The economic viability of the farmer's farms: case of the new EU countries

The farms' economic viability is a significant factor for reforming the Common agricultural policy of the EU, since the EU names the viable production of foods as a perspective the year 2020. That should increase the viability of the agriculture sector at the same ti encouraging the sustainability, and integration growth in the rural areas. The article evaluates alterations in farms' economical viability of die new EU countries (EU-10) according to methodology of J. Scott (2001). It was determined that, based on the limits of viability by J. (2001), the farms are viable. One specific indicator was distinguished (the production subsidies gross profit ratio), that shows how the farms remain viable only with the help of direct paymem The latter appears to exceed the set limit of viability by 5 times in Lithuania and twice in the EU- countries. The tendencies of alterations in the farms economic viability in 2014-2020 are directed the model of direct payments and the economic viability of the small and medium farms. It is supposed to increase the viability of the agricultural sector by guaranteeing the normal living rate the farmers, by encouraging the sustainability, development and the integration growth in the rural areasVytauto Didžiojo universitetasŽemės ūkio akademij