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Amendment Of The Cabinet Of Ministers Of 30 November 2004, The Regulation No 1002 "procedures Implement Programming Document" Latvian Rural Development Plan For The Rural Development Programme 2004-2006 ""

Original Language Title: Grozījums Ministru kabineta 2004.gada 30.novembra noteikumos Nr.1002 "Kārtība, kādā ieviešams programmdokuments "Latvijas Lauku attīstības plāns Lauku attīstības programmas īstenošanai 2004.-2006.gadam""

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Amendment of the Cabinet of Ministers of 30 November 2004, the Regulation No 1002 "procedures implement programming document" Latvian rural development plan for the rural development programme 2004-2006 "" specified 02.02.2007., Latvian Journal No. 20 (3596) Cabinet of Ministers Regulations No. 903 Riga 2006 (31 October. No 56 59) amendment of the Cabinet of Ministers of 30 November 2004, the Regulation No 1002 "procedures implement programming document" Latvian rural development plan for the rural development programme 2004-2006 "Issued under the agricultural and rural development Act article 5 the seventh subparagraph 1. make Cabinet 30 November 2004 the Regulation No 1002" procedures implement programming document "Latvian rural development plan for the rural development programme 2004-2006" (Latvian journal 193., 2004, nr.; 2005, 135, 169. no; in 2006, 48, 111, 160. No.) amendment and make programming document "Latvian rural development plan for the rural development programme 2004-2006" new version (annex).
2. The provisions referred to in paragraph 1 of the new version of the programming document is not applicable to the aid applicants who have submitted applications before the entry into force of these regulations. Prime Minister a. Halloween Minister of Agriculture m. Roze Ministry of Agriculture presented the attachment Cabinet of 31 October 2006, regulations no 903 table of contents 1 Introduction 2. Territory and territorial divisions 2.1. Area 2.2. Landscape 2.3. Climate 2.4. Territorial divisions 2.5. compatibility with the nuts levels, 3. the rural development plan area and target no 1 area 3.1. target no. 1 area 3.2. Rural development plan target area planning according to the 4 geographical level 5. characteristics of the current situation in 5.1. Target area General characteristics 5.1.1. human resources and prosperity of rural economy 5.1.2 5.1.3 5.1.4 rural infrastructure, environmental quality and biodiversity 5.2. national rural development policy strategies 5.2.1 5.2.2. areas of covered financial support 5.2.3. Specific action for rural development policy for the development of the 5.3 5.4. summary the SWOT in the previous programming period, the results and implications 6. Description of the strategy, its objectives, rural development priorities and the geographical coverage of the Latvian rural development plan 6.1. Eu and national policy 6.2. Strategy priorities and objectives, the Latvian rural development plan 6.2.1. Latvian rural development plan priorities, objectives and principles for the implementation of the measures and their implementation 6.2.2 objectives 6.2.3. Integrated approach compliance 6.2.4. the principle of gender equality in the implementation of the strategy the strategy's coherence with 6.2.5. between the tautiskaj, EU and national requirements and regulations 6.3 other measures and effectiveness 6.3.1. rural development impact on national rural development policy objectives and action strategies 6.3.2 impact on rural development measures 6.4. Specific measures of geographical coverage 6.5. The initiation and implementation of time 7. Implementing measures impacts on economy, environment, social sphere 7.1. total amount of funding for rural development in Latvia 7.2. Plan of implementation of the measures expected to impact Funding allocation table 8 9. Rural development plan measures 9.1. Event: agri-environment Sub-measures: 9.1.1 organic development Sub-measure: 9.1.2. Organic veidīb tend to be keeping many 9.1.3. Sub: installation of buffer strips 9.1.4. Sub: farm animal genetic resources conservation 9.1.5. the Sub-measure Erosion control measure 9.2: less favoured areas and areas with environmental restrictions for the purpose of the event: 9.3 Premature Retirement 9.4. Measure: aid for producer groups 9.5. Measures: support for semi-subsistence farms restructuring 9.6. Measure: standards achievement 9.7. technical assistance 6.1. Rural development measures 10. Single programming document, the need for technical assistance, training, research and demonstration projects for the implementation of the plan 10.1 10.2 10.3 research training. Demonstration projects 10.4. need technical assistance 11. Authorities 11.1 11.2. Ministry of agriculture rural support service Plan implementation 12. , including monitoring, evaluation and public information 12.1. coordination of the implementation monitoring Committee 12.3 12.2. Administration of the payment of the aid measures in 12.3.1. Administration overall principles 12.3.2. Each event administration specifics 12.4 12.4.1. Checks and sanctions and penalties to control general principles of good management practice, 12.4.2. Control 12.4.3. control of each measure and the nature of sanctions 12.5. The implementation of the plan, monitoring and evaluation 12.6. Public information 13. involvement of the social partners the results 14. balance or coherence between the different support measures 15. Coherence and compliance with EU support 15.1. 15.2. With national instruments support instrument in annex 1. Situation analysis indicators annex 2. Good housekeeping practice conditions annex 3. Biologically valuable grasslands in annex 4. National law, ratified conventions, strategic documents and EU legislation in annex 5. The rural development plan strategy evaluation annex 6. ZM operational strategies impact assessment PAGE 7 Annex in implementation of the measures. PAGE goal, indicators and results to be achieved during the implementation of the PAGE Annex 8. 9. in the socio-economic partners. The origin of the Latvian local varieties of important agricultural animal characteristics and advantages of annex 10. Documents LADA annex 11. Sanctions and penalties in the field of development plan annex 12. Calculation of the aid measure: less favoured areas and areas with environmental restrictions for the purpose of annex 13. Calculation of the aid measure: agri-environment annex 14. Support payments calculated measures: Standard 15. attainment of the annex. A list of sites under Regulation 1257/1999, article 19 is set as less favoured areas 16. attachment. The proposed Natura 2000 sites 17. attachment. The newly introduced EU standards in accordance with the measures to be supported: Standard 18. the achievement of the annex. Animal units under the Group of animals grazing in extensive activities in animal units under the Group of animals measure "less favoured areas and areas with environmental restrictions for the purpose of aizsardzīv" cattle density conditions for the execution of annex 19. The national pension system introduction on the basis that the institution responsible for the implementation of rural development measures in accordance with the Council of 17 May 1999, Regulation (EC) No 1257/1999 of the European agricultural guidance and guarantee fund (EAGGF) support for rural development and amending and repealing certain regulations (hereinafter referred to as the Council Regulation No 1257/1999) and of the Commission of 29 April 2004, Regulation (EC) No 817/2004 laying down detailed rules for the application of Council Regulation (EC) No 1257/1999 of the European agricultural guidance and guarantee fund (EAGGF) support for rural Development (hereinafter referred to as Commission Regulation 817/2004), has established the Ministry of Agriculture of LATVIA, the Ministry has developed and the European Commission (hereinafter the Commission) presented by Latvia's rural development plan for the implementation of rural development programmes (hereinafter referred to as the plan) co-financing of aid programming for the period 2004 to 2006. Development, implementation of the plan and its implementation mechanisms are consistent with the Commission's statutory requirements defined. The goal of the plan is subject to the European Union (EU) and national law requirements, to provide the assisted actions targeted and reasonable conditions of Latvia's national and EU co-financed by the use of the financial support that the Latvian rural development 2004-2006 time period. The implementation of the plan, the goal is to raise farm income level, to develop and increase the effectiveness of production holdings, subject to the environmental requirements and the various fields of economic activity and income and to keep the field population. The structure of the plan. The descriptive parts of the plan (1-5) describes the purpose of the implementation of the plan area, defined the main challenges and describes the national policy to support rural development, shown on a SWOT (strengths, weaknesses, opportunities, threats) analysis of the results. Strategic plan (6-8) are defined in the national strategic objectives, rural development plan, development priorities, the support measures and the results achieved in the implementation of the plan. Parts of the plan of action (9-15) includes a description of the measures to be implemented in all, the Administration and monitoring of implementation, the bodies involved in the implementation of the plan of cooperation and coherence of the plan by the EU and national policies and other support measures. The annexes to the plan includes additional information which is very important in the process of implementing a plan to ensure legibility. The plan preparation process. The plan has been developed by the Ministry of Agriculture of LATVIA in close cooperation with the Commission, the competent authorities of Latvia, in particular, the Latvian State agrarian economic Institute, and different levels of economic and social partners (see annex 8). Based on my research, the results of seminars and discussions, the drafting of the plan created the expert group prepared a general assessment of the situation on Latvian rural socio-economic development, highlighting the main problems and the national rural development policy tasks undertaken in the primary needs. In close cooperation with all partners, and engaging in discussions of Latvian society, the Group of experts defined the priorities and the plan based on public interest, chose plan priority measures to be implemented. at the beginning of 2002, the Ministry of agriculture conducted a survey (questioning the rural population, entrepreneurs, local authorities and public bodies) for the European agricultural guidance and guarantee fund (EAGGF) and the EU co-financed the additional rural development measures, which should be a priority to be included in the rural development plan and the single programming document for 2004-2006 period. Aggregated results indicated that the measures to be included in the plan after the required sort in this order: agri-environment, less favoured areas and areas with environmental restrictions; Aid for producer groups; Early retirement; Afforestation of agricultural land and supporting semi-subsistence farm restructuring. Turn on the current implementation of the single programming document shall include measures the company chose the following: investments in agricultural enterprises; Transformation of rural areas and the promotion of development; Local action for development (LEADER + type measures (LEADER in translation from French (Liason entre actions pour le Développemen the Rural Economies the de L ') means "targeted and coordinated action for the development of the rural economy)); Aid to young farmers; Training; Agricultural product processing and marketing improvement, forestry development. Plan mechanism for the implementation of the measures of the Group of experts, subject to the rural community of Latvia's interests and through the national rural development aid policy (t.sk. SAPARD (Special Assistance Programme for Agricultural and Rural development – a special assistance programme for agriculture and rural development) implementation) experience gained and EU and national legislation, developed a plan for the implementation of the measures and monitoring mechanisms. The plan of implementation of the measures for the development of the mechanism were established 10 working groups that were involved in specific issues, experts, policy makers and decision makers at national, regional and local level, measures for administering and control institution representatives, representatives of non-governmental organizations and the public. Each working group worked for one plan measures (agri-environment sub-measures in the front), the horizontal working group worked on the entire process of managing improvement measures. Measure development process, each working group met six times. The development process of the plan of management and evaluation plan was developed by the National Steering Committee, which said about it in the plan implementation mechanisms should be coordinated with other national and regional mechanisms to be implemented, it will complement and solve problems relevant for all levels of scale. 2. the national territory and territorial divisions 2.1. Area of the whole territory of Latvia occupied by the 64589km2. Most of the way Woods – 44.5%, as well as agricultural land-38,3% which, taken together, would also form the Latvian countryside. After the State land service (SLS) data of the Earth by its usage in the last five years have not significantly changed. table 1. Land by land use type 1 January 2003 the land uses in the thousand ha% agricultural land 2474.4 38.3 Woods 2877.2 44.5 Scrubs 116.6 1.8 swamps 257.9 4.0 227.9 3.5 yards beneath the waters of 90.7 1.4 roads other land 282.4 4.5 131.8 2.0 together in Latvia 6458.9 100.0 source: SLS Earth balance in 2003, state the length of the North-South direction is 210 km width Western-eastern direction – 450 km. Latvia is located in Northern Europe, the South-East coast of the Baltic Sea. The total land border length is 1368km, but the sea border length is 494km. Latvia shares land borders with Estonia to the North, on the South by Lithuania and Belarus, and in the East – with Russia. 2.2. Landscape in Latvia average height is 87m above sea level. The highest point in Latvia-Gaiziņkalns 311, is 6 m above sea level, it is located in Vidzeme Highlands in Madona. Although the Earth's terrain is mostly flat in Latvia, almost half are located in the hilly territory of Latvia. Up to 100 m height above sea level is located 200 m from 100 up to 57%, 40.5% and higher than the 200-m-2.5% of the national territory. Latvia has 140 lakes larger than 1 km ² and 12400 total length of the River to 38000km. 777 rivers are longer than 10 km (the longest is the Daugava and Gauja, venta), and the largest of the Lakes is Lake lubāna (81km2). 2.3. The climate in Latvia is located in a region with intense wet air mass movement from the Atlantic Ocean to the continent. The national annual average 120-140 crosses the cyclone, 170-200 days is precipitation. The average rainfall per year is approximately 680mm and the average evaporation is 450 mm, thus precipitation exceeds evaporation of 250 mm in the summary, but especially lietaino years – even about 500 mm, causing runoff. Water balance in crop year is very different. Intense runoff observed in March, April, October, November, but moisture deficits-in June, July and august. The annual average air temperature is + 6 ° C in Riga, the average air temperature in January is-4.7 ° C and July-+ 16.9 ° c. 2.4. administrative territorial breakdown of current Latvian administrative territorial divisions (see map 1) in 1991, the law on the administrative territory of the Republic of Latvia and the establishment of settlements status ". The Republic of Latvia shall consist of Vidzeme, Latgale, Kurzeme and Zemgale; It shall be divided into the following administrative areas: in cities and districts of the Republic, which are in turn divided into districts in cities, counties, peine. District towns can be rural areas. Riga is the capital of the Republic of Latvia. 1. card. Latvian administrative territorial divisions at the beginning of the year 2000, local and district (regional) Administration administrative areas take 2 types of local authorities:-local government (City Council, District Councils, Parish Councils, which are elected representative of the citizens); -district municipality (Council of local authorities that are delegated to the representative) and the town halls of the Republic (which is elected local citizens). Both types of municipal works independently of their specific competence likumā1. By 1998, the administrative and territorial reform law local authorities began the merger process of the final act for 2004 November 30 and is directed to over 102 County izveidošanu2. Latvian administrative area number 1 January 2003 in the see table 2. table 2. Administrative area number 1 January 2003 regional authorities at local authorities On 26, 2003 District 7 Republican cities in 15 counties (which combines the territorial units as the District of the city, town or County in rural areas) in the city district 37 22 cities with rural areas areas of the parish to the 2005 461 5 102 local authorities local government-counties source: Central Statistical Bureau (CSB) administrative territorial units (the EUROPEAN TREATIES: LOOKING BACK) regional reform are realized progressively during the period up to 2005. Up to March 2005 is a transitional period for large scale regional authorities. During this time, being strengthened and developed 5 planning regions and districts saved. Regional Development Act (2002) stated that the regional development planning, coordination and collaboration of local authorities creates five planning regions: Kurzeme, Latgale, Riga, Vidzeme and Zemgale. The Cabinet of Ministers of 25 March 2003, regulations No 133 "rules for planning regional areas" are defined in the five regions of the territory planning. Territorial location see map 2. 2. the card. Latvian territorial breakdown of planning regions, 2003 2.5. compliance with the Latvian Government NUTS3 level has decided that the nuts and I nuts II level corresponds to the whole territory of Latvia, which is further divided into five NUTS III level. The area does not meet the five regions of the territory planning (see map 3). They are: Riga, Zemgale, Latgale, Vidzeme and Kurzeme region. table 3 statistical region nomenclature level in Latvia I, nuts level 1 national level 2 nuts II State level 3 NUTS III Region: Riga, Kurzeme, Latgale, Vidzeme, Zemgale 4. Nuts level IV district of the city + the 5th level nuts V parishes + discharge + district city source: www.csb.lv the NUTS classification description 3. card. The territorial divisions of Latvia Statistical regions, 2003 3. the rural development plan and target no 1 area 3.1. target no 1 area the EU and Latvian conversation "section in the regional policy and structural instruments" are agreed that to 2006 Latvia fit EU territorial units for statistics (nuts) II of the nomenclature of the level territory, corresponding to the EU structural funds ' objective 1 ' regions. "Objective 1" area defined so as to provide support for the development and promotion of structural changes in those regions, where the gross domestic product (GDP) per capita is below 75% of the EU average. Whereas Latvia meets this criterion, it is recognized as "objective 1" area (Latvia's single programming document). 3.2. the objectives of the rural development plan for the implementation of the plan, the territory of the target area is the whole territory of Latvia. Specific areas of implementation of each measure are set out in Chapter 9. After the territorial districts of the completion of the reform in 2005, the newly approved Plan is revised and the target area status. As all rural areas of Latvia is the No. 1 Target of the rural territory, then it is subject to all of the No 1 Target support conditions. 4. planning the appropriate geographical level specified in the plan strategy is common to the entire area and in addition to binding regional subdocument is not. In accordance with Council Regulation No 1257/1999 (4., 5., 6., chapter), and Commission Regulation No 817/2004 and the accession treaty in addition to the measures laid down in the conditions defined for each measure may have its own target area for implementing the common objectives for the plan. 5. Description of the current situation of the target area 5.1 General Chapter provides an insight into the most important sector of the rural economy development, the demographic and social situation and the quality of the environment. Note: the target of the plan, the analysis of the territory "rural" includes administrative territories: counties, cities with rural areas, County. 5.1.1. the human resources and the well-being of the population in 2001 5.1.1.1. early in the year were 2 364 254 inhabitants, of which 32% 757 695 or lived in the country. The average population density in the country was 36, 6iedz./km2, rural areas – 11.7 population./km2. table 4. The population of Latvia, 1935-2001.

Indicator unit 1935 1959 1989.2001.

Residents total thousand.
the population in 1906 2080 2667 2364 thousand.
the proportion of rural population 1197 980 778 758% 62.8 29.2 thousand Inhabitants in 32 cities.
residents of Riga 709 1100 1889 1606 thousand.
the proportion of the population of Riga 385 575 910 757% population density 32 20.2 27.6 34.1 national average population./km ² 29.5 32.2 41.3 36.6 average population density of natural population./km ² source: 18.5 15.5 15.5 11.7 CSP Latvia 2000 census results, 2002; 1935, 1959 and 1989 in the urban and rural population is given according to Administrative Division in a given year, comparing with other countries, Latvia is very sparsely populated There is a rural area with a population density of/km2.2iedz. in 1990 started structural changes in agriculture, low income from agricultural activities, not existing financial resources for investment, limited agricultural output outlets (especially local), lack of economic experience independent non-agricultural businesses, in the social and economic infrastructure deterioration are the reasons that the economically active population immigrated from the countryside to the cities, especially to the central part of the country – Riga and its region. As a result, the field has become very sparsely populated. Annex 1 shows the territorial differences in population density in each area. 33. Annex table 1 summarises the key indicators, which represent the demographic differences between cities and the countryside. 5.1.1.2. the demand for educated and highly skilled workforce in Latvia is growing. This factor significantly affected development. People with low skills and inadequate training are subject to the risk of unemployment and the social consequences. the 2000 census data show that in relatively rural areas are least population with a higher education, but most of the population aged 15-years-with primary education (LVA, 2002, by CSP 2000 census results). The current situation is described in detail in the chapter "employment on farms, farmers age and education". table 5. The proportion of the population by level of education from the age of 15,% level of education in rural areas in the country rural area minimum-maximum population aged 15 – 82.0 79 70 86 less than 0.3-2.5 3 4 classes of primary school education 13 6 1-16 5.9 elementary education 28 14-41 overall 26.5 secondary education 21 8-31 average 31.0 special education 20.2 14 5-23 higher education 7 1-14 source 13.9 : LVA, by CSP 2000 census results, in 2002, adult education and lifelong learning available to the rural population increase of farmers and other persons involved in agricultural skills and knowledge in accordance with the memorandum of lifelong learning in the EU, and will prepare forest holders and other persons involved in forestry forestry practices to promote forest economic, ecological and social functions. 5.1.1.3. employment the main economic activity is farming fields. In agriculture, hunting and forestry in rural skaits4 from 1997 to 1999 is dropped, and currently these sectors as a whole employed approximately 140 thousand inhabitants. in the 2001 Census of agriculture results show that in General in the fields of agricultural production, including self-catering, are involved in 271, 2tūks. 45.0% 5 or from all of the rural population. According to the labour force survey results in agriculture, hunting and forestry employed population during the period from 1996 to 2003 in Latvia has fallen on 3.2 percent (from 16.6% respectively to the total number of workers from 13.40%) (see. table 6). table 6. In agriculture, hunting and forestry workers population (aged 15 to 74 years) employed population, thousand.
% of all workers in 1996 2000 2001 2002 2003 1996 2000 2001 2002 2003 total 156.5 131.8 141.1 146.9 135.0 16.6 14.0 14.7 14.9 13.4 in agriculture, hunting in 112.3 104.4 14.4 12.0 12.3 136.3 112.5 118.2 11.4 10.4 forestry 21.6 30.6 3.0 2.1 2.1 2.4 3.5 20.1 19.4 22.9 source: CSP, labour force survey, 2003 in different rural areas of importance for the agricultural sector in employment and in the provision of income is different. The other major employer in both urban and rural areas is the forestry and kokap work, and its growing importance – as shown in table 6, in this sector the number of employed population from 1996 to 2003 increased from 2.1% and 3.0% of the employed population in the country. Very slow growing employment in other sectors because the economy in enabling industries have relatively limited alternatives. Rural residents lack financial capital, ideas and knowledge in business, to develop existing ones and to identify all possible sectors. According to the labour force survey results (see. 7. table), the average employed a number of women and men from the 2001-2003 has grown both in cities and the countryside. Cities have grown, the average population, the number of men and women, but fields of 1.7% (from% in 2001 to 136.6 134.9% in 2003) has decreased the average number of women employed. Fields experiencing growth of employed men aged 15 to 34 and from 45 to 54 years, but cities – all age groups, except the aged 35 to 44 years. The increase of women in the countryside has aged 15 to 24 and from 35 to 54 years ago, but the city, aged 15-24 and 45 to 74 years. This means that both the cities and the countryside women after 40 years of age when the child care reduce the more active part in the labour market, and this results in an increase in the number of women employed. The statistical results show that men are most active in the economically active rural population, and are thus prospective future areas of development. table 7. Employed population by gender and age (aged 15 to 74 years, on average, 000 population) City in the 2001 2003 cities fields together men Women.
Total men Women.
Total men Women.
Total men Women.

Total 663.4 325.9 337.5 296.6 160.0 136.6 704.3 349.0 355.3 302.5 167.7 134.9 age: 15-24 25-34167.6 67.8 37.2 30.6 30.5 19.3 11.2 76.5 43.3 33.2 34.2 22.6 11.6 35-44188.5 45-85.8 81.8 74.0 41.2 32.8 172.5 91.0 81.5 74.7 43.6 31.0 90.9 97.6 85.6 44.9 40.7 187.6 90.9 96.7 84.5 43.4 41.1 55-64 54159.7 69.7 90.0 59.3 29.7 29.7 165.8 74.8 91.0 67.8 35.2 32.6 69.9 36.4 33.2 35.1 19.2 15.9 84.4 39.7
65-74 10.3 6.0 4.4 12.2 5.8 6.4 17.4 9.2 8.2 8.0 4.0 4.0 44.7 33.4 18.9 14.5 source: CSP, labour force survey, 2002 and 2003 in accordance with the results of the LFS unemployment rate fields in early 2003 was 7.8%, lower than the national average – 10,6%. The actual unemployment rate is significantly higher in the fields, as is common in some hidden unemployment forms, such as unpaid work involved family members share in the fields, but the city of 11,2%-0.4%, part time workers, the proportion is 14.4% fields, but only 8.5% of the city-6. Latvia is experiencing rising unemployment, particularly among young people who do not have professional education or even basic education, as well as no work experience to compete in the job market, or lacking knowledge and capital to start your own business. The essential problem is the unemployment rates of the pre-retirement age (starting from 50 years) among the rural population. Most of these people want to work, however, due to insufficient qualifications, they are unable to compete in the labour market. In addition, the number of jobs in the countryside is limited and they are not ready or they do not have enough capital to start a business. Pre-retirement age people returning to the labour market make it difficult also psychological difficulties. Many people do not have enough self-confidence to offer themselves in the labour market or to gain new skills (Ministry of welfare, 2002).

5.1.1.4. Income and prosperity despite the fact that the economic indicators are constantly improving, public welfare level is still low. Personal income growth has been very uneven. Material welfare of polarization, as well as the number of poor people rises. In addition, the feminisation of poverty is. In accordance with the overall social inclusion memorandum in 2002, 16% of the population were exposed to the risk of poverty. Household budget survey data suggest that real income per household member in each year from 1996 to 2000 has decreased significantly with increasing difference between urban and rural incomes (see. Figure 1). Figure 1. Urban and rural household income in 2000 prices source: LVA by CSP, "household budget" for 1997-2000, Janson, Krastiņš. in 2000, the 20% poorest households accounted for 10% of total household income, average income per person in the household was 31 LVL (€ 53.17) and 27% of all people came from households with low income. In addition, 20% of more more prosperous households with only 18% of the population accounted for 40% of the total household income. Despite the fact that the average monthly salary of employees in the national economy in 2001 reached 159 LVL (see. 32. the table in annex 1.), fields workers it is about 30% lower. Looking at the region, the highest after tax income to the household in 2002 was in the Riga region – 102.43 LVL (58.44 LVL), the lowest – Latgale. More than half of all household income after tax deductions work salary (61%), one-fifth (21%) – 9.4% in pensions and only have the "net income" from agricultural production and private business. (CSP, the labour force survey in 2002). Ministry of welfare studies show that relatively large rural community living in poverty and growing household subsistence purposes is maintained in a natural farm. The essential difference between the national one population full subsistence minimum goods and services basket value, which is defined in the 87LVL country, and average household income per capita-52LVL field. Despite the fact that 57% of expatriates (see fields. 1. the annex table 33) is the working age population, only 28% of the rural population's main source of livelihood is economic activity, including the operation of semi-subsistence farm. (see. 8. table) table 8. The rural population of the following reported the main livelihood source, 2000.

The main livelihood source for country rural area rural area minimum-maximum economic activity – 34.7 29 9 43 38 24 13 retirement benefits and 24.5 – other financial assistance 7 0.5 – 5.4 29 other persons or bodies of 32 10:51 30.4 dependent other livelihood sources 5 12 0-30 source: LVA, by CSP 2000 census results, 2002. one of the concerns that are increasingly more apparent in Latvia , is poverty. To describe poverty and poverty, is used in poverty risk threshold which the European Community Statistical Bureau Eurostat use of international comparisons, and the at-risk-of-poverty rate. According to the Eurostat methodology on the poverty risk threshold considered to be 60% of the national median ekvivalentajiem7 income. Comparing national poverty indicators are used in the monetary poverty indicators, which in December 2001 and approved by the Council in Laeken. Source of information is the household budget survey data for the period from 1997 to 2002, with the exception of 2001, in the year the survey was terminated. table 9 shows the poverty line for a household composed of one person, and households, which is 2 adults and 2 children up to 14 years. table 9. At-risk-of-poverty threshold illustrative of vērtībās8 month, LVL, which is 1997 1998 1999 2000 2002 Households one person household, which has 43 47 49 50 59 2 adults and 2 children (aged 0 to 14 years) 89 100 103 106 124 source: household budget survey of the CSP, 2003 noted that the poverty threshold specified (1999) is one of the lowest in the 10 countries that in May 2004, the ES9 joined. Comparison of Latvia with 15 EU countries shows that the poverty risk threshold the EU Member States in 1999 was 3.3 times higher: household, which is one person, the poverty threshold for the 15 EU countries were purchasing power standards 7263 (PPS) relative currency values, while in Latvia it was only 2196 PO. Figure 2 shows changes in the poverty population in the proportion, if their income is below 60% of national median income of equivalency. During the period from 1997 to 2002, the poverty risk ranged within koeficients10 from 16 to 17%, while the 15 EU countries in 1999, this indicator was 15%. Essential that children under the age of 14 years are at higher risk of poverty, and the at-risk-of-poverty rate ranged from 17 to 21%. Figure 2. At-risk-of-poverty rate of Women Employed is much more risk of poverty than men. Thus, for example, in 2002 the poverty risk factor in relation to paid work women workers was 9% and men – 8%. Self-employed person is much more risk of poverty: at-risk-of-poverty rate for women was 23%, but men – 21%. According to the household budget survey data with the increase in the number of children in families also increases poverty risk factor. Thus, for example, the poverty rate for families with one child was 15%, families with children 2-16% and for families with 3 and more children – 26%. Assessing the situation across the country, in 2002, both men and women were exposed to the same risk of poverty. The highest poverty risk factor was the group from 0 to 15 years, namely the children and their parents were exposed to the greatest risk of poverty. Population aged over 65 years were relatively less exposed to the risk of poverty. In this group there is also a significant difference between the sexes – 13% of women and 6% of men were exposed to the risk of poverty (see. 3. picture). Figure 3. At-risk-of-poverty rate by age and sex, the lack of statistical data limits the opportunity described social exclusion as fields increasing negative phenomenon, based on a rural community stratification of different social groups and their growing psychological, social and economic problems. However, it is clear that poverty and unemployment are the major groups of social exclusion the main risks and the reduction is a key long-term objective of social policy in Latvia. The future social tension increases the further restructuring of the agricultural sector, which in practice related to the reduction in the number of workers in agriculture. Along with this increase even more the need for population education and rural economic diversification supports measures that reduce the income of the rural population's dependence on subsistence agriculture, promoting agricultural activities in the fields of development of enterprises and ensure agricultural workers from retiring to the reorientation of the other lines of business. 5.1.2 5.1.2.1. Rural economy agriculture during the period from 1996 to 1999, the share of agriculture in GDP decreased to 2.4% (1996 was 6.9%), and the last three years 2.8-3.0% stabilised level (see Figure 4). After the CSP data agricultural gross value added in 2001 compared with the previous year at current prices increased by 16.3%. The volume of gross value added increased by 7.0%, while the price index-8,7%. [1,163 = 1,070-1,087]. Agriculture into final production gross value added in 2001 increased by 20.8% (base prices) 11, mainly increased 7.2% of prices for production and decreasing production resource prices by 0.3%, while the overall increase in the volume of production in plant production and animal husbandry was only 4.1%. Agricultural final production structure in 2001 (base prices) animal husbandry accounted for 52% (including milk – 24% – 13%, pork, eggs, 6%), crop production – 42%, (including grains, potatoes, 18%-8%, vegetables-4%), but the rest of the agricultural products – 6%. in 2001, the primary agriculture 12.5% were employed 12 workers from the economy. The increase in the agricultural sector, the number of employees will fall. Figure 4. Agricultural GDP dynamics, 1996-2001, (current prices) source: CSP food processing still occupies a prominent place in the Latvian processing industry – it makes 27% of all Latvian industry total output and employing 22% of industrial workers. in 2000, the country operated approximately 225 agricultural products processing enterprises. In recent years, has begun the processing undertaking agricultural production concentration, small business declining, production is concentrated in the larger EU compliant plants. Also in 2001, the agricultural goods (not including fishery products) the negative balance of foreign trade balance has increased by 10milj. LVL. in 2001, has since 1996 been sharper export volume growth, compared with the previous year – about 48%. The volume of imports in 2001 has grown to 14%. The largest proportion of agricultural export structure was drawn up in the milk and milk products — 12, 8milj. LVL; cereals-6, 1milj. LVL; fruit and vegetables canned, juice-5, 3milj. LVL. 5.1.2.2. Agricultural land resources and their quality resources. Agricultural area (UAA) of the total territory of Latvia (01.01.2003) 38.3% or 2473, takes 8tūks. ha, from the roughly 76% is arable land. 23% meadows and pastures take up 1%-permanent plantations. 63.0% of the overall area of the melioratīv has been performed by LIZ in the construction, which is involved in the management of both public and private land owners. Fertility. If the climatic conditions of Latvia in General, the ability to provide diverse agricultural production, the lack of soil fertility is a disincentive. The more fertile the soil is Zemgale, dobeles and Jelgava district. Further East, in the direction of Rezekne-soil more fertile and not getting rougher, but still is able to give good cereals, grass or legume crops. Most common is the podzolēt soil that is relatively mazauglīgāk and characteristic of forests. It takes approx. 54.5% of soils in the area. After the genesis of them is typical of acidic soil reaction, low organic content and have poor to carry nutrients to the plants. Very fertile, rich in organic matter the soil takes up about 7% of all agricultural land. The other belongs to the mazauglīgāk category of the soils. In Latvia exist land quality assessment system (see. Table 10), in which plots of land with crop production the most adequate conditions and most of the Earth's capacity is assessed with 100ball. (A. Boruk, 1996). System was introduced according to the yield of rye to the ha of agricultural land, which is fixed for 1 ball to 70 kg/ha in rye. 10. table. Land quality evaluation system for ground balls, use a low quality, very good ballroom above the mean average a relatively poor poor arable land 70-100 50-70 40-50 20-40 12-20 meadow 50-60 40-50 30-40 20-30 5-20 pasture Natural 40-50 30-40 25-30 15-25 5-15 source: a. Boruk, regional specialisation of agriculture and territorial arrangement of Latvia, Riga, 1996. of annex 11. card is seen in the average assessment of the quality of the land in each parish. Acidity. The Latvian soils, most after the genesis of characteristic acidic reaction (5.5 pHkcl and below). Consequently, about 40% of agricultural land requires liming. Acid soils it is not possible to make a permanent agricultural production and get high quality products of the physico-chemical properties, low microbiological activity and plant nutrient deficiency. Over the past 10 years, the liming of soils acid in Latvia has declined from 150-catastrophic 200tūks. ha per year to an average of 7.5tūks ha per year in the last three years. This effect lasts only about 10 years, and with this increased each year costs. This results in increased soil buferspēj, reduce the variety of environmentally harmful organic and inorganic compounds in runoff from soils and Toxics adverse impacts to soil and agricultural products. Thus reduce water eutrophication of ecosystems and the threat to human and animal health. The moisture regime. The Latvian climate with relatively short summer is particularly important for early spring sowing of crops. Spring for 10-15 days before you can process and sow the fields drained than not drained. Lietaino in the autumn harvest from the fields, sometimes even drenēt can not be removed. Draining is necessary in Latvia approximately 94% of the agricultural land in the area, which, compared to other European countries, is significantly more. In Estonia, the draining is necessary in Lithuania-72%, 60%, and in Germany-only 31% of the agricultural land. To stream the excess moisture, the country has made the construction of hidromelioratīv million or 63% 1.56 ha agricultural land, including 37 000 ha area at flooding and economic activities of the needed soil moisture regime provides the polder system with 45 State-run existing pumping stations. Although agricultural land is farm production asset, their maintenance is independent only from him. According to the drainage system of the premises and equipment belonging to distinguish between national systems of construction and drainage devices, sharing drainage system and the construction of the device, and the one holding the drainage system and the construction of the device. The whole complex work in close interaction, and one part of maintenance can cause damage to the whole region. Drainage systems have been built before the 20-30 years, and you need to repair or reconstruction, which leads to substantial costs. The upgrade also need 10 pumping stations of the polder, which regulates the moisture regime in a significant number of LIZ. Real situation shows that most private drainage object is not properly managed and maintained, due to lack of funding or just not owner. Use. During the period from 1990 to 1999, decreased agricultural production, introducing modern technologies and increasing productivity per ha LISA, has increased agricultural land area. After the SLS data for the production of agricultural products (01.01.2002.) is used about 1, 8milj., and after SLS data LIZ ha is not being used in 21% of the total UAA ha. Approximately 44, 6tūks. LIZ with the brush overgrown ha (of which 14, 0tūks. ha-drained land). Not harvested under this 10 years continue to tack bogging and overgrowth of bushes. There is a danger that this land can be excluded from the production and aizaug of the economic chain and, with bushes, will degrade the environment of rural landscape and existing quality (Habitat, wildlife populations), but in the future they will cause economic losses to the State, because the decrease in recreational potential development opportunities. While the recovery will require very high costs. Recognizing further the development of agriculture, a new intensive technologies, crop yields increase in certain areas, food production will need to continue in the samazināties13 area of LIZ. It would have a negative impact on the rural environment in which enduring agricultural activities. Latvian traditional landscape, alternating between employment, originates in the forests, agriculture use lands, swamps, natural pasture land, rivers and lakes that create fragmented tiled landscape. This landscape is important for Latvia to traditional plant and animal species distribution. Many bird and animal species is Habitat, due to agricultural activity, providing feeding and breeding area. Abandoned lands as a result of the increase would decrease with the number of agricultural species. One solution is to increase the area of non-traditional crops, as well as non-food raw materials and products (rape – biofuels – ethanol, grains, flax, textile, pulp, krāšņumaug, landscaping, etc.), as well as gradually turn to alternative agriculture. In certain regions a part of land is already being gradually wooded, used for the production of forest animals, sport, leisure, tourism and other non-agricultural or non-agricultural directly related activities. Unused LIZ afforestation is one of the solutions for part of their holdings in agricultural activity, does not see his perspective. While the holdings in the future wants to save LIZ can focus on areas of alternative economic development in these areas. National and EU direct aid program ("agricultural land acquisition lending program", "agricultural long-term investment lending program", SAPARD aid programs "investments in agricultural enterprises" and "environment-friendly farming methods" as well as "non-agricultural business development program") to help restructure the use according to LIZ host field to the selected management objectives. Information about each support program objectives and the conditions of implementation see 5.1.4.4. chapter. 5.1.2.3. the structure of agricultural holdings After the 2001 agricultural census in Latvia is 180tūks rezultātiem14. the holding; 99.8% of them are private farms. One farm manages land on average 33, 2 h (t.sk. 20, 1haLIZ), but the backyard farm — 12, 2 h (7, 4 h Lisa) area (see. 34. of annex 1). 42% of the land reform created by the farm consists of a single (2-15) parcels of land that are distant from each other and that is not beneficial. This makes it hard and pushes up the economic activity. 35. Annex table 1 shows the distribution of farms by land size classes after LIZ. 39.4 thousand. 21.9% of the holding or the total number of farms surveyed no agricultural activity did not occur. The possession or use of the farm was almost 800 000 ha of land, but the 140.8 thousand. economically active possession or use of the farm was 2800.1 thousand ha land, from 1834.0 000 ha LIZ (see table 11). table 11. Agricultural land use is economically active agricultural holdings use and betterment LIZ State area, thousand ha number of Holding altogether 140835 LIZ 1834.0 including drained from the 939.2: need a drainage system reconstruction, repair 79.7 need betterment 81.0 arable land 1178.1 including: sown area set-aside 226.0 856.2 Fallows 88.3 permanent plantations 20.8 Meadow Pasture 246.4 217.2 unused agricultural land 171.5 source : CSP, the 2001 Census of agriculture, CSP, 2003 59.8% of the total number of farms in 2001, the output produced for own consumption needs, without selling anything. Each fourth farm is one that sells for less than half of the production. Only 11.8% of the total is holding more than half the products manufactured for sale, and they managed only 38% of the agricultural land. 5.1.2.4. employment on farms, farmers age and education on average each farm employs 1, 9cilvēk, but only every fourth is employed on full time. Despite the fact that income from agricultural activity is low, approximately 36% of all farm workers, it is the main source of income (see. 12. table). 12. table. The number of employees in the holding, the number employed thousand.
% of employees in all sectors holding All employees holding 271.2 number 100 farming including 97.9 265.5 work: full time 66.2 24.4 part-time day 199.3 73.5 workers who benefit from working on the farm pamatieņēmum 97.8 36.1 source: CSP, the 2001 Census of agriculture, CSP, 2003 details the number of employees and load distribution along the economically active area of LIZ groups see annex 1:35. table. Farms are mostly employed people who are older than 50gad. 37.5% of the total number of farm owners (see. 13. table) under the national pension system receives agricultural revenue in additional income-pension. 13. table. Agricultural natural person as sole owner and age structure age group number of the farm owner's share in the total of 100% and 41.7 127383 = 50 a 50-54 55-59 60-9.9 10.9 and older 37.5 source: CSP, the 2001 Census of agriculture, CSP, 2003 agriculture census, only 21.4% of the economically active farm managers have higher or other professional agricultural training (see table 14). Most of the roughly 70% of Heads of farms agricultural knowledge is acquired only practical experience. Economic knowledge for the operation of the market economy in most farm managers are not sufficient and you will get practical experience. Many farm leaders unable or afraid to take credit for the farm for further development of their safety, not because of lack of business experience required for initiation and skill, do not have sufficient knowledge about product sales markets. Miss producer cooperation in exchange of information and the development of joint economic activity, stimulating economic bottom and safest for commercial development. Table 14. The driver of the farm īpašnieku15 and the breakdown by level of education of agricultural holdings in each group after holding a share of the sales level of education holding group of owners Holding less than 50 years, the proportion of education level group produced products are not only sold 39682 = 100% practical experience 73.47 primary agriculture 5.56 professional education of agricultural higher education in agriculture 16.76 4.21 production sale up to 50% = 100% only 13257 practical experience in agriculture 57.08 primary vocational education in agriculture 10.99 27.40 higher education in agriculture production is sold from 4.54 50-100% = 100% 10525 only practical experience in agriculture primary 19.89 34.61 vocational training in agriculture, agricultural higher education 34.62 10.88 source : CSP, Latvian agriculture 2001 Census provisional results, 2002 advising and training of farmers in Latvia Latvia Ltd. mainly provides agricultural consultations and education support center (LLKC) with 26 district offices. Rural entrepreneurs can get help there with agriculture and non-agricultural business related issues, t.sk. business plan development. Producers and processors it is possible to get information about sales opportunities, agrarian economy of Latvia (LVA) European Institute of agriculture market promotion centre. But such opportunities regardless of age used economically active and knowledgeable farmers who are often already commercially capable of holding managers. To check for solutions to motivate most farmers (those products manufactured or marketed self-sufficiency only in part) to a more active economic activities. The country is implementing a variety of support programs (see. 5.1.4.4. section), as well as being developed and supported by LLKC. at the beginning of 2002, the Ministry of agriculture was held 33 vocational training institutions. It is possible to learn the about 90 educational programs. Of which 25% are agricultural profile education programs, training duration is 2, 3 and 4 years, 90% of the audience are people with basic education. Agricultural University of Latvia ensures the highest academic and professional training in agriculture, mežzinīb, woodworking and mežinženier, veterinary, food, rural socio-economic development, engineering, information technology and environmental management specialty, but traditional faculties of agriculture there has been a reduction in the number of student who would bother in the future development of this sector. The agricultural sector's profitability is not sufficient to motivate young people to the sector-specific special education, but companies – to invest in the preparation of professionals in other countries. 5.1.2.5 respectively. efficiency of production and farm income agricultural producers ' income, compared with other sectors, is low and dependent on climatic conditions, seasonality, price changes, and production of the country implemented support policy. The small interests of banks (high interest, brief credit repayment term) farmers until the middle of 2002 there have been limited opportunities for the modernisation of production to attract considerable investment and capital formation savings with a long repayment period, but while the same income is not sufficient to carry out the modernisation of the investments themselves. Most of the farms are using end-of-life equipment and technological equipment (in 2001 from farmer-owned tractors only 24% was under 10 years), which pushes up the production process. Also, most agricultural buildings, structures and the production technology used does not meet the requirements of modern production. Although State aid measures are being implemented and are available on the EU support programmes, still most of the farm is relatively low specialization of production and the level of technological development, but little about economic management continue to hinder the efficiency of production, as well as product quality and competitive opportunities. The livestock sector in priority-milk production – a topical problem is the fragmentation of production. slaucamaj 70.5% of the cows is in herds with cows to 10 (see. 37. the table in annex 1). The development and potential use of prevent the high production, processing and marketing costs, inadequate product quality, working capital and investment funds. A similar situation has beef and pork production. At present, 83% of the number of bovine animals present on the holding, with the number of bovine animals to 5. Pig in only 3% of the total number of farms is holding with 20 and more, but only 36% of the pigs swine farms, which are located in their home and keeping in line with the EU's environmental, health, hygiene and animal welfare requirements. As soil fertility is relatively low and the growing season is short (see. 15. Annex 1 map "growth period length (days) in European countries"), the natural productivity of crops in crop production is low and lags behind crop production in the EU countries. Cereal yield during the period from 1996 to 2001, ranged from 1 to 2, 2t 9t/ha/ha (EU average of 4.7 t/ha), potato yields of 11 up to 15, 2t/ha, 9t/ha (EU average 15, 7t/ha). Holdings which crops are grown in large areas, applying intensive technologies, crop yields are much higher than the average of the country, such as the grain 3-6t/ha. Very different due to the similar agro climatic conditions in different areas, significant differences in farmers ' income in the regions of Latvia – Latgale, Kurzeme and Vidzeme they are smaller than, for example, Zemgale. 23.1% of the total number of farms main revenues derive only from 11.2% of agricultural holdings, gaining additional income from other economic activities. Agriculture (excluding taxes) net income per farming is still critically low, averaging 60 LVL per month (this is only 52% of workers ' average net wage in the country in 2001, see annex 1.32). 5.1.2.6. the origin of the local livestock and crop varieties crops. On the basis of the Convention on biological diversity ", each country is responsible for the conservation of biological diversity in its own territory, t.sk. the level of genetic diversity. Plant genetic resources conservation, restoration and the Biology Institute of the LU plant genetics laboratory and continuing crop of Latvia genetic resource bank. Create a database containing information about different crop varieties for Collections. Founded in cooperation with the leading global plant genetic resources centres for the exchange of experience and information, good cooperation evolved in Northern gene banks for a computerized information center. The Latvian conditions grown varieties are more susceptible to plastiskāk, the most common plant disease, with potentially high yields and economically competitive. The motor importation of foreign varieties, which have not been assessed in Latvia, is uneconomical. Therefore, you must continue for many years work in the making of new varieties following crops: summer and winter wheat, winter rye, barley, summer, oats, peas, potatoes, alfalfa, clover, grasses. Particular attention should be paid to the improvement of qualitative characteristics of plants, early priority should be breed. After Latvia plant variety information the National Council in 1999 to grow the list of recommended varieties of cereal and legume brand group includes a variety of them 20 51-39% in Latvia or bred; 27 varieties of potato-13 of them, or 48% is the variety; grassland-34 varieties of them 24 71% in Latvia or bred. Scientific work in progress of crop genetic resources, research and extension, the final line of the new biological and technological characteristics, breeding methods to speed up the selection process was conducted, as well as for modern biotechnology methods of crop breeding in Latvia. Farm animals. In Latvia in recent years, significant reduction in food-producing animals and the number of poultry keeping and feeding of changed circumstances, which do not generally provide the main food and quality of procurement, not to the internal market, not exports. Saturate the market with cheap imported products and seductive, which creates the vital need to develop competitive local production. Livestock products competing in the main task is to improve animal breeding, because cheap and high-quality production is highly productive for the herds, which suited to local conditions, resistant to disease, well used in fodder and gives a lot of high-quality and tasty production. Regardless of the selection work methods in animal production-tīraudzēšan and crossover, it is important to achieve the desired results. To ensure the country breed the animal gene pool retention, improvement, breeding and evaluation of animal Favorites, at least half of the total number of animals in each population monitoring should be ensured, i.e. individual productivity and animal origin, to ensure productivity and product quality data acquisition to the efficient use of the herd and animal breeding value. This work practically address the variety and the breeders ' Union national breeding information data processing center. With LR ZM July 31, 2001, order No. 235 varieties were approved livestock production Advisory Council and also a variety of animal genetic resource conservation Advisory Council. It is determined that 5 of the Latvian local livestock herds for preservation of varieties of specific State aid paid to disappear the unique circumstances of Latvia suitable varieties for the creation of the necessary genetic material, is required to sufficiently large herds exist in Latvian Brown varieties and the varieties of Latvian blue cows, horse breed of SUV type horses, pigs and white varieties of Latvian tumšgalv breed sheep. Characterization of varieties is in annex 9. 5.1.2.7. organic farming, non-traditional agricultural sector and agricultural activity on farms. The development of organic farming. Organic production is associated with the restrictions in the use of pesticides and fertilizers, as well as to limit the non-synthetic soluble fertilizer and weak. Hence the organic product production is less than intensive production holdings. 2. the fertility and the biological activity of the soil is maintained with organic fertilisers and appropriate crop rotation, weed and pest control uses the agrotehnisko measures. All organic production stages must be subjected to inspection, up to trade. All the producing, processing, trade or imports the products with an indication of the method of organic farming, is subject to the inspection system. This organic production pushes up. To ensure the competitiveness of organic farming and to compensate income foregone, need support to organic producers. in 1998, following the Organization of Latvian organic associations and the Council laid down 24 June 1991 regulation (EEC) No 2092/91 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs (Regulation No 2092/91) the corresponding provisions had only 39 certified organic farm in the area of 1426h. At the beginning of 2003 the number of certified farms already reached 352 farm (their placement in Latvia see 15. of annex 1). Only last year the certified area increased from 0.2% to 0.7% of total agricultural land area. Organic production takes place mainly in the agricultural sectors as cereal and vegetable, dairy farming and bee-keeping (production changes see table 15). Whereas it is not developed for the processing of organic products, mainly marketed unprocessed products: mainly vegetables, buckwheat, honey and apiculture products. 15. table. Organic production 1999-2002 tonnes product 1999 2000 2002.

Cereals meat milk 170 208 2186 228 1300 3692 270 potatoes and vegetables fruit honey 91.7 263 349 87.6 9.2 28 69.8 Source: Latvian organic farming organisations in Latvia has two public bodies acting in the field of organic farming: organic farming association-an organization founded in 1995, and the supervising authority "environmental quality" – created in November 2000. Have created organic monitoring and control the system, in which the organic certificates shall be issued by the authorities of the "environmental quality" and State certification and testing Ltd., but the competent institution does the food and veterinary service and the national plant protection service. Organic certification system provided by 22 April 2004 the Regulation No 414 BOM ' organic monitoring and control procedures ". The main focus for the development of organic farming in Latvia is placed on organic products in the internal market, increasing the organic agricultural products processing development and organic farming educational system. The development of organic farming is being promoted with government subsidy program, where you can get support payments for previously certified areas, areas that are 2. transitional year, as well as for livestock and poultry. Non-traditional agricultural sector. A small number of farms engaged in non-traditional crop (cranberries, medicinal plants, mushrooms, etc.) and animal husbandry (fur animals, deer, quail, etc.) production. Zvērkopīb. In Latvia, with industrial production of fur animals engaged in an Association of 14 Zvērkopīb zvērsaimniecīb. They grow mostly mink, Arctic fox and sudrablaps. in 2001, created a farm which rears šinšill. Mushroom cultivation. Latvia under three types of mushrooms-mushrooms, shiitake mushrooms and austersēn. Created 9 large-scale growers farm mushrooms with a total growing area of 6650m2. Currently, the sector provides more than 180 jobs. The annual quantity of fresh mushrooms growing market is 18-20%. The cultivation of Austersēņ coordinate Austersēņ breeders ' Association. Production volumes have increased, however, the actual realization of these products and outlets. Shiitake mushroom growing in Latvia to coordinate the shiitake mushroom growers ' Association. Shiitake mushroom growers is a big production export opportunities. Fresh mushroom exports to Germany alone give profit 0.25 million. LVL per year. Rabbit keeping. In Latvia, the rabbits are raised for meat and skin quality. This leads the industry with good breeding material can provide enough holding, which is a large breed of rabbit pamatganāmpulk, so that in 2001 the number of rabbits in Latvia has increased by 35%. Quail, pheasant and ostrich breeding. More common is quail breeding. Quail eggs are being bred and also production. Production is realized both in supermarkets and restaurants of Latvia. Quail business is well developed in the world, and it is the perspective of the industry in Latvia. However, these non-traditional agricultural sector is more actively searching for markets, as well as the need to expand their production cars. Latvia currently has 2 farms, grown pheasants and 5 farm grown ostriches. Ostrich meat is a perspective direction of agriculture. To deal with this bird breeding, requires large investments. Wild animal breeding. Latvia currently has about 20 fully fitted in the wildlife garden. Do not complete or under construction is about 18 gardens. Mostly here in red deer and fallow deer are reared. The total land area is 5723, fenced areas 1463 ha ha. The total number of wild animals around 2000. in General, the members of the Association are reared on the farm animals, of which 867 since March 2000 has grown on 31%. Medicinal plant cultivation. In General may be regarded as a medicinal plant cultivation is relatively favorable, but the process is very labour intensive. Preparing medicinal plants market, attention should be paid not to grow and harvest, but for the preparation of pharmaceutical products according to requirements. Popular culture in Latvia is Valerian, Chamomile, Marigold, caraway, mint, marjoram and St. John's wort. Yet the demand for non-traditional agricultural products exceeds supply, but to be competitive in this sector in the EU, it is necessary to start the production of investment, development and education. Non-traditional and organic farming for more development on the farm obstructing both the knowledge and the lack of finance, both unconscious market opportunities for disposal of the goods. Non-agricultural activities of agricultural holdings. The main non-agricultural activities in rural farm tourism, forestry, wood processing, aquaculture, the cultivation of agricultural products, as well as during the work outside the holding, such as the work of the municipal, city, etc. table 16 shows the additional income sources and the number of farms, which generate income from agricultural production and alternative activities. Not affiliated with agricultural production activity development farms impede the underdeveloped infrastructure, lack of initial capital and inadequate levels of knowledge about the business.

table 16. Number of additional sources of income and the sale of agricultural products produced in relation to the additional income generating industry: production of agricultural output the share of group sales total does not sell sell up to 50% sale 50-100% rural tourism 193 59 76 328 handicraft 228 81 41 350 agricultural products processing 124 124 196 444 forestry woodworking 589 234 275 1098, 4182 1681 1912 7775 cancer etc. breeding fishing 126 42 22 190 70 36 57 163 energy production Outsourcing, using 36 5 6 47 farm equipment sector 5757 1673 1041 8471 831 684 849 2364 Other total source: 11437 4240 3904 19581 CSP, Latvian agriculture 2001 Census provisional results, in 2002, to promote active farm restructuring of its operations, in addition to a source of income for the country are implemented by national and EU co-financed support programs. Rural activity limited to agriculture, the lack of alternative ideas and financial resources. Sometimes a field population need to create awareness of the need to change something in their farming in order to increase their income and well-being. There are both national and foreign aid programmes co-financed implementation specialists is involved in the promotion of local initiatives and training (see. 5.1.4.4. section). 5.1.2.8. Economic cooperation Slowly developing mutual cooperation between producers, as well as between agricultural producers and processors, and this limits the production and marketing process of rationalisation and efficiency and thus earnings growth. In Latvia, legal cooperation of farmers in a more pronounced form is a cooperative society. in 2002, the survey results showed that the real work in Latvia 57416 cooperative society, whose profile is agriculture. The less or more is active in the following sectors: agriculture-cereal that producers earn more profit kooperējot the transport and the use of grain dryers; − in the small dairy producers cooperate to jointly cover the transportation costs, which would be relatively high, if each individual every day would have to be delivered to the nearest production processing establishment or collection point; − associated with agricultural production machinery in the provision of services; -vegetables, fruits and sugar beet cultivation, which, with certain exceptions, cooperation is poorly expressed. The main cooperative society building goal is to create the opportunity for its members-with the cooperative society to realize their farm production, to support their members an effective production process and in the preparation of production realization (first processing, packaging, recycling, etc.). Low activity of producers cooperative society in the making or refrain from engaging in is associated with little understanding of the nature of such organization, structure, objectives and income distribution. Brake factor cooperative society building is the initial cost of getting started, and the company later in its management. Legally it governed by the cooperative society law. Amendments to the law adopted on 20 June 2002, provides a new type of cooperative society of agricultural service cooperatives, which provide services to the agricultural producers, but does not deal with agricultural products. in 2002, the national support for the promotion of cooperation in fields received 32 cooperative society, which in 2001 net sales averaged approximately 200 thousand. LVL, but the maximum-close to a million. The average number of members – 112, which ranged from 10 to changed 19517. further development of cooperative societies are required to guarantee the agricultural producers ' income level, and requires financial support. Latvia taking over and applying the conditions of Latvia, world experience, at the end of 2002 was drawn up new rules for agricultural service cooperatives, which determined the recognition of producer groups for the recognition criteria, procedures and operational control. It is the objective of the implementation at the national level to develop financial support mechanisms to support the operation of such firms, thereby encouraging additional Latvian entrepreneurs/producer cooperation, facilitating the legal conditions of the operators in the implementation of economic cooperation and administrative work. 5.1.2.9. Processing of agricultural products and food production in 2002, launched the single national food surveillance and control services, food and veterinary service (PVD)-ensuring food safety, quality and hygiene control throughout the food chain according to the modern concept of "from farm to fork". in 2002, the food company identification and registration according to the classification of the company data and the creation of a registry of food businesses are important prerequisites for national monitoring and control capacity and development, resources needed for monitoring purposes. 2003 January 1 PVD accounting was 14792 food companies. Specify the number of controlled companies contributed to the changes in the food chain surveillance law, which said that by the end of 2002 all food businesses must register with the register of enterprises of the food the PVDA. Thus were discovered in addition to controlled objects. As an individual, a very complex and important measure of economic development of Latvia and the planned operation in the EU common market were the animal products processing plant evaluation of compliance with EU requirements, and agreed on prevention action plan and deadlines. The result was welcomed in several EU experts and inspectors ' visits. Only those companies that will receive a certificate of compliance with EU requirements, after Latvia joined the EU will be eligible for food distribution throughout the EU without restrictions. As a food and veterinary service (see information. 17. table), 1 January 2003 was supervised at 1001 with herbal product processing establishments and 699 with animal product processing establishments, of which 18 are entitled to export their products to EU countries. 17. table. Under the supervision of existing PVD plant and animal products processing companies (on 01.01.03.)

Activity number of companies have the right to export to the EU is a transition period for grain milling companies 51 cereal products establishments 399 sweets production companies 25 fruit and vegetable processors of food packaging 51 companies 163 Fat production company 18 sugar production company 2 mixed products establishments 16 culinary and semi-finished production companies 43 grain intervention storage 233 total plant products processing enterprises 1001 fishing products processing enterprises milk spike 128 10 29 17 milk processing companies 59
8 11 grading and packaging companies 19 egg products establishments 2 honey and apiculture products processing plants slaughter 73 225 12 meat processing companies and food not specific to 168 usable products and processing companies 8 total animal product processing enterprises 699 18 52 source: PVD data, ZM, agricultural annual report 2003 1.39. and 40. There is a table with information about sales of food products on the domestic and external markets by product group in 2001 and 2002. in a year. 5.1.2.10. The forest industry, geographical location, quantity and quality of forests is determined by the nationality of the country of Latvia, which forest industry plays a major role in the economy of the country and its products serve not only to meet domestic consumption, but occupies a significant place in foreign trade. in early 2003 the total forest area occupied 2.87 million. HA or 44.5% of all national territory. On January 1, 2002, in the Latvia stands volume production of saving was 544 million cubic meters and the total annual increase in stock – 16.3 million cubic meters. Land reform law of property at the time of distribution of the type in respect of forest areas in 2002 on January 1 was the following: State-owned forests-50.4% total area-43.1%, municipalities, private companies and other forests cover 6.5 percent of Latvia's total area of forests. Logging and wood processing in the country by private companies _ more than 300 logging companies and more than 2,000 industry companies, of which about 1400 is a sawmill. Forest sector employs around 6% of the total employed population of Latvia. Forest sector acts as a stabilising factor in rural areas for economic, ecological and social development. Forest and forest products provide essential support to the many farmers in their economic activities, as well as promote the development of rural infrastructure. Forestry and timber industry provides jobs in both urban and rural populations. The forest sector's direct contribution to gross domestic product of Latvia in accordance with the expert rating is 10-14 percent. About 85 percent of all production is exported. in 2001, exported wood products total value was 503 million. LVL, which accounted for 40% of the total value of exports of Latvia. 87 percent of this production Latvia exported to EU countries. Exports the largest percentage of your values gave the lumber-45%, and the logs (pulpwood mainly) – 13%, 11%, furniture, plywood, 9%, fuel wood and other products, 3%-19%. From 1993 on lumber exports have increased almost ten times that in 2001, reaching 2.85 million m3. Regeneration ensures continuous and efficient stands volume production to restocking. In recent years, the total restoration of the forest is increasing, although the increase is still not sufficient. Forest restore volume growth is explained by the fact that the main is also increasing the cut area curls. Mandatory renewable area in 2001 was 3947.3 ha 20889.4 ha of national forest and other forests, but in 2002 – 3990.8 ha 29768.8 ha of State forest and the other forests. The forest is restored, both natural and artificial. in 2001, 63% of national forests and restore the area restored artificially, 37% natural, but other Woods and 61%-39%-an artificial natural. Artificial forest renewal requires higher costs, but this way renewal can be carried out with the most desirable and economically valuable tree species. Artificial forest renewal expenditure per hectare produces 220 to 250 lats. The forest is used not only for timber production, but also the value of wood production. Forest timber values are not wild berries, fruits, nuts, mushrooms and medicinal plants under the forest law, parties may obtain, at the discretion of the owner or legal possessor is specified by the own limitations in accordance with the law. In addition, the forest area are used for recreation, hunting, wild animals in fenced areas. The most popular places in Latvia, which residents and tourists use leisure, walks, as well as for the purpose of education is the national parks and nature parks. Quite a popular recreational hunting. Latvia has around 1000 Hunter collective. Wild animal breeding enclosures have been issued 20 authorizations, but actually runs 15 wild animal keeper. Farmers are also private forest operators, the development of such activities in the holding is the prospect of an additional source of income, particularly in creating mutual cooperation with other forest managers, farmers and tourism businesses. 5.1.2.11. other economic activities in General in the fields of business activity is low, it shows the number of active enterprises and employed population. Almost half of the parishes of Latvia, active companies (not including farmers and backyard farms) number does not exceed five. Latvia also has 12 parishes where there is no active business. These people are employed in the natural only in their peasant or backyard farms, the institutions and bodies (e.g., county councils, schools, health care facilities). Business primarily develops in such directions as trade, services, transport, processing and agroservis woodworking. Some areas of the evolving service provider business, but the major obstacle to their development is the low purchasing power of the rural population. Major investors and job creators are food and wood processing companies, which are also the most significant and economically strongest fields. The main problems of independent businesses in fields are:-insecurity, lack of experience and skills, as well as business started without sufficient knowledge of the product sales markets, so it is very difficult to develop business plans and development prospects; -insufficient accumulated capital, limited facilities for receiving credit, lack of seed capital to start a business; -undeveloped economic infrastructure outside the Riga region. 5.1.3. Infrastructure fields in recent years has diminished in both the educational institutions, libraries, cultural houses, health authorities, and other public service institutions, such as the post office. Each municipality is responsible for the primary services, t.sk. maintenance and improvement of the infrastructure in its territory. These functions are funded from the municipal budget field whose revenue is dependent on economic activities and employment of the population in the territory (LR municipal budget). More than 80% of the rural funds received from financial cohesion fund, which means that most rural municipalities with their own funds could not fully perform statutory functions. Previously created economic and social infrastructure is gradually worn, its maintenance in rural areas is relatively expensive due to the dispersion of the population and little economic environment. In addition, within the rural population trends and the reduction of social and economic infrastructure maintenance in the future only to sadārdzinās. This in turn means that the future will be limited to the development of tourism and with the related and not related to enterprise development in the area. 5.1.4. in the Field of environmental quality and biodiversity of species in the whole Latvia 5.1.4.1. are registered in animal, plant 18047 5396 and about 4000 species of mushrooms (see. 18. table). All groups of organisms in a significant part of the total number of species the species resident in the associated with field. 18. table. Rare and endangered wild species in Latvia species group, the number of Endangered Species, sensitive and rare wild species number% of total number of species of mammals birds reptiles 320 67 21 64 15 23 7 2 29 amphibians 66 7 11 13 5 38 freshwater fish invertebrates 0.8 vascular plants 17540 135 (a flowering plant and filic) 498 127 25 Abt 1678 284 17 Moss mushrooms. approx. 4000 38 Lichen 492 32 6 source: 0.7, species and habitats project (1998-2000). Of the world's endangered species are present in Latvia six mammal species, five species of birds and two fish species (IUCN Red data list, 1996). Fauna of Latvia holds 62 mammal species. The large majority (63%) of the Latvian mammals inhabit the forest habitats, about 24% of the species associated mainly with cultural landscapes, parks, etc., or also with the open water bodies. The open landscape of the habitats concerned only five species (e.g., dietary Apodem for Skipjack Agraria, grey Hare of Lep Europaea), but the typical sinantrop are three species – the House mouse Mus muscul, gray and black rats (norvegicus and Ratt Ratt-ratt). Many mammalian species, alternately use a variety of habitats, feeding on one another, used as hiding place, such as Roe deer, Capreolus capreolus and red deer Cervus elaphus, mostly staying in the Woods, but the feed goes to the open habitats, grasslands, pastures, fields or clearing. Bird fauna of Latvia is relatively rich, thanks to the geographical situation of the territory and for breeding, to rest and feed abstraction useful habitat diversity. The Baltic Sea and its coasts are abundant Eurasian remote northern birds used for traditional seasonal migration route, along which they give to their wintering areas in Western Europe, Africa and the Middle East, but in the spring to nesting sites in the Northern tundra and taiga. At the actual travelers (at least 140 species) belong to white Storks Ciconia ciconia, field larks Alaud arvensis, all species of bird (Sylviina), typical of the caurceļotāj (55-60) in Latvia do not nest at all, or nest in small numbers (small swans Cygnus columbian, sowing geese Anser fabal). At passage, coming to spend the winter, only around 15 species belong e.g. the Buteo buteo bikšain Lagopus, Bombicill garrul of the Waxwings. Quite a lot is "the wrong guest" species, which is not usually found in Latvia. In Latvia, 223 species of birds breed, among them also many parts of the world very rare species such as the sea eagles Haliaeet albicilla, čūskērgļ, circaetus Gallicus, black storks Ciconia nigra. From Latvia common bird species of birds are listed 152 Directive 79/409/EEC, and almost all (99%) of the species – the 1979 Berne Convention on the conservation of European Wildlife and natural habitats conservation ". A cool climate and amphibian reptile species count is high. Nearly half of the species listed in the Red data book of Latvia. 5.1.4.2. The agricultural land of the diversity of ecosystems in recent decades to the extensive agricultural land in large areas with naturally different terrain and hydrological conditions play an important role in maintaining biological diversity. The Latvian agricultural landscape-specific part is more protected in Europe species population. For example, the White Stork (Ciconia ciconia) population in Latvia constitutes more than 10 000 pairs. Little Eagle (Aquila pomarina), nesting in the outskirts of fields and feeding in the agricultural landscape, Latvia's population is approximately 2 400 over the large and comprises 13% of the European population. in 1999 the Latvian agricultural land was 26 000 to 30 000 (Crex crex) turns over the nesting place. However, in recent decades, there is also the opposite trend: field Falcon (Falco tinnuncul) and rain (circus cyane) is greatly diminished. Although the current reduction of agricultural intensity generally affects biodiversity, also exhibit negative trends. Large arable land and meadow areas aizaug with weeds and bushes. The fastest decrease the Meadow plant species distribution, which require continuous over-grazing. As far as rapidly declining and the wet meadows and pastures characteristic species distribution, because the meadows where they grow, are not suitable for mowing techniques, as well as not requiring the use of pasture. Turn the dry grassland in addition to the threat of possible afforestation overgrowth because their productivity is low and long gone. Currently, meadow and pasture (grass) area occupies about 570tūks., which is 23% of ha agricultural land or 8.8% of the total national territory. After the Latvian Fund for nature 2000.-in 2002, the inventory results natural lawns takes only 0.4% (approximately 25, 6tūks. ha) from all over the country. About 18, 6tūks. ha is considered biologically valuable meadows (meadow location see annex table 41 biologically valuable grasslands). Meadows occur in about 40% of protected plant species. Coastal Meadows is a rare species of birds very important habitats like the Dunlin (Calidris Alpine) grasslands Sandpiper (Tringa totana), black puskuital (Limosa Limosa a) and gugatn (for Philomach pugnax). The most important meadow complexes are located around the cardboard and Liepāja Lake, Kalnciems, Brody, lubāna, lowland, Daugava, Gauja, the Venta River and other river valleys and Rand meadows. Although traditional methods of farming and grazing meadows promotes the preservation of biodiversity, intensive use areas threatened use of chemical fertiliser, as well as traditional farming methods. It promotes overgrowth of grassland with shrubs. Major meadows covered areas shown on map 4. 4. card. Major meadows in Latvia source: SAPARD 5.1.4.3. Rivers and lakes in Latvia has 140 Lakes (greater than 1 km ²) and 12400 River with a total length of 38000km. 777 rivers are longer than 10 km. The majority, especially waterfowl species, the diversity is found in shallow coastal lagoons, such as cardboard, Liepāja, Engure, Kaņier and Babīte Lakes. Engure Lake and its the neighborhood is one of the species most wealthiest areas of Latvia. There's a flowering plant and fern 800 plant species, of which 40 are protected. At least 30 rare bird species, which are threatened elsewhere in Europe, nesting in the vicinity of Lake Engure. Lubāna Lakes and lowland is considered one of the most important inland wetland complexes in the Baltic countries, especially migration, focuses a great number of birds. According to the CORINE Biotopes database information% 22.6 Lake area is included in the protected areas. Lake biodiversity impact the process of eutrophication. Latvia is among the Baltic Sea countries, which are stored in the salmon spawning grounds in the rivers. Salatsi River is the largest natural salmon spawning grounds in the Austrumbaltij. Latvian rivers live about 26000 Beaver and Otter almost 5000. River population of cancer recovery a sign of improvement of the quality of water in small rivers. According to the CORINE Biotopes database information 20.3% River area has a specific protection regime. Contaminated effluent and agricultural run-off can threaten River ecosystem biodiversity. From 1998 to 2000 the water biological quality studies show that 66% of rivers have low levels of contamination and about 21% are clean or nearly clean. However, about 90% of all lakes are subject to anthropogenic eutrophication. Nitrogen and phosphorus effect was observed in both inland waters and at sea. 90-these years significantly decreased waste water, agricultural land noteč pollution by nitrates and phosphates and point pollution from fertilizer and pesticide storage facilities. However, with the stabilization of the economic situation and the development of more intensive farming methods, the total pesticide and fertiliser use is gradually increasing (see. Figure 5). Figure 5. Of plant protection products in the most intense use of pesticides and fertilizers is making central parts of Latvia. The most intense crop production is made for the cereals and sugar beet cultivation. A more detailed map see map 16 "fertiliser use on agricultural lands." Most agricultural runoff has affected the river Lielupe basin, which also has been the main reason for the particularly sensitive areas for designation in this area. 5.1.4.4. Groundwater Latvian background groundwater nitrate concentrations are much smaller than the maximum permitted drinking water level due to low anthropogenic stress (compared with EU countries Latvia has extensive agricultural activity, and low population density). The observed variable levels of nitrate is based on several factors, primarily, in the aquifer to monitor norobežotīb. Thus, the nitrate problem is described separately in respect of water sējslān not enclosed, partially enclosed water does not sējslān and not sējslān not delimited by the water. Nitrates pollute not delimit the water does not sējslān in devon, which is usually used for the supply of water to the Central Latvia. Nitrate concentrations in the aquifer of the designated water is usually below the lower limit of detection, i.e. 0.005 mg N/l is not delimited aquifers the nitrate mainly for two reasons:-Glaciolakustrīn and the clay sediments of the glycogen protective qualities. -Rapid reduction of the nitrate of ammonia due to deep groundwater beneath the red-ox (0-100 mV). In addition, 92% of uk salaries and tested pirmskvartār partially delimited aquifers the nitrate concentration is lower than 0.005 mg N/l maximum partially delimited aquifers the nitrate concentration is found 0.3-0.8 mg N/l, i.e. they are at least 14 times lower than the maximum level for drinking water. Low nitrate concentrations above the delimited and partly delimited aquifers does not mean that these aquifer are completely free from contamination. Elevated ammonia concentrations in some locations may arise from the primary forms of nitrate in groundwater resulting in reduced form of nitrogen. Diffuse pollution of nitrate concentration in the average increase to 1.5 mg N/l 1.0 – is found in shallow groundwater in intensively cultivated arable land and pasture. The maximum amount for drinking water (11 mg N/l) are exceeded in some long term pārmēslot of the little places where the easy cut is at the top of the geologic proof coarse sand, as well as to point sources of pollution, such as fertilizer waste repositories, earlier agroķīmiskaj warehouses URu.tml. The general problem of nitrates in groundwater in Latvia is a local character and not only confined aquifers in considerable concentrations of nitrate. However, the secondary agricultural ammonia can endanger the future centralised water supply. 5.1.4.5. Air quality due to the economic recession in the early 1990s greenhouse gas emissions decreased significantly. The total amount of emissions in 2000 was approximately 34.4% from 1990 levels. It is expected that in the next 20 years the level of emissions will not reach the level observed in 1990, thus, Latvia will follow Kyoto Protocol. However, in Latvia, in accordance with bilateral agreements participating in projects aimed at reducing greenhouse gas emissions, thereby contributing to global air quality objectives. 5.1.4.6. Soil degradation soil of Latvia is currently considered uncontaminated. The main problems with the quality of the soil creates an enlightened economic activity in agriculture and industry, as well as natural processes such as soil fertility and reducing acidification. Side effects of land degradation are surface water ecosystems degradation, deterioration of the countryside and the reduction of biodiversity. Soil pollution affect food quality and human health. (Agricultural University of Latvia). Water in the soil erosion area of 380 000 or 24.3% of the agricultural land in Latvia (MAY, 1995). Erosion caused by wind and water and promote the individual topography and land use form where water erosion is the most powerful impact on agricultural land. The abandoned land is located mainly in the areas of irregular and hilly in topography and less fertile soils, where conditions are not favourable for agriculture. Thus, it can be assumed that the impact of soil erosion in Latvia at present is significantly impaired. Wind erosion threatened agricultural land area is 230 000 ha, or 14.7% of the total agricultural land area (MAY, 1995). Wind erosion in Latvia can occur easily in agricultural soils mainly in early spring and autumn periods, if the soil is dry. The creation of protection zones for the protection of the coastal dunes were started in the 19th century. Protection zone in 1980-1990 included the Baltic coastal region of land projects carton. A detailed breakdown of the two forms of erosion, see 5. map. 5. card. Wind and soil erosion in agricultural area 5.2. national rural development policy strategies 5.2.1. coated areas of continuous agricultural, forestry and rural development policies, the improvement of the management process, including structural changes in institutional mechanisms, support policy planning principles and quality, presents a more favourable environment for the gradual and targeted sectors and also the development of the territory. In accordance with the Cabinet of Ministers of 27 March 2001 meetings of Protocol No 13 34. paragraph (3) the Ministry of Agriculture has asked a further parallel to the agricultural sector development policy issues, coordinate the Latvian rural development programme that covers a wider range of issues. Consequently, the Ministry has taken the existing national program updates, event coordination and monitoring of the implementation of the programme. The Ministry of agriculture has developed and the Cabinet of Ministers has accepted the 2002 23 April with Protocol No 17.26. paragraph field problem solving and rural development concept, which includes work on a new strategic document for the development of rural development policy. In compliance with the new trends in the field and all the national strategic development, EU accession, as well as for ensuring that rural development aid policy is strategically planned and implemented with full legal capacity, coordination and financing of the action programme. The concept is certainly key, or the strategic objectives of the national rural development policy, and they put as the new rural development programme cooperation, long-term strategic objectives:-to promote the dynamic development of the rural economy, thus enabling the rural population to rise in level of prosperity; -to maintain the rural population and ensure rural area city level equivalent to various social infrastructure services; -ensure rural sustainable and efficient use of, maintaining and preserving the tidy and biologically diverse countryside and landscapes for future generations. Since Latvia is currently undergoing and introducing new methods of development and financial programming, using the underway the EU experience, detailed situation awareness and creating databases that help plan of granting of the aid needed to adapt a more objective evaluation of supporting tools development process, achieving results, after which the rate of the national aid policy effectiveness. The new rural development strategy, the information acquired and existing legislation will be the basis for the planning and support of various funding available for targeted management and efficiency to achieve the strategic objectives defined. The following are the key factors in the implementation of the strategy:-regional approach to development; -sustainable economic development; -development of human resources, reducing social izslēgtīb; -biodiversity in rural environment; -occupancy and availability. The objective "to promote the development of the rural economy dynamic, thus enabling the rural population to the growth of wealth" is being implemented to achieve and/or planned for the implementation of measures to agriculture and its products: processing sector (under the agriculture and rural development law and policy strategy in 2003 ZM-action defined for 2005):-the manufacture of and carry out external and internal market requirements and competitive products that would be of particular interest to specific (niche) for the development of local products and outlets; -maintain the available agricultural land resources suitable for production quality, maintain the Latvian countryside and characteristic agricultural biodiversity landscape; keep, improve and promote the local livestock and poultry genetic diversity of varieties; -ensure the population income and wealth growth; the forest sector (under the forest law and business strategy in 2003 ZM-action defined for 2005):-the management of its forests and increasing the value of the resources contained therein, maintain and enhance biological diversity and ensure people a safe access to recreational purposes; -developing technologies and providing no cooperation with other sectors, produced and realized the local and external market competitive products that would be of particular importance in high-value-added products; -stabilize its economic and social impact on rural economy and the environment, rural employment and increase prosperity; soil protection (in accordance with the law "on environmental protection" and the "Law On agriculture and rural development" project):-implementation of the national policy on environmental protection, nature protection, natural resource protection and rational exploitation of regional development planning, building and soil apakšslāņ. -the owner/user/holder's failure to concede that human activity is degraded or damaged soil. Fisheries (under the Fisheries Act and the policy strategy in 2003 ZM-2005 a specific action):-management and increasing fish resources and the diversity of aquaculture in inland water bodies, maintain and enhance biological diversity and ensure its availability for recreational purposes (tourism, fishing and rural development), as well as increase their economic impact on the rural economy and rural income growth; -the realization of external and internal market requirements and competitive fish and aquaculture production, in which a special place should be specific (niche) sales; -comply with the requirements of environmental protection, reducing the cultivation of fish and aquaculture products, treatment-related adverse effects on the environment; agriculture, forestry and fisheries related economic activities (under the small and medium enterprises development national programmes, the national employment plan, operation strategy in 2003 ZM-2005 specific actions, etc.):-the appropriate use of all the resources available in the environment, thereby contributing to employment and wealth in the rural population growth; -maintain and develop the countryside as an attractive living, working and recreation site for any; -ensure that the rural economy the flexibility to change the external and the internal market and to maintain a steady rural prosperity; Tourism (under the rural tourism development program):-ensure a tidy Latvian rural environment within the existing cultural and historical heritage and scenic qualities for any availability; -ensure high quality and environmental requirements of appropriate economic infrastructure population mobility, communication and economic needs (according to the national investment programme); -improve, increase and diversify rural job skills (according to the national employment plan, welfare sector investment strategy 2003-2007 and Student lending guidelines); -create and support the economic cooperation group/organization that promotes and supports rural economic development, with the participation of socially excluded population groups in business, thus reducing poverty (under the commercial law of LATVIA, cooperative society law, agricultural and rural development Act, the welfare sector investment strategy 2003-2007). The goal of "maintaining the rural population and ensure rural area city level equivalent to the availability of a variety of social infrastructure services" measures were taken to achieve and/or planned for the implementation of measures to:-streamlined and develop social infrastructure (education and training, health and social security system, culture, etc.) and cleaned up and maintain historical and cultural/heritage (under the public investment programme); -create and support local initiatives in economic and social life in the territory, to facilitate the activation of cooperation of the population's social and economic activities in the territory and reduce the izslēgtīb of the various social groups of the rural villages/communities; -create and support a variety of social groups/organizations of social assistance issues and initiate economic activities in rural areas (according to the welfare sector investment strategy 2003-2007); -improve and streamline local administration, regional administrations by ensuring the circulation of information, and reduce the informational nature of the izslēgtīb in the periphery (in accordance with the LR law on regional development and administrative and territorial reform law). The target "to ensure sustainable rural resources and effective use of, maintaining and preserving the tidy and biologically diverse countryside and landscapes for future generations" to attain the adopted legislation and strategic documents-LR likumi18, MKnoteikumi19 and implemented the national biological diversity program (1999). Latvia has acceded to various international konvencijām20 and going national harmonization of national legislation with EU directives in the field of the environment 21-all kinds: business of green and environmental protection requirements of housekeeping that leaves a minimal negative impact on the ecology of the rural environment (nature, air, climate, soil, water) and maintain a tidy fields of characteristic Latvian landscapes; -maintain, protect and promote both nationally and internationally recognised diverse wild populations, species and habitats; -protect and maintain both nationally and internationally, cultural and historic amenities (parks, nature parks, coast, etc.); -protected, replicated and promote local origin important varieties of agricultural crops and breeding animals, which are nationally and internationally recognised as threatened populations. Latvian rural development strategic objectives is currently used in both the national budget and foreign aid, co-financing for different applications, and target investments and private equity, where the binding occurs with different support programs or changes in laws or procedures. 5.2.2. Financial support for agricultural development support to 5.2.2.1. national subsidy programmes. The competitiveness of national agricultural development provides support in the form of grants. In accordance with article 16 of the law on Agriculture subsidies must not be less than 2.5 per cent of the annual budget total expenditure is covered by grants from general revenues (see. 6. image). The purpose of subsidies, like all the agricultural policy goal is to create agriculture industry, which could be integrated into the single European market and the Andean world produced according to market requirements, the production of goods in competition with other countries for the product quality and production costs. To achieve this aim, certain general State aid activities:-manufacturing technological modernization; -quality control throughout the production and the sales process; -product promotion and market development. Figure 6. The total amount of grants 1994-2001 (million. LVL) source: LADA and ZM subsidy programmes of Many remains unchanged, is resumed in previous years also canceled the program. The following support: support for liming and reclamation, support crop production, livestock production, support credit guarantee fund, support, technical support, milk production competitive, fisheries and other support. 21. the year 2000 was founded in March of farmers organizations Cooperation Council (the status of certain agricultural and rural development Act), which is represented in the entire agricultural sector of non-governmental organizations and associations. The Council is an advisory status, and its mission is to provide consultation and information exchange between farmers ' organizations, the Ministry of agriculture, other governmental, non-governmental organizations and foreign partners. 2001 26 February, established a public organization marketing Council. Marketing combines the organizations interested in Latvian agricultural and food marketing strategy and marketing. Marketing combines the Latvian agricultural and food producer civic organizations to promote local produce sales on the domestic and foreign market. Marketing Council's main role is to coordinate and combine the Latvian agricultural and food marketing organization interested in a job in designing merchandise for grocery and organizing events for the better recognition on the buyers. Quality product trademark "quality product in Latvia" is created with the objective to raise the Latvian agricultural and processed products competitiveness in the internal market, promoting local agricultural production, the share of recognition and sales. Agricultural long-term investment lending program. Faster agricultural development company will provide the BOM accepted agricultural long-term investment lending program that basic tasks is to create farms affordable long-term financing deals, accelerate investment in optimal size of farm building and promoting the competitiveness of agricultural holdings. The realization of the programme involves the Latvian mortgage and land bank. The objective of the programme is to provide Latvian farmers to receive cheaper credit resources. Lending in particular contributed to the subsidy program and the implementation of the SAPARD agricultural production development and technological modernization, which created a demand for credit from the farmers ' side. Agricultural land acquisition lending program. The objective of the programme is to apply the mechanisms of effective agricultural land market, to support the competitive, EU standards-compliant production area and land consolidation of development, promote the effective management of agricultural land. The realization of the programme involves the Latvian mortgage and land bank, which provides long-term (15-25 years) credits for the purchase of agricultural land. 5.2.2.2. support for rural economic diversification into non-agricultural business development programme (NUAP). The overall objective of the programme is the promotion of rural economic development, supporting non-agricultural business, improving infrastructure, improving rural landscape according to business needs and respecting the environment. The realization of the programme involves the Latvian mortgage and land bank loan and grant allocation of rural development funds for the granting of the guarantee, if the host does not have sufficient credit guarantee. Involved in the regional development agency of specialists in local initiatives, training and entrepreneur. 5.2.2.3. The credit guarantee business has created a field of State JSC "rural development fund" (hereinafter referred to as LAF) granting guarantees to entrepreneurs – borrowers, if not enough kredītnodrošinājum. Since 1997, when LAF started to guarantee loans granted loan guarantees totaling 466 of 4, 83milj. On the basis of these assurances. LVL rural entrepreneurs received loans totaling about 16, 10milj. LVL. Starting with the year 2002, LAF also guarantees the SAPARD programme and long-term investment lending program may be credited. 5.2.2.4. the special pre-accession programme for agriculture and rural development (SAPARD), the EU Agriculture Commissioner f. Fischler 2001 December 6 approved the decision (2001/885/EC) on the transfer of management to the Republic of Latvia. The decision was published in the official journal of the EU in 2001 12 December (L327/45), which means that the rural support service (LADA) accreditation is recognized by the Commission. Total public financing for the 2000-2006 period is 203milj. EUR, of which EU funding is 152milj. EUR. 1. The support programme "investments in agricultural enterprises":-1.1 Sub-programme. "machinery, equipment and modernisation of buildings"; -Sub-programme 1.2. "afforestation of agricultural land; -The subprogramme 1.3. "land-use planning"; 2. The support programme "agricultural and fishery products processing and marketing development subprogramme 2.1.":-"agricultural and fishery products processing and marketing optimization"; 3. "a programme of support for rural economic diversification, encouraging alternative sources of income":-3.1. Sub-programme "diversification of the rural economy by promoting alternative sources of income"; 4. The support programme "general improvement of rural infrastructure": the subprogramme 4.1-"general improvement of rural infrastructure"; 5. The support programme "environment friendly farming methods subprogramme 5.1.":-"organic development"; -Sub-programme 5.2. "biodiversity and rural landscape conservation"; -Sub-programme 5.3. "reduction of agricultural run-off"; -Accompanying measure 1. "training"; -Accompanying measure 2 "technical assistance". 5.2.2.5. The SME lending program in early 2000 was launched the small and medium enterprises (SME) lending program aimed at small and medium enterprises financing, stimulating job creation and start-ups and insufficient security for the project financing. Was involved in the implementation of the programme of the Latvian mortgage and land bank (LHZB) to loans to enterprises with preferential conditions. 5.2.2.6. the partnership programme in September 2000 in Latvia was launched in the UK Department of international development-funded project in the Baltic States, known as the rural partnership program. Project period of 3 years, and its total funding is 1, 9milj. pounds sterling (about 1, 71milj. LVL), and it includes Latvia, Lithuania and Estonia. The project objectives are:-to reduce poverty and social izslēgtīb at atpalikušāk in the territories of the Baltic States by promoting rural and regional development; -to promote socially and economically excluded groups into the local community development activities, in particular through partnership and participatory methods and capacity building of local authorities. The project covers only the poorest rural areas of Latvia, part of Latgale. In the course of the project realization is for a small support fund of the district partnership projects in the community. Financial resources are limited and are allocated for community social activation only some rural municipalities. Project implementer provides that after the project of the municipality will be able to better analyze the local needs, plan and realize solutions with the help of partners, will be developed on the basis of local development projects and introduced jointly in cooperation with local initiative groups, non-governmental organizations, municipalities and the private sector, as well as increased knowledge of the EU structural funds and their use. 5.2.3. the specific actions of rural development policy for the development of less favoured areas 5.2.3.1. status in order to compensate for naturally faces the agricultural production process and hence the efficiency of production and farm income affects the conditions of Latvia-specific similar agro climatic factors: a short growth and crop harvesting season; a large amount of rainfall to sowing and harvesting period, which alternate with large drought crop vegetation period; in late spring and early autumn frosts; as well as the dependence of the soil drainage system; compared with European countries, relatively low soil fertility, which lowers crop yields; excessive soil acidity, wind, water and agricultural soil erosion; in late spring and early autumn frosts that farmers, particularly in the production of plant products, high production costs because the land required to improve soil quality, drainage systems and maintain a polder pump station; relatively short period of time to ensure the sowing, planting, harvesting; ensure the cereal drying and large warehouse building of various special chemicals URu.tml. storage. Manufacturing costs in the livestock raising livestock holding pens during the autumn, winter and spring period. So you need a more expensive production buildings and homes, livestock, manure storage warehouse construction and maintenance, proper technique and its use costs; feed preparation and storage in warehouses and stores. The Latvian countryside characteristic rare occupancy and the growing field of human emigration to the cities affect that rising economically, especially in the sparsely populated "economically blank", the proportion of the territory where the social and economic infrastructure maintenance is becoming more expensive. Due to low income or even losses in agriculture, associated with similar agro climatic conditions are insufficient financial resources for investment in manufacturing productivity and efficiency improvement and development into non-agricultural activities. This is the reason commercial agricultural disruption and subsistence farming to continue. The economically active population, especially one that can provide commercially viable business development and management, emigration to the central part of the State to limit the potential for economic development. A rare population and natural farming limits the type of farmers in commercial production and non-agricultural service sales opportunities in the local market, which serves as a replenishment source farm income. Commercial and farm management areas as a result of the reduction in lower quality land management, rose bushes of abandoned and overgrown areas, degrade the LIZ total rural landscape, and its maintenance becomes increasingly dependent on still existing farm operations. Because of the high costs of the individual takes place gradually in the form of centralisation of social services in cities. The national rural development policy problems so far were resolved using:-the national subsidy after the graduation of LISA cadastral values the differences in different regions, thereby promoting land management and farming areas with a variety of similar agro climatic conditions; -Special assisted area detection, enhanced economic development and special financial aid (loans, grants, etc.) to the existing operators in these areas, t.sk. farmers through financial aid programs – NUAP, SMEs (see previous chapter). Regulation No 1257/1999, article 13-21 is designed for dedicated support system less developed Member States of support for rural areas. In accordance with article 17-21 of less favoured areas (LFA) areas may be considered: (a)) in mountain areas (article 18); (b) agricultural production) less favoured areas (article 19), of which:-natural conditions is low productivity, and consequently, the agricultural sector in economic activities in the area are below the averages in the agricultural sector as a whole; -the land is with a difficult soil, low productivity and limited potential, which can increase, investing, or primarily through extensive livestock production; -is a small or dwindling population, the maintenance of which is primarily dependent on agricultural activity, but the number decreased accelerated rate, endangering the region's viability and occupancy. (c)), which is the specific handicaps (article 20). Of Regulation No 1257/1999, article 19 74.4% of the national territory or 48, 05tūks. km2, which includes agricultural land, forests, inland waters, bogs, building site URu.tml. are defined as less-favoured areas in Latvia. This area contains 72.7% or 1.81 million ha of agricultural land, including arable land, meadow, pasture, outdoor plantings. In accordance with article 19 and the EU guidelines for the identification of the territory of the MLA was used four indicators to determine the eligibility of each of the local authorities (see the MLA 19. table). To establish the Latvian ML used indicators, which provides in article 19 defined criteria – quality and agricultural productivity, rural income level and their dependency on agricultural activity, population. Soil quality and productivity in Latvia is measured in balls. The limit used to determine the MLA, has 38 Ballroom. Having regard to the climatic conditions of Latvia, it is considered to be the minimum level of fertility in relation to agricultural land, to ensure the commercially viable Agriculture (Boruk, a.., 1996). Further information regarding the local levels see the annex 1 map. The rural population for determining income municipal level best available source is income tax collected per capita. Other indicators, such as income or GDP per person of persons, is available only to the district level. Taking into account the significant differences in the income of the big cities and communities, almost all the rural area under 77.5 LVL per capita limits. Further information regarding the local levels see the annex 1 map. Population density in Latvia is one of the lesser's most highly populated countries in Europe. Given the high concentration of the population in the vicinity of Riga, most rural areas below the population to 18.1 sq. km border. Further information regarding the local levels see the annex 1 map. Also fixed the ML has significantly dependent on agricultural production, whereas almost 28.9% of the population is engaged in agricultural production. Further information regarding the local levels see the annex 1 map. In the light of recent events in connection with the EU less-favoured area status, the Latvian authorities reevaluate the following area status for the next programming period 2007-2013. Involved in the agriculture community will be fully informed about the planned changes to the less favoured area status. 19. table. For the purpose of determining the Latvian ML indicators indicator guidelines for the determination of certain indicators ML on average in Latvia, in Latvia, enforceable criteria ML on average in Latvia average in Latvia (no ML) criterion 1-low productivity of soil quality index (balls) Physical indicators per unit =