Agriculture, Latvia, Legislation, Markets and Companies, Real Estate

"We are asking farmers to carefully read the contracts they are offered, because trusting such proposals may be very costly. Turns out, several contracts included the provision that, should the contract be terminated, farmers will have to hand the right to all European Union and state assistance to the lessee," said Hauka.

"Although Latvia has used the opportunity to impose restrictions on the sale of land to foreigners, the transition period will be soon over, and from 2014, citizens from any European Union member state will be able to buy land in Latvia. This may be tempting to farmers in other countries, because farmland in Latvia is comparatively inexpensive, and of good quality. Climate in Latvia is also favorable, and productivity is higher than in many other countries. However, farmland is one of the key natural resources of Latvia," emphasizes Hauka.

Latvian Rural Consulting and Education Center also urges farmers who sign new lease contracts to carefully read the small print, especially if these contracts are signed with foreign entities.