On-farm or off-farm? Diversification processes in the livelihood strategies of farming families in Poland

We discuss the factors that have influenced the increase in the importance of non-agricultural sources of income in the budget of family farms with well-established contacts with the market. We analyse these phenomena in farms of different sizes, bearing in mind that decisions on diversification of income sources are made within the family, taking into account income opportunities inside and outside agriculture. In the study we used panel data on 3754 individual farms for the years 2009–2016. It has been proved that only relatively small farms (with economic size below EUR 8000 Standard Output) show tendenciesto undertake diversification of agricultural activities. Farms with a larger economic size have already developed strong relations with the market, which influences family members’ decision to engage in agricultural activity, excluding non-agricultural sources of income and the relatively decreasing importance of public support in this respect.