Farm diversification strategies fail to boost income for Italian agricultural holdings.
The study looked at how different strategies used by farms in Italy affect their economic performance. They focused on income diversification and product differentiation as ways to improve farm income. The researchers analyzed data from Italian farms between 2003-2009 and found that larger farms tend to perform better economically. However, farms where family members are heavily involved in the business tend to have lower economic performance. Surprisingly, the study did not find a clear link between using income diversification and product differentiation strategies and increased farm income. This suggests that farms may use these strategies more for managing risks rather than boosting profits.