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The Evaluation Of Small And Medium Farms’ Economic Viability In The New Eu Countries

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  • Astrida Slavickienė
  • Jūratė Savickienė

Abstract

The common European agriculture policy of 2014-2020 emphasises that one of the ways to encourage the sustainable development in agriculture is the increasing of small and medium farms’ economic viability. The EU names the viable production of foods that should increase the viability in agriculture sector encouraging the farms’ sustainability, progress an integration growth in rural areas. The article evaluates the alterations in farms’ economical viability of the new EU countries (EU-10) according to the methodology of J. Scott (2001). It was determined that, based on the limits of viability by J. Scott (2001), the farms are viable. One specific indicator was distinguished (the production subsidies and gross profit ratio), that shows how the farms remain viable only with the help of direct payments. The latter appears to exceed the set limit of viability by 5 times in Lithuania and twice in the EU-10 countries. The tendencies of alterations in the farms economic viability in 2014-2020 are directed to the model of direct payments and the economic viability of the small and medium farms. It is supposed to increase the viability of the agricultural sector by guaranteeing the normal living rate of the farmers, by encouraging the sustainability, development and the integration growth in the rural areas.

Suggested Citation

  • Astrida Slavickienė & Jūratė Savickienė, 2014. "The Evaluation Of Small And Medium Farms’ Economic Viability In The New Eu Countries," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 843-855.
    • Handle: RePEc:isp:journl:v:8:y:2014:i:1:p:843-855
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    References listed on IDEAS

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    1. Singh, Mandeep & Bhullar, A.S. & Joshi, A.S., 2009. "Factors Influencing Economic Viability of Marginal and Small Farmers in Punjab," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(2), July.
    2. Josep Argiles, 2001. "Accounting information and the prediction of farm non-viability," European Accounting Review, Taylor & Francis Journals, vol. 10(1), pages 73-105.
    3. David Conner & Kathryn Colasanti & R. Brent Ross & Susan B. Smalley, 2010. "Locally Grown Foods and Farmers Markets: Consumer Attitudes and Behaviors," Sustainability, MDPI, vol. 2(3), pages 1-15, March.
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    1. Michal Chocholousek & Zuzana Hlouskova & Tereza Simova & Jan Huml, 2021. "Agriculture farms product differentiation assessment in the Czech Republic," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 67(3), pages 81-89.

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