Income diversification in Norwegian farm households - Reassessing pluriactivity

Many farm households rely on income from multiple sources, a phenomenon known as pluriactivity. The present survey investigates whether this is a deliberate strategy rather than a situation forced upon the farm household by external conditions. This study explores the relationship between four income diversification strategies reported by farmers and household income. Data from a representative random sample of 901 Norwegian farm households is analysed using multiple regression. External employment and holding additional non-farm-related businesses is significantly positively related to household income. This shows that diversification into other economic sectors has a positive effect on income. Moreover, diversification within the farm sector has no effect on household income. The findings imply that future policy should consider pluriactivity as a deliberate strategy contributing to farm family wealth.