
2002
Publication Type:
Conference Paper/ Presentation
Record Identifier:
http://ageconsearch.umn.edu/record/19711
PURL Identifier:
http://purl.umn.edu/19711
Total Pages:
23
Series Statement:
Selected Paper




 Record created 2017-04-01, last modified 2018-01-22

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