Russia - Agriculture



In 1998, Russia had 128 million ha (316.2 million acres) of arable land (8.5% of the world's total), covering 76% of the country's land area. In 2001, the share of agriculture in the GDP was 7%. Agricultural production dropped by an average of 6% annually during 1990–2000. A surge in imports of food products during that period is the direct result of difficulties faced by domestic farmers and processors, and has brought with it a desire for protection from foreign competition in the name of national security. In 2001, Russia's agricultural trade deficit was nearly $7.6 billion, fourth highest in the world.

The 1999 harvest included (in millions of tons): potatoes, 31.2; wheat, 30.9; sugar beets, 15.2; barley, 10.6; vegetables, 11.1; oats, 4.4; rye, 4.7; sunflower seeds, 4.2; rice, 0.4; corn, 0.3; and soybeans, 0.3. The government is promoting the expansion of small-plot farming; about 150,000 new farms have begun operating since 1991, primarily in the south.

Agricultural policy has changed several times since market reforms began. Low interest loans were initially offered to the old state farms, but the government's budget soon could not afford all the demands made by farmers. The low interest loans were replaced by in-kind loans to suppliers, which were then modified to in-kind loans from the federal government to local governments. The general agricultural policy trend is now an ongoing devolution of power from the federal government to local governments.

User Contributions:

1
Vanya
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May 7, 2009 @ 12:12 pm
I think it has PLENTY of relevence to modern Russian agriculture, thank you very much!!!!!!
2
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Feb 23, 2011 @ 9:09 am
Dear Reader,
During revolution the farmer class has been killed for the sake of progress to socialistic society. Now we see how difficult it is to get the farmer class back without ancient traditions passed by parents to their children. In addition we have an extremely unfriendly environment for entrepreneurs and a ruling class that protects its own interests in the food importing sector. Interest groups as such protect existing interests and not future interests most of the time. Compare it with the situation why BP, Shell and other companies are lagging behind in renewable energies. This all explains why already 40 out of 120 million hectares of ploughed land are not used and the 80 other millions irresponsibly used.
J. Buijs, agricultural consultant

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