4.1 Entrepreneurship and Property
4.1.6 Projected Privatisation of Collective
and State Farms
Orientation
of the privatisation of collective and state farms
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In accordance with existing legislation,
the owner of a land or
property share in a collective farm, state farm, joint-stock
company, or cooperative may voluntarily quit that organisation
and set up an independent peasant farm or other enterprise.
Propert y owners who cannot independently engage in farming
owing to a lack of qualifications, health conditions or
other
reasons, may transfer their property via the inheritance,
sale,
or leasing of shares to other employees, and are entitled
to
compensation for the value of the land and means of production.
The partitioning of land and assets into
shares, and the
provision of the right to quit a farm while retaining one's
shares, creates the requisite legal and economic basis to
reform the collective and state farms. This transformation
may
be implemented in two ways:
- a gradual division of individual peasant
farms, cooperatives,
and small businessess, from a public farm, based on
applications by the holders of land or property shares;
or
- a one-off reorganisation of a public farm
into a system of
peasant farms, production and service cooperatives, and
private
and joint stock companies.
The first method (allocation of private
farms from the
remaining collective and state farms) is prevalent at present.
However, it cannot be considered more effective. Currently,
even in regions with undeveloped agricultural production
and a low proportion of employees
in that sector (as, for instance,
in Nizhni Novgorod oblast, where they constitute only 5%
of the
population), an average of 5-7 hectares of arable land are
available per agricultural worker or pensioner.
In addition, given that the number of cattle
on public farms is
virtually the same as that on private farms, then in some
circumstances, the current collective and state farms will
not
be replaced by large-scale, highly marketable private farms,
but rathe r by several million peasant households with an
average area of 10-15 hectares, 4-5 head of cattle, one
tractor
for every 6 farms, and one combine harvester for every 20.
The
division of collective and state farms into small peasant
farms
leads to a situation, where the departure of individual
workers
disrupts the existing technological links. Consequently
the
amount of land is reduced after such departures, and therefore
it may not be possible to fully provide the cattle remaining
on
the farms with fodder. The new individual private farms
are
frequently cut off from the production infrastructure of
the
collective or state farm (e.g. workshops and storehouses),
or
problems of mutual relations arise over the usage of that
infrastructure, the supply of seeds, young animals, fodder,
etc. Private farms are often deprived of the possibility
of
using the social infrastructure (kindergartens and communal
facilities). Finally, the departure of many workers may
cause
instability and irritability among those who remain.
This path resembles a return to the situation
at the start of
the 20th century. At the same time, it reflects the major
(albeit short-term) viability of the small-scale commodity
production of the peasant way of life, owing to the
predominance of cheap ma nual labour, and significantly
less
use of expensive technology, fuel, and mineral-based
fertilizers. Consequently one should be prepared for such
developments in the agricultural sector and in privatisation.
In this case, one must imagine the development of small
businesses in the agricultural sector, and the stimulation
of
the process of cooperation an d growth in marketability.
Given the existing shortage of land, one
must at all costs
prepare and adopt legal standards for the redistribution
of
land, and create state structures (along the principles
of the
Land Bank during the Stolypin Reforms). The goal is to promote
accelerate d formation of optimal private farms and
agricultural cooperatives (from the viewpoint of modern
science
and technology, as well as investment potential).
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