ABSTRACT
This chapter discusses the importance of agriculture to the Lithuanian economy and its development towards a free market economy. It focuses upon resources of agricultural production, structural changes, productivity and preparations for EU membership. Lithuania's transition from a centrally planned economy to a market economy has required radical political decisions that have not always been economically sound or socially acceptable. Over the past decade agricultural policies in Lithuania have shown a marked lack of consistency and continuity. Agriculture has a crucial role to play in building up Lithuania's national wealth: agriculture and the food sector are among the main economic sectors of the national economy. In Lithuania gross agricultural production value per employee is among the lowest in Europe. The main factors, which determine the results of agricultural business are land, labour and capital. The majority of people employed in agriculture are involved in the production of milk, grain and vegetables.
