Latvia

Prepared by T. Marghescu

Forest cover

Presently, forests cover 2.9 million ha or 44% of Latvia. In 1935 forest cover was 1.7 million ha or 28% of the country. Tree species composition is dominated by Scots pine (Pinus sylvestris) 40%, Norway spruce (Picea abies) 21%, birch (Betula spec.) 28%, black alder (Alnus glutinosa) 2%, aspen (Populus tremula) 3%, white alder (Alnus incana) 5%, oaks (Quercus spec.) and ash (Fraxinus excelsior) 1%.

Forest distribution is irregular. Areas with higher forest cover are located in the central Riga region, the centre-east Cesis and Madona region, and in the northwest Ventspils and Talsi regions. The Dobele region has the lowest forest cover, 26%. The forested areas are divided into five forest soil types:

· dry mineral 58%;
· wet mineral 10%;
· wet peat 12%;
· drained mineral 10%; and
· drained peat 10%.

Middle-aged forest stands are strongly represented, 48%. The mean current increment is 6.30 cbm/ha and the annual increment is 16.5 million cbm. In 1995, the total allowable cut was 8.35 million cbm. The actual cut was about 6.89 million cbm.

Forestry is a major factor in Latvia's economy and contributed 10% of the GDP in 1994. Major exports are roundwood, sawn timber and panel products. The main importers are the UK (43%) and Sweden (26%). In 1994, wood and wood-product exports were 20% of all export commodities in Latvia.

Latvian forests are further classified into three categories according to grade of protection and intensity of allowed forest management activities:

· protected forests 10% - includes strict nature reserves, national and nature parks, nature reserves, anti-erosion forests, suburban parks;

· restricted management forests 16% - includes protected landscape and suburban forests and those which serve to protect the environment; and

· commercial forests 74%.

There are also 248 200 ha of specially protected forests within restricted management and commercial forests.

Ownership structure

The recent dramatic political, social and economic changes in central and eastern Europe, also resulted in the transformation of forest ownership patterns. The law clearly states that land areas, under private ownership up to 21 June 1940, are to be returned to former owners or their inheritors. This land reform is being implemented in two stages. The first stage transfers land use rights to present land users or former land owners. The second stage fully acknowledges land property rights of former land owners.

In 1983 state forests covered 1 750 thousand ha. This fell to 1 624 in 1995. Cooperative farms reduced their holdings from 893 thousand hectares in 1983 to 322 thousand hectares in 1995; community forests, owned by cities, towns and other settlements rose from 123 thousand ha in 1983 to 321 thousand ha in 1995.

Planned ownership patterns project the following figures: state forest area 55%, cooperative farms 2%, community 2%, private forest 37% and others 4%.

The above figures show that in 1983 there were no private owners, but in 1995 a total of 18% of the land was privately held. Ownership, for other groups rose from 4% to 11%.

The second stage of land reform began in 1993. Under the privatization law, about 1.3 million ha of forests could be privatized amounting to 44% of the total forest area. During the land reform process, 258 000 applications for restitution and privatization were submitted for a total of 3 083 million ha of land, including about 705 00 ha of forest land, 26% of total forest land.

Forest ownership pattern in 1935

Owner	Forest area (ha)	% of total forest
State Forest	1 390 399	80
Cooperative Farms	-	-
Private (full ownership)	306 400	17
Others	50 500	3
Total	1 747 200	100

Forest ownership pattern in 1983

Owner	Forest area (ha)	% of total forest
State Forest	1 749 900	63
Cooperative Farms	893 300	32
Community	15 700	1
Private	-	-
Others	123 400	4
Total	2 782 300	100

Forest ownership pattern in 1995

Owner	Forest area (ha)	% of total forest
State Forest	1 626 170	56
Private*	461 052	16
Private**	189 152	7
Cooperative Farms	52 670	2
Others	552 608	19
Total	2 881 652	100

* (resumed land use right, alter 1st stage of land reform)
** (full ownership, after 2nd stage of land reform)

Planned forest ownership pattern (policy statement)

Owner	Forest area (ha)	% of total forest
State Forest	1 650 000	55
Cooperative Farms	60 000	2
Community	60 000	2
Private	1 110 000	37
Private Groups	-	-
Private Business	-	-
Others	120 000	4
Total	3 000 000	100

The above figures might change, if the Government of Latvia implements the Programme for the Afforestation of Abandoned Agricultural Lands, or if agricultural land is not cultivated and natural succession turns them into forests. According to some estimates there will be up to 200 000 small- or medium-sized private forest holdings.

Forest resources and management

The Law on Forest Management and Utilization came into force in 1992 and was revised in March 1994 to accommodate changes in forest ownership.

Forest management of state-owned forests

The basic principles for forest management are defined in the Law on Forest Management and Utilization. The principle state authority for forestry is the State Forest Service of Latvia, organized into four administrative levels:

· ministerial unit;
· 35 district offices;
· 259 forest districts; and
· 2 159 ranger districts.

The State Forest Service manages state-owned forests. As part of the Ministry of Agriculture, it is directed by a State Minister of Forests. Forest inventory and forest management planning are performed by the State Forest Inventory Institute, financed and supervised by the State Forest Service.

Private forests

The revised Law on Forest Management and Utilization sets out the rights and duties of private forest owners. Private holdings with more than 1 000 ha, must hire a professional forester as manager. Smaller holdings are to invite a consultant, once a year, to plan management activities for the current year. The State Forest Service functions on a payment basis and is liable for a period of three years for consultation.

Forest inventory and the preparation of management plans is done by the State Forest Inventory Institute at the expense of the owners. Currently, the Institute charges about $US5 per ha for the preparation of management plans. Owners often face difficulties in paying for the plans. Forest owners are obliged to reforest harvested and cleared forest areas. If they fail to comply, the State Forest Service undertakes this work at the owner's expense.

In 1992, a Rural Innovation Center was established, with assistance from the United States, at the Ogre Forest Training and Education Center/Technical College. As its first activity, the Center founded the Forest Owners' Association in 1993. At present, the Association has about 700 members, who pay a small annual membership fee. Average holding size is 5.6 ha per member. The president of the association was elected in October 1993 to serve a three-year term. The president is concurrently Head of the Department of Forestry of the Latvian Agricultural Advisory Service, and the Vice-Director of the Ogre Technical Forestry College in charge of postgraduate studies. The president receives a salary from the Ministry of Agriculture for the position of Vice-Director of the Technical Forestry College.

The Association is a non-profit organization, and currently conducts training courses for volunteer advisers, who are independent consultants with a forestry education. At the end of training, the volunteer advisers receive a certificate. This certifies them as consultants to private forest owners, recommended by the Association. The courses and certificates are not recognized by state authorities.

Currently, there are 32 volunteer advisers, some are employees of the State Forest Service, others teachers at agricultural schools or farmers. There is a need for about 900 volunteer advisers - one adviser covers about 1 500 ha of private forests with 1.3 million ha of assumed total private forest area. The Forest Owners' Association is trying to establish a private forest extension service, since this does not exist in the institutional framework of the State Forest Service.

Besides training volunteer advisers, the Association provides timber marketing services to interested private owners. For these marketing services a charge is made of 2% of the price of sold timber. In the future, the Association plans to establish local associations in each district. Problems envisaged, in this respect, are connected to past history; forced cooperation, the shortsighted behavior of owners and related economic difficulties. The president of the Association identified the main problem of forest owners as lack of credit. This again is connected to the process of privatization and, in particular, to the slow delivery of land titles to owners.

State support to private forest sector

Presently, state support to the private forest sector covers salary payment for the president of the Forest Owners' Association, funds training facilities for courses conducted by the Forest Owners' Association in Ogre and provides office space for the Forest Owners' Association. Management plans are prepared against payment and a consultancy service is provided by the State Forest Service.

The Ministry of Agriculture of the Republic of Latvia has requested assistance for two projects to develop private forestry. The first project, Technical Assistance for the Development of Private Forestry, to be financed by a PHARE grant. The second forestry extension project to be financed by the National Board of Forestry, Sweden. Both proposals aim to develop a forestry extension service within the institutional framework of the State Forest Service of Latvia and to strengthen the process of creating private forest-owner associations.

Forestry extension goals and examples

There has, so far, been no formal training of the staff of the State Forest Service in forestry extension. The Faculty of Forestry at the University of Agriculture and the Technical Forestry College at Ogre do not have forestry extension as a subject on the curricula. The Faculty leadership, however, is considering including this subject in the future. The Faculty's Department of Wood Processing is conducting surveys on the economics of private forest holdings with financial assistance from the Ministry of Agriculture.

Training of private forest owners

There is no formal structure or standardized programme to educate and train private forest owners. The Forest Owners' Association has produced information material and has initiated the broadcasting of television programmes.

Forestry research and the private forest sector

The Latvian Forestry Research Institute, 'Silava', has suffered a drastic reduction in staff since the political change. At present no research projects exist for private forestry needs. There is a weak link between research carried out at the Institute and that being done at the Faculty of Forestry.

The following research needs have been identified by the Director of the Forestry Research Institute:

· research on species for afforestation especially mykorizza and fast-growing species;

· forestation research on difficult sites;

· silvicultural research on Close to Nature forest management (how to transform even-aged stands into multi-layered forest stands);

· research on agroforestry trials and on non-wood forest products for alternative land use and income generation;

· obtaining socio-economic information on private forest owners;

· an economic evaluation of afforestation species, comparing results with economics of different agricultural crops; and

· establishment of a permanent monitoring network for the economics of private forestry.

The two final items listed have received the highest priority among the identified research topics. The main problem faced in carrying out research is lack of sufficient funding.

Summary

The Ministry of Agriculture, State Forest Service seeks to design and implement a complete extension system, consisting of a forestry extension service and incentive packages. Minimal state support is provided to private forest owners. The State Forest Service should consult all parties concerned before deciding on the nature of a future forestry extension service. The four institutional possibilities seem to be:

· a forestry extension service created within the State Forest Service;

· a private forestry extension service; and

· forestry extension provided as part of the agriculture extension system or a combination of the above.

It seems that present developments are directed towards a combined approach. In the absence of a decision regarding a future extension service, the Forest Owners' Association has developed a type of privatized forestry extension service. Forest owners, however, can also consult employees of the State Forest Service. A connection is made to agricultural extension, since the president of the Forest Owners' Association is also the Head of the Department of Forestry at the Latvian Agricultural Advisory Center. However, the organization structure and the assignment of tasks is not clear. Even if a privatized forestry extension structure is chosen the State Forest Service will need an organization unit to coordinate government support and fulfill monitoring and control functions.

Once a decision has been made regarding the nature of the forestry extension service, the training requirements of extension personnel need to be identified and a training programme formulated. Regardless of the nature of the future extension service, it should be the duty of the State Forest Service to lobby for state budget support in connection with its development.

In order to overcome structural difficulties in the private forestry sector, an incentive package has to be designed to assist and stimulate private forest owners to coordinate their efforts, and manage their properties following the principles of sustainability. As this is in the public interest, the financing of an incentive package should be the responsibility of the State. A partial solution to the problem of financing forestry extension could be found in reinvesting tax paid on private forest property into forestry extension.

The two above mentioned project proposals on forestry extension prove that the State Forest Service is in the process of taking action on the development of a forestry extension system.

The Faculty of Forestry at the University of Agriculture, and the Technical Forestry College, will have to adapt to training forestry extension personnel. Specialized training should be incorporated into the relevant curricula.

Forestry research needs close cooperation on all levels for concerted action in the interest of private forestry development. The ties between the different research institutions, including the universities, should be strengthened. A Board of Forestry Research, with members from the Forestry Research Institute, the Faculty of Forestry, the State Forest Service, decision makers from forest industries and private forest owners, could systematically prioritize, distribute and finance forestry research projects.

Forestry research in Latvia should be harmonized with research programmes in neighbouring countries. Latvia already closely cooperates with Estonia and Lithuania on forestry research.

The State Forest Service has expressed an interest in regional training and exchange of information and experience on Forestry Extension Development, especially in the countries of central and eastern Europe.

FOREST OWNERSHIP PATTERNS BEFORE 1983 (LATVIA)

FOREST OWNERSHIP PATTERNS 1995 (LATVIA)

PLANNED FOREST OWNERSHIP PATTERNS (LATVIA)