14th Economics & Finance Virtual Conference, Lisbon

RESULTS OF THE ANALYSIS OF INTERNAL FACTORS DETERMINING THE ECONOMIC SUSTAINABILITY OF FAMILY FARM: LITHUANIAN CASE

JURATE SAVICKIENE

Abstract:

Following the analysis of factors by farming areas, the multiple regression analysis of dependent variable index of economic sustainability of family farm and economic efficiency and solvency sub-indexes as well as independent variables showed that the independent variables are statistically significant, except for the farmer’s age and land productivity point. The main factor that has the greatest positive impact on the index of economic sustainability of family farm and economic efficiency sub-index is the workload of family members, and on the solvency sub-index - the farm size. The farmers must work systematically to maintain their farm sustainable and family farms to be solvent must reduce the size of the farm, as farm size variable was negative. Personal expenses have the greatest impact on the economic efficiency sub-index among the crop production, animal husbandry and combined farms. Their indicator is to be related not to the extent of incurred personal expenses, but with their indicator as reached value. This effect can be explained by the fact that the farms with a strong effort to develop their activities have a greater chance of survival. The income from other sources has the greatest impact on the index of economic sustainability of family farm among the farms engaged in combined production and vegetable-growing and (or) gardening activities. This factor is assigned to the internal reserves of family farm - it reduces the business risk. These are the most diversified family farms capable of developing other non-agricultural activities, too.

Keywords: Family farms, sustainable economic development, internal factors

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