Agricultural Economics Department
Date of this Version
7-9-2023
Citation
Cornhusker Economics (July 19, 2023)
Agricultural Economics, University of Nebraska-Lincoln
Abstract
Diversification is a familiar strategy for managing risk in agriculture. It can take several forms including growing more than one crop or operating a farm with both crop and livestock enterprises. As with other strategies for managing risk, diversification comes with a unique set of costs. Managing a farm with multiple enterprises creates additional overhead as well as additional demands on management, labor, land, capital, and other resources. Diversification adds complexity to an operation and too much complexity can lead to inefficiencies.
Included in
Agribusiness Commons, Agricultural and Resource Economics Commons, Agricultural Economics Commons, Agronomy and Crop Sciences Commons, Animal Sciences Commons
Comments
Used by permission.