Factors for Development of Small Farms in Selected European Union Countries

This research focused on the development of small farms, which in many countries form the basis of the agricultural sector. The specifics of this type of farm, as well as the way in which they operate, influence the possibilities for these farms to realise the model of sustainable agriculture. This study considers income and the rate of reproduction of fixed assets as the main measures of farm development, which are influenced by a number of endo- and exogenous factors. The research period covered 2017–2021, and the subjects of analysis were small individual farms located in Greece, Portugal, Lithuania, and Poland. The figures for the research were taken from the FADN system database. The purpose of this study was to assess the impact of endogenous agricultural factors on the development of small farms as measured by farm income and reproduction of fixed assets in four selected European Union (EU) countries, i.e., Greece, Portugal, Lithuania, and Poland. Spearman’s non-parametric rank correlation method was used to assess the impact of endogenous factors. Selected on the basis of correlation relationships, the farm development factors showed a significantly higher correlation with farm income than with the reproduction of the farm’s fixed assets. The analysis indicated that, irrespective of the location of the farm, factors significantly affecting income levels included the area of agricultural land and the number of full-time employees. Only in some countries was there a statistically significant correlation between farm income and the share of leased land, the number of full-time workers per 100 ha of UAA, the share of hired labour input, as well as the level of total farm subsidies received.