Skip to main content

Diversification Choices for Community-Based Farming Corporations: Focusing on Farm Resources

  • Chapter
  • First Online:
Farm and Rural Community Management in Less Favored Areas

Part of the book series: New Frontiers in Regional Science: Asian Perspectives ((NFRSASIPER,volume 44))

  • 169 Accesses

Abstract

The purpose of this chapter is to quantitatively analyze the determinants of farm diversification based on the results of a questionnaire survey of community-based farming corporations in Akita, Fukui, and Shimane prefectures. First, the relationships between business departments are clarified by cross tabulation. Next, in order to clarify the determinants of farm diversification and forage rice production, we use logistic regression analysis based on the explanatory variables of farm resources, environmentally friendly agriculture, management objectives, and manager’s risk attitude. The cross tabulation shows that diversification has progressed rapidly within the last 10 years, agricultural processing has been functioning as a key to diversification, and the smaller the managed cultivated land area, the more likely the direct sales strategy is to be selected. The estimation results show that location, employees, middle managers, environmentally friendly agriculture, regional contribution orientation, and the manager’s risk attitude are related to diversification choices. Location, managed cultivated land area, and successors are related to forage rice production choices. Human resources, managed cultivated land area, the practice of environmentally friendly agriculture, and risk hedging are important elements of the diversification choices of community-based farming corporations.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 129.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Ando M (2008) Possibilities and limitations of restructuring paddy field farming by group farming based on community: focusing on the regional diversity reflecting its agricultural structure. J Rural Econ 80(2):67–77

    Google Scholar 

  • Asian Productivity Organization (2004) Agricultural diversification and international competitiveness. The Asian Productivity Organization, Tokyo

    Google Scholar 

  • Barsky RB, Juster TF, Kimball MS, Shapiro MD (1997) Preference parameters and behavioral heterogeneity: an experimental approach in the health and retirement study. Q J Econ 112(2):537–579

    Article  Google Scholar 

  • Cho K (2005) Vietnamese agriculture and rural areas under the market-oriented economy. Tsukuba-Shobo, Tokyo

    Google Scholar 

  • Cho K, Yagi H (2001) Vietnamese agriculture under market-oriented economy. The Agricultural Publishing House, Hanoi

    Google Scholar 

  • Inoue N (2019) Business choice based on management resources of community-based farming corporations. Jpn J Farm Manage 57(2):101–106

    Google Scholar 

  • Inoue N, Fujie T, Sasaki H, Kawasaki K, Koito K (2010) The diversification of the economic activities of farming and farmers’ risk awareness in hilly and mountainous areas. Jpn J Food Agric Resour Econ 61(1):95–105

    Google Scholar 

  • Inoue N, Takeyama K, Fujie T, Yagi H (2014) Determinants of the adoption of environmentally friendly farming practices on group farming organizations. Jpn J Food Agric Resour Econ 65(2):1–11

    Google Scholar 

  • Inoue N, Takeyama K, Yamamoto Y, Yamagishi K (2016) Characteristics of supporting activities for community on group farming organizations. Jpn J Farm Manage 54(2):43–48

    Google Scholar 

  • Kanazawa N (1984) Theories and realities of Diversification of farm management. Chikyu-sha, Tokyo, pp 2–59

    Google Scholar 

  • Kitada K (2008) Present problems and situation of diversification of group farming organization: case study of farming corporations based on community. Jpn J Farm Manage 46(2):11–16

    Google Scholar 

  • Kubo T (2013) The challenges that agricultural production corporations face with regard to training successors. J Rural Plan Assoc 32:317–322

    Article  Google Scholar 

  • Kuraoka T, Inoue N (2013) Characteristics of personnel management among employees and members of community-based farming corporations : a case study in Hiroshima Prefecture. J Rural Probl 49(1):194–200

    Article  Google Scholar 

  • Meraner M, Heijman W, Kuhlman T, Finger R (2015) Determinants of farm diversification in the Netherlands. Land Use Policy 42:767–780

    Article  Google Scholar 

  • Ohe Y (2003) Farm and rural diversifications. Norin-Tokei-Kyokai, Tokyo

    Google Scholar 

  • Pope RD, Prescott R (1980) Diversification in relation to farm size and other socioeconomic characteristics. Am J Agric Econ 62(3):554–559

    Article  Google Scholar 

  • Sakurai S, Yokoyama S, Shimoura S (2006) Diversification of farm household activity and social capital in rural communities. J Rural Econ 2006:1–8

    Google Scholar 

  • Shima Y (2014) Managerial growth process and support measures on new entry farmers. Norin-Tokei-Kyokai, Tokyo

    Google Scholar 

  • Suzuki H, Sumita T (2016) The significance and issues of business diversification of the community based faming: a case study on the multi farming area in Yamagata Prefecture. J Rural Soc Econ 34(1):79–86

    Google Scholar 

  • Takahashi A, Umemoto M (2009) Prerequisite of diversification strategy in merger of group farming organization. Jpn J Farm Manage 47(1):76–81

    Google Scholar 

  • Tsunekawa I (2007) A study on forage rice production by community-based group farming. Jpn J Farm Manage 45(1):31–34

    Google Scholar 

  • Yagi H (2013) Empirical persuasiveness in researches on farm business strategy. Jpn J Farm Manage 51(3):12–16

    Google Scholar 

  • Yagi H (2018) A review of empirical researches on the strategy of firms in agriculture. Jpn J Farm Manage 56(1):19–33

    Google Scholar 

  • Yagi H, Fujii Y (2016) Difference in rice production economies of scale organizational structure: the consideration of seasonality and multi-unit operation. Jpn J Farm Manage 54(1):105–116

    Google Scholar 

  • Yoshida S, Yagi H (2017) Determinants of diversification and farm performance of urban farmers: studies based on data from questionnaire survey on farmers in Tokyo. J Rural Plan Assoc 36(special issue):271–276

    Article  Google Scholar 

  • Yoshida S, Yagi H, Kiminami A (2018) Management resources and socioemotional wealth related to farm diversification strategy: an empirical study based on a survey to close-to-urban farmers in England. Jpn J Farm Manage 56(3):62–67

    Google Scholar 

Download references

Acknowledgments

This work is the result of new models and estimates performed using the data from Inoue (2019) and adding a new case analysis. This work was supported by JSPS KAKENHI Grant Numbers JP19H03062, JP18K05866, and JP15H04555.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Norikazu Inoue .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Singapore Pte Ltd.

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Inoue, N. (2020). Diversification Choices for Community-Based Farming Corporations: Focusing on Farm Resources. In: Yasunaga, N., Inoue, N. (eds) Farm and Rural Community Management in Less Favored Areas. New Frontiers in Regional Science: Asian Perspectives, vol 44. Springer, Singapore. https://doi.org/10.1007/978-981-15-7352-1_6

Download citation

  • DOI: https://doi.org/10.1007/978-981-15-7352-1_6

  • Published:

  • Publisher Name: Springer, Singapore

  • Print ISBN: 978-981-15-7351-4

  • Online ISBN: 978-981-15-7352-1

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)

Publish with us

Policies and ethics