estonian agriculture, rural economy and food industry

2.
Changes in agriculture after Estonia
re-gained independence
During the 20 th century, Estonia experienced
three significant political transformations, the
conflicting objectives of which had dramatic
impact on its agricultural activity:
In the 1920s, former manor lands were sold to
farmers as Estonia became independent for the first
time in history. Estonian agriculture began to
develop rapidly and Estonia became a considerable
agricultural producer in Europe.
At the end of the 1940s, forced collectivisation
was carried out in Estonia under the conditions of
Soviet occupation; land was expropriated from its
owners and made public, and farmers were forced
to work on collective farms.
At the end of the 1980s, as Estonia re-gains independence,
land that was unlawfully expropriated
during the Soviet occupation is returned to the lawful
owners. Farms are restored and larger agricultural
enterprises emerge as the result of the buying and
leasing of the privatised property of collective farms.
In 1988, even before Estonia regained its independence,
the Estonian SSR government adopted an
unprecedented decision to permit the re-establishment
of farms and enable the selling of machinery,
equipment, and vehicles to farmers.
The Farm Act was adopted in 1989 to provide
legal guarantees for the establishment and development
of farms.
The Land Reform Act was adopted in 1991.
Under this Act, land was returned to the lawful
owners and it was possible to privatise land by
pre-emptive rights or on general grounds. People
whose buildings were located on land subject to
privatisation were entitled to pre-emptive rights.
Since 1996 the restitution and privatisation of
land has intensified. By the end of 2001, 860,000
ha, or 71% of the agricultural land stock and
1.5 million ha of forest land had been entered into
the land register. Land reform is expected to be
finalised by 2003.
The Agricultural Reform Act was adopted in
1992. This Act established the grounds for the
liquidation of collective farms and the establishment
of new farms and agricultural enterprises –
private and public limited companies – on the basis
of their assets and land.
The assets of 360 previously collective farms
were used to establish 11,700 commercial farms
and 709 agricultural enterprises.
Relative share of agriculture
has decreased
As a result of reforms, the relative share of agriculture
in the gross domestic product decreased
from 15% to 3.3% during 1991–2000, while
employment in agriculture decreased from 15% to
5.2%. Due to structural changes, the employment of
TABLE 1.
Agriculture in the national economy
1992 1993 1996 1997 1998 1999 2000
Share of agriculture and hunting
in GDP (millions of kroons,
current prices)
1665,9*
2123,1*
2722,6
2779,5
2810,0
2584,2
2784,1
Relative share in GDP (%)
11,7
9,3
5,2
4,3
4,3
3,7
3,6
Employment in agriculture and
hunting (‘000)
114,6
91,9
52,1
44,8
43,5
38,2
31,5
Employment %
15,0
13,0
8,1
6,9
6,8
6,2
5,2
Export of agricultural products
(millions of kroons)
973,5
2498,6
3227,6
3391,3
3476,9
2589,9
3093,6
Relative share of export of
agricultural products (%)
17,5
23,5
15,2
11,5
9,9
7,5
5,8
* including forestry
(Source: Estonian Statistical Office (ESO))
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