Payments for less-favoured areas in Latvia

Abstract

The research aim is to assess the effects of the measure “Payments to farmers in areas with handicaps, other than mountain areas” under the Rural Development Programme 2007-2013 on and its relation to various socio-economic indicators in Latvia in the period 2004-2010. To achieve the aim, first, the indicators of this kind of support in Latvia were assessed and its relation to other socio-economic indicators of Latvian municipalities were analysed. The purpose of this support measure is to promote the maintenance of rural landscapes and provide and stimulate sustainable economic activity by employing environmentally friendly methods in the territories in which agricultural activity is handicapped. The funding for this measure totalled LVL 2001.5 mln in the period 2004- 2010 or on average LVL 26-27 mln a year, and its role in the total amount of support decreased, yet, this support promoted the use of agricultural land and affected the total number of farms and the number of crop, grazing livestock, dairy, and mixed livestock farms as well as the number of employees in agriculture and the number of grazing livestock.