The transition process in the CEECs has had quite profound effects on agriculture. One may note that while the change from a centrally planned economy to a market economy is a common feature for all CEECs, their historical contexts and development differ.

From a macroeconomic point of view, a number of countries (e.g. Poland, the Czech Republic and Hungary) have introduced and maintained new monetary and fiscal policies with consequent resuming growth. In some countries lacking (e.g. Albania, Bulgaria, Romania and Russia) where such structural reforms were introduced but where the necessary prerequisites were lacking, these reforms did not succeed (Trzeciak-Duval, 1999). In many of the countries (e.g. Albania, Bulgaria, Romania), the share of agriculture in the GDP and in employment have remained high or rather high, while it has fallen in others (e.g. Estonia, the Czech Republic and Hungary). Five of the CEECs (Poland, Hungary, the Czech Republic, Estonia and Slovenia) are currently in negotiation with EU for membership in the EU.

From a farm-management point of view, many features seem to be similar in the CEECs. Generally, productivity is declining, soil depletion of nutrients is occurring, and input use is small because of an excessively high price in relation to output price. Problems with profitability exist in many cases, and farms are not competitive because of problems with their internal organization. The legal framework is not entirely settled, extension agencies and credit possibilities are missing, and many new landowners do not have farm-management experience or qualifications. All of these economic or social factors contribute to unsustainable development.

The impacts of the transition on sustainability in the CEECs are described below:

• Soil acidification, soil degradation and soil erosion are among the most serious environmental problems mentioned in the CEECs (FAO 1999);
• Surface water and ground water polluting from farming, both due to improper management practices, is taking place;
• Some of the few remaining HNV farming systems are threatened;
• Intensity levels of fertilizers and pesticides have fallen to very low levels after the transition relative to the period preceding transition;
• There is a potential danger that intensity levels will rise very quickly in some CEECs because of possible access to new markets and a possible increase in producer prices. In combination with improper farm management practices, this rise in intensity levels will cause unnecessary environmental degradation (e.g. eutrophication of waterways or increased ammoniaemissions);
• Conversely, rising income levels will increase the demand for environmental services, so in the long run these resources may be much more valued.

For most CEECs, the process of transition has implied profound changes that, in one way or another, affect the farming systems. The most important changes include:

1. Change in the legal framework. Ownership rights to land for those entitled to it have been established. The process has, however, not been finished.
2. Privatization has implied a change in the structure of the agricultural industry from massive state farms to smaller-scale, individually operated family holdings.
3. Markets have been liberalized (to various degrees) and opened up to foreign trade in agricultural products by reducing custom tariffs and export bans.
4. The complexity of regulations governing the implementation of privatization and related transaction costs for the withdrawal of assets is important factors delaying decollectivization. Much land is still operated by collectives or state farms (Sarris, 1999).