Agriculture in Transformation: The Restructuring of Farm Enter in Central and Eastern European Countries during the Transition Process

Abstract

Ten years of transition processes in the former communist countries of Central and Eastern Europe (CEEC) have changed the ownership structure as well as the structures and legal forms of enterprises in agriculture considerably. The farm structures in Eastern Europe developed under the influence of various collectivisation models. These influenced the course of the transformation process and therefore the development of new entrepreneurial and farm structures to a great extent. In addition also the effects of other political, social and economic factors with different weights can be noticed in the individual countries. Considering labour organisation and relation to markets, four different types of farm enterprises have evolved in the Central European and East European states during the transformation process: (a) Family farms for a mere self-sufficiency (Subsistence farms) (b) Family farms with a predominant orientation towards the market (c) Market-oriented joined family farms (d) Market-oriented farms with hired labour In the future farms and agricultural enterprises of all different types can have good prospects and therefore also the different sizes connected with them. For this reason the same should be valid for all types of farms and in the long term competition should decide, which types are going to compete. The preference or discrimination of a certain type by the agrarian policy needs to be avoided. The state also needs to develop the infrastructure in rural areas, to improve the prospects of farms that are deprived in this respect.