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The economic situation of farms located in less favoured areas on the example of Lithuania and Poland

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  • Namiotko, Virginia
  • Góral, Justyna
  • Soliwoda, Michał

Abstract

The paper analyses economic characteristics of the farms, situated in the less favored areas of Lithuania and Poland. A comparative analysis of farms located in less-favored areas in Lithuania and Poland was conducted in terms of their income diversification and economic situation. In addition, a short description of the compensation payments, their types and rates, was provided in both countries. Using the panel models and correlation analyzes, we identified the most important determinants of agricultural income. The gross agricultural income per hectare of UR was estimated as variable. It was hypothesized that the location of farms in LFA areas determined the income of their owners in a statistically significant way. The impact of compensatory payments on the economic situation of the surveyed companies in Lithuania and Poland was also shown.

Suggested Citation

  • Namiotko, Virginia & Góral, Justyna & Soliwoda, Michał, 2017. "The economic situation of farms located in less favoured areas on the example of Lithuania and Poland," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 3(4), December.
    • Handle: RePEc:ags:areint:267891
    DOI: 10.22004/ag.econ.267891
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    References listed on IDEAS

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    1. David A. Hennessy, 1998. "The Production Effects of Agricultural Income Support Policies under Uncertainty," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(1), pages 46-57.
    2. James Giesecke & Mark Horridge & Katarzyna Zawalinska, 2010. "The regional economic consequences of Less Favoured Area support: a spatial general equilibrium analysis of the Polish LFA program," Centre of Policy Studies/IMPACT Centre Working Papers g-211, Victoria University, Centre of Policy Studies/IMPACT Centre.
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    Cited by:

    1. Elisabeta ROŞU, 2019. "Less Favoured Areas Support Scheme," Agricultural Economics and Rural Development, Institute of Agricultural Economics, vol. 16(2), pages 199-212.

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