Policy Reforms in Agriculture and Farmer's Income Diversification Decision: The Case of Eggs Farms

Abstract

"Reforms in agriculture have become an integral part in policymaker's agenda. Research on past reforms in various sectors showed their effect on farmer's decision making regarding the continuum of farm work. This research objective is to expand and predict implications of emerging policy reforms on eggs branch farmers economics' viability. The theory presented here aims to analyze the farmer's decision making on income diversification by accounting for socio-demographics, wealth, and peripherality. The study of income diversification that is presented here can throw light on how risky the reforms are for farmers that their income is exclusively based on agriculture. Logistic regression and classification tree were employed in analyzing a sample of eggs producers in Israeli's periphery. The main findings signify that the younger, educated, and wealthier farmers who are more peripheral, prone towards diversifying income. Policymakers should acknowledge this variability in potential risks while designing agricultural reforms."