Methodology of assessment of family farm characteristics and assignment to a sustainable economic development type: Lithuanian case

Abstract

The key identifying feature of this type of farms is that their FSED level is on a par with the FEE level irrespective of the FSED and FEE level combination. It was expected that the comparative analysis of these groups would answer the question how farm indicators are affected by situations when the FSED and FEE are on the same level, whether it is weak, moderate or strong. A comparison of all farm types classified into three FSED and FEE levels revealed the dominance of mixed production farms. However, it was observed that with a moderate or strong FSED and a high farm economic efficiency Types 3 and 6 are dominated by horticultural farms. The findings by specialisation reveal another type group with weak FSED levels and low, average or high farm economic efficiency (Types 1, 5, 9), which is dominated by crop production farms. The main objective of agri-business is to produce high quality food, to anticipate increasing demand for food security and to meet the growing demand in a sustainable way so as to avoid disturbing the balance, to protect nature and to continue profitable business. Both globally and in the EU, family farms are by far the biggest group of food producers. Trends of sustainable development of agriculture are directly related to the prospects of such farm business. Therefore, in order to anticipate the development trends it is essential to evaluate the economic, social and environmental sustainability of such farms. The purpose of the methodology for assessment of family farm characteristics and farm assignment to a sustainable economic development type is to empirically identify Lithuanian family farms by established farm sustainable economic development types and type interactions. The performed analysis of the typological models of the characteristics of the farm condition and family farm sustainable economic development indicators in Lithuanian farms designated nine farm types, which, for the purpose of a more accurate farm comparison, were classified into three FSEDFEE assessment levels: the first with the same FSED-FEE (farms sustainable economic development – farms economic efficiency) assessment level, the second with the maximum difference in the FSED-FEE levels, and the third with the minimum difference in the FSED-FEE levels. In the typological FSED-FEE model, there are three farm types with the same FSED-FEE levels. Those farm types account for 71 percent of analysed farms, where most of the farms in the sample are Type 2 farms with a moderate sustainable economic development level and average economic efficiency. There are 2590 farms in this type and they account for 66.12 percent of all analysed farms.