Determinants of farm diversification and interaction with the CAP. An application to FADN of Marche region (Italy)

This work analyzes farm diversification activities in an Italian region (Marche). The study examines 387 farms from Farm Accountancy Data Network (FADN) over a six-year period (2000-2005), applying Discrete Choice Models to identify their business. Recognizing the driving forces of such diversification strategy can be useful to better design those agricultural policies explicitly aimed at promoting agricultural multifunctionality as well as social and environmental sustainability. The linkage between diversification choices and CAP payments is thus also investigated.