This project aims at deepening knowledge about drivers of farm business development and about how different strategies for business development impact the financial outcome of the farms. These are our research questions:
1. What are the driving forces for farmers’ choices of different strategies for business development? How and why are specific strategies chosen to achieve different types of goals?
2. What are the effects on farm financial outcome of different strategic choices for business development? How do different strategic choices impact technically efficient use of farm resources and what are the implications for farm profitability and financial risk exposure?
Findings can be used for more accurate guidance of farmers facing choices of strategic direction. The project will be based on in-depth interviews with farmers and on analyses of accounting information obtained from the Farm Economic Survey.