The financial implications of specialization, diversification, or alternative enterprises on small farms: Evidence from Tennessee

Abstract In response to survival challenges, small farms in the United States undertake decisions minimize downside risk or maximize gross revenue. Using primary survey data of Tennessee, we examined farmers’ strategic on specialization other forms diversification and estimated impacts these farm financial performance. We found that farmer’s age, farmland holdings, use a smartphone farm-related activities, off-farm work significantly influenced decisions. Our multinomial endogenous switching regression estimates suggested could attain higher performance, around 45% income 30% return assets, by adding alternative on-farm enterprises.