Land Diversification and Its Contribution to Farms’ Income

Abstract

Management and utilization of factors of production, in addition to diversification of land use, affect the performance of farms. In this article, it is identified whether the diversification of land use through its disposal to tourism infrastructure has a positive impact on the farms’ income. This identification was conducted by processing technical and economic data and applying bootstrap regression analysis. The research was conducted using a sample of 56 farms active in hospitality alongside agriculture, utilizing possibly uncultivated areas of land. Data collection was carried out by personal visits to the examined farms. The results showed that the performance of the farms is enhanced by tourism activity. At the same time, the results showed that land used for tourism activities has a positive impact on farms’ income. Paid labor also appears to have a positive influence. Although this investigation was executed in the Region of Central Macedonia (Greece), it contributes to strengthening the existing literature on rural tourism and land use. At the same time, it gives alternatives to policy-makers and owner-managers of farms regarding the utilization of the available factors of production with an emphasis on the land one.