In Russia, the share of private household plots in agricultural production has fallen to an anti-record level

Published Nov 8, 2024

Tridge summary

A study by audit company B1 reveals that private farms in Russia accounted for only 25% of the country's agricultural production by the end of last year, marking the lowest level since at least 2002. This decline is primarily due to the consolidation of production and the shift of agricultural activities from private farms to larger agricultural organizations. Experts predict this trend to persist, alongside urbanization and the exodus from rural areas, with a possible further reduction in private farms' production share to 20% by 2030. The experts also point out the lack of government support for private farms, issues with recruitment and training, insufficient working capital, and higher production costs as factors hindering the competitiveness of small and medium-sized farms against large agro-complexes.

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Original content

The share of private farms in Russia in agricultural production in the country fell to a quarter of the total volumes by the end of last year, which was the lowest figure since at least 2002. Analysts from the audit company B1 cite such data in their study, Vedomosti writes. They cite the consolidation of production and the flow of ever-increasing volumes of production from farms of these forms of ownership to agricultural organizations as the main reasons for this. In the coming years, the authors of the study expect this trend to continue, as well as an increase in urbanization and the outflow of population from rural areas. By 2030, according to expert calculations, based on the average annual rates over the past few years, the share of private farms in agricultural production may decrease by another five percent. The newspaper also cites other experts who gave their explanations for this situation with private farms. Director of the Center for Agri-Food Policy at the Russian ...

Source: Rosng