The aim of this research is to evaluate the spatial differences of the agricultural economy of Latvia during the First Republic by using spatial autocorrelation calculations. Morans’s I coefficient of spatial autocorrelation is used to describe the spatial relations of the analyzed indicators. The obtained results show that Moran’s I for more than half of the obtained parameters is greater than 0.5, which indicates a rather high spatial autocorrelation. It was observed that variations of the spatial autocorrelation values can be explained by what affects these parameters. Spatial autocorrelation is significantly higher for those parameters whose value depends mainly on the variety of natural factors (land use, specific crop share). Moran’s I value for those parameters whose values depend on the actions by the local government in rural parishes is considerably lower (for example, budget allocation, etc.) A large portion of the examined parameters characterizing the level of parish economic development show the biggest differences when comparing Latgale with the rest of Latvia. In the case of such regional differences, Moran’s I is usually within 0.5–0.7, indicating moderately close spatial autocorrelation. For many indicators regarding agriculture and land use many southern parishes within Jelgavas and Bauskas county show a very considerable difference from the rest of Latvia showing much higher rate of agricultural production.

The aim of this research is to evaluate the spatial differences of the agricultural economy of Latvia during the First Republic by using spatial autocorrelation calculations. Morans’s I coefficient of spatial autocorrelation is used to describe the spatial relations of the analyzed indicators. The obtained results show that Moran’s I for more than half of the obtained parameters is greater than 0.5, which indicates a rather high spatial autocorrelation. It was observed that variations of the spatial autocorrelation values can be explained by what affects these parameters. Spatial autocorrelation is significantly higher for those parameters whose value depends mainly on the variety of natural factors (land use, specific crop share). Moran’s I value for those parameters whose values depend on the actions by the local government in rural parishes is considerably lower (for example, budget allocation, etc.) A large portion of the examined parameters characterizing the level of parish economic development show the biggest differences when comparing Latgale with the rest of Latvia. In the case of such regional differences, Moran’s I is usually within 0.5–0.7, indicating moderately close spatial autocorrelation. For many indicators regarding agriculture and land use many southern parishes within Jelgavas and Bauskas county show a very considerable difference from the rest of Latvia showing much higher rate of agricultural production.

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.