Profitability of grain and rapeseed production in Estonia: future prospects
Department of Mechanisation, Estonian Research Institute of Agriculture, Teaduse 13, 75501 Saku, Estonia; e-mail: valdek.loko@mail.ee, enno.koik@mail.ee, kalvi.tamm@neti.ee
Abstract:
The accession of Estonia to the EU and the introduction of the Common Agricultural Policy (CAP) will increase the country’s agricultural income substantially. Nevertheless, because of the northern climatic conditions, profitability of grain and rapeseed production in Estonia may have more problems than in other EU member states. The future impact of the CAP reform on grain production is being discussed. Results of different research projects are compared and the Estonian situation is analysed. It seems that there will be incentives for producers to decrease grain area in Estonia. Economic comparison was made about three tillage and sowing technologies: direct drilling, minimum and conventional tillage. Calculation results show that direct drilling and minimum tillage give better results than conventional tillage. However, the impact of direct drilling on yield and profit is more questionable and needs further research and farming experience. During last years, rapeseed production has increased because of its higher profitability than grain production.
Possible future WTO negotiation results may also create problems in Estonian agriculture because of the northern climatic conditions.
Key words:
CAP reform impact on grain production, conventional tillage, direct drilling, minimum tillage, profitability of grain and rapeseed production, WTO negotiations