DETERMINANTS OF ON-FARM DIVERSIFICATION AMONG RURAL HOUSEHOLDS: EMPIRICAL EVIDENCE FROM NORTHERN ALGERIA

Abstract

This study aims to analyze the determinants and patterns of the on-farm diversification among the agricultural producers in Algeria. The study uses a sample of agricultural producers randomly and proportionally selected from Northern Algeria and the data obtained was analyzed using three adequate regression models. Results indicate that, on the technical aspects, the farmers who have larger farm size, access to market information, more full land employment and an irrigation system, those who own machinery and livestock holdings are more likely to diversify, whereas those with off-farm income are likely to specialize. In order to promote crop diversification, providing farm machinery through easy loans and improving access to market information and irrigation technologies should be given attention. Farmer’s experience and his age are the major socio-economic determinants of farm diversification. The implication is drawn for provision of enabling socio-economic environment for the establishment of more diversification.

Keywords

• Farm income
• diversification
• rural development
• risk management
• algeria