The Farmers' Council emphasizes the need to conduct an economic assessment to determine the maximum farm size

The association "Farmers' Parliament" has reviewed the statement made by the Reform Party yesterday, May 22, regarding the proposal for the draft law "On Land Privatization in Rural Areas" developed by MP Zanda Kalniņa-Lukašēvica and expresses its confusion over the statement that the representatives and leaders of the Farmers' Parliament have expressed conceptual support for the proposal developed by the MP.

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Deputy Chairperson of the Farmers' Parliament Maira Dzelzkalēja: "We have not supported and will not be able to support the proposal for a maximum amount of agricultural land of up to 500 hectares per individual or legal entity. We have met with the MP and discussed the draft law, but the only common denominator we have come to is that we and the MP share a common desire to ensure that agricultural land remains in the hands of local farmers, and not becomes the property of foreign funds. During the meeting, we explained that this is not a draft law for the formation of Latvia's agricultural strategy, because the purpose of this draft law is to limit speculative transactions in the land market. If the MP believes that 500 hectares is an appropriate maximum farm size in Latvian conditions, a justification from the Ministry of Economics, which is governed by this party, would be necessary, because in order to implement such extensive restrictions on companies, a well-founded assessment of how it will affect the national economy is required. In agriculture, one should not frivolously flaunt numbers and unanalyzed proposals. "We must not reduce the already difficult competitiveness of Latvian farmers in the common European market. The law must be adopted as soon as possible to stop land mismanagement. For 23 days now, any foreign individual has been able to purchase Latvian agricultural land and this absurdity must be ended as soon as possible."

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The Farmers' Assembly recalls that the proposal of the sector's policy maker - the Ministry of Agriculture - was a 3,000 ha limit, which the ministry had also justified, and points out that if the Reform Party wants to shape agricultural policy, it should take on the leadership of the sector. M.Dzelzkalėja: "Annual increase in farm area is a good idea, but it is clear that it is very difficult to administer and adapt to real life." If a farm, for example, has 500 hectares, but a 50-hectare property is for sale next door, then it will be possible to buy it, but not the 55-hectare property. Similarly, it is unclear what fate would await the 394 farms that manage more than 500 hectares. We wonder what will happen to these farms and how this will affect the further development of the farms and the lives of the company's employees in the countryside, for whom this is often the only job within a 20 km radius."

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The proposal for the draft law "On the Privatization of Land in Rural Areas" developed by Zanda Kalniņa-Lukašēvica provides for setting the maximum amount of agricultural land for one natural or legal person at 500 hectares, in addition to which it will be possible to purchase the amount of land that the farmer manages at the time of the law's entry into force. Each year, a farmer can expand his farm by purchasing additional agricultural land for the development of production up to 10% of the existing area. The proposal provides that the total area of agricultural land owned by one natural or legal person may not exceed 2,000 hectares.