Farmers' economic viability assessment in the context of taxation and support

The paper analyses the economic viability of farms and how much this indicator is influenced by main external factors - support and taxes. Assessment of economic viability of farms has suggested that in Lithuania, support is the main external factor of continued viability of small- and mid-sized farms, while the unequal distribution of the tax burden reduces economic viability of farms and they become non-viable. The problem put forward in the research is what taxation system would create conditions for the farmers’ farms to remain viable, irrespective of the support. Alternatives on improvement of farmer taxation system are proposed. The paper presents the practice of farmer taxation in other countries and analysis of scientific literature on the subject, on the basis of which the model for improvement of farmer’s profit taxation, as well as social and healthcare insurance contribution is put forward. This model would ensure more equal distribution of tax burden between the farms of different sizes, which would allow the farms to remain viable irrespective of the scopes of the received supportVytauto Didžiojo universitetasŽemės ūkio akademij