Sunday, August 31, 2008

Frustrating Article on Russian Agriculture

Back in 1991, if I had been blogging, I would have predicted that grain prices would go through the floor because Russian agriculture would have flooded the market, finally having been freed of the constraints of the system. So much for my wisdom.

Today the NYTimes runs an interesting but frustrating article on Russian agriculture
from the beginning:
A decade after capitalism transformed Russian industry, an agricultural revolution is stirring the countryside, shaking up village life and sweeping aside the collective farms that resisted earlier reform efforts and remain the dominant form of agriculture.

The change is being driven by soaring global food prices (the price of wheat alone rose 77 percent last year) and a new reform allowing foreigners to own agricultural land. Together, they have created a land rush in rural Russia.

The article's frustrating because there's no real description of the current state of agriculture, just that big money people are buying land. There are two facts of interest: 16 percent cof Russia's arable land is idle, about 35 million hectares (maybe 80 million acres); and "[t]he average Russian grain yield is 1.85 tons a hectare — compared with 6.36 tons a hectare in the United States and 3.04 in Canada." That points to lots of potential (although if I recall my geography, Russia's closer to Canada in latitude than the U.S., albeit global warming is changing that.)

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