Framework for assessing the farm relative sustainability: a Lithuanian case study

Abstract

Th e aim of the study was to develop an analytical tool to assess the relative sustainability of family farms using the FADN data. Th is tool was based on the set of 23 indicators that covered three main components of sustainability (economic, environmental and social). Th e min-max approach was employed to normalise the selected indicators expressed in variety dimensions for their need to be put on a common basis. Th e factor analysis was used to estimate weights for the selected indicators to construct sub-indices and then the sub-indices were aggregated into the farm relative sustainability index (FRSI). Th e FRSI and sub-indices ranged from 0 to 1 (scaled into three intervals), assuming that the closer to 1 were the values of the index and the sub-indices the higher was the relative sustainability of the farm. Th e analytical tool has been applied to the Lithuanian FADN database for 2003 and 2012. Th e research revealed that the FRSI in 2003 and 2012 fell within the medium sustainability interval in all analysed farm size classes. Th e best sustainability situation in the year 2003 was determined on the large-sized farms, while the best sustainability situation in the year 2012 was established on the mid-sized farms.