NATIONAL STRATEGY FOR SUSTAINABLE AGRICULTURAL DEVELOPMENT
CONTENTS


Tallinn, Estonia

July, 1997
Draft


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CONTENTS

Chapter 1   INTRODUCTION

I.   The Purposes and Nature of The Estonian National Agricultural Strategy

A   The Purposes of the Strategy

B   The Context of the Strategy

C   The Nature of the Strategy

II   National Objectives for Agricultural Development

A   Objectives and Means for Achieving ThemSome Basic Principles

B   Objectives for the Agricultural Strategy

III   Principles That Guide the Strategy

IV   Summaries of the Contents of the Strategy

Chapter 2:   Price and Trade Policies

Chapter 3:   The Structure of Agriculture

Chapter 4:   The Structure of Agroindustry

Chapter 5:   Agricultural and Rural Finance

Chapter 6:   Services, Support Systems an Infrastructure

Chapter 7:   Agriculture and the Environment

Chapter 8:   Rural Social Policy

Chapter 9:   Fisheries Policies

Chapter 10:   Forest and Water Management

Chapter 2   PRICE AND TRADE POLICIES

I.     Introduction: Recent Economic Trends in the Sector

A.   Agricultural Production and Income

B.   Agricultural Prices

C.   Foreign Trade

D.   The Conditions of International Trade

II.    Past and Current Policies

III.   Issues and Constraints for Agriculture in the Area of Prices and Trade

A.   Basic Policy Issues

B.   Constraints in the Area of Prices and Trade

IV.    Macro Policy Objectives for the Agricultural Sector

V.     Analysis of Price and Trade Policies for Agriculture

A.   Estonia's Agricultural Comparative Advantage

B.   The Macroeconomic Framework and Options

C.   Analysis of Policy Scenarios

VI.   General Conclusions

Chapter 3   THE STRUCTURE OF AGRICULTURE

I.    Introduction

A. Basic Concepts

B. A Long-Term Perspective on Agricultural Land Tenure in Estonia

C. The Present Situation of Agricultural Land Use

II.  Past and Current Policies

A. Land Policy in Estonia, 1919 –1939

1. The Formation of New Farms

2. The Formation of State Manors

3. The Formation of Settlement Farms

B. Land Policy in Estonia 1940–1989

1. 1940 – 1944

2. 1944 – 1947

3. 1947 – 1989

C. Land Policy in Estonia, 1989 – Present

1. The Legislative Framework of Land Reform and Agricultural Reform

2. The Privatisation of Agro-Industrial Enterprises

3. Agricultural Reform

D. The Results of Land Reform

III. Issues Concerning the Land Reform

A. Elements of a Complete Land Policy

B. Limits to the Applicability of Restitution as a Means of Land Reform

C. Principal Issues in regard to the Structure of the Land Reform

D. Procedural Problems in the Land Reform

E. Non-Contiguous Farm Properties

IV. Policy Objectives for the Structure of Agriculture

V. Policy Analysis

A. Major Accomplishments to Date

B. The Present-Situation of Agricultural Enterprises and Family Farms

C. Economic and Legal Considerations Relevant to Potential Solutions for Land Reform

D. The Role of State Farms in Agriculture

VI. Policy Recommendations

A. Overall Orientations for a New Land Reform Policy

B. Suggestions for a Revised Land Reform

C. The Role of Land Capital

1. General Observations

2. Institutional Aspects of the Land Capital Question

3. Financial Considerations for the Land Capital Fund

Annex. Economic Farm Sizes for Different Outputs

Chapter 4   THE STRUCTURE OF AGRO-INDUSTRY

I.   Basic Characteristics of Agro-industry and the Forest Industry

A.   Introduction

B.   Agro-Industry

1.     Equipment Supplies and Services

2.     The Dairy Industry

3.     TheMeat Industry

4.     The Grain Industry

5.     The Production of Malt, Beer and Spirits

6.     Potato Processing

7.     Flax Processing

8.     The Processing and Selling of Oil-Bearing Crops

9.     The Processing of Fruit and Vegetables

10.   The Fisheries Industry

C.   The Forest Industry

1.   Introduction

2.   Logging and Transport

3.   The Production of Sawn Timber

4.   The Production of Timber-Based Boards and Glued Boards

5.   Furniture Production

6.   Buildings for Assembly

7.   Joiners' Products

II.   Issues and Constraints Affecting the Sector

A.   The Dairy Industry and International Trade

B.   Issues for Alcoholic Beverages

C.   Fruits and Vegetables

D.   Problems in the Supply of Timber

E.   The Nature of the Privatisation of Agro-industry

F.   Formation of Oligopolies and Monopolies

G.   Industry's Position in regard to Policy

H.   Exports and Imports of Agricultural Products

I.     Investment and Financing for the Reconstruction of Agro-industry

III.   Policy Objectives for Agro-Industry

IV.   Policy Analysis and Recommendations

A.   Overview

B.   Macroeconomic and Tariff Policy

C.   Requirements for Capital Investments

D.   Export Promotion

E.   Promoting Recovery of the Dairy Industry

F.   The Development Potential of the Forest Industry

Bibliography

Appendices

Chapter 5   AGRICULTURAL AND RURAL FINANCE

I.     The Context

II.    Current and Past Policies

A.   Legislation

1.   Laws Concerning Rural Life and Management

2.   Law on the Organisation of the Agricultural Product Markets

3.   Law on the State Support of Enterprises

B.   Financing of Agriculture and Rural Life by the Republic of Estonia

1.   Government Expenditure in Agriculture 5-

2.   The Agriculture and Rural Life Credit Fund (PMKF)

3.   The Small Enterprise Credit Fund

4.   The Estonian State Export Credit Fund

5.   Foreign Aid and Foreign Loan Fund Resources.

6.   State Programmes and Development Plans

7.   Regional Policy Loan Scheme.

8.   Interest Subsidies .

C.   Credit Institutions.

D.   Equity as a Financing Source.

E.   Liabilities as Financing Sources.

III.   Issues, Constraints and Potentials :

A.   Investment Levels and Requirements .

B.   Savings and Loan Cooperatives.

C.   Land Reform.

D.   Branches or Subdivions of Foreign Credit Institutions.

E.   Microcredit and Unofficial Credit

F.   Loans through Suppliers .

G.   Factors Creating a Need for Loans and Factors Impeding Them

IV.   Policy Objectives for Agricultural and Rural Finance

A.   Toward Integration with the European Union

B.   Objectives for the Rural Financial Sector

V.    Policy Analysis .

A.   The European Union System for Support to Agriculture and Rural Life

1.   The Approach

2.   The Types of Structural Funds

B.   Possibilities for Implementing the EU System of Support for Agriculture and Rural Life2

C.   Recommendations from the Governmental Commission of the Republic of Estonia on Supporting Agriculture

1.   Investment Support

2.   Cultivated Land Support

3.   Supporting Dairy Cattle Breeding

VI.   Recommendations and Their Technical Justification

A   Recommended Principles for Rural Financial Policy.

B.   Savings and Loan Cooperatives

C.   The Rural Life Loan Guarantee Foundation

D.   Capital Support.

E.   Direct Support to Producers

F.   The Capitalisation of Direct Payments.

G.   A Mortgage Institution for Land Reform

H.   Financial Control and Agricultural Statistics

I.   Other Issues

1.   Capital Support and Large Agricultural Enterprises.

2.   The Rural Policy Loan Scheme.

Chapter 6   SERVICES, SUPPORT SYSTEMS AND INFRASTRUCTURE FOR AGRICULTURE AND RURAL AREAS

I.  Introduction: Why A Strategy for Farm and Rural Support Systems?

II.  The Nature of Support Services for Farms and Rural Areas

A.  Infrastructure of Rural Areas

1.  Types of General Infrastructural Services

2.  Availability, Quality and Need for Services

B.  Infrastructure and Services Required for Agricultural Production

C.  Forest Services

1.  State-Owned Forests

2.  Private Forests

D.  Agricultural Extension (Advice)

1.  The Role of Advisory Services

2.  Target Groups for Advisory Services

3.  The Benefits of Agricultural Advice

4.  Advice as the Everyday Job of an Advisor

5.  Sources of Information for Advisors

6.  Supporting Services Required for Advisors

7.  OrganisationofAdvisoryActivities

E.  Agricultural Research

III.  Support Services in the Past

A.  Period of Socialist Agriculture 1949–1990

B.  Period of Fast Changes and Reforms 1991–1993

C.  Stabilisation Period Following Reforms, 1994 onward

D.  Past and Current Policies regarding Roads

IV.  Issues Regarding Support Services

A.  The General Problem of Access to Services and Their Financing

B.  General Issues Concerning Rural Services

C.  Issues Concerning Roads

D.  Problems Faced by Agricultural Research

E.  Principal Issues Concerning the Agricultural Advisory System

F.  Issues Concerning Forestry Services for Agriculture

V.  Objectives and Principles for Developing Agricultural and Rural Support Services and Infrastructure

A.  Coverage

B.  Types of Services

1.  Marketing

2.  Physical Inputs

3.  Intangible Inputs

4.  Other Agricultural Services

5.  Nonagricultural Rural Services

C.  Basic Approaches to Agricultural Advisory Services

D.  Policy Objectives for Agricultural Research

VI.  Policy Analysis and Recommendations

A.  Principles Governing Institutional Forms and Financing

B.  Rural Social Services and Infrastructure

C.  Policies and Programmes Required for Roads

D.  Changes Required in Organisation of Agricultural Research

1.  Organisation of Effective Communication between Agricultural Research and Production

2.  Application of Market Pull Model for Agricultural Innovation

3.  International Cooperation and Task Division in Agricultural Research

4.  The Financing of Research

E.  Cooperation as a Means for Organising and Obtaining Agricultural Services

1.  Examples Of Areas Where Agricultural Producers Could Make Effective Use Of Cooperation

2.  Organising Cooperation

F.  A Transition Fund for Agricultural Services

G.  Strengthening the Agricultural Advisory Service

1.  Basic Recommendations

2.  Priorities by Production Area for the Advisory Services in Estonia

3.  Specific Needs of the Advisory Services

4.  Summary of Key Recommendations for the Advisory Service

H.  Forestry Services for Agriculture

Chapter 7   AGRICULTURE AND THE ENVIRONMENT

I.   Introduction

A.   General Environmental Principles of the Estonian Republic

B.   The Impact of Agriculture on Environment: A Survey

1.   The Use of Mineral and Organic Fertilisers

2.   The Use of Pesticides

3.   Livestock Farms and Manure Management

4.   Soil Contamination and Residual Pollution

C.   Land Improvement (Amelioration)

D.   Soils

E.   Fish Stocks and the Quality of Sea Water

F.   Coastal Waters

G.   Biodiversity and Agricultural Landscapes

H.   Genetic Diversity in Agriculture

1.   Field Crop Husbandry

2.   Animal Husbandry

I.   Forestry

J.   Hunting, Game

II.   Past and Current Policies in the Field of Environment

A.   Introduction

B.   Quality Requirements and Environmental Standards

C.   Environmental Permits

III.   Issues, Constraints and Potential Problems of Environmental Policy in Agriculture

A.   Nonpoint and Point Pollution

B.   Soil and Waste Residue

C.   Land Amelioration, Soil Management

D.   Biodiversity

1.   Biodiversity and the Agricultural Landscape

2.   Field Crop Husbandry

3.   Animal Husbandry

E.   Forests

F.   Fisheries and Coastal Seas

G.   Hunting, Game

H.   The Financial Constraint

IV.   Policy Objectives for Agriculture and the Environment

V.    Analytic Considerations for Policy

VI.   Recommendations and Their Technical Justification

A.   Recommendations for Specific Environmental Issues

1.   Point and Diffuse Pollution

2.   Soil Contamination and Residual Pollution

3.   Land Use and Cultivation Practices

4.   Biodiversity

5.   Ecological Agriculture

B.   Recommendations of an Institutional, Legislative and Economic Nature

1.   Employment of Environmental-Friendly Technology

2.   Legislation in the Field of Environment

3.   Institutions

4.   Land Use Planning and Zoning

5.   Environmental Impact Assessment and Auditing

6.   Economic Levers

7.   Environmental Utilisation Permits

8.   Environmental Awareness and Information:

9.   Improvement of Environmental Education and Capacities for Evaluation

10. Public Awareness and Participation

11. Databases and Their Accessibility

Bibliography

Chapter 8   RURAL SOCIAL POLICY

I.   Basic Characteristics of the Rural Social Situation

A.   Demographic Trends and Employment

B.   Unemployment

C.   The Family

1.   General Considerations

2.   Children and Youth

3.   Elderly People

4.   Gender Considerations

5.   Migration and Commuting

D.   Farming and Rural Life

1.   Regional Development

2.   Borderlands

3.   Settlement Activities

4.   Village Policy

5.   Subsistence Farms

6.   Common Activities

E.   Education

1.   Basic Education and Childcare

2.   Kindergartens

3.   Elementary Education

4.   High School/Gymnasium Education

5.   Vocational Education and Training

F.   Assessments of Rural Social Services

1.   Institutional Responsibilities

2.   Public Opinion about Social Services

II.   Issues, Constraints and Possibilities

A.   Theoretical Standpoints

B.   Poverty Issues

C.   Living Conditions and Security

1.   Housing

2.   Security

D.   Health Issues

1.   Health care

2.   Handicapped People

3.   Alcoholism and Drugs

E   Education

1.   Basic and General Education

2.   Vocational Education and Training

III.   Objectives of Rural Social Policy

IV.   Recommendations for Improving Rural Social Policy

A.   General Orientations

B.   Unemployment and Poverty

1.   A Programme of Regional Growth Poles

2.   Poverty and Small Farms

3.   Unemployment Benefits and Other Social Compensation

C.   Fanning and Rural Life

1.   Subsistence Farms

2.   Village Policy

D.   Family policy

1.   General Principles

2.   The Handicapped and Policies for Providing Care

3.   Children

4.   The Elderly

5.   Alcoholism and Drug Usage

E.   Education

1.   General Education

2.   Technical Vocational Education and Training

Appendix A.   Tables of Basic Data

Table 8-A1   Population

Table 8-A2   Distribution of Population by Nationalities and 8–48 Places of Residence, Jan. 1, 1995

Table 8-A3   Number of Employed Persons in the Rural Population

Table 8-A4   Structure of Employment by Fields of Activity at the End of the Year

Table 8-A5   Number of Employees with Higher Education in 1989 by Field of Activity and Place of Residence .

Table 8-A6   Average Characteristics of Rural Communities (1995)

Table 8-A7   Distribution of the Rural Employed, 1995

Table 8-A8   Employment Characteristics of Rural Pensioners in Selected Counties (1995)

Table 8-A9   Measures of Unemployment in 1995 (by quarters, in percentages)

Table 8-A10   Characteristics of the Rural Labour Force and the Rural Unemployed, 1995

Table 8-A11   Opinions about Activities and Policies for the Development of Rural Life

Appendix B.   Income Potential of Communities

Comments on the Methodology

Appendix C.   Methods of Developing the Strategy

REFERENCE MATERIALS

Chapter 9   FISHERIES POLICIES

I.   Present Situation of the Fisheries Sector

A.   Fish Resources and Catches

1.   Fish Resources and Fisheries in Estonian Lakes

2.   Status of Fish Stocks in Estonian Waters of the Baltic

B.   EnvironmentalConditions

1.   Lakes

2.   The Baltic Sea

C.   The Socio-economic Situation of Coastal Villages

1.   Saaremaa

2.   Inland Waters

D.   Technical Condition of the Fishing Gear and Ships

E.   The Fish-Processing Industry

1.   Background

2.   Amount, Size and Geographical Location of Fish-processing Industries

3.   Production and Sales

4.   Exports of the Fish-processing Industry

5.   Financial Indicators of Fish-processing Industry

F.   Trade and Exports

G.   Management of Fisheries

1.   Fisheries Department of the Estonian Ministry of Environment

2.   Fishery Statistics

H.   Associations and Property Forms

1.   Fishing

2.   Fish Processing

I.   Fisheries Research

J.   Fisheries Education

K.   International Fisheries Cooperation

1.   Fisheries and Marine Science related Conventions

2.   International Organisations

II.   Present Policies

A.   Investments

B.   Environmental Policy

C.   Other Legislation

III.   Issues and Constraints Affecting the Sector

A.   Fisheries Management

1.   Capacity, Quotas and Sustainability

2.   Fishing Ports

3.   Environmental Concerns

4.   Local Governments

5.   International Cooperation

B.   The Competitiveness of the Fisheries Sector

C.   The Fish-Processing Industry

D.   Education and Science

IV.   Policy Objectives for the Fisheries Sector

V.   Policy Recommendations

A.   Fisheries Management

1.   Management Plans

2.   Fishing Capacity, Quotas and Sustainability

3.   Fishing Ports

4.   Environmental Problems

5.   Local Governments

6.   International Cooperation

B.   The Competitiveness of the Fisheries Sector

C.   The Fish-Processing Industry

D.   Education and Science

References

APPENDIX

Chapter 10   FOREST AND WATER MANAGEMENT

I.   Basic Characteristics

A.   Forestry

B.   Water

1.   Surface Water Resources

2.   Ground Water Resources

3.   Land Amelioration

II.   Past and Current Policies

A.   Forestry

B.   Water

III.   Issues and Constraints

A.   Forestry

B.   Water

IV.   Policy Objectives

A.   Forestry

B.   Water

V.   Policy Analysis

A.   Forestry

1.   Analysis of Firewood on Land Not Used for Agricultural Production

2.   Considerations for Afforestation

3.   Problems Requiring Solutions

B.   Water

VI.   Recommendations

A.   Forestry

B.   Water

Bibliography for Chapter 10