Abstract: The paper shows the necessity of farm diversification
in accordance with the current trends in agricultural sector of
Georgia. The possibilities for the diversification and the
corresponding economic policy are suggested.
The causes that hinder diversification of farms are revealed,
possibilities of diversification are identified and the ability of
increasing employment through diversification is proved. Index of
harvest diversification is calculated based on the areas used for
cereals and legumes, potatoes and vegetables and other food crops.
Crop and livestock production indexes are analyzed; correlation
between crop capacity index and value added per worker and per
hectare is studied.
Based on the research farm diversification strategies and priorities
of corresponding economic policy are presented. Based on the
conclusions relevant recommendations are suggested.