AGRICULTURAL DEVELOPMENT IN LATVIA AFTER JOINING THE EUROPEAN UNION

Since 1990 significant structural changes have taken place in Latvia. First of all, the reestablishment of an independent state in 1991 and the accession to the European Union (EU) in 2004. Joining the EU provided free flow of goods, finances and individuals, a single system of legal acts as well as a trustful image of the state for foreign investors. In Latvia, 60% of the EU funds are allocated for agriculture and rural development, thus achieving the objective of producing food adequate for consumers' purchasing power and ensuring agricultural commodities are available for their processing. Financial aid for primary industries also results in support for the whole society and other industries from which necessary resources and commodities are purchased. After joining the EU, the growth of the agricultural industry was observed owing to support payments. As a result of the EU policy, the size distribution of farms changed in Latvia, the output and exports of food increased as well as agricultural productivity rose. The research aim is to analyse the changes in and gains for Latvia's agriculture after the accession to the EU. The following research methods were employed: the monographic and descriptive methods, analysis and synthesis and the logical and constructive methods.