Framework for assessing the farm relative sustainability: a Lithuanian case study

Vlada Vitunskiene and Vida Dabkiene
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Vlada Vitunskiene: Institute of Economics, Accounting and Finance, Aleksandras Stulginskis University, Kaunas, Lithuania
Vida Dabkiene: Institute of Economics, Accounting and Finance, Aleksandras Stulginskis University, Kaunas, Lithuania

Agricultural Economics, 2016, vol. 62, issue 3, 134-148

Abstract: The aim of the study was to develop an analytical tool to assess the relative sustainability of family farms using the FADN data. This tool was based on the set of 23 indicators that covered three main components of sustainability (economic, environmental and social). The min-max approach was employed to normalise the selected indicators expressed in variety dimensions for their need to be put on a common basis. The factor analysis was used to estimate weights for the selected indicators to construct sub-indices and then the sub-indices were aggregated into the farm relative sustainability index (FRSI). The FRSI and sub-indices ranged from 0 to 1 (scaled into three intervals), assuming that the closer to 1 were the values of the index and the sub-indices the higher was the relative sustainability of the farm. The analytical tool has been applied to the Lithuanian FADN database for 2003 and 2012. The research revealed that the FRSI in 2003 and 2012 fell within the medium sustainability interval in all analysed farm size classes. The best sustainability situation in the year 2003 was determined on the large-sized farms, while the best sustainability situation in the year 2012 was established on the mid-sized farms.

Keywords: farm relative sustainability; family farm; sustainability indicators; FADN data (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:caa:jnlage:v:62:y:2016:i:3:id:125-2015-agricecon

DOI: 10.17221/125/2015-AGRICECON

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