Translated material
Change from quantity to quality
Mass disappearance of agricultural enterprises does not threaten Russian agriculture
Over the past 11 years, the number of peasant farms in Russia has almost halved, and 26% of large and medium-sized agricultural enterprises have stopped operating. This was announced by the head of the Department of Agricultural Statistics of Rosstat, Alexandra Epikhina, at a press conference dedicated to the start of publication of the results of the All-Russian Agricultural Census 2006. However, experts believe that such statistics not only do not threaten agriculture in Russia, but even benefit it.According to Alexandra Epikhina, as of July 1, 2006, in Russia there were over 28 thousand large and medium-sized agricultural organizations, 20 thousand small ones, 11 thousand subsidiary farms of non-agricultural organizations, 253 thousand farmers, 32 thousand individual entrepreneurs. “Data on how many agricultural enterprises are operating and how many have ceased operations were obtained during the agricultural census for the first time,” she noted. According to the census results, only 40 regions have 70 percent or more working agricultural enterprises, and 12 regions have the same number of working farms. As Ms. Epikhina put it, “the intentions of farms that have ceased or suspended their activities are not optimistic.” According to the census, only 4% of large and medium-sized farms that suspended their operations are trying to return to economic activity. Among small agricultural organizations there are 7%, among farmers - 8.5%, among individual entrepreneurs - 11%.
According to Alexandra Epikhina, over the past ten years, the largest number of farms that ceased operations occurred in 1998, which is associated with the economic crisis that broke out in the country at that time. In the period from 2001 to 2003, 8% of farms ceased operations, from 2004 to 2006 - 6.2%.
According to Rosstat officials, this is a serious problem. “These farms still have land and production assets on their balance sheet; this is very valuable information: it is necessary to conduct an analysis and determine the prospects for the development of the industry,” she said.
However, experts from the All-Russian Institute of Agrarian Problems and Informatics (VIAPI) are not inclined to dramatize the situation. “Large agricultural producers are disappearing, and several small ones are appearing in their place. This is normal practice in a market economy,” Doctor of Economic Sciences, Professor Vasily Uzun told Vremya Novostei. “We need to look not only at the category of the farm, but at the total area of land being cultivated.”
Experts also attribute the reduction in the number of large agricultural producers to the unequal economic situation between peasant farms and personal subsidiary plots. Personal subsidiary farming has no tax burden and no reporting. Whereas a farmer is already a legal entity.
“Both are family farms,” Vladimir Bashmachnikov, a representative of the Association of Peasant Farms and Agricultural Cooperatives AKKOR, told Vremya Novostey. “But it’s convenient for a small farmer to transfer to the category of private household plots, because it’s easier to farm this way.” In his opinion, moving from category to category does not change the volume of cultivated land. “On the contrary, these volumes are increasing,” he believes.
The first agricultural census in 86 years was conducted from July 1 to July 25, 2006. Following the example of developed countries, this event will be held in Russia every ten years. As a result of the census, data will be generated containing the main characteristics of the industry. This is information about the number and organizational and legal forms of farms, about land resources and their use, about sown areas, about the number of livestock and poultry, as well as information about the presence and types of roads and technical means used in the farm. The information obtained will be the basis for conducting statistical studies that will allow us to monitor and evaluate the dynamics of subsequent changes in the industry. The final results of last year's All-Russian Agricultural Census will be announced before the end of 2007.