The previous year, 2001, was one of success for our agriculture. The income of farmers grew and nourished a faith in the future. The favourable situation on the world market of agricultural and food products offered good opportunities for Estonia with her open economy.

Many people perceived the economic environment as stable and saw a clear perspective for the development of agricultural enterprise.

An open economy does not only entail benefits, but also greater risks. The situation on the world market of foodstuffs has changed and worries the farmer: the prices of the main agricultural products, milk and pigmeat, have fallen, and this has a direct impact on our domestic market.

Despite the market situation, we must be able to maintain the development opportunities of agricultural producers. This year’s results are particularly important because we are on the homestretch of accession to the European Union and the primary economic conditions will be set based on our performance so far.

The purchasing power of consumers on the European Union market will ensure stability and higher prices for farmers.

Economic certainty has a price that both old and new Member States have to pay: the partial restriction of production. At the same time, accession to the European Union releases us from the international contracts that disregard Estonian farmers’ interests.

We have to make efforts to enhance investments in ensuring the efficiency of large-scale production, as well as the sustainability of small and medium producers. Aid programmes of the European Union offer greater opportunities for the development of small agricultural holdings.

Efficient agriculture does not create new jobs, on the contrary: it vacates labour. The European Union structural funds offer great opportunities for diversifying rural enterprise. We have to revalue our old concept of rural activities being limited to agriculture. The launching of new activities in rural areas requires not only a change of attitude, but also new skills and knowledge.

Unfortunately, the number of graduates from our vocational educational establishments is much lower than the number of retiring people.

I regard the promotion of science and agricultural vocational education in cooperation with the Ministry of Education as the priority of my work. There should be a sufficient number of educated people for rural areas who are able to apply new technologies and make progress in agriculture and rural enterprise.

A large-scale environmental programme, which is one of the priorities of the European Union, will be implemented in Estonian agriculture from the year 2002. The programme will give us new experience for using the Union’s structural funds and for creating preconditions for a balanced development of rural areas.