A recent ad hoc study commissioned by the Baden-Württemberg Ministry of Rural Affairs, Agriculture and Home Affairs shows that investments in diversification can open up new prospects for agricultural holdings. The study is based on 30 interviews with holdings that have implemented subsidised investment projects in the sectors of catering, tourism, and processing and marketing. The aim was to examine the medium- and long-term effects of the investments on farm development.
The results show that diversification can create additional income opportunities and help secure the future of agricultural holdings. The majority of those surveyed rated their investment decisions positively. In addition to economic effects, respondents cited greater entrepreneurial autonomy, the recruitment of additional workers – often female family members – and a boost to farm succession. The farms have tapped into new areas of activity and have, for the most part, successfully established their new offerings.
At the same time, challenges remain. These include rising costs, somewhat subdued demand trends in some cases, seasonal pressures and a high workload.
Due to the limited number of case studies and the varying initial operational situations, the results cannot be generalised. The findings and possible further developments regarding support for diversification will be examined in greater depth in a follow-up study.
Contact person at IfLS: Hanna Deittrick (deittrick[at]ifls.de)
