Young farmers' support under the Common Agricultural Policy and sustainability of rural regions: Evidence from Lithuania.

• The effects of the young farmer payments scheme in Lithuania are analysed. • Larger farms engaged in livestock production tend to participate in the young farmer support schemes. • The young farmers are reluctant to receive advisory services on environmental protection. • Diversification of the farming activities should receive more attention in the support schemes for the young farmers. The present study examines the influence of young farmers' support system including both direct payments for young farmers and rural development measures initiatives under the Common Agricultural Policy (CAP) on the sustainability of rural regions. The intentions and decisions taken by young farmers in Lithuania are analysed within the rural sustainability concept. The empirical analysis relies on the questionnaire survey. In order to disentangle the possible effects of the CAP support on the farming sustainability (as it is perceived by the young farmers), we consider payments for farm establishment and expansion along with support for advisory services. The results show that young farmers' support system under the CAP has the strongest perceived effect on income support in Lithuania without significant differences across different groups of farmers. The effect on investments is significantly lower for crop farms if opposed to the other farming types. Still, the results also indicate that environmental awareness of Lithuanian farmers is rather low as the demand for such advisory services appeared to be relatively low. The relatively high demand for advisory services on the business plan preparation suggests low levels of business administration and marketing skills among the young farmers, which indicates the need for development of the social dimension. [ABSTRACT FROM AUTHOR]