The €14 million (US$15.75 million) Latvian Land Fund (Latvijas zemes fonds) has made its first three farmland acquisitions since its formation on July 1.

 

The fund was formed to increase agricultural production by buying unused or fallow pieces of farmland and either reselling them or leasing them for active agricultural production. Between July 1 and August 25 the fund received 217 offers from owners wishing to sell their land. Of these, 190 offers have been assessed with 70% of the offers being rejected due to the property being unused for more than ten years, the size of the plot being too small (less than 0.2 hectares), the land would require a disproportionate investment prior to selling or leasing, or management of the land would prove too costly. Negotiations on the remaining offers are ongoing.

 

So far, the fund has signed its first three purchase agreements for farmland in Skrunda, Lielvarde, and Vane Counties. Two additional purchase agreements for land in the Counties of Aiviekste and Targale are scheduled to be signed within the week.

 

By the end of 2015 the fund targets the closing of deals worth approximately €1 million (US$1.13 million).