The value of farm diversification is unquestionable especially in terms of additional income generation, income stability and easing the employment difficulties of agricultural producers; its importance has recently been in the focus of agricultural and rural policies. The research purpose was to describe the situation of farm diversification in Hungary and to analyse the characteristics of diversified farms, as well as to determine which factors influence the extent and direction of diversification. The research method is based on statistical data analysing and questionnaire survey. Contrary to the above my analyses showed that the share of diversified farms is rather low in the small-scale, semi-commercial and part-time farms; its wide scale distribution is hindered by several factors. Based on the analyses I found that in private farms and in corporate farms it is characteristic that farm diversification activities are closely connected to the main activity of the farm, but they are of different type. I could state that the share of diversified farms is more significant in the labour-intensive farms and primarily in commercial farms. The share of young farmers and farmers in active age, qualified and with a full-time job is higher in the diversified and organic farms.

The article analyzes the diversification types, forms and their choice conditioned by the inner and outer environmental factors in agriculture business organizations. The analysis of the agriculture census data showed that external diversification of agriculture business organizations is more popular compared to internal diversification. The former diversification ensures extra incomes and higher employment of human resources without additional investment and with minimal risk. Wage labour is the main form of the external diversification. The internal diversification implements 5.9 % of agriculture business organizations. Mostly these organizations choose closely related forms of internal diversification (non-traditional agriculture, ecological agriculture). Above mentioned agriculture business organizations are aimed of the synergy in more rational usage of available inner resources and less activity risk. The diversification of agricultural business organizations activity (when applying unrelated forms, e.g., wood reprocess and trade of wood ware, crafts, rural tourism) prevails in unfavourable for farming localities and is characteristic to organizations with higher intellectual and management potential.

Promotion of non-agricultural activities in Latvian rural areas is highly important for diversification of rural economy due to decrease in agricultural and forestry employment. So far too little attention has been paid to this aspect. Although EAFRD is the only EU fund directly supporting rural development, only 14% of its public financing for projects in 2007-2013 was invested in non-agricultural entrepreneurship, half of this in financially demanding energy production projects. By total eligible accepted project expenses, approximately 60% of rural entrepreneurship projects were financed by EAFRD. ERDF was also important in which a smaller number of higher value investment projects was implemented. Although EU funds have some importance in activating rural entrepreneurship, so far the direct impact on creation of jobs and value added has been small. The impact could be increased by setting forth specific job creation requirements for the beneficiaries. It is also suggested to avoid supporting expensive projects which do not create a substantial number of jobs. In view of rural entrepreneurs improvements in entrepreneurial environment, including taxing policy are more important than direct support. It especially concerns operation of small companies. Development of small companies in rural areas is of high importance because in many territories there is no capacity and rationale to develop large projects.

The paper aims at analyzing agricultural production for energy generation purposes, including the production of agricultural biogas, as an opportunity for functional diversification of agriculture and for multifunctional rural development in Poland. There have been many changes observed in Polish agriculture. New directions of crop production and of the use of agricultural products have emerged. One of the changes is the increasing significance of the production of agricultural biogas and energy from biogas. There have been built both small-scale and large-scale biogas plants. Most of the agricultural biogas plants are located in northern, western and south-western Poland, i.e. in the areas where there are relatively large farms which can provide a supply of substrates necessary for the production of agricultural biogas. The formation of biogas plants and the use of agricultural production for generating energy are an eagerly anticipated trend contributing to the dissemination of renewable energy sources, the functional diversification of agriculture, the development of additional economic activities in rural areas, and the increase in the energy security of particular regions and the entire country.