The diversification of farms can be a result of multifunctional farming, however, in some
cases at the cost of lower farm efficiency. In our paper we investigate the influence of para-
agricultural diversification on productivity and the technical efficiency of organic farms in
Austria, Switzerland, and Southern Germany. We show the benefits and drawbacks of
diversification for organic farms, which go beyond the core agricultural production (para-
agriculture). We do this by estimating a Stochastic Frontier (SF) combined with a metafrontier …