Resumen: In recent decades, the agricultural and livestock sector in Spain has experienced a decline in its contribution to GDP and employment. Since the food industry and the maintenance
of natural resources in rural areas largely depend on agriculture and livestock farms, analising on-farm diversification as a strategy to increase profitability and to try to avoid their abandonment
is a relevant issue. This paper explores the factors affecting participation by farmers in Catalonia in on-farm diversification activities. A theoretical model explains farmers’ time allocation decisions. The analysis of the 2007 Farm Structural Survey with a sample size of 3,435 farms using a logit model reveals that location in disadvantaged areas and a low weight of the primary sector in GDP encourage on-farm diversification. Holdings owned by legal persons, arable land size and gross margin also exhibit a positive impact on diversification. Holdings engaged in both extensive and intensive farming also carry out on-farm diversification. Finally, agricultural training and age of the farm manager positively and negatively influence diversification, respectively.