2012

LVM TO STEP UP PURCHASE OF FORESTLAND

The Agriculture Ministry has instructed the joint-stock company “Latvia’s State Forests” to significantly increase purchasing of forestland from those forest owners who wish to sell.

“I am concerned, just as a large part of the populace is, that land and forests are being bought up in comparatively large amounts in Latvia by various foreign residents and investors. By assigning “Latvia’s State Forests” to increase the amount of purchases of forests and land parcels fit for forestry, we will bring about that a number of individuals who wish to sell forests will choose to do so to the state, and they will be managed in a sustainable manner in accordance with the country’s economic, environmental protection and public interests,” emphasises Agriculture Minister Laimdota Straujuma.
 
The agriculture minister explains that therefore forestland sellers will be given a choice between selling their property to foreign speculators or a company that belongs to the state of Latvia and has extensive experience of the management of state-owned forests.

The opportunity for the joint-stock company “Latvia’s State Forests” to increase the area of state-owned forests will also increase their contribution to the national economy of Latvia. “Of course, the amounts of money that the company has to spend on purchasing forestland are not unlimited, in 2012 up to LVL 1 million could be spent on the purpose. However, the Agriculture Ministry, as a shareholder in the company, will continue work so the dividend policy on “Latvia’s State Forests” profit contribute to attaining the goal,” explains Laimdota Straujuma.

“The part of state forests where the main aim of the management is to preserve environmental value and ensure recreational opportunities for residents, has increased significantly over the past several years. That is why the main purpose of forestland bought by “Latvia’s State Forests” will be intensive forest growing, developing quality forest plantations with high annual augmentation, and reforesting unused farmland adjacent to forestland bought by the company, thereby ensuring these areas’ maximum contribution to the national economy,” informs the joint-stock company “Latvia’s State Forests” CEO Roberts Strīpnieks.

Forestland purchases by the joint-stock company “Latvia’s State Forests” are organised by the structural unit LVM Nekustamie īpašumi. Information on how to draft a sale offer may be found at “Latvia’s State Forests” website in the section “Purchase of Forestland” (only in latvian).The section provides full information on contacts who will answer all questions that forestland owners may have. Offers may be sent in by mail or delivered personally to Riga, 30 Kristapa Street.

The joint-stock company “Latvia’s State Forests” purchases land parcels that meet the following criteria:

·         Forest management activities are permitted on the property to be purchased

·         There are no buildings and facilities on the land parcel that are registered as provided for in the law

·         The property to be purchased is useful for acquisition (purchase) in terms of its location, soil hydrological properties, forest growing conditions and forest type, access and other criteria that determine the economic value of the property

The sale price per hectare shall not exceed the maximum price per hectare set by LVM, calculated pursuant to the procedure established at the joint-stock company “Latvia’s State Forests”.

LVM Communication Department Head

Tomass Kotovičs