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date: 11 December 2019

Abstract and Keywords

This chapter discusses transition policies that led to privatization of land ownership and individualization of agricultural production, with associated changes in farming structure and agricultural productivity. The emergence of land market transactions and administrative constraints to land market development are discussed. Russia has a sharply bimodal agricultural structure, with extreme concentration of land in a few large corporate farms and very little land in small farms. This is symptomatic of a lack of functioning land markets and reflects a policy bias toward large corporate farms. Russian agriculture has advanced far from the Soviet model but still bears a strong resemblance to it. The consequence is largely mediocre productivity performance from the corporate farm sector coupled with remarkable labor-intensive performance from 23 million small household plots. Options for enlarging the individual farm sector to achieve a less bimodal structure and improve the productivity performance of Russian agriculture are discussed.

Keywords: agricultural reform, land reform, farm restructuring, land ownership, land privatization, land markets, agricultural productivity, transition policies, bimodal farm structure

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