Tendencies in variation of economic viability of farms in Lithuania

Abstract

The study identified the economic viability of farms trends in Lithuania during 2009-2013. The investigation found that the subsidies have greatest impact on the viability of farms, especially small and medium-sized. Subsidies positively influence number of financial indicators and artificially maintains economic viability of very small, small and medium-sized farms. The large farms remain viable without subsidies. During research many economic viability indicators were calculated. It is possible to identify only one special indicator - manufacturing subsidies and net profit ratio, which shows that 72 per cent farms from all economic groups remain viable only with financial assistance.