Farm Business Development Research Articles

Role of Farmer Information and Advice Center in Technology Transfer and Farm Business Development of Smallholder Farmers: Insights from Bangladesh

The Farmer Information and Advice Centers (FIACs) are currently working to provide one-stop agricultural advisory services, including climate-friendly agriculture, to farming communities in rural Bangladesh, but their role has yet to be explored. Therefore, the aim of this study is to assess the role of FIACs in providing need-based extension services to the farming communities to create social innovation through transforming smallholders’ agriculture into a farm business in rural Bangladesh. This study was conducted in Kishoreganj district, Bangladesh. The data were collected by questionnaire survey, semi-structured interviews, and focus group discussions (FGD). Both quantitative and qualitative (Trajectory Equifinality Model, TEM) analysis was applied based on the data obtained. It was found that the local FIAC approaches give farmers easy access to improved agricultural technologies. It is a needs-based service for farming households to improve their farming practices and livelihoods. Second, their resource use efficiency has increased, and their agriculture has diversified. This has improved institutional access on the ground and farmers feel empowered. So, we can call it social innovation. Third, FIAC interventions help farmers to develop farm business. Finally, farmer characteristics such as gender, farm size, farming experience, household income, and local institutional access are significantly positively related to access to FIAC services. Therefore, our policy implications suggest that FIAC should offer a gender-sensitive service approach. However, farmers faced some difficulties in obtaining services from FIAC, they needed more competent staff and female staff.

Farmer Empowerment in Improving Beef Cattle Farming Business in Tonsewer Village, Regency Minahasa

The research objective was to examine the relationship between social engineering, economic engineering, technological engineering and value-added engineering with beef cattle business development in Tonsewer Village, West Tompaso District, Minahasa Regency based on farmers' perceptions. The analysis found that there is a significant relationship between the engineering variables and the variable of beef cattle business improvement. The level of relationship strength falls into the "strong relationship" category. Furthermore, this relationship is unidirectional, which means that if engineering increases, then beef cattle farming business will increase. Farmer empowerment strategies through; strengthening farmer institutions, counseling, and human resource development, access to capital, markets, achieving agreement on recommended technology with farmer habits, vertically and horizontally coordinated off farm business development.

What Can We Learn from Droppers and Non‐adopters About the Role of Advice in Agricultural Innovation?

SummaryIn this article we assess the diversity of sources of advice identified by 678 adopters, 295 non‐adopters and 107 droppers (or dis‐adopters, who have ceased or reduced the use) of agricultural innovations across 13 European countries. For most innovations, the volume and composition of advisory supports (e.g. public advisory services, farm business organisations, NGOs, research and development sector, other farmers), at the whole farm level were similar between adopters, non‐adopters and droppers. However, there were significant differences in relation to specific innovations. Farmers adopting digital technologies, soil‐improving cropping systems, and common management of natural resources identified more diverse sources when assessing innovations, suggesting that more diverse advisory support supported successful implementation. For new on‐farm activities, non‐adopters had more varied sources of advice than adopters. This demonstrates that non‐adoption can be a well‐informed decision. Droppers typically identified fewer sources of advice on an innovation than adopters, particularly in the later stages of the innovation process, suggesting that lack of advice impeded successful implementation. The findings suggest that public funding for advisory services could usefully target emergent gaps: to support the provision of up‐to‐date advice on topics to farmers who have difficulty accessing advice, and to prevent unnecessary dropping by supporting the implementation of innovations.

Analyzing strategic entrepreneurial choices in agriculture—Empirical evidence from Germany

AbstractEntrepreneurship in agriculture is a phenomenon that is growing in importance with the changing framework conditions for agricultural production and has led to heterogeneity in farm business development paths. To understand this phenomenon better, a classification scheme for strategic entrepreneurial choices in agriculture is developed for family farmers. The choices that are scrutinized are reduction, continuation, expansion, diversification, and the dual strategy of expansion and diversification. Each farmer is uniquely assigned to one of these choice classes according to their implemented entrepreneurial activities. Determinants influencing these choices are investigated with a multinomial logit model. The data are derived from a quantitative survey among German farmers (N = 745). Strong effects are observable within the area of personal factors; creativity and risk affinity benefit entrepreneurial strategies connected with diversification. Farmers with a third‐level education qualification are less likely to follow expansion strategies, and those with off‐farm employment and risk‐averse farmers mainly choose a reduction strategy. Family involvement, especially the farmer's spouse, proves to have stabilizing and even enhancing effects on certain strategies. Implications for policymakers and actors within the agricultural sector can thus be derived.

Lassy dairy farm business development strategy using business canvas model method

Lassy is one of the small medium enterprises which produces processed dairy cattle, located in West Sumatra. The number of demands that tends to increase and the superiority of products without preservatives supports Lassy Dairy Farm to expand more widely. To increase the number of products, product quality and expand the marketing area of the product in order to be able to compete with similar products, proper business strategy planning is required. This study aims to design a new business model at Lassy using the Business Model Canvas (BMC) method and SWOT analysis. IE matrix results show that Lassy rank is at cell IV, which means that Lassy is in a growing and developing state. The strategy that can be carried out by Lassy Dairy Farm is based on the results of the SWOT matrix with an intensive strategy, an integration strategy, and a diversification strategy. The main strategy that Lassy can do is intensive strategy with a total score of attractiveness of 7.272. This intensive strategy is illustrated in the business model in the proposed Business Model Canvas.

The Assessment of Three Measures (101, 103, 302) Under the National Plan of Agriculture and Rural Development of Kosovo

Summary Subject and purpose of work: Agriculture has historically been an important sector in Kosovo’s economy however the biggest challenges are migration, land fragmentation, and access to market and finance. Support from the Government of Kosovo for the agriculture and rural development sector is based on the ARDP 2007-13 and includes direct support measures that strongly correspond to Pillar I measures under CAP and rural development support measures similar to CAP Pillar II. The objective of this paper is to assess three measures (101,103,302) under the national plan of agriculture and rural development of Kosovo. Materials and methods: Measure 101, “Investments in Physical Assets in Agricultural Holdings” fruit sector, grape sector. Measure 103, “Investments in physical assets concerning the processing and marketing of agricultural and fishery products”. Measure 302, “Farm Diversification and Business Development”. Results: Results showed support is increased which directly affected new job creation however this should continue with increasing the budget as these measures affect the rural economy directly by creating jobs contributing to sustainable agriculture and reducing migration. Conclusions: The most important measure in terms of budget allocation and number of projects implemented was Measure 101. The largest number of beneficiaries from measure 101 originated from the Prizren and Prishtine Region.

Implementing state support for small agricultural businesses in the Russian Federation

The paper describes the current level of small farm business development in the Russian Federation and the Republic of Bashkortostan. The existing regulatory framework provides a wide range of measures to implement state support for the agricultural sector. The state aid mechanism and influence on the efficiency of agricultural production in microenterprises, budget efficiency, the need and prospects for directing budget funds for the development of small agricultural businesses are considered. The Bashkortostan Republic’s agricultural industry and perspective small farm business development in the region are assessed. The efficiency of allocating budget funds of the region’s consolidated budget is calculated.

The Partial Least Square (PLS) Analysis: The Relationship of Production Management and Business Analysis of Goat Farm in Deli Tua Village, Namorambe District, North Sumatera Indonesia

Goat farm business provides income and income for the community. The main factor in determining goat farm business development is feed availability. This study aims to identify the relationship between production management and business analysis of goat farm in Deli Tua Village, Namorambe District, North Sumatera, Indonesia. This study used survey method, with questionnaire, interview, and focus group discussion as data collection techniques. Sample village and respondents were determined by purposive sampling from 25 respondents who own 25-50 goats. The data were analyzed by using Partial Least Square (PLS) method. The results show that there is a relationship between production analysis and business analysis. Keeping management is production management indicators that have impacts on business analysis.

The LEADER approach and drivers of job creation

AbstractThis study investigates the links between rural development funding delivered via LEADER and job creation. Analysis is carried out using application‐level data during the 2007–2013 period in Northern Ireland. A two‐step procedure is employed to estimate a negative binomial model and correct for sample selection. Results indicate that there is a positive relationship between the number of jobs created and the amount of funds awarded, and that this depends on what Measure within Axis 3 applications are submitted under. More economic‐focused Measures, such as Farm Diversification, Business Development, and Tourism show a positive relationship between the amount of public funds and the number of jobs created. No such relationship was found for the more social, or cultural Measures. This result supports the argument that in such cases “jobs created” is not an appropriate indicator for evaluation purposes, but rather non‐economic criteria should be given priority to better suit the primary objective of such Measures. Other factors that are linked to job creation include applicant characteristics, such as its business status. In general, we find a limited connection between the process to select which applications are funded and the application characteristics most strongly associated with job creation.

Agricultural Entrepreneurship and Farm Business Development

Agricultural Entrepreneurship and Farm Business Development

カナダにおける農業経営改善支援プログラムの新たな展開

カナダにおける農業経営改善支援プログラムの新たな展開

Deconstructing the ‘young farmer problem in Europe’: Towards a research agenda

In this paper we assess the evidence for a ‘young farmer problem’ in Europe, deconstructing the underpinning arguments through a review of recent literature and statistical analysis of Eurostat figures. We find a major inconsistency between European policy documents, which conflate young farm holders with new entrants; Eurostat numbers, which focus on young sole holders; and the academic literature, which consistently demonstrates the importance of farming successors to farm business development. Analysis of Eurostat figures evidences considerable national differences in young farmer numbers, suggesting that there is no shortage of young farmers at national level in Germany, France, Switzerland, Finland, Austria, France, the Czech Republic and Poland. The apparent shortage of young farmers occurs in countries where small-scale holdings are more prevalent, particularly Portugal, Italy, Romania and Greece. The statistical analysis also demonstrates considerable differences in farm structure between old and new member states, and provides support for the contention that young sole holders are more likely to operate modernised, profitable farms. The authors argue that there is insufficient evidence to adequately inform debates about the role of young people in European agriculture, proposing a research agenda which includes more consistent conceptualization of the ‘young farmer problem’, targeted research on the role of young people in agricultural innovations, assessment of regional differences within countries, and identification of farm succession processes in new EU Member States.

A Trend of the State Program for Supporting Farm Business Development in Canada

A Trend of the State Program for Supporting Farm Business Development in Canada

Agricultural Economic Development at the Rural-Urban Interface: Community Organization, Policy, and Agricultural Change

Utilizing data from a survey of key informants from U.S. counties at the rural-urban interface (RUI) with substantial agricultural production, this paper explores the relationship between the existence of formal organizations focused on agricultural economic development or food policy and the existence of other types of farm business or local food-system development programs. The research draws on concepts associated with traditional community-development theory and tests whether there is a relationship between the existence of social organizational capacity and various activities and outcomes. The analysis includes descriptive, bivariate, and multivariate analyses of data from over 500 U.S. counties located at the RUI. We find that counties that have formally organized, such as through the formation of a committee to support agricultural economic development or the formation of a food policy council, also have more agricultural business and local food-system development programs and policies. We also find that the counties with greater formal organizational development in support of agriculture are counties with larger populations, greater rural population densities, and larger numbers of farms compared to counties with less organizational development. We also find that the existence of these organizations is associated with greater optimism about the future of local agriculture among county key informants. The results suggest that local community development policy in support of agriculture at the RUI is warranted and the findings suggest opportunities for further research.

Understanding the diversification and specialization of farm businesses

This paper addresses the development of farm businesses in Sweden, 2000–2007, with regard to their specialization in single farm enterprises, diversified agricultural production and diversification with new income-generating ventures. Furthermore, regression analysis is used to study the impact of farm characteristics on the observed specialization and diversification. The study is based a panel data set of about 900 farms participating in the Swedish Agricultural Economics Survey. Results show that farms are increasingly engaging in diversified activities, though in most firms these activities make only minor contributions to total revenue. Results also show that the degrees of specialization and diversification are influenced by characteristics of firms’ business structure, financial and demographic conditions. These results contribute to the understanding of farm business development, as well as show the need for policy makers and farm advisors to consider the differences between farms pursuing different development strategies in their efforts to influence behavior.;

Factors Influencing the Integration of Alternative Farm Enterprises Into the Agro‐Food System*

Abstract Financial stress and general crisis in European agriculture recently have generated a widespread interest in alternative paths of farm business development and structural adjustment. One of the options suggested by policy makers and adopted by farmers was the development of alternative farm enterprises (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 the present paper we examine the factors influencing the development of AFEs. According to empirical evidence from Etolia‐Akarnania, a prefecture in western Greece that merits “less favored area” status, AFE adoption is influenced 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 grade A roads, and the farmers' age. Education, management experience demonstrated by the farm manager, physical size of the farm, enterprise specialization, the use of grants, and farm location are the main factors responsible for the farmers' integration into the agro‐food system.

Endogenous Agricultural Development in Western Europe

The contemporary regional development of agriculture is commonly interpreted as a variable spatial response to exogenous pressures exerted by the globalisation of the farm sector. However, farm families and networks of institutions in interaction have the capacity to generate endogenous processes in regional agricultural development. This interpretation is explored in the context of farm diversification (alternative farm enterprises – AFE) in five lagging regions of the European Union – West of Ireland, Highlands of Scotland, northern Pennines of England, Massif Central of France, and West‐Central Greece. The varying regional development of farm diversification is explored through an analysis of ‘paths of farm business development’, ‘institutional thickness’ and the relationship between farm families and networked institutions. The analysis identifies a selective failure of ‘functional connectivity’ between farm families involved in endogenous agricultural development and regional institutional networks for rural development.

Farm-based Tourism as an Alternative Farm

ILBERY B., BOWLER I., CLARK G., CROCKETT A. and SHAW A. (1998) Farm-based tourism as an alternative farm enterprise: a case study from the northern Pennines, England, Reg. Studies 32 , 355‐364. This paper examines the development of farm-based tourism in the less favoured area of the northern Pennines. Farm tourism is conceptualized as an alternative farm enterprise (AFE) comprising one of seven possible 'pathways of farm business development'. As such, the development of farm-based tourism (FBT) is influenced by a range of factors both external and internal to the farm. Lower levels of family labour distinguish tourist AFE farms from non-tourist AFE farms, while different types of FBT are associated with particular farm and household characteristics. Nevertheless, the reasons for adopting tourist enterprises are diverse and often very individualistic. Institutional involvement in FBT in the study area is increasing, but it is reactive rather than proactive and tends to constrain as well as enable the development of farm tourism. Few farmers have contacted institutions about new or existing farm tourism enterprises. However, levels of inter-agency networking are increasing and a core of eight institutions is now dominating institutional behaviour towards AFEs and FBT in the northern Pennines, especially in Northumberland. More research is needed on the interactions between farm households and institutions in the development of FBT. ILBERY B., BOWLER I., CLARK G., CROCKETT A. et SHAW A. (1998) Le tourisme basé sur la ferme en tant qu'une entreprise agricole alternative: étude de cas provenant des Pennines du nord, au Royaume-Uni, Reg. Studies 32 , 355-364. Cet article examine le développement du tourisme basé sur la ferme dans la région défavorisée des Pennines du nord. Le tourisme basé sur la ferme est vu comme une entreprise agricole alternative (alternative farm enterprise, AFE) comportant un des sept 'sentiers du développement de l'entreprise agricole' éventuels. En tant que tel, le développement du tourisme basé sur la ferme (farm-based tourism, FBT) se voit influencer par une série de facteurs et 'externes' et 'internes'. Des aides familiales moinsnombreuses distinguent les fermes AFE touristiques des fermes AFE non-touristiques, alors que le type de FBT se rapporte aux caractéristiques particulières de la 'ferme' et du 'foyer'. Toujours est-il que la raison d'être des entreprises touristiques varie et est souvent très individualiste. La participation des organismes au FBT dans la zone en question s'accroît mais s'avère plutôt réactionnelle que dynamique et a tendance à entraveraussi bien que faciliter le développement dutourisme basé sur la ferme. Rares sont les fermiers qui se sont mis en contact avec des organismes au sujet des entreprises agricoles touristiques, soit nouvelles, soit existantes. Cependant, les réseaux d'agences se développent et un 'noyau' de huit organismes dominent maintenant le comportement des organismes envers les AFE et le FBT dans les Pennines du nord, surtout dans le Northumberland. Il faut plus de recherche sur les interactions entre les foyers agricoles et les organismes implique ´s dans le de ´veloppement du FBT. ILBERY B., BOWLER I., CLARK G., CROCKETT A. und SHAW A. (1998) Ferien auf dem Bauernhof als alternative Bauernhofunternehmen: eine Fallstudie aus den nördlichen Pennines, England, Reg. Studies 32 , 355-364. Dieser Aufsatz untersucht die Entwicklung des Tourismus in Form von Ferien auf dem Bauernhof in dem weniger begünstigten Gebiet der nördlichen Pennines. Tourismus in Form von Ferien auf dem Bauernhof wird als alternatives Bauernhofunternehmen (AFE) aufgefaßt, das eines von sieben möglichen ''Wegen zur geschäftlichen Entwicklung des Bauernhofs'' darstellt. Als solche wird die Entwicklung des Tourismus auf der Grundlage des Bauernhofs (FBT) durch eine Reihe überbetrieblicher und außerbetrieblicher Faktoren des Hofs bestimmt. AFE Ferienhöfe unterscheiden sich von AFE Nicht-Ferienhöfen durch weniger von Familienmitgliedern verrichtete Arbeit, während verschiedene Typen des FBT mit besonderen Bauernhof-und Haushaltseigenheiten in Verbindung gebracht werden. Nichtsdestowniger gibt es verschiedene, und oft sehr individuelle, Gründe für die Aufnahme von Feriengästen. Institutionelle Beteiligung in FBT war im Untersuchungsgebiet im Begriff, zuzunehmen, doch ist dies eher eine Reaktion als wegweisend, und hält die Entwicklung des Tourismus in Form von Ferien auf dem Bauernhof ebenso zurück wie es ihn ermöglicht. Nur wenige Bauern haben sich zwecks neuer oder bereits angelaufener Unternehemen ''Ferien auf dem Bauernhof'' mit Institutionen in Verbindung gesetzt. Das Ausmaß der Zusammenarbeit mit Agenturen nimmt jedoch weiter zu, und in den Nordpennines, besonders in Northumberland, bilden nun acht Institutionen einen ''Kern'', die den Ton des institutionellen Verhalten zu AFEs und FBTs angeben. Die Zusammenarbeit von Institutionen und ba ¨uerlichen Haushalten bedarf weiterer Untersuchung.

The development of alternative farm enterprises: A study of family labour farms in the northern Pennines of England

This paper offers an empirical test of a middle-order theorisation of business change on family labour farms. The concept of ‘paths of farm business development’ is examined in the northern Pennines of England using discriminant analysis and 34 variables drawn from the published literature on the dynamics of the family farm. Farm indebtedness is shown to be the dominant variable discriminating between farms in the different pathways, although the exact role of farm debt varies between pathways. Farm families selecting the alternative farm enterprise (AFE) pathway can be divided between those that display ‘accumulation’ (principal AFE) and ‘survival’ (marginal AFE) behaviours. The findings are contextualised to the U.K. and an era of historically high interest rates and farm indebtedness.

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 an empirical evidence of farm business change in relation to the adoption and development of alternative farm enterprises (AFE). The present paper adopts a business typology and looks at the various paths of development. A range of factors condition which path of farm business development will be selected. Some factors relate to the farms' physical characteristics, its business and its human capital. A sample of 200 farmers 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 identified in this lagging region of Greece. Conventional (mainstream) farming, alternative farm enterprise development and conventional farming with off-farm employment. Appropriate statistical modelling revealed that both economic and social factors exert an independent effect on the choice of farm business development. Proposals concerning the formulation of future rural policy in the lagging regions of Greece are drawn, based on the results derived from the analysis of the present sample.