Russian Agriculture during Transition: Performance, Global Impact, and Outlook

Abstract

In the 2000s, Russia emerged as a major player in world agricultural markets, on both the supply (mainly grain) and demand side. This article examines Russia's agricultural transition experience, which has resulted in a complex system of diverse producers and institutions, as well as uneven performance. Using a model of transition agriculture, the article explores how key reform policies drove systemic change and commodity restructuring, and how the ensuing changes in the production, consumption, and trade of goods have affected world markets. The article also assesses the performance of Russian agriculture during transition, and provides an outlook for the future.

Perspectives of the Russian agricultural exports in terms of comparative advantage

“…However, it is evident that Russia cannot be efficient and fully self-sufficient in all agricultural products due to its natural and climatic conditions, particularly with regard to agricultural products of Just such products represent a substantial part of the group D. Besides the aforementioned products, this group includes the commodities that Russia is able to produce on its own, but does not produce them for some reason. The above mentioned results indicate support of the idea of Liefert and Liefert (2012) about the support to the agriculture sector to reach a high level of self-sufficiency. Russian authorities are extremely sensitive in relation to the constant growth of the agrarian trade negative balance value.…”

The potential of Russia to increase its wheat production through cropland expansion and intensification

“…3). Moreover, better weather conditions after 1998 contributed to the increase in wheat yields in Russia (Liefert and Liefert, 2012;Schierhorn et al, 2014). The wheat yields rebounded approximately to the 1990 level by 2007, although N fertilizer application was applied at only half of the rate during late Soviet times (Fig.…”

“…The contraction of cropland in Russia has been triggered by the liberalization of previously subsidized input and output prices, poorly functioning land markets, and increasing international competition (Lerman and Shagaida, 2007;Liefert and Liefert, 2012;Prishchepov et al, 2013). In particular, the profitability of livestock production decreased after the dissolution of the Soviet Union (Lioubimtseva and Henebry, 2012), mainly driven by the abrupt elimination of state subsidies to the livestock sector.…”

“…In combination with poor weather conditions during the 1990s (Liefert and Liefert, 2012;Schierhorn et al, 2014), the average wheat yields decreased from 1.93 t/ha between 1990 and 1992 to 1.49 t/ha between 1994 and 1996, a decrease of 23% (Fig. 3).…”

The Evaluation of Efficiency of Polish Agriculture

“…The fi rst is input allocative effi ciency, which exists when no relocation of inputs among producers could generate more of one good without decreasing the output of some other good. The second type of allocative effi ciency is output allocative effi ciency, which occurs when the mix of goods produced and consumed maximizes consumer welfare (Liefert, Liefert, 2012). To increase income a farmer can take into account the effi ciency of the expected value, as it has an impact on some of the components of the manufacturing process, such as fertilization, agronomic treatments and plant protection.…”