The analysis of structure of agricultural sector shows a poor viability of small-scale farms in new EU member states despite support of the Common Agricultural Policy. Considering this problem, the aim of the article is to identify indicators that can be used to show changes in the viability of small farms in order to bring policy makers more attention to this very important group of farms in the context of the agricultural economy in Latvia and Lithuania. For this purpose, 4 economic indicators were selected, analyzed and their impact to the change in the level of viability of small farms during 2007-2016 was assessed. The research based on the data of Farm Accountancy Data Network and Farm Structure Survey, using statistical data comparison, systematic indicator selection and mathematical induction methods. The results shows that despite growing of the rate of subsidies on investment and improving income level in small farms over the observed period , the viability of small farms remains heterogeneous and insufficient to contribute in constructing more resilient and sustainable agricultural sector both in Lithuania and in Latvia. Thus, in the upcoming Rural Development Programming period, the priority should be given to small-scale farms since they play a significant role not only in development of viability of agriculture in general but also are important to agricultural sustainability.
This paper aims at to identify the differences in the performance of the agricultural sectors in the selected European Union Member States. The research covers 21 countries in the period from 2007–2017. The paper uses data from the Farm Accountancy Data Network (FADN). Three types of sectors were considered: Crop farming (wheat and rapeseed), specialist milk, and specialist cattle. The sector’s performance was measured by calculating the aggregate scores using the VIKOR technique. The panel regression model was also used to estimate and assess the technical and economic determinants of the sector’s performance. The obtained results indicated that the new EU Member States showed higher levels of performance compared to the old Member States. This finding may be attributed to the fact that some of the production factors in the new EU Member States are still under-valued compared to those of the old EU Member States.
Sustainable agriculture is the basis for long-term economic growth ensuring employment for the rural population. The aim of this research is to assess the dynamics in agricultural output, investments, direct payments and energy use in Estonia, Latvia and Lithuania under the Common Agricultural Policy (CAP) during 2008-2017. The method of research is the evaluation of production factors generated by agriculture and related activities carried out by the model of the EAA system. The performance of the agricultural holdings is measured using economic indicators: output of the agricultural 'industry', gross fixed capital formation (GFCF), direct payments, return on capital, total labour force input, average farm income. We discuss the trends in absolute and relative indicators relates to different aspects of the sustainable agricultural development to identify the key priorities of the CAP in the Baltic States which are new European Union Member States. The results indicate that in Estonia, Latvia and Lithuania EU support has affected investments in capital. The amount of GFCF over ten years annually grew an average by 0.1% in Estonia, by 8% in Latvia and by 17% in Lithuania which has led to increase productivity on farms, positively influenced growth on output agriculture and income as well. During the period 2008-2017 marked growth in the agricultural output levels and direct payments on average annually by more than 4% and 5-6%, respectively. These induced higher capital investments which require reasonable revision of the CAP measures in order to avoid overinvestment and address changes in the global agricultural markets. JEL classification:Q10, E22, E24, H71
The rational use of land, capital and labor determine the growth of economic efficiency of agricultural production and income of farmers together. The aim is to estimate the use of production resources in the EU-27 agricultural sector, using macro-economic indicators. The analysis and assessment of the use of land resources in agriculture have been conducted on the basis of data on economic accounts for agriculture and agricultural census to describe agricultural production intensity by type of farming and its impact on farm income. This paper examines the use of land resources in agriculture, measured by using relative indicators of agricultural output, intermediate consumption per hectare of agricultural land, the revenue per average employee and the comparative analysis these indicators in the farms of the European Union (EU) is presented.
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