Opportunities for Other Gainful Activities in Small and Very Small Farms

  • Crina Sinziana Turtoi Institute of Agricultural Economics, Romanian Academy
  • Camelia Toma Institute of Agricultural Economics, Romanian Academy
  • Camelia Gavrilescu Institute of Agricultural Economics, Romanian Academy
Keywords: diversification, family work, income-generating activity, small-size farming.

Abstract

In general terms, development of other gainful activities at farm level may be defined as the utilization of farm resources for a non-agricultural objective, in order to obtain a certain marketable production. Diversification towards other gainful activity reflects a reduced dependence of the farmer on agriculture, as its sole income source. As well, diversification involves some type of entrepreneurship activity for the benefit of the farmer. One of the important conclusions of the study concerns the relationship between farm size and involvement in diversification. It appears that there is a consistent relationship between farm size and diversification activity. Thus, diversification is significantly more common in larger holdings, sized over 20 hectares, while holdings classified as "small and very small", sized less than 2 hectares, are part of the less diversified group. From the total number of farms engaged in other gainful activities, 84.1% are sized up to 5 hectares. The study confirms that larger farms are more likely to have the resources, flexibility and perhaps entrepreneurial management, enabling them to explore opportunities for diversification and that small and very small family farms are more oriented towards activities related to processing agricultural products, while the bigger farms towards contract work.

Author Biographies

Crina Sinziana Turtoi, Institute of Agricultural Economics, Romanian Academy
Department of Rural microeconomics, Senior researcher
Camelia Toma, Institute of Agricultural Economics, Romanian Academy
Department of Rural microeconomics, Senior researcher
Camelia Gavrilescu, Institute of Agricultural Economics, Romanian Academy
Department of Rural microeconomics, Senior researcher
Published
2013-11-25