Implementing the land reform, territories of farms were quite often formed of several - up to 20 - land plots, frequently with disadvantageous borders. With reorganization of production of the farms, rural development and activities of land market, importance and tasks of rational territory organization will grow. Besides, it can be forecasted that, as a result of land rent and further buy-sell and other transactions, many new farmland properties and land uses are going to appear which might not correspond to the requirements of rational territory organization. It indicates that importance of land consolidation, e.i., enterprises for elimination of land fragmentation and other deficiencies of territorial arrangement, is going to increase further.

The implementation of land reform has influenced the formation of property structure. The main procedures of land reform activities are stated in Estonian legislation. However, the provisions for determining the area and the boundaries for properties to be formed in the course of land reform are stated in legal acts in an unsystematic way. The aim of this study is to systematize the parcel area and the boundaries determination procedures that are used in the course of land reform for property formation. The examination of the relationships among different property formation procedures are part of this study. The methodology of the study was a systematic analysis of the property formation procedures provided by the Estonian Land Reform Act. The results of the study show that property formation during the course of land reform can be easy and simple in some cases. In other cases, property formation may be complicated. The determination of the area and boundaries of parcels to be formed is often an issue of discretion in such cases. The results of the study support the basis for better understanding land reform outcomes. It gives some explanation of the land fragmentation that is one of the outcomes of land reform. The results of the study also serve as a basis for future studies of land reform issues.

Lease of farm lands is the most important process of proprietorial changes in the state’s agriculture sector. As an effect of turbulent socio-economic conditions and legal solutions resulting from country’s agricultural politics, its share in land’s management has significantly shrunk. Currently there is around 1.1 million ha of land in lease, which makes up for 23% of the land acquired by the Agricultural Property Agency of the State Treasury. After 23 years of 3.2 million ha of lands acquired by the Resource (68.5%) has already been managed permanently and 2.5 million ha (53%) have been sold. Lease allows fast temporary management of the farm lands acquired by the State’s Treasury, and a buying- out, mostly by the hitherto leaseholders, afterwards. The range and the structure of area of sales agreement of farm lands indicates that it was acquired by a relatively small group of buyers. Such a structure of permanent management of the State’s Treasury’s farm lands might bring some hesitations and questions on rationality of the proprietorial changes from the social interest view and ethics.

Before Latvia initiated the transition to market oriented economies, large collective units, which had the right to use the land, used most of the land but were not necessarily the landowners. This situation provided a special starting point for the return to the market economy in the agricultural sector. The government of Latvia decided to implement restitution of land ownership rights to former owners basing on historical boundaries as a method to privatise and open the land market. There were two processes going on at the same time: the restitution of private ownership rights to land, and the break-up of collective productive units. The restitution processes are the starting point for the development of land markets. Moreover, it represents a necessary condition to open land market. However, the place at which this land market opening is occurring depends on the way each government implemented the land reform.

Land fragmentation is a problem in Europe, and Estonia is not an exception in this respect. Parcel size is widespread characteristic to describe the level of fragmentation. The aim of the study is to find out if there is difference of fragmentation among different groups of landholdings by size. In order to characterise land fragmentation, were calculated the Januszewski and Schmook indexes, average parcel size and average distance from the gravity centre of each landholding to its parcels. Results showed a high level of fragmentation of Estonian agricultural landholdings. There is a high variety of fragmentation inside and among the investigated groups. The average value of Januszewski index for all groups is 0.626, and the average value of Schmook index for all groups is 0.462. The average parcel size for all groups is 7.02 hectares and average distance from the gravity centre of each landholding to its parcels for all groups is 1.57 kilometres.