This paper presents a theoretical approach that explains farm household diversification decisions by the relative attractiveness of both food production and family businesses. The empirical analysis of diversified activities of Swiss farm households shows that a low household income leads to...

The paper approaches the question of the role of the three different sectors in rural population development. A regression with data from 1606 rural Swiss municipalities shows that activity in the farming sector enhances population growth to a greater degree than activity in the industrial...