The value of farm diversification is unquestionable especially in terms of additional income generation, income stability and easing the employment difficulties of agricultural producers; its importance has recently been in the focus of agricultural and rural policies. The research purpose was to describe the situation of farm diversification in Hungary and to analyse the characteristics of diversified farms, as well as to determine which factors influence the extent and direction of diversification. The research method is based on statistical data analysing and questionnaire survey. Contrary to the above my analyses showed that the share of diversified farms is rather low in the small-scale, semi-commercial and part-time farms; its wide scale distribution is hindered by several factors. Based on the analyses I found that in private farms and in corporate farms it is characteristic that farm diversification activities are closely connected to the main activity of the farm, but they are of different type. I could state that the share of diversified farms is more significant in the labour-intensive farms and primarily in commercial farms. The share of young farmers and farmers in active age, qualified and with a full-time job is higher in the diversified and organic farms.

The changing economic and social situation in the regions leads to the changing understanding of the potential which exists in the countryside. This research is based on the idea that farmers operate in close neighbourhood with the local communities and therefore they may hold a potential to start innovation processes in rural regions as agents of change. This may happen individually or together with the local community. Farmers are active in acquiring new knowledge and experience through collaboration with advanced innovation centres in research laboratories and universities, and sharing with the local community, thus making these innovations open. The success of innovators comes in line with the collaboration and therefore the defined three key factors of ‘innovating together’ in this research are: first, the shift from technical to organizational innovations; second, the shift from sectorial to territorial rural development strategies; third, the size of farms and rural enterprises due to the limited number of employees. Theoretical findings are followed by empirical investigations from representative data collected in Lithuanian farms in 2017, supported with relevant statistical analysis. Research results show that the potential for ‘innovating together’ in Lithuanian farms is rather weak when taking into account all three factors. However, there are reasons behind this which give insights for future developments in the field.

Since 1990 significant structural changes have taken place in Latvia. First of all, it was the reestablishment of an independent state in 1991 and secondly - the accession to the European Union (EU) in 2004. Joining the EU provided free flow of goods, finances and individuals, a single system of legal acts as well as a trustful image of the state for foreign investors. In Latvia, 60% of the EU funds are allocated for agriculture and rural development, thus achieving the objective of producing food adequate for consumers’ purchasing power and ensuring agricultural commodities are available for their processing. Financial aid for primary industries also results in support for the whole society and other industries from which necessary resources and commodities are purchased. After joining the EU, the growth of the agricultural industry was observed owing to support payments. As a result of the EU policy, the size distribution of farms changed in Latvia, the output and exports of food increased as well as agricultural productivity rose. The research aim is to analyse the changes in and gains for Latvia’s agriculture after the accession to the EU. The following research methods were employed: the monographic and descriptive methods, analysis and synthesis and the logical and constructive methods.