Management Theory and Studies for Rural Business and Infrastructure Development, Volume 15

Incentives and disturbances of activity diversification implementation in farmers` farms

Jurgita Zaleckienė

Abstract

The relevance of research is conditioned by the fact that activity diversification of farmers`
farms is approached as one of the main directions of rural economy strengthening. There aren’t carried
out researches in Lithuania about diversification appliance which would be considered according
particularity of farmers` activity and conditions. The research allows identifying the main factors
of inside and outside environment of farmers` farms which determine or establish inadequate
incentives for activity diversification. The success of diversification largely depends on abilities,
qualification and available resources of implementers. Although there aren’t enough individual incentives
of new activity development, the favorable conditions of outside business environment
should prevail alongside of inside resources and abilities. The results of research show that the support
doesn’t get implementation instrument of systematic and effective diversification of farmers`
farms activity. There aren’t developed mechanisms for strengths exploitation of farmers` farms and
encouragement of regional specialization. Developed network of training and advisory institutions
in Lithuania only partly create incentives for activity diversification. On the one part due to the absence
of efficient knowledge and information spread mechanisms on the other part due to the lack of
entrepreneurship abilities, farmers are disable to evaluate and use knowledge. Cooperation is limited
by the scattering of diversified farms in country territory but crucial impact on this has almost absolute
inappreciation of this cooperation trend and poor managerial competence of farmers.

Keyword(s): disturbances, diversification, farmer’s farm, incentives


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

This journal is published under the terms of the Creative Commons Attribution-Noncommercial 3.0 Unported License. Responsible editor: Dr Audrius Gargasas.