Are 'other gainful activities' on farms good for the environment?

There has been a lot of academic interest in the pursuit of diversification activities and off-farm employment by farm household members. This is regarded as an important strategy for mitigating the effects of low agricultural income. One aspect of the debate about these so-called 'Other Gainful Activities' (OGAs) is whether they are associated with any environmental improvement on farms. In this paper, we use three approaches to analyse this issue. We examine whether measures of agricultural intensity are associated with the pursuit of OGAs by farmers and their spouses. We examine whether OGAs are more likely on farms where there is an ESA Management Agreement. Finally, we examine whether OGAs are associated with the farmer's stated environmental intentions. Although we tentatively conclude that there is a relationship between OGA involvement and these measures of environmental performance or concern by farmers, the magnitude of the association is small relative to other variables such as farm size, the type of land use, the form of business and recent agricultural training.