The main reason of land fragmentation in Latvia was the restitution of ownership rights to former landowners or their heirs, as well as the land acquisition by other persons in the process of the land reform. As a result the ownership structure was obtained which is not competitive in the aspect of production efficiency. Different instruments as land consolidation, land reallotment and others can be applied for the reduction of land fragmentation. The reduction of land fragmentation should play an essential role in the use of the land corresponding to the spatial development plans which determines perspective land use. Therefore the improvement of the ownership structure should be one of the stages of land use planning.

The latest land reform in Latvia has substantially altered the structure of use of farmland leading to a great number of very small and fragmented agricultural holdings, yet, in terms of occupied total area and UAA, medium size (10.0-50.0 ha) and slightly larger (more than 50.0 ha) land holdings dominate. In Latvia the number of agricultural holdings tends to decline. On the contrary, the average UAA per agricultural holding rose (by 66%), reaching 23.2 ha in 2010. One can conclude that positive structural changes take place in the agricultural industry – the number of small farms has declined and the number of and the area farmed by large marketoriented farms has risen, thus the difference between the sizes of land holdings that emerged during the land reform and the land areas farmed by agricultural holdings has increased.

The article deals with land consolidation solutions in three rural territories of Latvia, creating perspective monolithic land plots in order to prevent land fragmentation and improve the structure of land properties. Although all three project territories are located in geographically analogical circumstances, established structure of land properties, their infrastructure and location in relation to Riga and other cities and towns prescribes different objectives of land consolidation. The proposed land consolidation methodology could be powerful tool in hands of local municipalities in order to promote development of to rural area in general, agriculture and other sectors.