| Farm planning generally focuses on optimal diversification with respect to risk and uncertainties, where the risk-management strategies combine production, marketing, financial and environmental responses of the production of farm firm. In this study an empirical examination of farm diversification has been carried out from a sample of farms in Eastern Norway in which four measures of diversification (indices) were defined to incorporate the risk and uncertainties in relation to farm production (total) income. Using these four alternative measures of diversification and panel-data techniques, it has been shown that larger farms are more diversified, and when there is productive location and access to labour the farmers have a greater incentive to spread... |
