Exploring the strategic skills of farmers across a typology of farm diversification approaches

Abstract

Diversification, in its many forms, contributes an increasing proportion of income to farm businesses. With many interpretations of what constitutes diversified activity, this study uses findings from an empirical study of 3,000 farms to establish a typology of diversification based on the role of the farmer and the impact of new activity on the core agricultural business. Using this typology, the paper’s key contribution is to establish essential business skills and strategic capabilities required by farmers to diversify successfully. These vary according to both the farmer and the farm holding, depending on the age, experience, skills and family situation of the farmer as well as ‘external factors’ relating to natural, spatial and economic influences.