Socio-economic dimensions of agricultural diversification in Västerbotten, Northern Sweden

Abstract

Over recent decades economies of scale, rationalisation and specialisation have generally taken place within industry. In agriculture, similar processes have resulted in the enlargement of farms but large reductions in the numbers of farms and employment opportunities, thereby contributing to the reduction in the rural population as a whole. Diversification offers an alternative business strategy to specialisation. This paper presents innovative onfarm diversification as a possible survival strategy for farmers and, based on a recent investigation in the county of Västerbotten in Northern Sweden, it analyses the motivations for diversifying agriculture together with its socioeconomic consequences for farm households. The low level of economic returns suggests that other less tangible values play compensatory roles, such as quality of life and lifestyles.

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