This study investigates the role of non-traditional enterprises in rural economies and attempts to understand farmers’ decision to adopt non-traditional enterprises. Three separate mail surveys were conducted to collect socio-economic data from biological and organic, Angora goat, and ginseng farm enterprises. Descriptive statistics, Pearson χ² tests, and multinomial logit models were used to accomplish the objectives of the study. The analysis focuses on biological and organic, and Angora goat enterprises.

The results of the analysis show that the principal operators of these enterprises were significantly younger, better-educated, better-off, and more likely to be a female in comparison to all Virginia farmers. The majority of farm operators came from non-rural backgrounds and their principal occupation is not farming. Only a very small percentage cited economic factors as the most important reason for starting the non-traditional enterprises. The most common information source used for planning and developing these new enterprises is books, magazines, or newsletters. The majority of respondents in both the biological/organic and Angora goat surveys did not perform any feasibility analyses prior to beginning their non-traditional enterprises. The farmers rated production and marketing as their major problems.

In general, the majority of biological and organic farms and Angora goat farms were not profitable in 1993, and the income from these enterprises contributed very little to household income. However, it was found that biological and organic enterprises have played an important role in the economic survival of farmers with financial obstacles. The majority of farmers in the samples saw a bright future for their products.