Analysis of Latvian Land Fund Transactions With Agricultural Land

Abstract

In order to promote the preservation of agricultural land and the sustainable use of its areas for the needs of agricultural production, on 1 July 2015, the Latvian Land Fund established by the state started operating in Latvia. The Land Fund was established to promote the preservation and use of agricultural land for agricultural purposes in Latvia in the amount of not less than 2 million hectares, involving approximately 0.4 million hectares of agricultural land not previously actively used in active agricultural production. The operation of the Land Fund is regulated by the Law on Privatization of Land in Rural Areas and the regulations of the Cabinet of Ministers on transactions with agricultural land. Development Finance Institution ALTUM has been approved as the land fund manager. The Latvian land fund consists of accumulated agricultural land, which is further leased, sold or changed. The main activities of the Land Fund are the purchase of agricultural land, the lease of agricultural land and the sale or exchange of land. The Land Fund buys property from existing owners who are no longer able or for any other reason unable or unwilling to continue to use agricultural land for agricultural activities themselves. The Land Fund is looking for a buyer or manager for the purchased property. For unleased and unsold properties, the fund organizes management - mowing, and bush removal with the aim of keeping agricultural land in good condition, cleaning up agricultural land and returning it to agricultural circulation. The aim of the study is to analyze the Latvian Land Fund's transactions with agricultural land since the establishment of the Land Fund.