Understanding the Nature and Extent of Farm and Ranch Diversification in North America*

Abstract Pressure to adopt enhanced production technologies, changing government support policies, increasing and more diverse competition, and changing markets have posed economic challenges to North American farmers over the past two decades. As a response, farmers are adjusting their production model by incorporating agricultural related enterprises. Although there is evidence that farm diversification is occurring throughout North America, there is a dearth of scientific information regarding the types of enterprises being developed and used in this context. This study aims to fill this void by exploring the extent of farm diversification by identifying and describing eight types of enterprises that farmers and ranchers are using. It was found that levels of diversification are often dependent on operating and management attributes and owner characteristics, such as the number of family members working on the farm and the number of days that the farmer's spouse works off the farm.