The structural changes in Latvian Agricultural Sector after application of CAP reform
2004
Jasjko, D. (Latvian State Inst. of Agrarian Economics, Riga (Latvia)) | Miglavs, A. (Latvian State Inst. of Agrarian Economics, Riga (Latvia)) | Feldmans, D. (Latvian State Inst. of Agrarian Economics, Riga (Latvia))
On June 26, 2003 the Council of Agriculture Ministers of the European Union reached an agreement on a fundamental reform of the common agricultural policy, which essentially might affect the development of Latvian agriculture and rural areas after accession. In order to evaluate possible effects of the implementation of CAP reform on Latvian agricultural sector, the analytical study was made in the Latvian State Institute of Agrarian economics, using two different analytical tools based on economic accounts for agriculture (EAA) approach and on application of the Latvian Agricultural Simulation model (LASIM). The present article describes the results of quantitative assessment of the CAP reform measures (mostly de-coupling and the enhancing of competitiveness) and its impact on sector income and structure of agricultural production in Latvia. In addition, the core of the CAP reform and its possible application in Latvia are shortly explained. The description of policy scenarios for development of Latvian agriculture, as well as methodological background of economic analysis carried out, are also reflected in the article.
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