Beyond the single farm – A spatial econometric analysis of spill-overs in farm diversification in the Netherlands

Farm diversification is an important component of rural development and policy in Europe. We examine the influence of neighbouring farms on farm diversification decisions. Our analysis investigates spill-over effects between farms and different activities in a spatial econometric framework. Using census data from about 66,000 farms in the Netherlands, we find significant correlations of diversification activities between spatially proximate farms. These are positive for some activities, for example for nature conservation. On a local level, positive spatial dependencies between farms may resul... Mehr ...