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Successful structural change in agriculture depends on several preconditions, some of which are only indirectly linked to the farming sector. The rural non-farm economy is known as one important driver of structural change because it offers alternative employment. However, little is known about the factors that influence farm exit decisions. Based on a recent household survey of Croatian family farms, we analyse individual employment decisions of farm household members by taking a prospective look at developments to come in the medium term. We find that mixed activities and part-time farming will be at the core of expected future developments. A cumulative logit regression model is employed, showing that steps toward individual farm exit are least likely for elderly people and for those in households that are particularly successful in farming. Individual exit is more likely for better-off households. Generally, we find that there is a clear trend toward non-farm employment for individuals, but there are hardly any indications that this leads to final abandonment of the farm.

Private farming is the dominant mode of agricultural production in most European countries. Not all farmers are equally successful, economically, which is usually explained by different levels of production factors, i.e. land, labour and capital. This article analyses whether social capital is an additional factor contributing to higher agricultural incomes. Using primary evidence from a farm survey in Poland among 410 farmers it can be deduced that social capital is indeed a significant factor determining the level of agricultural income. However, its impact is not as clear-cut as anticipated. The elaboration and testing of appropriate indicators has just started. More in-depth analysis will be needed in the future.

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