 After the conclusion of the Latvian War of Independence, the post of Commander-in-Chief was abolished in February 1921 and in July of the same year Balodis asked to be discharged from the army.By a special law of the Saeima he was presented with 100 hectares of land and a manor house.He joined the Latvian Farmers Union, the largest party at the time which was led by Kārlis Ulmanis.