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 a n empirical evidence of farm business change in relation to the adopti on and development of alternative farm enterprises (AFE). The present paper adopts a business typology and looks at the various paths of dev elopment. A range of factors condition which path of farm business dev elopment will be selected. Some factors relate to the farms' physical characteristics, its business and its human capital. A sample of 200 f armers 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 identif ied in this lagging region of Greece. Conventional (mainstream) farmin g, alternative farm enterprise development and conventional farming wi th off-farm employment. Appropriate statistical modelling revealed tha t both economic and social factors exert an independent effect on the choice of farm business development. Proposals concerning the formulat ion 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.