ROLE OF AGRI-ENVIRONMENT SUPPORT PAYMENTS IN DEVELOPING THE RURAL ECONOMY IN LATVIA

The research aim is to assess the effects of the "Agri-environment measures" under the Rural Development Programmes for 2004-2013 on and its relation to various socioeconomic indicators in Latvia in the period 2005-2010. To achieve the aim, first, the indicators of this kind of support in Latvia were assessed and its relation to other socioeconomic indicators of Latvian municipalities were analysed. The purpose of agri-environment support measures is to encourage farmers to protect and enhance the environment on their farmland by paying them for the provision of environmental services. The funding for this, measure totalled Latvian lats (LVL) 139.1 mln in the period 2005-2010 or on average LVL 27.8 mln a year, and its role in the total amount of support stabilised. Yet, this support promoted the use of agricultural land and affected the total number of grazing livestock as well as the number of employees in agriculture. Farmers in 37 municipalities in Latvia received significant agri-environment support payments; it confirms the responsibility of farms in tackling environmental problems.