Russian agriculture: Growth and institutional challenges

Abstract

Russian agriculture has shown stable growth since 1999. The food trade balance steadily improves and the share of imported food in retail markets is decreasing due to the government’s import substitution policies. Russia has re-emerged on the world arena as a food exporter and now ranks among the leading exporters of wheat and vegetable oil. Agricultural production growth has become export oriented. To continue its growth, Russia’s agriculture should emphasize returning unused land to cultivation and adopt new technologies to increase the comparatively low crop and livestock yields. The skewed land distribution and agricultural support system, both strongly biased toward large farms and agroholdings, constrain the development of small farms and prevent their participation in food value chains, negatively impacting on rural development.