The economic effectiveness of the subsidiary private holding and its reform.

摘要

The role of the subsidiary smallholding in Russia has changed substantially in recent years from a supplementary to a main source of income for many rural families. However, labour intensity in this sector is high and productivity per person relatively low. Various attempts have been made in different regions to integrate subsidiary holdings with corporate farming enterprises. However, this has in fact more often involved the gradual break-up of larger units into smaller ones. Rather, the relationship between subsidiary and corporate farming should maintain the integrity of the larger enterprises, with their advantages of economy of scale and level of technical equipment. Large enterprises should establish subsections responsible for relations with the subsidiary sector. Where cooperatives are formed, these will require starter capital, possibly involving industrial sponsors. Reliance on tax relief and concessionary credit, as has been the case in some instances, is not sufficient. Although servicing the subsidiary sector by larger enterprises will require effort and resources, it will bring a return in the form of a significant volume of quality produce, thus raising overall agricultural production.