Abstract
This thesis investigates the effects of the agricultural restructuring in the three Baltic countries Estonia, Latvia and Lithuania in the pre-EU membership phase. The time period considered covers the 10 year period from independence in 1991 to 2002, a few years before accession to the EU in 2004. The aim of the thesis is to describe and analyse the changes in the conditions for the agricultural sector during this period in the Baltic countries and to investigate how agricultural
production at the local level adapted to the transition. The central research question concerns the way farmers responded to the changes following independence. This is investigated by studying how farmers’ decision-making was influenced by different social, economic and institutional structures and how differences in individual qualifications and resource availability influenced
farmers’ responses and strategies.
The thesis consists of four papers and a synthesis. The first part of the synthesis (chapters 1 to 5) outlines the theoretical and methodical frameworks for the study. Furthermore, it introduces the historical setting for agriculture in the Baltic region and the case areas. The second part of the synthesis (chapters 6 to 8) contains a summary and further development of the results reported in the papers, a discussion and a concluding chapter.
Large collective farms are a thing of the past in the Baltic countries, where they were replaced by privately owned farms in the pre-EU membership phase. The majority of people who lived in rural areas were engaged in individual farming activities. However, the establishment of private farms was difficult in a time characterised by many fundamental changes. The study investigates how
farmers managed to adapt to the new conditions. After an initial analysis and comparison of the agricultural situation in two of the study areas, it became clear that it was too simplistic to categorise all farmers into one homogenous group. Farmers were very different in terms of farm size, market integration and plans for the future. In the Estonian study, the accordance between national visions for the agricultural sector and farmers’ farming strategies was investigated. Not
surprisingly, there was gap between the agricultural development envisioned by politicians and the forms of agriculture practised by farmers. Only a small number of farmers fulfilled the agricultural vision, whereas the majority of farmers were involved in farming activities that largely remained self-sufficiency farming. Based on these results, farmers were divided into four groups pursuing
different adjustment strategies; entrepreneurial farmers, inactive farmers, onservative farmers and cautious farmers.
In the study of the Lithuanian farmers, a cluster analysis was used to divide the farmers into homogeneous groups. Looking into the characteristics of different groups of farmers, it became clear that farmers pursued different adjustment strategies. Individual resources and qualifications were decisive for the farmers’ ability to manoeuvre within the structural framework which constitutes the basis for agriculture to develop a farm successfully. Through the use of the notions
of physical, human and social capital, it is investigated why farmers responded differently. Farmers with large amounts of physical, human and social capital were often the most successful farmers.
The importance of individual endowment of resources and qualifications is also evident in the study of Latvian rural entrepreneurship. Different types of rural businesses, including both agricultural and non-agricultural enterprises, were investigated. In addition to individual resource endowment, it became clear that the local context plays an important role creating both opportunities and constraints for successful business development in rural areas.
The thesis concludes that farmers in the Baltic countries could be divided into several groups. Due to differences in individual endowment of resources and qualifications, farmers were faced with different opportunities and constraints for adjusting their agricultural activities to the new structural conditions. Only a minority of farmers were able to develop their farms into viable enterprises while
the majority of farmers did not fit into the institutional and political macro structures setting the conditions for modern agriculture. If the agricultural policy was left unchanged, many farmers would be stuck in their current situation without a real possibility of improving their living conditions and would “pay the price” for the transition from a planned to a market economy.
Policies needed to be tailored to the particular problems that existed in rural areas. Neither agricultural nor rural development programmes in the pre-EU membership phase had much to offer to the uneducated, unemployed and poor segment of the rural population. An important challenge to policy makers was therefore be to design policies which could create a future for these groups and
thereby ensure a viable countryside.
production at the local level adapted to the transition. The central research question concerns the way farmers responded to the changes following independence. This is investigated by studying how farmers’ decision-making was influenced by different social, economic and institutional structures and how differences in individual qualifications and resource availability influenced
farmers’ responses and strategies.
The thesis consists of four papers and a synthesis. The first part of the synthesis (chapters 1 to 5) outlines the theoretical and methodical frameworks for the study. Furthermore, it introduces the historical setting for agriculture in the Baltic region and the case areas. The second part of the synthesis (chapters 6 to 8) contains a summary and further development of the results reported in the papers, a discussion and a concluding chapter.
Large collective farms are a thing of the past in the Baltic countries, where they were replaced by privately owned farms in the pre-EU membership phase. The majority of people who lived in rural areas were engaged in individual farming activities. However, the establishment of private farms was difficult in a time characterised by many fundamental changes. The study investigates how
farmers managed to adapt to the new conditions. After an initial analysis and comparison of the agricultural situation in two of the study areas, it became clear that it was too simplistic to categorise all farmers into one homogenous group. Farmers were very different in terms of farm size, market integration and plans for the future. In the Estonian study, the accordance between national visions for the agricultural sector and farmers’ farming strategies was investigated. Not
surprisingly, there was gap between the agricultural development envisioned by politicians and the forms of agriculture practised by farmers. Only a small number of farmers fulfilled the agricultural vision, whereas the majority of farmers were involved in farming activities that largely remained self-sufficiency farming. Based on these results, farmers were divided into four groups pursuing
different adjustment strategies; entrepreneurial farmers, inactive farmers, onservative farmers and cautious farmers.
In the study of the Lithuanian farmers, a cluster analysis was used to divide the farmers into homogeneous groups. Looking into the characteristics of different groups of farmers, it became clear that farmers pursued different adjustment strategies. Individual resources and qualifications were decisive for the farmers’ ability to manoeuvre within the structural framework which constitutes the basis for agriculture to develop a farm successfully. Through the use of the notions
of physical, human and social capital, it is investigated why farmers responded differently. Farmers with large amounts of physical, human and social capital were often the most successful farmers.
The importance of individual endowment of resources and qualifications is also evident in the study of Latvian rural entrepreneurship. Different types of rural businesses, including both agricultural and non-agricultural enterprises, were investigated. In addition to individual resource endowment, it became clear that the local context plays an important role creating both opportunities and constraints for successful business development in rural areas.
The thesis concludes that farmers in the Baltic countries could be divided into several groups. Due to differences in individual endowment of resources and qualifications, farmers were faced with different opportunities and constraints for adjusting their agricultural activities to the new structural conditions. Only a minority of farmers were able to develop their farms into viable enterprises while
the majority of farmers did not fit into the institutional and political macro structures setting the conditions for modern agriculture. If the agricultural policy was left unchanged, many farmers would be stuck in their current situation without a real possibility of improving their living conditions and would “pay the price” for the transition from a planned to a market economy.
Policies needed to be tailored to the particular problems that existed in rural areas. Neither agricultural nor rural development programmes in the pre-EU membership phase had much to offer to the uneducated, unemployed and poor segment of the rural population. An important challenge to policy makers was therefore be to design policies which could create a future for these groups and
thereby ensure a viable countryside.
| Original language | English |
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| Publisher | Department of Geography and Geology, University of Copenhagen |
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| Number of pages | 298 |
| Publication status | Published - 2012 |