The profit in crop farming has been known to be very varied depending on if the weather would let the farmers crop to grow big. Alongside with that swedish farmers now act on a global market the price fluctuates largely as well, creating an uncertain profit for the farmer.
Diversification is a well known measure to raise profit but also for risk management purposes. During wintertime in Sweden the activity in the crop farming business decreases to only some service and maintenance. Snow Ploughing is therefore a very common measure of diversification. The purpose of this study is to investigate for which reasons the crop farmers choose to diversify their business with snow ploughing and when doing so, if they have acted within the order of the effectuation theory. The study has conducted five interviews with different crop farmers in the Uppland region. The writers used a qualitative method with an inductive research approach. This study is not able to point out one factor that absolutely solely affects the decision to diversify crop businesses with an additional snow plowing business. Different businesses have different reasons to diversify, some are more or less forced to if they wish to work fulltime in the business while others see a profitable opportunity. There are also social factors that matter such as family relations. This study has contributed to a deeper knowledge of why farm businesses choose to diversify their farm business with snow ploughing. It also contributes with knowledge of to what extent farmers have used the theory of effectuation to expand their business.
August Häger Agronom - ekonomi
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