Risk and financial management of rural businesses : problems and capabilities

After Lithuania's entrance to EU, the new possibilities for agricultural and food sector financial support were implemented. The positive results were acquired in this sector development. The new challenges were specified for Lithuanian agrarian sector as the EU general market requirements: intensive competition in internal market, high quality standards, restrictions of production and trade. Lithuanian agricultural and food sector is the most risky comparing with other economical sectors. The management of natural disasters and other risk factors becomes less flexible in order to evaluate the consequences of it. The great financial resources are bounded for the differentiation of competitive farms and agricultural enterprises, economical activity in rural areas. Though, the Lithuanian membership in EU directly impacted the revenue increase in agriculture, still the low profitability of agricultural and rural businesses, disproportion between the high expenses of resources and low benefit of final production, limits the possibilities for the farmers to appropriate private financial resources for production modernization. Otherwise, the seasonally coherent factors impact the lack of assets in different periods. Consequently, the financial resources could be determined as the main problem in current situation for Lithuanian farmers. As a result, the responsible crediting and risk management system has to be created for the development guaranteed support system for agricultural development in Lithuania.Considering the natural disasters, the agricultural system of Lithuania ought to be more flexible and economically independent. The review of presented arguments of specific problems is the rarely analyzed in scientific researches. The purpose of research - to reveal the system of natural risk management and the provision conditions of financial resources to forecast their implementation preconditions. There are used such methods of research: analysis and synthesis, statistical analysis, comparison, logical abstract, interviewing of agricultural enterprises, scientific discussion, monograph reporting