Financial stress and general crisis in European agriculture recently have g
enerated a widespread interest in alternative paths of farm business develo
pment and structural adjustment. One of the options suggested by policy mak
ers and adopted by farmers was the development of alternative farm enterpri
ses (AFEs), in which farmers recombine resources on the farm and produce a
new mix of products and services in order to supplement their incomes. In t
he present paper we examine the factors influencing the development of AFEs
. According to empirical evidence from Etolia-Akarnania, a prefecture in we
stern Greece that merits "less favored area" status. AFE adoption is influe
nced by the amount of family labor, the ratio of hired to family labor, the
presence of tobacco as a main enterprise, the proximity of the farm to gra
de A roads, and the farmers' age. Education. management experience demonstr
ated by the farm manager, physical size of the farm, enterprise specializat
ion, the use of grants, and farm location are the main factors responsible
for the farmers' integration into the agro-food system.