Scholarly record
SUPPORT MEASURES OF THE RURAL DEVELOPMENT PROGRAMME FOR THE FOREST INDUSTRY IN LATVIA
Abstract
The development of rural areas is important for the economy of any country. In Latvia, the development of rural areas depends on economic growth in the key industries for the rural areas ? agriculture and forestry. Accordingly, it is important to use the various support instruments of the European Union (EU) Common Agricultural Policy (CAP) for rural development, which include financial support not only for agriculture but also for forestry. Therefore, the overall aim of the present research is to assess the use of Rural Development Programme (RDP) of Latvia for 2014-2020 funding, the support measures implemented and returns from the forest industry in Latvia. The research has identified that the RDP for 2014-2020 provides a number of support measures for the development of the forest industry aimed at increasing the capital value of forests or restoring, maintaining and improving forest ecosystems. Overall, the support measures analyzed were effective because as much as 82% of the available funding has already been approved for projects during the reference period. In the result of implementing the projects approved, water drainage on 39 824 ha of forest land was improved, while more than 5 thou. ha of forest was afforested; ecological value was increased on more than 70 thou. ha of forest, while the owners of 44360 ha of forest received compensation for restrictions on economic activities in NATURA 2000 forest areas. The introduction of RDP support measures increased the capital value of forests and generate extra incomes for their owners.
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