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The deployment of resources off the farm constitutes an important aspect of resource use in Australian agriculture. The aims in this paper are to document the nature and extent of off-farm employment and investment in the Australian grazing industry, to undertake an analysis to identify the factors important in determining both the type of off-farm employment undertaken by operators and the off-farm employment-investment strategy chosen by the farm family, and to present farmers' reasons given for undertaking off-farm employment and investment. Off-farm employment and off-farm investment were found to be widespread in the Australian grazing industry, with the majority of farm families receiving some income from off-farm sources. In addition to the relative incomes earned from farm and off-farm sources, human capital, family structure and the life cycle stage and some non-pecuniary influences were found to be important in determining the type of off-farm resources deployment undertaken, particularly with respect to off-farm employment. Many farmers were found to view off-farm employment and off-farm investment as efficient and profitable alternatives to the allocation of all resources to farm activities.


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