European politicians encourage the income diversification of rural households through various measures. Although being aware of farm households’ potential for non-farm income diversification seems important for finely-targeting such policy measures, no attempt has thus far been made to summarise the various determinants of income diversification in a single figure. This contribution aims to close this gap. A composite fuzzy indicator that measures farm household potential for non-farm income diversification is developed and applied to 1,053 farm households in Bulgaria, Hungary, Poland, Romania, and Slovenia. The indicator summarises the incentives of and capacities for non-farm income diversification on the individual household member level, and on the... |