The analysis of structure of agricultural sector shows a poor viability of small-scale farms in new EU member states despite support of the Common Agricultural Policy. Considering this problem, the aim of the article is to identify indicators that can be used to show changes in the viability of small farms in order to bring policy makers more attention to this very important group of farms in the context of the agricultural economy in Latvia and Lithuania. For this purpose, 4 economic indicators were selected, analyzed and their impact to the change in the level of viability of small farms during 2007-2016 was assessed. The research based on the data of Farm Accountancy Data Network and Farm Structure Survey, using statistical data comparison, systematic indicator selection and mathematical induction methods. The results shows that despite growing of the rate of subsidies on investment and improving income level in small farms over the observed period , the viability of small farms remains heterogeneous and insufficient to contribute in constructing more resilient and sustainable agricultural sector both in Lithuania and in Latvia. Thus, in the upcoming Rural Development Programming period, the priority should be given to small-scale farms since they play a significant role not only in development of viability of agriculture in general but also are important to agricultural sustainability.

Sustainable agriculture is the basis for long-term economic growth ensuring employment for the rural population. The aim of this research is to assess the dynamics in agricultural output, investments, direct payments and energy use in Estonia, Latvia and Lithuania under the Common Agricultural Policy (CAP) during 2008-2017. The method of research is the evaluation of production factors generated by agriculture and related activities carried out by the model of the EAA system. The performance of the agricultural holdings is measured using economic indicators: output of the agricultural 'industry', gross fixed capital formation (GFCF), direct payments, return on capital, total labour force input, average farm income. We discuss the trends in absolute and relative indicators relates to different aspects of the sustainable agricultural development to identify the key priorities of the CAP in the Baltic States which are new European Union Member States. The results indicate that in Estonia, Latvia and Lithuania EU support has affected investments in capital. The amount of GFCF over ten years annually grew an average by 0.1% in Estonia, by 8% in Latvia and by 17% in Lithuania which has led to increase productivity on farms, positively influenced growth on output agriculture and income as well. During the period 2008-2017 marked growth in the agricultural output levels and direct payments on average annually by more than 4% and 5-6%, respectively. These induced higher capital investments which require reasonable revision of the CAP measures in order to avoid overinvestment and address changes in the global agricultural markets. JEL classification:Q10, E22, E24, H71

Organic farming is experiencing rather rapid development in Europe, including in Latvia. This could be rated from different aspects. The purpose of this article is to assess the economic indicators of the development of organic farming, linking them to conclusions stated in various studies in Latvia and other countries on the diverse economic, social and environmental impact of this type of farming, as well as potential problems. So, theoretical and empirical approaches are combined in this article. The different problems we can state as outcome of the research. The farms concentrate in areas with less favourable conditions for conventional farming. Also, large continuous areas under organic farming often leads to low production value per hectare and do not reach social goals.

The study was conducted with a purpose to find out a present role of the LEADER approach in development of the Latvian rural areas. The article consists of analysis of the LEADER approach in Latvia and other European countries, historical development and previously carried out evaluations of the LEADER results, the quantitative results for 2014-2020 period of the LEADER approach in Latvia. The Local Development Strategies (LDS) were analysed. Although the major needs of local communities identified by LAGs are linked to labour possibilities, infrastructure, knowledge and information, more important contribution of the LEADER projects was made in infrastructure development and not in strengthening of economic development. Nevertheless, the LEADER approach itself shows good results in facilitation of the local activities and thus looks perspective in future. It would be useful to use the multi-fund approach for the LAG support, which would facilitate development of the strategies according to local (community) needs. The LEADER place in the local development method is challenging for the next period.

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