Reviewing changing institutional conditions for private farming in Russia

Abstract

The dominant organizations of agricultural production ( kolkhozes and sovkhozes) have become obsolete with independence and the abolition of the Soviet era’s planned economy. These organizations had to be restructured and family farms, or more generally private farms, were intended to form the new backbone of farm production. However, development since then has been difficult. Based on a literature review, this study reviews and assesses this development in terms of the changing institutional conditions. The Russian government’s policies, by interchangeably supporting large-scale farming organizations or private farming, have created uncertainties for private farmers. Russian farmers were once strongly influenced by the mentality from Soviet times, but there are indications now that they are gaining strength, possibly as a consequence of a more benevolent political order, more entrepreneurial attitudes and developing organizational arrangements.