The Location Matters: Determinants for “Deepening” and “Broadening” Diversification Strategies in Ruhr Metropolis’ Urban Farming
2017
Pölling, Bernd | Mergenthaler, Marcus
Consumer-oriented diversification activities, such as direct sale (“deepening”) as well as tourism services and care farming (“broadening”), are common business strategies of farms within urban areas. This empirical study investigates determinants of urban farming’s diversification decisions by analyzing a dataset of 123 farmers in German Ruhr Metropolis. Binary logit models are used here as econometric method to determine characteristics influencing the decision to diversify. Farm characteristics, which encourage the implementation of “deepening” strategies, are: larger farm sizes, high-value production, organic farming, and livestock production. By contrast, the consumer-oriented “broadening” strategies tourism services and care farming prevail on smaller farms and on farms with horses and higher grassland shares. Agricultural extension services increase the odds to diversify. The results of the conducted binary logistic regressions show increasing odds and predicted probabilities for “deepening” and “broadening” activities when approaching the city. Farms’ location advantages close to cities can be used best when applying consumer-oriented “deepening” or “broadening” strategies; namely, direct sale or other short supply chains, tourism services, and care farming. Viable business strategies of urban farming support a forward-looking integration into urban economy, society, and decision-making.
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