Lithuanian family farm economic sustainability: does the indicator matter?
2019
Dabkiene, V., Lithuanian Inst. of Agrarian Economics, Vilnius (Lithuania)
The economic situation of Lithuanian agricultural sector faces with challenges in regards to family farms’ income instability and income discrepancies between family farms. The aim of this paper is to assess the economic sustainability of Lithuanian sector at farm level across farm size classes in terms of physical size and by specialization. Furthermore, as the sustainability construction index method was employed as basis to conduct the research, the methodology aspects related to the number of indicators included in the set of indicators and the estimation of thresholds of sustainability intervals were empirically analysed. The findings of economic sub-index assessment indicates very good level of Lithuanian family farms as 68% of the sample farms were defined by medium level of economic sustainability. The assessment of family farms’ economic sustainability by specialization revealed that the horticulture farms performed the highest economic sustainability and, at the other end of spectrum, the COP farms achieved the lowest economic sustainability. As regards the physical size of farms, the best economic sustainability was observed on the smallest farms in terms of size and on the largest farms, of less than 5 ha and from 500 ha or over, respectively.
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