OECD Home › Trade and Agriculture Directorate › Agricultural policies and support › The role of agriculture and farm household diversification in the rural economy
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The role of farm households in the rural economy of OECD countries is complex and multi-faceted. While on average the share of agriculture in rural employment and GDP is low and decreasing, agriculture is a large land user and plays an important role in many of the environmental and other land use issues that arise in rural areas. |
Farm households provide agricultural and related products and services, participate in local labour markets, use local services and purchase and consume local products. A significant share of the income of farm households comes from non-agricultural sources which means that for many farm households a vibrant, diversified rural economy is crucial to survival on the farm. Rural and farm policy, to be effective, has to reflect these realities.
These are the findings and recommendations of a recent OECD report, The Role of Agriculture and Farm Household Diversification in the Rural Economy: Evidence and Initial Policy Implications, which draws on several sources of information including OECD and EU regional databases; thirteen country reviews (see below); and responses to a questionnaire on diversification.
The role of agriculture and farm household diversification in the rural economy of:
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