The purpose of this article is to establish the social and/or economic impact of the implemented Cohesion Fund (CF) projects on development of regions of Latvia. Three tasks are addressed to achieve this goal - to study CF projects by regions; analyse distribution of funding by sectors of economy and their compliance with CF objectives; to draft recommendations for improving the absorption of funds and achieving the goals of the European Union (EU) regional policy. The article consists of three chapters, an introduction and conclusions. New scientifically grounded recommendations are developed for improving socio-economic impact of the CF in Latvia. The key recommendation relates to the EU involvement in dealing with problems of increase in costs, namely - by proving that the increase in costs affects several of the new EU member states or Community regions, the EC will have to take part in addressing the problem. Further assessment of the socio-economic impact of the CF on development of regions of Latvia requires additional research.

Agriculture is a unique sector, because it is associated with negative outcomes stemming from imperfectly predictable biological and climatic variables. These variables include natural adversities (for example, pests and diseases), climatic factors are not within the control of agricultural producers. So in agriculture it is very important to identify and evaluate risk, only then decisions made in farm will bring profit and other positive results. Scientific literature distinguishes a lot of methods for risk evaluation, but it is not clear what methods could be adapted in agriculture sector. This article presents main risk types in agriculture and their features as well as introduces most popular risk evaluation methods and their possible use in assessing risks in agriculture.

Agriculture more than any other branch of production is influenced by various natural, anthropogenic and economic risk factors on which the profitability of production and preservation of the environment in rural areas depend. The prerequisite of prevention or alleviation of risks is their all-round knowledge and consideration. In order to understand the nature of risks, they will be dealt with in the present study on the example of the cultivation of the most common cereal in Estonia - barley. The difference in barley yields, resulting from the pedoclimatic coditions of Estonia, may be 2-4-fold in different regions and in different years. At the same time, differences in the profitability of barley cultivation, depending on economic factors and on the specificity of production, may be up to 6-fold.