Diversification in peri-urban agriculture: a case study in the Ruhr metropolitan region

Farm diversification is of growing importance for European farmers to stabilize and/or increase their income, especially in urban and peri-urban areas. This article identifies determinants of the uptake and intensity of on-farm non-agricultural diversification such as agritourism activities, on-farm processing and direct sales activities in the Ruhr metropolitan region in Germany based on a survey among 156 farms. We find a high share of diversified farms in the Ruhr metropolitan region, often with more than one diversification activity. Environmental, farm and farmer characteristics have distinctive effects on the farmers' diversification decision and the farmers' decision on the diversification intensity. Younger, risk seeking farmers with secured farm succession and less productive soils are more likely to choose on-farm non-agricultural diversification. Additionally, we find that diversification intensity is positively influenced by proximity to urban areas, as well as a specialization on high value crops and the usage of extension service consultancy.