Agricultural Diversification at the Margin. Strategies and Determinants in Italian Mountain and Remote Areas

This paper explores the convergence in on-farm diversification strategies of agricultural holdings, between remote areas and more central ones. Using Italian farm-level data, we explore the determinants of diversification strategies across farms. Remoteness is defined using two variables: geographical remoteness (location in mountain areas) and remoteness from the urban poles providing public services (inner areas). Results show that farmers in remote areas are more likely to diversify crop production, but the overall magnitude of this difference is small. With regard to the inseparable non-agricultural secondary activities, the core-periphery differences are significant only in mountain areas. Inseparable non-agricultural secondary activities are uncorrelated to commodity prices and produce larger value-added and should be encouraged across marginal areas.