197 



5 



Although economic reform of Russian agriculture has been underway since 

 1988, the pace will not appear satisfactory to most western observers. While private 

 farm numbers now total 214,000 and there are probably over 500,000 private farmers 

 in the Federation, these new farmers control only about 3% of the arable land. Of the 

 25,600 state and collective farms, almost 20,000 have re-registered into another 

 administrative form (partnerships with restricted responsibility, mixed partnerships, 

 cooperatives, associations of peasant farms, joint stock society, etc.). However, it is 

 difficult to conclude that these reorganizations are truly effective management reform. 



This is not to say dramatic change has not occurred. GOSPLAN and the 

 mandatory commodity procurement system are history. Prices for most agricultural 

 commodities have been decontrolled as have prices for important agricultural inputs, 

 excepting agricultural credit. Some new marketing channels are developing as 

 privatization begins in agroprocessing. 



But we should not always consider economic change to be economic reform 

 towards a more competitive free market agriculture. There are disconcerting signs that 

 some of the new enterprises are parastatal and exerting monopolistic controls on 

 marketing channels. This should be a primary concern when examining the pace and 

 direction of reform. 



