The influence of diversification on long-term viability of the agricultural sector

Barnes, Andrew P.; Hansson, Helena; Manevska‐Tasevska, Gordana; Shrestha, Shailesh; Thomson, Steven

doi:10.1016/j.landusepol.2015.08.023

Cited by 105 publications

(91 citation statements)

References 51 publications

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“…Short supply chains build the major "deepening" activity. This vertical integration steps out of and differentiates from traditional long food chains [4,28,31,[47][48][49][50][51]. Locally embedded value chains reduce, firstly, dependency on global markets and, secondly, contribute to a stronger multifunctionality of agriculture [42].…”

Section: City-proximitymentioning

confidence: 99%

The Location Matters: Determinants for “Deepening” and “Broadening” Diversification Strategies in Ruhr Metropolis’ Urban Farming

Pölling

Mergenthaler

2017

Sustainability

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Consumer-oriented diversification activities, such as direct sale ("deepening") as well as tourism services and care farming ("broadening"), are common business strategies of farms within urban areas. This empirical study investigates determinants of urban farming's diversification decisions by analyzing a dataset of 123 farmers in German Ruhr Metropolis. Binary logit models are used here as econometric method to determine characteristics influencing the decision to diversify. Farm characteristics, which encourage the implementation of "deepening" strategies, are: larger farm sizes, high-value production, organic farming, and livestock production. By contrast, the consumer-oriented "broadening" strategies tourism services and care farming prevail on smaller farms and on farms with horses and higher grassland shares. Agricultural extension services increase the odds to diversify. The results of the conducted binary logistic regressions show increasing odds and predicted probabilities for "deepening" and "broadening" activities when approaching the city. Farms' location advantages close to cities can be used best when applying consumer-oriented "deepening" or "broadening" strategies; namely, direct sale or other short supply chains, tourism services, and care farming. Viable business strategies of urban farming support a forward-looking integration into urban economy, society, and decision-making.

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Section: City-proximitymentioning

confidence: 99%

The Location Matters: Determinants for “Deepening” and “Broadening” Diversification Strategies in Ruhr Metropolis’ Urban Farming

Pölling

Mergenthaler

2017

Sustainability

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“…Through diversifi cation, being either multi-commodity farm activities or combining onfarm and off-farm income or a combination of both, risks are mitigated, enabling more stable incomes to be generated (Hardaker et al, 2004;Bowman and Zilberman, 2013;Barnes et al, 2015). Certain characteristics are associated with diversifi cation, for example, age, education, farm size, fi nancial structure, labour use and farming experience (Bowman and Zilberman, 2013;Barnes et al, 2015).…”

Section: Introductionmentioning

confidence: 99%

Adoption of risk management strategies in European agriculture

Asseldonk¹,

Tzouramani²,

Ge³

et al. 2016

Stud. Agr. Econ.

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Given the increased attention to risk management in the European Union's (EU) Common Agricultural Policy (CAP), it is important to monitor and evaluate the rates of adoption by farmers and their determinants over time. Current European agricultural statistics (Farm Accountancy Data Network) capture few indicators that assess such strategies, but complementing data collected during the EU Framework 7 project FLINT have allowed the adoption of risk management strategies and the determinants of farmers' preference for complementary or substitute instruments to be assessed. Adoption rates of risk management instruments such as insurance contracts, price contracts, off-farm income, other types risk of reduction measures and other gainful activities vary signifi cantly across EU Member States and farming types. Econometric analysis indicates that larger farms more often adopt crop insurance, occupational accident insurance, price contracts and diversifi cation but are less likely to adopt credit avoidance and off-farm employment (at a signifi cance level of 1 per cent). For policy analyses these indicators are a step forward for the determination of the net impacts and establishment of counterfactuals in the long term (i.e. time series encompassing also adverse years) for measuring the impact of the CAP at farm level.

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“…The present study was focused on drawing up the biomass supply plan, which is strictly linked to the local territory. The fluctuating market trend affecting the entire agricultural sector requires planning activity [59,60]. Therefore, the energy potential of the investigated territory, the province, and the municipality of Rieti can be considered an interesting case study.…”

Section: Discussionmentioning

confidence: 99%

Building Energy Opportunity with a Supply Chain Based on the Local Fuel-Producing Capacity

Bonazzi¹,

Cividino

Zambon

et al. 2018

Sustainability

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Studying and modeling plants for producing electric power obtained from vegetal wood cellulose biomass can become an opportunity for building a supply chain based on the local fuel-producing capacity. Focusing on energy-producing technologies, such as pyrolysis or gasification, the present work assessed the amount of vegetal biomass that may be used as fuel, both in terms of actual availability and supply price, in the Province of Rieti (Italy). The aim is to draw up a supply plan that has an intrinsic relationship with the local area. The results confirmed a production of 24 MW of project thermal power and 4 MW of project electric power. The ensuing plant was then studied following current norms about renewable energy, environmental consistency, and atmospheric emissions. An economic analysis of the cost investment was also carried out, where the total return is approximately of 19%. The results exposed that plant costs are acceptable only if short-supply chain fuel is purchased. The costs of generating energy from agroforestry biomass are certainly higher; however, the plant represents a significant territorial opportunity, especially for the economic sectors of agriculture and forestry. The employment effect plays a central role in the concession process, which is relevant for the interaction among renewable energy production and agriculture. The environmental impact of a biomass plant from agroforestry residues can be measured exclusively on atmospheric emissions: the plant must be placed in industrial areas without any landscape or naturalistic value.

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The influence of diversification on long-term viability of the agricultural sector

Cited by 105 publications

References 51 publications

The Location Matters: Determinants for “Deepening” and “Broadening” Diversification Strategies in Ruhr Metropolis’ Urban Farming

The Location Matters: Determinants for “Deepening” and “Broadening” Diversification Strategies in Ruhr Metropolis’ Urban Farming

Adoption of risk management strategies in European agriculture

Building Energy Opportunity with a Supply Chain Based on the Local Fuel-Producing Capacity

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