Why Are Companies Disappearing in Transitional Agriculture? Evidence from Lithuania

In most transition economies, agricultural reforms have led to the emergence of family farms and household food production and to the decline of corporate farms. This study explores the extent of that trend for the case of Lithuania based on secondary information and primary survey data. The structure of corporate farms and links to the economic environment are explored. Specific hypotheses on the reasons for the profitability crisis in corporate farms are developed and tested. The paper concludes with a critical discussion of current changes in farm structures in the transition economies.