Land reform and farm restructuring in Russia

During the course of 1992, major changes were made in the ownership of Russian agricultural land and in the rights of farm employees. These changes were accomplished through farm reorganization, during which most farms registered land in collective ownership and affirmed the rights of members of collectives to claim individual ownership. Farm reorganization accordingly brought little change in the behaviour of collectives. The growth of private farming appears to be the vehicle through which the agricultural sector changes product mix and adjusts out of products and technologies for which profitability is low under new relative prices. Cooperation in production and services appears to be developing among private farmers. Relative complacency with regard to social services is not likely to remain if the number of private farmers significantly increases in the future and collectives become unable to ensure free access to nonmembers. The transfer of rural social services to municipal governments should be accelerated, and their tax base should be strengthened. In order for the collective sector to become more productive, the restructuring accomplished in 1992 and early 1993 will have to be deepened through changes within the farms. -from Authors