The research studies structural changes in agriculture in the Škofja Loka region based on an empirical analysis of income diversification in a sample of agricultural households (AHs) in 2001 and 2006. The analysis was conducted from three points of view: for the entire sample of AHs, according to socio-economic types of AHs, and according to areas with different levels of development and different natural endowments for agricultural production. The numbers of households professionally engaged in farming has declined. In turn, the number of AHs abandoning farming has increased. Structural changes differ among geographic areas. Income derived from agriculture is insufficient for survival for most of AHs, making income diversification inevitable. Strategies of AHs are unclear. Farms are abandoning farming due to low profitability of production and better employment opportunities in non-agricultural activities.