The role of flue cured tobacco as an alternative farming enterprise: the case of West Central Greece
1996
Iniotaki, E.
The aim of this study is to assess both internal and external sets of factors that influence the farmer's decision to adopt Alternative Farming Enterprises (AFEs) as well as the contribution of AFEs to the rural economy of a lagging region, namely the prefecture of Aitolia Akarnania in Greece. AFEs are defined as non conventional to the specific region restructuring of the factors of production within a farm enterprise and involve the introduction of a new (alternative) activity which may be either agricultural or non agricultural in character. Converting agricultural production by adopting crops that are new to the area is one form of AFE. Adoption of new crops offers the potential of addressing the problem of static or falling farm income of farm families in lagging regions, a problem likely to be exacerbated by changes in the market for traditional agricultural products as the 1992 reforms of the CAP take effect. In order to examine the factors influencing adoption of new varieties and more specifically the adoption of tobacco varieties, the study utilizes a modified portfolio selection theory. Statistical results show that adopters are risk taker farmers with more concentrated enterprises, of younger age, large farm households, situated close to urban centres and have less contact with extension and credit institutions
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