Agricultural diversification

In the agricultural context, diversification can be regarded as the re-allocation of some of a farm's productive resources, such as land, capital, farm equipment and pices to other farmers and, particularly in richer countries, non-farming activities such as restaurants and shops. Factors leading to decisions to diversify are many, but include; reducing risk, responding to changing consumer demands or changing government policy, responding to external shocks and, more recently, as a consequence of climate change.