Family farm and family business: Distinction and transition between concepts

Objective: Explore the conceptual limits between the family farming unit and the agricultural family business to identify the elements that determine the transition from one figure to another. Methodology: The distinctive elements between both concepts were determined from the most relevant definitions reported in the literature. Subsequently, the transition from a family farming unit to an agricultural family business was illustrated based on the case study of an enterprise dedicated to the production and collection of barley in Hidalgo, Mexico. Results: Seven distinctive elements were identified between the family farming unit and the agricultural family business. Two elements (the scale of production and productive diversification) drive the transition, three are modified consequently (the source of labor, the priority destination of productive activity, and the strength of the link with agricultural land), and the remaining two are carried out infrequently (assignment of a non-family member as main head and disengagement of family members from community life). Limitations: The findings of the study lack statistical representativeness as they come from a case study. Conclusions: The seven distinctive elements between a family farming unit and an agricultural family business can be used to study the phenomenon of entrepreneurship around agriculture and to typify agricultural units to design differentiated strategies for political intervention.