Management Theory and Studies for Rural Business and Infrastructure Development, Volume 22

Integrated assessment of productive potential in Lithuanian family farms

Irena Krisčiukaitiene, Antanina Tamošaitienė, Selemutė Andrikienė


After entering to European Union (EU) 2004–2008 Lithuania improved farm selfsufficiency
of fixed assets and working capital. This ensured the farm economy and labor productivity
growth; however, return on assets and on investment has declined. To address this, we
aim - to assess the country economy according to the type of farming and production potential
effects of factors of production volumes change.
The paper examines the productive potential of family farms and the current status of the
rational combination of factors influence the production scale. Work done on the analysis of scientific
literature on mathematical statistics methods farms use to assess production potential.
Farm production potential and its use of integrated assessment, based on the estimated productive
functions for each group of farms according to farm size, allows the individual to assess the
impact of agricultural production value, per hectare of production volumes to the quality of land,
fixed assets, working capital assets and labor force and change.
Analysis and estimation of survey in country farms according to farm size of the available
production capacity and production volume comparison with the calculated parameters
showed that a considerable part of the farm lacks sufficient emphasis on the productive potential:
approximately 40 per cent cereals and oilseed rape, 50 per cent crop and dairy farming and 62
percent mixed farm have increased agricultural production fully using the available production
capacity. Estimated production functions for groups of farms according to type of farming can be
used for agricultural production capacity utilization rate and the individual performance factors
for evaluation. However, intensifying the production of variable factors of production value, the
relationship between them and hence their influence on production results are unstable. Therefore,
on purpose objectively to evaluate the achievements of the farm production improvement
and better use of production capacity in respect of every 2–3 years is appropriate to recalculate
the regression equation.
The study was conducted on the basis of, 2004–2008 Lithuanian Farm Accountancy Data
Network of statistical data through traditional (absolute, relative and medium-size comparison,
the index), mathematical statistics (correlation polynomial regression analysis), heuristic (professional
experience, intuition) methods.

Keyword(s): farmer‘s farm, production potential, land, long term fixed assets, working capital assets, labour force, the production function

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Management Theory and Studies for Rural Business and Infrastructure Development eISSN 2345-0355

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