European beech (Fagus sylvatica L.) timber value is high in southern Europe due to a great demand from Asia. Since the timber market is global, over a long time we can expect gradual increase in demand also in other countries, including Latvia, where climatic conditions becomes increasingly more suitable for this species due to ongoing climatic changes. In order to develop recommendation for the use of beech in our country, the aim of the study was to assess the potential financial gain from Fagus sylvatica stands in Latvia. Assortment structure, defined by topdiameter and length, as well as their prices was set based on the literature survey. Results showed higher income from older (115 years) than form younger (58 years) stands: 9108 EUR haE-1, and 7939 EUR haE-1, respectively. However, the opposite was true for the net present value (r = 3%): 1423 EUR haE-1 and 304 EUR haE-1, respectively.

Private forestry and forest owners in Estonia have become more profound research subjects in the last decade. One of the most common research topics has been the identification of private forest owners’ (PFO) values and objectives. However, much of the existing studies rely on quantitative data which usually describes more active owners and owners whose forest property is larger than the average. Thus, the aim of the present study is to identify the management objectives and motives of non-industrial private forest owners using a qualitative approach – something that has been rarely used in forest owners’ research in Estonia. Eight forest owner interviews form the dataset, which is analysed in order to identify PFO forestry objectives and forest use. The results of our qualitative content analysis show, in principle, similar generalized forest owner types of motivations. However, the qualitative approach opens up these generalized types even more. Income motive goes beyond just continuous financial returns and means in many cases a sense of security. Forest ownership is closely linked with “home” interpretations. We conclude that qualitative methods in small-scale forestry research provide new insights to forest ownership and its meanings to private forest owners.

It is important for every country that its territory develops evenly and in a balanced way. In the European Union (EU), a special focus is placed on the development of rural territories, as predominantly rural regions in the EU represent 57% of the territory and 24% of the population. In Latvia, the development of rural territories depends on economic growth in the key industries for the rural areas – agriculture and forestry, and logging that contributed to 4.3% of GDP and employed 9.5% of the labour force in 2011. Therefore, the research aim is to perform an assessment of the administrative territories of Latvia. The research analysed the municipalities of Latvia in terms of population and change in the population as well as in terms of revenue and income and change in the revenue and income. The research found that in Latvia the best economic performance was demonstrated by the municipalities with a population in the range of 8-12 thousand. In the period 2004 – 2014, the number of residents decreased by more than 20% in 49 municipalities of Latvia. Such municipalities are located far away from the capital city, and poor economic performance indicators with a prevailing primary sector were typical of the municipalities. The municipalities with higher tax revenue had larger populations, which increased in the period of analysis, and such municipalities are located in the vicinity of Riga and high economic performance indicators were characteristic of them.

Urban-rural income convergence provides an opportunity to reduce the income inequality, ensuring cohesion and increasing economic output. The results show that urban-rural income convergence is a continuous tendency in the EU; the urban-urban income gap declines – rural population received 79% of net income of population living in cities in 2017 (in 2010 it was 69%). The rural population accounts for 27.3% of the EU and any changes have notable impact on the rest of the economy. Nationally the urban-rural income convergence dramatically differs amid the EU countries. In order to model an impact of urban-rural income convergence, a comparative-static approach that involves an input-output model is applied. Two scenarios are estimated for Latvia’s economy: rural net income in Latvia is assumed to be 89% of cities net income (as in the Euro Area average) in both scenarios, in the first one the saving rate is constant; in the second rural households anticipate the additional net income as a gift (saving rate for extra net income is equal to zero). The results of the first scenario argue that households final demand expenditures increase by 4.5%, output by 2.7%. The largest increase of output is modelled in chemical products (8.9%), paper products (8.7%), electrical equipment (6.2%), pharmaceutical products (6.1%), and textile (5.8%) industries. In the second scenario, the output increase: 3%. The results certify that the increase and convergence of income in rural areas are important even in advanced economies, such as the EU countries. The national and EU policies are welcome and can give notable impact on economic growth.

The objectives of this study were to: (a) estimate milk and beef yields obtained from cows grazing pastures in different stages of degradation; (b) estimate income losses as a result of the degradation process; (c) estimate the proportion of pasture areas found in each stage of degradation within the six administrative regions of Honduras; and (d) identify different strategies and costs to recuperate degraded pastures. Data came from two surveys executed during a workshop carried out in March 2004. The subjective perceptions of 25 livestock producers and 8 extension agents of the 6 administrative regions of Honduras were obtained to estimate the losses of animal productivity within the farm, region, and country. A 4-level scoring of pasture degradation was defined - where 1 was for the best condition (i.e., non-apparent degradation) and 4 was for the worst (i.e., severe degradation). Regressions, explaining the animal productivity losses at each level of pasture degradation, were generated according to the subjective and descriptive information. Comparing the perception of degraded areas, producers considered that in Honduras the extent of pasture degradation is lower compared with extension agents. According to producers, 29% of the pasture area in the country is at Level 1 (i.e., no degradation) compared with only 19% of extension agents. Moreover, producers perceived a lower proportion of pastures in severe degradation (i.e., Level 4, 27%) in comparison with almost 31% perceived by extension agents. In the intermediate degradation levels (i.e., Levels 2 and 3), both groups were similar. The country is forgoing milk and beef production due to the process of pasture degradation. According to estimations from producers, Honduras is loosing 284,106 tonnes of fluid milk and 48,271 tonnes of beef (live weight) annually for having pasture areas in Level 4 (i.e., severe degradation), equivalent to 48% of the annual production of milk and to 37% of beef. In economic terms, these losses in milk and beef yields are worth US$63 and US$48 million annually, respectively. The perception of extension agents is even more alarming. Honduras could produce 66% more milk and 50% more beef annually if livestock producers renovated their pastures before they reached level 4, equivalent to US$94 million in less revenues from milk sales and US$66 million from less beef sales. Both groups perceive that pastures, in an early stage of degradation (i.e., Level 2), are more economical, practical and rapid to recuperate. Also, as the process of degradation advances (i.e., to Levels 3 and 4), both cost and time of recuperating such pastures increase significantly. According to producers, the recuperation of a pasture from Level 4 to Level 1 costs $140/ha and takes almost a half year (i.e., 5.6 months). Extension agents estimate this cost of recuperation 27% higher ($178/ha) with 5% more time (i.e., 5.9 months). Producers perceive that grasses spend proportionately less time in going from Level 1 to 2 (i.e., 2.9 years) and as the process of degradation continues, pastures remain longer at advanced degraded levels (i.e., 3.1 years in going from level 2 to 3, and around 4.0 years in going from level 3 to 4). Moreover, producers think that the average productive life of improved grasses is about 10 years, while extension agents think that grasses degrade faster, with an average productive life of 8.4 years, 16% less than producers. According to producers and extension agents, pastures degrade at an annual rate of 10% and 12%, respectively. With these rates, Honduras would maintain its current level of degradation between levels 2.48 and 2.65. However, the renovation of pastures at an annual rate of 10-12% does not solve the problem, but maintains it. Producers argued that the current financial situation does not allow the necessary cash flow to renovate their plots, and the option of credit is not viable since real interest rates are high (ie., 10%). After simulating this scenario, it was demonstrated that farmers are able to generate the additional income necessary to pay a credit, but only if this credit is taken with interest rates similar to those found in the international market (ie., 3%). In order to eliminate the degraded areas found in Level 4 at the country level, it is necessary a one-time investment of $57 million according to producers and $84 million according to extension agents. The benefit obtained from this investment would result in a daily increase of 156,000 liters of milk and 26,500 kilograms of beef, equivalent to $22 millions/yr. Therefore, there are significant economic and productive incentives for the private and public sectors to develop and execute a plan of action to recuperate pasturelands in advanced stages of degradation.

The results of synthesis and analysis regarding the structural diversity of farms, their differences, divergence and development in Jelgava district and Zemgale agricultural region are expanded in the article. Commercial farms and semi-subsistence farms are particularly studied on the basis of farm accountancy data.

The necessity of the research is to determine by the fact in Latvia there is a strong growth in bank credit to the private sector like in several transition countries in Central and Eastern Europe. Its implications for macroeconomic development and financial stability can be ambiguous. The aim of the research is to find possible scenarios for positive credit (to private sector) growth implications for macroeconomic development and financial stability in Latvia. Attainment of the objective comprises analysis of available statistical data about Latvia, identification of factors affecting bank credit growth following up some recent researches and modelling scenarios how the credit growth could facilitate further economic development in Latvia. This paper presents only recent trends in bank credit to the private sector in Latvia and evaluates some of the factors affecting these trends. It does not provide updated practical models and scenarios because the research has been started only recently.

The study examined livelihoods and wealth distribution among farm households in western Kenya. Stratified random sampling was used to select 252 households from eight districts. Focus group discussions were used to collect complementary community-level data. Results indicate that average household size was seven persons. The cropping system was over 70% mixed. Agriculture was the main source of livelihoods. Labour was mainly allocated to crop enterprises, with household heads allocating > 50% of their labour to it. Maize (Zea mays) and common beans (Phaseolus vulgaris) were the most important staple/traded food crops. Poultry, followed by cattle dominated livestock enterprises. Few households diversified into small businesses, employment and artisan to enhance livelihoods. Despite this, 5 – 95% of people remained food insecure. Lack of cash and limited land access were the most important factors constraining agricultural development. Although, most households preferred selling produce in markets where prices were better, many not only sold produce but purchased inputs from nearest towns due to high costs of accessing better price markets. Wealth inequality among households was very high, with household wealth Gini-coefficient of 0.52 and per capita wealth Gini-coefficient of 0.55, calling for better interventions targeting to reach most vulnerable/marginal groups and create all-inclusive opportunities.