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Abstract
Family farms are the most significant development entities of rural areas. The
welfare of the rural population depends on the success of their business operations
and ability to survive in the market. Bearing this in mind, it is necessary to find
ways and create the adequate conditions to activate development potentials.
The objective of this study is therefore to systematize potential sources of farm households’
income, with special emphasis on how and why they diversify their income and activities.
Results of the research unambiguously show that diversification of income and activities
are now integral part of business activities of numerous farms. No doubt, importance of
diversification will increase in future period, considering that more dynamic development
of farms is not possible without engagement of all potentials at their disposal.