SUSTAINABLE DEVELOPMENT OF AGRICULTURAL PRODUCTION IN BALTIC STATES

Agriculture in EU member states is supported and protected under the Common Agricultural Policy (CAP). One of the more important objectives of this policy is to ensure sustainable development of rural areas by providing the appropriate quality of life for their populations and fully utilizing factors of production in agriculture. A particular role is attributed to agrienvironmental programs including organic production. Organic farms play an important role in local development by providing high quality products and environmental protection. The common agricultural policy is oriented towards supporting the development of sustainable production regardless of the farming method. This is in line with the principles of sustainable development. This is particularly significant in the case of new EU member states, in which there is high underdevelopment. The aim of the work is to assess the activities supporting the sustainable development of agricultural production in Estonia, Lithuania, Latvia and Poland in 2013-2015. Selected elements of financial analysis were applied. Research indicates that the idea of sustainable development is implemented at the level of farms. In all countries, farms benefited from subsidies for farming under unfavorable conditions (LFA) and agrienvironmental programs. Public funds have contributed to the improvement of the economic situation of farms.