During the five years of operation, the Latvian Land Fund (LZF) has reviewed a total of 2868 applications and purchased 824 real estate in the area of 16 664 ha for the total amount of 50.32 million euros (including properties acquired as a result of reverse lease transactions), leased 798 properties in the area of 16 126 ha, but returned to agricultural production 470 ha, shows Ministry of Agriculture aggregated statistics.
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In order to achieve the goals, the LZF strategy envisages the accumulation of agricultural land in the amount of approximately 18,000 ha by the end of 2021, leasing it to agricultural operators, including 7,000 ha with lease and repurchase rights to property sellers. LZF Manager – Development and Financial Institutions “high“- the information provided shows that with the current business activity, this goal could be achieved by the end of 2020. After the achievement of the existing goals, new ones will be set to facilitate the return of agricultural land to agriculture and involvement in agricultural production. Demand for LZF services remains high and is on an upward trend.
All LZF properties are mainly leased to Latvian farmers. LZF transaction activity is typical for Latvia – higher activity is observed in Zemgale and lower activity in Latgale.
Since October 2017, the conditions have changed and for one and a half years LZF has been offering farmers the opportunity to sell agricultural land to the fund with the right of lease and repurchase to the seller, or the so-called reverse lease service. Reverse lease enables farmers to stabilize production and streamline cash flow in the short term. It is a unique opportunity to reorganize the company without changing the ownership structure and without incurring additional financial obligations. The demand for the reverse rental service is higher than originally planned. Within the framework of reverse lease transactions, LZF has purchased 322 real estate in the area of 6391 ha for the total amount of 18 million euros.
Since June of this year, everyone has access to the modern and convenient tool created by “Altum” for customers – the rental and sale rights auction portal zeme.altum.lv.
The LZF was established five years ago to promote the protection and availability of agricultural land resources, the rational, efficient and sustainable use of agricultural land, as well as the preservation of agricultural land for the needs of agricultural production today and for future generations.
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