Ülle Roosmaa*
Estonian Agricultural University, Tartu
Introduction
The Impact
of transition and structure of property rights
The impact
of agriculture on the environment
The influence
of society on the agricultural environment
References
Estonia has an area of 45 230 km2 and a population of
1.5 million inhabitants. Administratively, Estonia is divided into 15 counties,
with 254 municipalities. The largest city is the capital, Tallinn, with
a population of 435 000. Estonian independence was declared in August 1991.
Up to 1990 the Estonian economy grew slowly, but from 1991 onwards the
transition from a centrally planned economy to a market economy led at
first to a significant decrease in GDP. In 1992, the real change in GDP
was -22 percent. Since then, significant progress has been made in terms
of macro-economic development. In 1993, the economic decline slowed down
to -8.5 percent and in 1994 to -1.8 percent. The year 1995 was the first
year of resuming growth with a rate of 4.3 percent, in real terms. In 1996,
economic growth continued at 4.0 percent.
The stabilization and recovery of Estonian agriculture is dependent
on the country's general economic growth. In the first half of 1997, Estonia
was one of the world's fastest-growing economies, reaching a real growth
rate of 11.7 percent. For 1998 and 1999, a growth rate of 4.7 percent is
expected; a growth rate of 4.5 percent is forecasted for 2000-2003. Domestic
demand is expected to increase, a trend which will also hold for the demand
for food products. Agriculture has traditionally been one of the most important
sectors in the Estonian economy. In 1996, agriculture accounted for 5.5
percent of GDP and employed 8.1 percent of the labour force. When forestry
and fishery are included, the share of GDP is 7.3 percent. The drop in
agricultural employment from 18 percent in 1989 to 8 percent in 1996 illustrates
not only dramatic developments, but is also attributable to several statistical
changes. In 1997 the gross agricultural output was 5.51 thousand million
EEK at 1995 prices, i.e. 1.5 percent smaller than in 1996. Fisheries play
an important role in the Estonian economy. In 1996, fishing provided 0.5
percent of GDP, excluding the fish processing industry, which is the fourth
biggest subsector of the food industry. Fisheries employ approximately
20 000 workers. Forestry is an important part of Estonian economy and natural
resource base as forests cover 45 percent of the total land area with 1.9
million hectares in January 1997. In 1996, forestry accounted for 1.3 percent
of GDP, and the manufacture of wood and paper products 1.1 percent of GDP.
The effect of privatization and the redefinition of property
rights on natural resources
The development of agriculture in Estonia has been the subject of several agricultural reforms. There have been three agricultural reforms in Estonia in the 20th century:
In 1990, there were 117 state farms and 212 collectives in Estonia.
The average size was 3 700 hectares. After independence, these farms were
to be privatized, and land and other assets returned to previous owners
or to their heirs.
Table 1: Number and average size of private farms and agricultural
enterprises, 1 January 1994–1998
|
|
|
|
|
|
|
| Private farms |
10 153
|
13 513
|
19 767
|
22 722
|
34 671
|
| Average size (ha) |
24.8
|
23.1
|
20.8
|
22.0
|
21.7
|
| Agricultural enterprises |
1 013
|
983
|
873
|
854
|
803
|
| Average size (ha) |
450
|
A key issue in the structural development of the farm sector has been
the privatization of land. New agricultural enterprises are organized mostly
as joint stock companies, but also as cooperatives and partnerships.
Agricultural enterprises are referred to as former state farms and
collectives, of which most are now privatized, although the state still
owns the land on which they operate. Family farms are defined as private
farms, which operate on restituted land and which is owned by the farmer.
In 1997, their average size was 22 hectares of which approximately 14 hectares
was arable land and the rest forest or other land. About 29 percent of
the farms have less than 10 hectares, while 24 percent have more than 30
hectares. In the period 1992-1997, the number of smaller farms increased
more than the number of bigger farms. About 45 000 household plots exist
with an average size of approximately four hectares. Household plots which
form 21 percent of the cultivated arable land are cultivated by workers
of former state and collective farms. The difference between a private
family farm and a household plot is not always clear. Some of the farms,
privately owned by a family, are counted as household plots because they
are not enrolled in the farm register.
After regaining its independence, Estonia has pursued the principles
of a liberal trading policy and has not applied any means to protect its
domestic market. The liberal strategy is oriented towards promoting a specialized,
intensive, "capitalist type" of farm. Liberal agricultural policy causes
a complete restructuring of the agricultural production, labour, and marketing
systems, even though the competitiveness of Baltic agricultural products
on both local and international markets is by no means guaranteed, and
rural livelihood has dramatically changed. Liberal policies in their present
shape copy the Western agricultural model of previous decades in underestimating
social and environmental concerns (Tisenkopfs, T.). In view of the present
situation, normal competition on the domestic market is being distorted
by the subsidized import of agricultural products from rich countries,
with the export of Estonian agricultural production inhibited by (high)
protective tariffs on the domestic market in foreign countries.
Food prices have still been increasing at a slower pace than the general
consumer price index: in comparison to 1993; the consumer price index of
August 1996 was 236.5 percent, food accounting for 181.3 percent (Maadvere,
E.).
Farmers have the possibility to expand their crop production without
purchasing land as unused arable land is available. Non-privatized land
can be used on the basis of a request to the local community, but only
on an annual basis, and without having any guarantee of continuance. The
charge for using this land corresponds to the land tax. There is a strong
need for a functioning land market and land rental market, since land would
be needed as a collateral for loans. Efforts toward creating a land registry
have been made, but progress is still limited. The price of land fell as
a result of poor profitability and inadequate land markets in Estonia.
Land tax is approximately one-two percent of the taxation price of land.
In 1993, the taxation price of arable land was EEK 6 000, but by 1995 the
taxation price decreased to EEK 3 000. The bureaucratic process of buying
land costs, in many cases, as much as buying the land.
From 1991 to 1994, the prices of agricultural inputs increased 17
times, the producers’ prices 11 times, and the retail prices of food products
29 times, resulting in a decline of the purchasing power of the population
and a drop in income of agricultural businesses (Laansalu, A.).
In the second quarter of 1997, compared with 1995 (base year), seeds
became more expensive by 87.3 percent, energy, fuels and lubricants by
58.3 percent, and feedingstuffs by 47.9 percent. Pesticides became 1.6
percent cheaper( Statistical Office of Estonia). As for inputs, the Statistical
Office of Estonia has calculated a price index since 1995. There is no
index available with a base year prior to 1995. Animal feed prices have
the biggest influence on the overall index. Together with energy, they
account for 72 percent of the whole index. According to the input price
index, by the third quarter of 1997, input prices had risen by 51 percent
compared to 1995. While the price of pesticides declined, pesticide use
has not yet returned to normal.
There is no detailed data available concerning output prices. The calculation
of an output price index was scheduled to start in 1998. However, some
rough estimates can be made on the basis of national accounts and nominal
producer prices. In 1996, the nominal producer price level of all products
rose significantly compared to 1995; but in 1997, the nominal cattle and
poultry meat prices decreased by 2-3 percent and the price of milk rose
by 5 percent compared to 1996. Comparing 1997 to 1995, average producer
prices rose by 12 percent for beef and 24 percent for milk. The average
cost level rose during the same period by 51 percent, which indicates a
reduction in profitability at the farm level.
Changes in international prices have immediate effects on Estonian
producer prices because of the lack of border protection. Since the fourth
quarter of 1996, pork prices have been at exceptionally high levels, increasing
within one quarter from EEK 20 840 to EEK 24 892 per tonne, affected by
international markets and the lack of domestic supply. During the fourth
quarter of 1997, the pork price level even slightly exceeded the EU-level,
being EEK 25 610 or ECU 1 618 per tonne. During the fourth quarter of 1997
pork prices were 44 percent higher than in 1995. Despite the higher prices,
costs have risen more than the revenues.
Estonia is a small country, which means that it is destined to be a
price-taker on the world market. The difference between Estonian and EU
producer prices has decreased remarkably since 1993. However, this is not
the case for all products. Domestic markets are only just beginning to
stabilize. But imbalances and fluctuations in supply and demand could still
have an impact on price relations. Estonia has no quota system for milk
production, nor for any other products. And finally, Estonia had practically
no support measures for agriculture. The year 1998 was the first year with
direct payments. Since Estonia abolished all consumer subsidies and all
border protection measures, the markets are strongly affected by changes
in international prices. For this reason, the stabilization of production
proved to be difficult, and the profitability of farming varies strongly.
Price differences vis-à-vis the EU was also caused by a lower quality
of products. This is the case, in particular, for beef and milk. In addition,
the downstream industry is still relatively inefficient and the collection
of raw materials is not effectively organized. Price information is collected
by the Statistical Office of Estonia, with the help of different sampling
methods, which may, however, to some extent affect the results. The following
producer prices are converted into ECU using an annual exchange rate (compared
prices are EU-15 average market prices).
Table 2: Estonian producer prices, % of EU prices
|
|
|
|
|
|
|
| Wheat |
47
|
50
|
68
|
88
|
...
|
| Rye |
40
|
44
|
64
|
97
|
...
|
| Barley |
36
|
36
|
50
|
85
|
89
|
| Milk |
27
|
33
|
48
|
54
|
56
|
| Beef |
30
|
34
|
36
|
46
|
43
|
| Pig meat |
69
|
93
|
87
|
84
|
96
|
| Poultry |
63
|
88
|
114
|
118
|
121
|
Agriculture and the environment are not conflict in themselves.
The conflict is caused by the behaviour and interests of men (Deverre,
C.). The environmental aspect means that we have to take into account changes
caused by human beings in nature: fields, roads, irrigation, etc. In Estonia
we can observe what happens to the natural balance when great areas are
not cultivated for some years. On the other hand, sustainability also means
sustainable development in bodies of water: fewer fertilizers and pesticides
and new technologies in agriculture. So sustainability does not only mean
maintaining the situation. Changes in the environment (landscape, oxygen,
etc.) also have to be dealt with as a product of agriculture.
Concern about environmental issues in agricultural production is not
a new subject in Estonia. Environmental problems have been discussed and
worked on for many years. One of the most urgent problems during the period
of Soviet rule in Estonia was the pollution of surface and ground water
due to an excessive concentration of animal husbandry and system of liquid
manure. The other important problems were linked with bad spreading technology
and storage facilities for mineral fertilizers and pesticides. Sustainable
agriculture deals with problems in the border areas between economic and
technological development, food production, protection of the environment,
and the quality of life. A vital task is to maintain the production potential
of the soil, farms, and agricultural society, without unacceptable consequences
for the environment or the human population (Skutlaberg, A.).
Those rural communities based on agricultural production have reached
the limits of their growth and development. There are environmental and
technological limitations on the one side, and market, consumer and economic
ones on the other. The demands on agriculture by both society and the market
have changed more quickly than agricultural production, technology and
rural society. People living in rural regions are often no longer able
to earn their living in the traditional ways without adapting them. In
spite of their different historical backgrounds, this problem is common
in both the Nordic and the Baltic Countries (Westerlund, K., Loolaid, Ü.).
The negative influence of agriculture on the environment has decreased
remarkably in Estonia. Due to the decline in production capacities, the
emission of pollutants to the environment has decreased and the general
state of the environment has improved. However, despite the sharp decrease
in the use of fertilizers, the recovery of the environment will take a
long time.
According to the data of the Yearly Cadastre on 1 January 1998,
the area of Estonia was 4 522 726 hectares. The area of agricultural land
was 1 433 100 hectares (32 percent of the total area) and the area of arable
land was 1 119 780 hectares (78 percent of the agricultural land). About
45 percent of the total area is forest (Table 2).
Table 3: Land stock, 1 January, 1995–1998 (thousand hectares)
|
|
|
|
|
|
| Area, total |
4 523
|
4 523
|
4 523
|
4 523
|
| Agricultural land |
1 450
|
1 450
|
1 450
|
1 433
|
| Arable land |
1 128
|
1 128
|
1 128
|
1 120
|
| Orchards |
15
|
15
|
15
|
14
|
| Natural grassland |
307
|
307
|
307
|
299
|
| Forest and woodland |
2 016
|
2 016
|
2 016
|
2 016
|
| Inland water |
283
|
283
|
283
|
283
|
Despite Estonia's small area, the soil-climatic conditions for plant
growth are extremely variable. Land structure varies from county to county.
The share of arable land is greatest in Tartu County (55 percent of all
land) and the share of forest is the greatest in Hiiumaa (42 percent).
Arable land covers 1 128 million hectares, representing 78 percent of the
agricultural land. About 310 thousand hectares are permanent pastures and
the remaining 15 thousand hectares are used for permanent crops i.e. fruit
and especially berries. Thus, in 1997 the main part (56 percent) of cultivated
arable land was used for fodder crops and 39 percent for cereals. The remaining
5 percent was used to grow industrial crops, potatoes and vegetables.
Currently, the percentage of unused arable land has stabilized at around
220 thousand hectares, which is equivalent to 20 percent of the total arable
land. In 1992, only 1 percent of arable land was idle. There are three
principal reasons for this situation. Incomplete land registration is one
of the key elements, as 75 percent of agricultural land is still in the
hands of the state. The land privatization process is proceeding slowly
and, so far, idle land also remains in the hands of the state because there
are no claims on such land at all. In addition, farmers find it unprofitable
to produce. And thirdly, the quality of soils on the remaining state owned
land is lower than the national average.
One possible outcome may be that most of the idle arable land will
not return to agricultural use and the land will gradually start to become
woodland. This phenomenon has also a regional dimension; most of the idle
land is situated in the south-eastern part of the country. The share of
idle land is even much higher when the idle natural grassland area (approximately
175 thousand hectares) is included. This means that more than one quarter
(about 400 thousand hectares), of the total agricultural area is currently
idle. The share of idle land is expected to decrease, although parts of
it will probably never come back into production. The share of idle land
will decrease for two reasons. Parts of it will be taken into other use,
and parts of it will be used for cultivation due to the increased need
for cereals and fodder.
We should pay more attention to fields which are out of production
and make use of their potential to produce alternative energy or afforest
them. In order to prevent a rapid decline in soil fertility and the growth
of weeds in the fields which are temporarily out of production, these fields
should be conserved with an association of grasses (Vipper, H., Põder,
I. et al).
Nearly the third of the arable land has been drained over the past
40 years, but as collective farms were dismantled after 1991, the drainage
system lacked maintenance and, therefore, can often be found in a bad condition
requiring investment. This also has a negative impact on yields. From the
World Bank and national funds, a total of US$5.5 million has been made
available for the maintenance of the drainage system. The Ministry of Agriculture
has chosen the maintenance of its drainage system as one of its key investment
areas. The use of heavy machinery lead to compaction and the poor structure
of soils.
The share of arable land used by agricultural enterprises decreased
from 1.019 million hectares in 1992 to 395 thousand hectares in 1996. In
1996, agricultural enterprises cultivated 45 percent of total arable land.
About 40 percent of the land is used to grow cereals and 55 percent is
used for forage crops. In 1997, the sown area of field crops was 864 191
hectares (0.6 percent larger than in 1996), while the sown area of grain
was 335 241 hectares (14 percent larger than in 1996). The sown area of
food cereals (rye, wheat, buckwheat) and legumes was 93 898 hectares (28
percent of the sown area of grain). The area under potatoes was 35 236
hectares (in 1996 35 285 hectares), and the area under open field vegetables
3 917 hectares (in 1996 4 245 hectares). Unused arable land amounted to
231 072 hectares (21 percent of the total arable land). In addition, agricultural
enterprises still produced 52 percent of all cereals, although their cereal
area was only half of the 1992 figures.
The production of vegetables is concentrated on private farms (50 percent)
and household plots (41 percent). It is used largely for direct consumption
by farm households. In 1996, the most important vegetables in open field
production were cabbages (44 percent), carrots (17 percent) and red beet
(13 percent).
Grains and legume accounted for 667 486 tonnes of dry weight in 1997
(4 percent more than in 1996), potatoes 437 466 tonnes (13 percent less
than in 1996) and vegetables 52 310 tonnes (4 percent less than in 1996).
The yield of grain and legumes was 1 991 kilograms of dry weight per hectare
in 1997 (in 1996, 2 183 kilograms), the yield of food cereals and legumes
amounted to 2 131 kg/ha (in 1996, 2 126 kilograms) and the yield of fodder
grain was 1 937 kg/ha (in 1996, 2 205 kilograms). In 1997, the yield of
food cereals and legumes was higher than that of fodder grain. The yield
of potatoes was 12 415 kg/ha (in 1996, 14 176 kilograms). The production
of grain was 458 kilograms and the production of potatoes were 300 kilograms
per capita. Agricultural enterprises still have a major role in animal
production. In 1996, they produced 57 percent of all milk, 48 percent of
all beef, 70 percent of all pork and 64 percent of all eggs.
Under the Soviet regime, Estonia was an intensive animal producer.
A significant share of production, which was based partly on imported low
priced grain, was dedicated to Russia. If we look at longer period changes,
then pig, poultry, sheep and goat numbers decreased by two thirds, perhaps
more, up to January 1998 as compared to 1988 levels. The decrease in cattle
and dairy cow numbers was only slightly lower. Last year the number of
livestock decreased. The number of cattle decreased from 343 000 to 325
600, i.e. by 5 percent. The number of cows decreased by 2 percent. On 1
January 1998, cows accounted for 52 percent of the total number of cattle.
In 1997, the number of pigs increased from 298 400 to 306 300, i.e. by
3 percent; the number of sheep and goats fell from 39 200 to 35 600, i.e.
by 9 percent; the number of poultry grew from 2 324 900 to 2 602 000, i.e.
by 12 percent.
In 1997, the production of meat decreased by 9 percent compared to
1996. The production of meat was 53 383 tonnes, of which the beef represented
18 983 tonnes, pork 29 547 tonnes, and poultry 4 357 tonnes. The production
of milk was 717 149 tonnes (6 percent more than in 1996), the production
of wool 120 tonnes (25 percent less), with the production of eggs amounting
to 296 million (2 percent less). The average milk yield per cow was 4 210
kilograms in 1997 (3 809, in 1996).
In 1997, the gross agricultural output was EEK 5.51 thousand million
at 1995 prices, i.e. 1.5 percent smaller than in 1996. In 1992, animal
production accounted for 59 percent of gross agricultural output, but by
1996 its share had decreased to 51 percent.
During the last 20 years, 50-55 percent of the total harvest of crop
production was received on account of inorganic fertilizers used. In 1988,
the area fertilized with mineral fertilizers was 92 percent of the sown
acreage, while in 1996, the coverage was only 31 percent. Manure was used
on 10 percent of the sown area.
Figure 1: Use of fertilizers, 1996-1997
Source: Agriculture 1997
In addition, the intensity of fertilizers used per hectare was reduced
significantly. In 1988, for the whole sown area, 250 kg/ha of NPK was applied;
in 1996 the figure was only 25 kilogram. In 1996 Nitrate was used at an
intensity of only 19 kilogram per sown hectare on average, and 62 kg per
fertilized hectare. In 1996 as with the three previous years, the trend
of agricultural cultures was in removing more plant nutrients from soil
than were introduced into the soil with fertilizers. Hence, for example,
in 1995 the rate of fertilizer use in Estonia dropped under the critical
level. As a consequence, the fertility of the soil decreased significantly.
In 1997, a slight recovery took place.
The use of pesticides declined fivefold, according to national statistics.
In 1996, farm enterprises used 0.6 kg/ha of herbicides and 1.0 kg/ha of
fungicides. Herbicides were used on 140 000 hectares in 1996. The application
of an agro-technically correct fertilization and plant protection system
is of great importance when speaking about increasing the crop yielding
capacity of field cultures.
Agricultural production has declined sharply during the last few
years and the intensity of agricultural production has gone down. At the
same time, prices of inputs increased rapidly leading to low purchasing
power at farm level. This led to a decreasing use of fertilizers and pesticides.
Although a decline in the use of agrochemicals in production has had
a positive impact on the environment, in the long run the old practices
of heavily chemicalized production may be readopted, as farmers grow economically
stronger and seek to enhance their profits by applying intensive technologies.
This is the reason why environmental sustainability should be considered
(Tisenkopfs,T. 1995).
Market conditions lead to economic differentiation of farms, often
to a reduction in economic activity and bankruptcies on the part of small
farms. The number of private family farms will continue to increase, but
their importance, especially in animal production, will remain low. One
reason for this is the limited availability of credit for private farms.
A second reason is that the turnover of these farms is limited due to their
small size, limiting also the amount of possible investments which can
be made on an economically stable basis. Animal production is traditionally
concentrated in agricultural enterprises. The share of private family farms
in crop production will continue to increase, because the necessary investments
are lower than in animal production. In addition, the input suppliers also
provide short-term credits for farmers and the repayment takes place in
the autumn by selling the grain to the input suppliers.
In Estonia the biggest share of water (84 percent) is consumed by
industry. In second place is agriculture (9 percent). And around 7 percent
of water is consumed by households. Estonia has extensive water resources.
Groundwater is the main source of drinking water in Estonia, except in
Tallinn and Narva where surface water is used. The majority of drinking
water in Estonia meets EU standards, with some exceptions. There are three
main actual problems concerning drinking water. In several areas the quality
of water does not come up to standard for natural resources; the second
problem is the pollution of groundwater with either oil products or nitrates;
and the third problem is the amortization of water supply systems and a
lack of drinking water treatment in several places. Surface water quality
has improved since 1990. In the Soviet era, Estonia was an intensive animal
producer, based on low-priced, heavily subsidized, imported inputs. Also,
fertilizers and pesticides were highly subsidized. The high intensity of
livestock production led to problems with organic fertilizer disposal.
National statistics estimated that in the 1980s, 76 percent of the nitrogen
load and 20 percent of the phosphorus load that leached into water bodies
originated from agriculture. Under the Soviet era ground water became increasingly
polluted. At the end of the 1980s, there was even the danger that large
areas would have problems with usable drinking water. In 1996, out of the
samples of drinking water, 9.4 percent did not meet health standards. After
the spliting up of large farms into several units, the number of cattle
decreased as well as the number of people in rural settlements. Many small
treatment plants in rural regions stopped working. In addition to smaller
water consumption for production, possibilities were found for saving water.
Water was also saved in order to decrease the pollution charge. The high
price of water in towns encouraged both industry and the population to
save water.
Eutrophication is the nutrient enrichment of the water body often causing
a reduction in water quality. Eutrophication can occur naturally or by
the introduction of artificial pollutants entering water bodies. Agricultural
chemicals, sewage, industrial and municipal waste waters, can contain organic
compounds, nitrogen and/or phosphorus, all of which contribute to eutrophication.
The organic, nitrogen and phosphorous concentrations in Estonian’s rivers
has decreased since the middle of 1990’s. This is probably due to the improved
purification of wastewater and the reduction of agricultural and industrial
production. The levels are only just above the background levels normally
expected for unpolluted rivers.
The main cause of acidification is the release of sulphur dioxide
and nitrogen oxides into the air. These dissolve in rainwater and fall
back to earth as acid rain. The main sources of sulphur and nitrogen oxides
are industry and power production, although oxides are also released from
transport. The main pollution sources in Estonia were the following branches:
industry (69.7 percent), the building materials industry (6.6 percent)
and the oil-shale industry (4.5 percent). The volume of pollutants from
the building materials industry decreased about 300 percent during 1994-1996,
but emission from the energy sectors increased in 1996. Between 1990 and
1996, the volume of SO2 emission decreased by 50.9 percent,
NOx by 27.9 percent and the emission of solids decreased by
63.2 percent.
Air pollution is measured in several of the largest towns in Estonia
and compared to the short-term maximums defined under regulations. NOx
pollution is largely attributable to traffic pollution, but SO2 comes
mainly from industrial pollution from stationary sources. Acidification
or acid rain is not one of the most urgent environmental problems for Estonia,
though there is a problem with alkaline precipitation and dust in the town
Kunda in the north-east part of Estonia. Agriculture has not creating significant
air pollution in Estonia.
Estonia’s landscapes include agricultural, urban, agricultural and
areas of wilderness. Estonia has a large proportion of natural landscapes
including forests, coastlines and bogs. It also has man-made landscapes
including farmland, towns and mines. Development exerts pressure on Estonia’s
natural environment. However, it should be noted that the area of land
covered by buildings in Estonia is small compared to other European countries.
Also, survey results show that the area of cultivated land in Estonia decreased
between 1990 and 1995 as agricultural production declined during the first
years of independence.
Not only can agriculture have an impact on the landscape. Among other
activities, the most remarkable is the mining of mineral resources. About
887 million tonnes of oil-shale have been mined in Estonia since the beginning
of the use of oil-shale deposit. Output related in peak in 1980; 31.3 million
tonnes. Some 14.7 million tonnes were mined in 1996, of which 7.8 million
tonnes by underground mining and 6.9 million tonnes by surface mining.
Another 212 hectares of land was damaged during surface mining in 1996,
while 273 hectares was recultivated. Almost 1 450 hectares (or 13.9 percent)
of damaged land has not been recultivated.
Estonia is rich in peat lands with some 1 590 million tonnes of peat
resources spread throughout the country. Estonia has used peat for hundreds
of years, both as heating fuel and as fertilizer. Peat is considered to
be a renewable natural resource provided that the rate of exploitation
does not exceed that of growth. In 1996, 1 124 thousand tonnes of peat
were mined. This is below the established legal limit and extraction is
considered to be sustainable.
Biodiversity has been well preserved in Estonia and forms a very
important natural asset, not only for the country but also for the region.
The biodiversity of Estonian natural habitats is the country's greatest
advantage in comparison with others of intensive and extensive agriculture.
The realization of this advantage for diversifying agro- cenoses is the
main precondition for the sustainable development of agriculture. This
allows for an increase in the number of beneficial insects on farmland
to favour the efficiency of pollinators and entomophages of pest insects.
As a result of diversification, the productivity of both cultivated and
natural plants increases, which will be the main precondition for nature
and human saving agriculture (Martin, A.-J.,Mänd, M., et al.).
Estonia has a rich biological diversity, being home to a wide variety
of wildlife species. Many endangered species, including the bear, lynx,
greylag goose and bumblebee, live and thrive in the country. Those protected
include 210 species of plants, 30 species of fungi and 299 animal species.
Ten protected species found in Estonia are also included in the IUCN Red
Book.
With decreasing agricultural land use, much more attention must
be paid to non-agricultural land use (forestry, recreation, sewage disposal,
wildlife preservation, protected areas). In Estonia, almost the third of
arable land is drained. At the end of the Soviet period, more than half
of plant production was obtained from drained land. Due to transition difficulties
during the past seven to 10 years, no maintenance and repair work has been
done on drainage systems. As a result of this, the functioning capacity
of drainage systems has been decreasing and the water regime of drained
areas has returned its pre-drainage state. On fields which need artificial
drainage, the restoration of the natural water regime brings about a rebogging
process and a decrease in the average crop yield. The yield loss has the
general tendency to rise in time and, sooner or later, it obtains a unacceptable
level for high-productive field rotation. This decrease obviously depends
on the natural (pre-drainage) overwetting rate of soil (Soovik, E., Tomson,
H., et al.). Areas nominally drained with tile drainage, but in
reality reverting to bog can be used mainly for grassland or forest without
expensive rehabilitation.
Simultaneous and harmonic development of soil management and animal
husbandry is the most important precondition for sustainable agriculture
in Estonian soil-climatic conditions. Unfortunately, many producers are
forced by the market to specialize in cereal production, growing only a
few crops. The monoculture of grain crops, with the simultaneous deficiency
of manure decreases the humus content of the soil. The average annual reduction,
caused by the monoculture of cereals, in humus reserves is approximately
one tonne per hectare in the soils with medium texture (Vipper, H., Lauringson,
E.. et al.)
The Law on Sustainable Development, passed in February 1995, is
the long-term strategy for sustainable development in Estonia. A number
of regulations supporting this law have already been formed, but there
is still plenty to do. Should Estonia gain associate status with the EU,
we must take into consideration the same policy implementation. The main
goals for developing sustainable agriculture in Estonia are:
There has been rapid development in environmental policies in the
Nordic countries. For farmers, the following factors have been important:
Table 4: Protected areas 1996
|
|
|
|
| National parks |
4
|
120.4
|
| Nature parks |
4
|
45.0
|
| Nature reserves |
53
|
115.6
|
| Landscape reserves |
156
|
190.7
|
| Total |
471.7
|
|
| Programme area |
640.0
|
Policy related to landscape and biodiversity aims to improve the protection
of landscapes and the existing network of nature reserves in accordance
with EU recommendations by the year 2000. Forests are considered to be
one of the Earth's richest and most valuable ecosystems. Estonia has some
of Europe's finest forest resources. The Estonian Environmental Strategy
(1997), under the Maintenance of Landscape and Biodiversity policy, aims
to establish a network of protected forests by the year 2000. These will
be protected according to nature conservation criteria, thus, ensuring
the preservation of all natural and semi-natural forest types and communities.
Currently, some forests are protected. In other forests, timber production
is of primary importance. The exploitation of these resources may tend
to override the limits of sustainability and presents an important challenge
for environmental policy. Current forestry data indicates that the volume
of trees felled is less than the current growing stock of forests in Estonia.
Commercial fisheries, both marine and freshwater, are economically
important in Estonia. Indicator species include Baltic herring, sprat,
cod, pike-perch and perch. The International Baltic Sea Fishery Commission
(IBSFC) regulates the exploitation of fish resources in the Baltic Sea.
Commercial fish catches declined between 1980 and 1990 although increasing
once more during, the 1990s. In order to avoid the over-exploitation of
fish resources, the Commission established the annual Total Allowable Catch
(TAC) for the Baltic Sea. Quotas are allocated to the national economic
zones. A number of factors have caused the fisheries to decline to their
current levels. These include general over-fishing in the past, pollution
of near-shore breeding and nursery grounds, and a decrease in salinity
in the Gulf of Finland.
The goal of the Estonian Environmental Strategy is to ensure the ecological
balance of surface water bodies and coastal seas, the natural regeneration
of fish-stocks and aquatic flora and fauna by the rational use of water
bodies. The aim is to remove nitrogen compounds from the waste water of
municipalities, in order to maintain the ecological balance of water bodies
sensitive to nitrogen. The main policy framework in the Estonian Environmental
Strategy is to ensure good quality ground water resources and its sustainable
use and protection.
Environmental policy in agriculture follow international guidelines
and initiatives, the guidelines of international conventions and agreements
ratified by the Estonian government, as well as the guidelines of the Estonian
Environmental Strategy. During the last few years, Estonia has signed several
international agreements. The most important are: The World Nature Protection
Strategy, Agenda 21 (adopted in 1992 in Rio de Janeiro at the UNO Environment
and Development Conference), and the Action Plan for Central and Eastern
Europe (adopted in 1993 in Luzern at the Conference of the Ministers of
the Environment).
In 1995, the framework Act on Sustainable Development was adopted and
will influence environmental legislation in the next few years. Besides
drafting new laws, emphasis has been laid on enforcement through the means
of enacting both governmental and ministerial regulations. In drafting
laws and regulations, more attention has been paid to the approximation
of Estonian legal documents with those of the European Union, thus, taking
part in the approximation procedure of the associated environmental legislation
with that of the EU. The following table gives a review of the work in
the field of environmental legislation during 1990-1996.
Table 5: Environmental legislation during 1990-1996.
|
|
|
Regulations |
Regulations |
| 1991 |
2
|
9
|
12
|
| 1992 |
1
|
9
|
4
|
| 1993 |
5
|
22
|
32
|
| 1994 |
12
|
24
|
61
|
| 1995 |
9
|
56
|
44
|
| 1996 |
8
|
46
|
64
|
Among those laws adopted during these years the ones regulating environmental protection are: the Law on the Right to Use Nature Resources (1993), the Law on Pollution Damages (1993), the Forest Law (1993), the Water Law (1994), the Law on Protecting Nature Objects (1994), the Pollution Charge Law (1994), the Law on Sustainable Development (1995), and the Law on the Package Excise (1996). Estonia has started to develop the Estonian Agenda 21 as the Estonian National Long Term Sustainable Human Development Strategy for the 21st century. For example, for agriculture the priority is to preserve soils with high fertility and improve methods of land cultivation
The Plant Protection Law (1994) regulates the use of pesticides.
In 1997, the Law on Organic Farming and Fertilizer Law was enacted.
Since September 1997, an Estonian Approximation Strategy concerning
environmental legislation has been elaborated within the PHARE-programme.
Legislative gap analysis, implementation analysis and investment analysis
has started to harmonize Estonian environmental legislation with those
of the EU, and to assess the necessary efforts to build up the institutional
conditions for their implementation. This work also deals with directives
related to agriculture and agricultural production, like the Nitrate Directive.
In addition, the Ministry of Agriculture runs, together with the County
Environmental Departments, the Environmental Impact Assessment the (EIA).
EIA is used to evaluate the effects of proposed projects on the environment.
Assessment covers the food industry and, at farm level, facilities for
animal husbandry with more than 10 cows or 30 pigs and corresponding cattle
sheds and poultry farms.
The 1994 law on water has had a very significant influence on agriculture.
The regulation reduces nutrient leaking from agriculture through the following
measures:
By applying measures of environmental management, Estonia is put
into a new situation where the main attention is now focused on promoting
environmental awareness and making people understand that investing in
environment protection is definitely worth while in the long-term.
The purpose of establishing charges on the use of natural resources
was to receive money for the maintenance of natural resources. However,
there is no information available if the money has been used for this purpose.
In 1996, prices for the right to use mineral resources were increased by
2.5 percent of their sale price. The price for mine-water was increased
by 200 percent. The price for using water of drinking quality from the
Cambrian-Vendian ground water stratum for technological purposes has risen
more than 200 percent (50 cents/m3 instead of 25). In order
to reproduce natural resources, the money was allocated to those spots
where these issues had to be dealt with directly. The share of payment
received by local governments was increased.
Starting from 1996, the share not allocated to the local budget will
be received by the Estonian Environmental Fund. From the Environmental
Fund it goes towards the reproduction of relevant natural resource to the
financing of environmental projects. In 1995, the revenue collected from
pollution charges amounted to EEK 35.3 million instead of the expected
29.2 million. This included EEK 14.2 million for water pollution, EEK 6.7
million for ambient air, and EEK 14.43 million for waste generation. The
increase in received pollution charges was due to the introduction of advanced
registration practices for waste depositing and the new pollution charges
effected by the Government Regulation No.412 of 29 March 1995. This regulation
put more emphasis on public health and recreation possibilities. The pollution
charge can be described as a complex indicator of the extent of pollution.
According to this indicator, 80 percent of the total pollution volume in
Estonia originated from some twenty enterprises.
During the first years of independence, most branches of agriculture
proved to be unprofitable. Up to 1997, only a limited number of support
measures for Estonian agriculture were effected. The main emphasis was
on providing farms with loans at favourable terms. Compensation for the
fuel excise tax was of a certain importance, so were measures to improve
the quality of inputs used. By 1997, proposals for direct income support
measures were not accepted despite the Agricultural Producers’ Income Law.
This was due to budgetary considerations in maintaining a balanced budget.
In 1997, new tools for Estonian agricultural policy were developed.
The Rural Credit Guarantee Fund provides additional credit guarantee, and
the Capital Grant Scheme supports investments of up to 30 percent of the
investment amount. In 1998, Estonia launched direct income support measures.
These are direct hectare payment and direct support measures for milk.
For hectare payments, the requirements are a minimum of five hectares of
supported crop. For the dairy payments, the preliminary requirements at
farm level is to have at least five milking cows participating in, and
registered under, the milk recording scheme and exceeding certain regional
reference yields. In 1998, farmers also got subsidies from the government
for crop failure due to bad weather conditions.
The idea of sustainability was popular in Estonia at the end of
the 1980s. It was resistant to the totalitarian Soviet system and it aimed
at preserving Estonia, its nature, culture and people. The environmental
"green movement" was the most popular movement. Later, however, a polarization
took place. Some people concentrated on nature protection and others on
political, social and economic issues.
Estonian Non-Governmental Organizations have a long history and have
played a significant part in national development. The oldest is the Estonian
Naturalists Society formed in 1853. In a general meeting in 1879, the academician
G. Helmersen put forward the idea of protecting Estonian nature objects.
The Tartu Student Nature Protection Circle (1958) is active in providing
environmental education to students of the two universities in Tartu. The
Estonian Green Movement (1988) was the first internationally active Non-Governmental
Organization in Estonia.
The Estonian Fund for Nature (1991) operates as a partner-organization
of the WWF (World Wide Fund for Nature), mainly raising funds for nature
protection projects and carrying out field work on biological diversity
in Estonian nature.
Here we can name only a few organizations dealing with environmental
issues: The Association of Baltic National Parks, the Association of Teachers
of Biology and the Geography, the Union of Protected Areas of Estonia,
the Estonian Nature Conservation Society, the Estonian Society of Foresters,
the Environmental Club "Scarabeus", and several others.
Several Non-Governmental Organizations (NGO) are engaged in agricultural
and environment issues. The four main ones are: the Estonians Farmers Union,
the Agricultural Producers Union, the Estonian Biodynamic Association and
the Estonian Green Movement. Of these, only one is dealing with sustainable
agriculture - the Estonian Biodynamic Association, which was established
in 1989.
Deverre, C. 1995. Social implications of agri-environmental
policy in France and Europe, Sociologia Ruralis, no 2, pp. 227-243.
European Commission (DG VI). 1998. Agricultural Situation and Prospects in the Central and Eastern European countries, Estonia, (DG VI), Working Document, p. 70.
Järv, A. 1997. Land Cadastre Development and Land Reform Process, Agriculture in Estonia 1996, Jäneda Training and Advisory Centre, pp. 60-66, Jäneda.
Laansalu, A. 1996. Overview of Agricultural Policy and Strategy, Agriculture in Estonia, Jäneda Training and Advisory Centre, pp. 12-15, Jäneda, 1997.
Maadvere, E. 1997. Survey, Agriculture in Estonia 1996, Jäneda Training and Advisory Centre, pp. 39-49, Jäneda.
Martin, A.-J., Mänd, & M., Maavara, V., Islands of biodiversity - the main precondition for nature sparing agriculture, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 211-212, Estonian Agricultural University, Tartu.
Sepp, M. 1996. Agricultural policy and sustainable agriculture in Estonia, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 89-92, Estonian Agricultural University, Tartu.
Skutlaberg, A. 1996. Important factors for development of ecological and sustainable agriculture in Norway and the other Nordic countries, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 16-24, Estonian Agricultural University, Tartu.
Soovik, E., Tomson, H. & Jõgeva, V. Drainage preconditions for sustainable agriculture in Estonia, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 156-159, Estonian Agricultural University, Tartu.
Statistical Office of Estonia. 1998. Agriculture 1997, p.142, Tallinn.
Tisenkofs, T. 1996. Sustainability strategy in agriculture in the Baltic countries, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 25-34, Estonian Agricultural University, Tartu.
Vipper, H., Lauringson, E. & Kuill, T. 1996. Soil management in the missing of animal husbandry, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 167-169, Estonian Agricultural University, Tartu.
Vipper, H., Põder, I., Lauringson, E. & Kuill, T. 1996. Sustainable agriculture and natural preconditions for its development in Estonia, NJC, Environment and Sustainable Agriculture, Proceedings, II international Conference of Agricultural Scientists from the Nordic and Baltic Countries, 24-25 November 1995, pp. 104-107, Estonian Agricultural University, Tartu.
Westerlund, K. & Loolaid, Ü. 1996, Foreword, NJC,
Environment and Sustainable Agriculture, Proceedings, II international
Conference of Agricultural Scientists from the Nordic and Baltic Countries,
24-25 November 1995, pp. 7-8, Estonian Agricultural University, Tartu.
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