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Liburkina L. M.

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Transformation of the Farms’ Financial Resilience under the Influence of Green Deal Environmental Initiatives
Lukash S. M., Koniev R. Y.

Lukash, Svitlana M., and Koniev, Ruslan Yu. (2025) “Transformation of the Farms’ Financial Resilience under the Influence of Green Deal Environmental Initiatives.” Business Inform 11:135–143.
https://doi.org/10.32983/2222-4459-2025-11-135-143

Section: Mechanisms of Regulation of the Economy

Article is written in Ukrainian
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UDC 338.43:504.06(4)

Abstract:
The aim of this article is to examine the impact of the European Green Deal’s environmental initiatives on the financial resilience of farms. The study directs towards determining how new regulatory requirements and environmental standards transform agricultural production processes, generate new financial risks and opportunities, and influence the long-term economic security of farmers. The research applies an analysis of policy documents, EU regulatory frameworks, analytical reports, scientific publications, and sectoral economic assessments. A conceptual model is developed to illustrate the transmission mechanisms through which environmental initiatives affect key indicators of farms’ financial resilience - via innovation, changes in costs, productivity dynamics, and market competitiveness. The findings reveal that the implementation of environmental requirements creates both short-term financial risks for farmers (increased investment costs, potential yield reductions, additional administrative reporting) and significant long-term benefits. In particular, green technologies such as precision farming and organic production contribute to cost reductions, higher efficiency, access to premium markets, and expanded financial opportunities. The study shows that small farms face higher adaptation barriers, whereas larger farms possess larger capacity for technological modernization. Limitations and future research directions include the absence of micro-level analysis of farms’ financial and accounting statements, which highlights the need for further empirical investigations, econometric modeling, and cross-country comparisons across the EU Member States. The results can be used in designing national and local support programs for farmers, improving financial mechanisms, and developing modernization strategies for the agricultural sector. Strengthening the financial resilience of farms contributes to food security, sustainable rural development, and the preservation of natural resources. The value of this article lies in its comprehensive and structured approach to assessing how the Green Deal transforms farms’ financial resilience by integrating environmental, economic, and managerial dimensions into a unified analytical framework.

Keywords: transformation, Green Deal, farms’ financial resilience, environmental initiatives, innovation, investment, adaptability, sustainable rural development.

Fig.: 1. Tabl.: 1. Bibl.: 20.

Lukash Svitlana M. – Candidate of Sciences (Economics), Associate Professor, Associate Professor, Department of Public Management and Administration, Sumy National Agrarian University (160 H. Kondratieva Str., Sumy, 40021, Ukraine)
Email: [email protected]
Koniev Ruslan Yu. – Assistant, Department of Public Management and Administration, Sumy National Agrarian University (160 H. Kondratieva Str., Sumy, 40021, Ukraine)
Email: [email protected]

List of references in article

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