Income Diversification in Agricultural Households

Abstract

The research studies structural changes in agriculture and incomes of households in the Škofja Loka region based on an empirical analysis of income diversification in a sample of agricultural households (AHs) in 2001 and 2006. The analysis was conducted from three points of view: for the entire sample of AHs, according to socio-economic types of AHs, and according to areas with different levels of development and different datums for agricultural production. The numbers of households professionally engaged in farming has dropped. In turn, the number of AHs abandoning farming has risen. Structural changes differ among areas. The age of the owner has an impact on work and land productivity. Income derived from agriculture is insufficient to sustain most AHs, making income diversification inevitable. AHs have a positive attitude towards Slovenia's accession to the European Union (EU). The greatest difficulties encountered by AHs emerged in the process of adapting to EU legal requirements. Strategies of AHs are unclear. Farms are abandoning farming due to uneconomical production and better employment opportunities in non-agricultural activities.