The research aimed at investigating which drivers influence the economic sustainability of mountain farms, in particular the effects of diversification strategies, with reference to the Italian Alps. We analyzed data from the Farm Accountancy Data Network (FADN) and used Structural Equation Modeling to examine the relationships between farm resources and their economic performance. The sample is composed of 938 farms included in the 2015 FADN database and located in Alpine municipalities. They are mainly involved in dairy farming, fruit growing, viticulture and sheep and goat rearing, and half are managed by young and female entrepreneurs. There are two main results of this research: first, confirmation that diversification strategies can positively affect farm income, even for Alpine farms. Second, it is mainly young people who are orienting their farms towards multifunctionality, by bringing a set of skills that combine tradition and innovation to agriculture and Alpine territories. These results are quite informative and useful for policy making to support mountain agriculture and sustainable development of Alpine territories.
