About Governance and Evaluation of Sustainability of Farming Enterprise
Abstract. The issue of governance and evaluation of sustainability of farming enterprise like individual and family farms, agro-companies, agro-cooperatives, etc. is among the most discussed among researchers, farmers, investors, politicians, interests groups and public at large. Despite the significant development of the theory and practice in that new area still there is no common understanding on “what is (how to define) sustainability of farming enterprises?”, „what is the difference and relations between farm and agrarian sustainability?“, “which are the critical factors of sustainability of farming enterprises?”, “which are the governing mechanisms and forms for farms sustainability?”, “how to select the most-efficient forms for governing of farms sustainability?”, and “how to evaluate the sustainability level of farming enterprises” in a dynamic world, where hardly there is anything actually “sustainable. This paper tries to give answer to all these questions. First, evolution of the “concept” of sustainability of farming enterprises is initially analyzed and discussed. On that base is suggested adequate definition of farming enterprise’ sustainability as ability of a particular farm to maintain its governance, economic, social and ecological functions in a long term. After that principle mechanisms and modes of governance of sustainability of farming enterprise are specified, including institutional environment, market, private, collective, public and hybrid modes. Following applicable for the contemporary conditions of the development of Bulgarian agriculture framework for assessing the farm sustainability level is suggested. The later includes a system of appropriate principles, criteria, indicators, and reference values, which characterize the governance, economic, ecological and social aspects of farms sustainability as well as approach for their integration and interpretation. Finally, a framework for analyzing and assessing the efficiency of the individual components and the entire system of governance for farm enterprise’ sustainability is suggested. Ultimate objective of this study is to discuss and experiment efficiency of suggested framework, and after improving it to suggest it for a wider use in farm and agri-business management, and improvement of policies and modes of public intervention in agrarian sector.
Keywords. Farming enterprise, Sustainability, Governance, Ecological aspects, Market, Private and public modes of governance.
JEL Class: Q12, Q18, Q56, Q57.
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