Small farms face significant challenges using conventional crop production methods. They seek methods of generating alternative income both on- and off the farm. The literature considers these opportunities individually; however recent evidence shows that small farms engage in both activities simultaneously. This study analyzes factors influencing such choice decisions and their impact on farm and total household incomes. Using a large nation-wide farm survey data and selectivity based multinomial choice model, we found that small farms have higher household income if they chose a combination of both strategies rather than a single strategy. Additionally, education, age of the operator, financial conditions of the farm and location of the farm are important factors deriving alternative choice decisions for income diversifications.