Farm business and the development of alternative farm enterprises: An empirical analysis in Greece

The objective of this paper is to provide a conceptual framework and an empirical evidence of farm business change in relation to the adoption and development of alternative farm enterprises (AFE). The present paper adopts a business typology and looks at the various paths of development. A range of factors condition which path of farm business development will be selected. Some factors relate to the farms' physical characteristics, its business and its human capital. A sample of 200 farmers in the prefecture of Etolia-Akarnania in Greece is analysed in order to identify the factors influencing the choice of farm business development. Three main paths of farm business development are identified in this lagging region of Greece. Conventional (mainstream) farming, alternative farm enterprise development and conventional farming with off-farm employment. Appropriate statistical modelling revealed that both economic and social factors exert an independent effect on the choice of farm business development. Proposals concerning the formulation of future rural policy in the lagging regions of Greece are drawn, based on the results derived from the analysis of the present sample. Copyright (C) 1996 Elsevier Science Ltd.