In the paper, the philosophical and historical evolution of social transfers and their role in Latvia's social security system have been investigated. Definitions of social transfers have been studied, and a classification of social transfers has been made. The most suitable social security system, which, to a great extent, depends on social policies and a socio-economic situation in a country, is elaborated in every country. Latvia's social security system includes state social insurance, state social benefits, social services, and social assistance that are based on financing from both the state basic budget and the state special budget, and municipal budgets. Social transfers have a significant role in the social security system in order to provide protection for the population in social risk situations; they impact the welfare of the population during this period.

Farm financial distress can be determined by many factors. Farm failure can be the result of macroeconomic environment, unsuccessful farmer’s management decisions, and even natural forces. Different financial distress determinants may have different influence on a farm financial position. This study presents average financial ratios (leverage, return on assets, and return on equity) and single ratio of rental equivalent to gross margin according to farm size, land quality, economic size, farmer’s age and type of farming in Lithuania. The new approach to financial distress diagnosis requires classifying farms into financial positions. Considering average financial ratios and single ratio of rental equivalent to gross margin, farms were classified according to financial positions in order to estimate these methods’ suitability for financial distress diagnoses. Using study results, farmers can identify their position according to the average ratios. This study could be a guide for farmers making the financial management decisions.

The results of synthesis and analysis regarding the structural diversity of farms, their differences, divergence and development in Jelgava district and Zemgale agricultural region are expanded in the article. Commercial farms and semi-subsistence farms are particularly studied on the basis of farm accountancy data.

The research work of current paper is dedicated to the problems that appear in resource attraction processes of the Cohesion Fund (CF) in Latvia. Latvia has an access to branches of financing covered by CF - transport and environment. These branches require harmonized legislation. Successful administrating is assured by effective institutional system. The weaknesses of CF management system in Latvia are figured out so rendering ideas to the reader to be studied further.