Agricultural Recovery in Russia and the Rise of Its South

Russia’s transition from a centrally planned economy to a market-based economy began in the early 1990s. In the Soviet planned economy, farms received specific allocations of inputs tied to mandated output targets from central planners. In Russia’s market economy, however, farms have had not only the potential to earn profit but also the decisionmaking freedom over the choice of output and stronger managerial control to improve labor incentives. The decline of state subsidies during the economic transition contributed to a severe drop in the inputs used in production, and, therefore, agricultural output. However, by the late 1990s, the agricultural output decline had bottomed out and growth resumed.

The production rebound has had major consequences for U.S. and world agricultural trade. As grain production rose steadily after the late 1990s, Russia switched from being a small grain importer to a major exporter. The country currently exports about 35 million metric tons (mmt) of grain a year. In 2015-16, Russia supplied 10 percent of total world grain exports and 15 percent of wheat exports. In comparison, the United States supplied 24 percent of total world grain exports and 14 percent of wheat exports...

@ USDA ERS - Agricultural Recovery in Russia and the Rise of Its South: