russian agriculture

     

Agriculture in Russia is struggling to rebuil as it transforms itself from a command economy to a market-oriented system. Following the breakup of the Soviet Union in 1991, large State farms had to contend with the sudden loss of heavy government subsidies. Livestock inventories declined, pulling down demand for feed grains, and the area planted to grains dropped by 25 percent in less than ten years. The use of mineral fertilizer and other costly inputs plummeted, driving yields downward. Most farms could no longer afford to purchase new machinery and other Capital investments. After about ten years of decline, Russian agriculture hi began to show signs of modest improvement. As in Ukraine, the transition to a more market-oriented system has introduced the element of fiscal responsibility, which has resulted in increased efficiency as farmers try to maintain productivity while struggling with resource constraints. Official data indicate a rebound in Russian grain yield in recent years, and although the bumper harvests of 2001, 2003, and 2004 are due in large part to favorable weather, most analysts agree that the gradual improvement will continue.

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