Along with firm-specific technical inefficiency, sector-specific structural inefficiency might induce losses in productivity. This paper therefore aims to identify the trends in structural efficiency in Lithuanian family farms. Specifically, the four farming types are considered, namely cereal farming, field cropping, dairying, and mixed farming. Farm-level data from Farm Accountancy Data Network are used for the analysis. The research period spans over the years 2004–2011. The trends in technical and scale efficiency are presented. Furthermore, the prevailing returns to scale are discussed thus offering insights into the most productive scale size and deviations from it in Lithuanian family farms. Finally, the dynamics in structural efficiency are discussed. The results indicate that the aggregate output of certain farming types could be augmented by some 20–25% due to reallocation of inputs among farms. Anyway, technical inefficiency remains the major driver of structural inefficiency.

Lithuanian family farms are subject to both production and investment support under the Common Agricultural Policy. As a result, there have been structural changes in the sector. Therefore, it is important to analyse farm performance from an adjustment cost perspective. The dynamic efficiency measures encompass multi-temporal cost minimisation. This paper addresses the following problem: what are the key trends in dynamic efficiency and what are the implications thereof on further development of cereal farming in Lithuania? The present paper aims to identify the prospective paths for development of Lithuanian cereal farms by analysing their dynamic efficiency. Data Envelopment Analysis is applied to calculate technical efficiency scores under different assumptions regarding returns to scale. The results indicate pure technical inefficiency remained as the main source of the overall technical inefficiency with scale inefficiency increasing throughout 2004–2014. A more detailed analysis showed that it was smaller farms that suffered from losses in the pure technical efficiency to the highest extent. The exit of the smaller cereal and oilseed farms, therefore, has likely contributed to the decreasing technical inefficiency, yet it has dampened scale efficiency.

The literature suggests different approaches towards modelling of the environmental impact caused by the production processes. The present paper attempts to establish a framework for multicriteria comparison of agricultural sectors of the European Union Member States and identify the performance gaps in terms of energy-related carbon dioxide emission. The research relies on the two approaches, viz. the by-production approach and the multi-criteria decision making approach. The environmental performance indicators were evaluated in regards to the desirable output (gross value added), inputs, and the undesirable output (carbon dioxide emission). The results indicate that Slovakia, Estonia, Lithuania, and Hungary should attempt to improve their carbon factors by implementing cleaner energy technologies. The combinations of by-production sub-indices suggest that productivity gains are more important for Sweden, Belgium, Poland, and France. Czech Republic, Latvia, and Finland are specific with low performance in terms of both the intended production and the undesirable output. The MCDM approach identified similar trends in performance as suggested by country ranking and correlation analysis.