Lithuania, Markets and Companies, Technology

Machinery and techniques in Lithuania are behind first-world standards because of poor agricultural development under the Soviet Union.

In 2004, the European Union began to provide funding for farming equipment upgrades to help farmers to get more out of their land.

Ausra Bubsyte is from a potato farming family near Ariogala, which has taken advantage of the EU money by buying a new tractor with peripherals.

"You can buy all the machinery, all that makes farming easier. And you do not have to spend so much time working physically," she said.

While some benefit, others are left in the mire. Larger farms receive a proportionally bigger amount of funding, leaving smaller producers behind on big investments.

"In the small farms they will have to close down after 2013 because they have old machinery and not enough money to help farmers. They cannot compete," said Viktoras Pranckietis, a dean of agronomy at the Lithuanian University of Agriculture.

This is something neither the Ministry of Agriculture nor the payment agency would be drawn on to comment. Laima Jekstiene, a head of the Project Administration Unit at the agency, told The Baltic Times: "If they present all applications and do not withhold documents, then they will get money".

Smaller farms are important for the economy and for production, Pranckietis said.

"We have to keep a few small farms open because there are some things that they can do that a big farm can’t. They need to be protected. These farmers will need to get out of agriculture or make something special. They could also grow wood for heating, grow flowers or build green houses if they are close to a city. We see our farms having a rich future. We need smart people in farming and they need to think for themselves instead of looking to the government. They need to look after their own farm," Pranckietis noted.

Lithuania has always had a strong agricultural culture and takes great pride in its produce, especially dairy products. Potatoes, wheat and barley are the biggest crops for commercial production in Lithuania.