Agriculture is one the most ancient sectors of the national economy
Agriculture is one the most ancient sectors of the national economy. It is the major user of land, provider of food and one of the major employers in rural areas as well as the main element in maintaining the quality and conservation of the environment. In Latvia’s agriculture, the role of two major sectors is becoming stronger with every year – cereal production and milk production.
In the last 20 years, the sector of agriculture was affected by sharp political changes: in the 90-s of the last century, Latvia’s land management structure changed fundamentally, collapse of collective farm system started, resulting in emerging private farms. In the meanwhile, they dominated in the sector and a proportion of household plots increased.
Whereas in 2004, Latvia acceded to the European Union (EU), which now consists of 28 Member States. Upon accession, Latvia transposed its basic legislation and adjusted to EU principles. Therefore, the development of Latvia’s agriculture, to a large extent, is associated with the future of the EU Common Agricultural Policy (CAP). CAP objective is ensuring a stable income for farmers and at the same time facilitating production of high quality products in accordance with the market demands as well as encouraging farmers to seek new development opportunities by diversifying types of activities.
Agriculture in Latvia was and is now one of the most significant sectors that has been restructured, and great expectations were associated with its development after accession to the European Union. Latvia’s agriculture is developing further every year however, as compared with other EU Member States, its competitiveness is rather low and the average labor efficiency indicators also are among the lowest. One of the objectives of Latvia’s agriculture is to achieve that income, generated by agricultural production, would allow to support families for rural population. When seeing that it is possible to earn living with agricultural production, people would not leave countryside. Agriculture is business, requiring energetic and enterprising people equipped with the necessary knowledge, skills and ability to think ecologically and environmentally friendly.