The article deals with diversification of the activities of agricultural holdings in Czechia. The purpose of diversification is to create and also keep new jobs in the rural areas, keep or even increase the farm income and to contribute to the recovery of the villages. It may lead to stabilization of the rural population, increase the quality of their lives and the competitiveness of agricultural holdings. The main aim of the article is to describe the extent and importance of diversification

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... the specific environment of Czechia before and after 1989 and also to outline its likely future development. The article offers analysis of the development of non-agricultural activities before 1989 in the conditions of the centrally planned economy. Then it deals with diversification of activities of agricultural holdings after 1989 -during the period of transition of the Czech agriculture, which led to the application of the market economy. The article also outlines the possible future development of diversification of activities of agricultural holdings in Czechia.