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Land Reform and Farm Restructuring in Ukraine Land Reform and Farm Restructuring in Ukraine Land Reform and Farm Restructuring in Ukraine Land Reform and Farm Restructuring in Ukraine Land Reform and Farm Restructuring in Ukraine Zvi Lerman Karen Brooks Csaba Csaki Copyright © 1994 The International Bank for Reconstruction and Development/THE WORLD BANK 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing December 1994 Discussion Papers present results of country analysis or research that are circulated to encourage discussion and comment within the development community. To present these results with the least possible delay, the typescript of this paper has not been prepared in accordance with the procedures appropriate to formal printed texts, and the World Bank accepts no responsibility for errors. Some sources cited in this paper may be informal documents that are not readily available. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. The material in this publication is copyrighted. Requests for permission to reproduce portions of it should be sent to the Office of the Publisher at the address shown in the copyright notice above. The World Bank encourages dissemination of its work and will normally give permission promptly and, when the reproduction is for noncommercial purposes, without asking a fee. Permission to copy portions for classroom use is granted through the Copyright Clearance Center, Inc., Suite 910, 222 Rosewood Drive, Danvers, Massachusetts 01923, U.S.A. The complete backlist of publications from the World Bank is shown in the annual Index of Publications, which contains an alphabetical title list (with full ordering information) and indexes of subjects, authors, and countries and regions. The latest edition is available free of charge from the Distribution Unit, Office of the Publisher, The World Bank, 1818 H Street, N.W., Washington, D.C. 20433, U.S.A., or from Publications, The World Bank, 66, avenue d'Iéna, 75116 Paris, France. ISSN: 0259−210X Zvi Lerman is a professor in the Department of Agricultural Economics, Hebrew University of Jerusalem, Israel, and a consultant to the World Bank. Karen Brooks is principal economist in the Agricultural Policies Division of Land Reform and Farm Restructuring in Ukraine 1 Land Reform and Farm Restructuring in Ukraine the Bank's Agriculture and Natural Resources Department. Csaba Csaki is senior agricultural adviser in the Natural Resources Management Division, Country Department IV, of the Bank's Europe and Central Asia Regional Office. Library of Congress Cataloging−in−Publication Data Lerman, Zvi, 1941 Land reform and farm restructuring in Ukraine / Zvi Lerman, Karen Brooks, Csaba Csaki. p. cm. — (World Bank discussion papers ; 270) Includes bibliographical references. ISBN 0−8213−3149−3 1. Land reform—Ukraine. 2. Agriculture and state—Ukraine. 3. Land reform—Law and legislation—Ukraine. 4. Agriculture— Economic aspects—Ukraine. 5. Ukraine—Rural conditions. 6. Ukraine—Rural conditions—Statistics. I. Brooks, Karen McConnell. II. Csaki, Csaba. III. Title. IV. Series. HD1333.U38L47 1994 333.3'14771—dc20 94−43327 CIP Table of Contents Foreword link Preface link Abstract link Executive Summary and Recommended Actions link 1. Rationale for the Study and Summary of Findings link Why Restructure and Not Simply Privatize? link Why Monitor Land Reform and Farm Restructuring? link The Endowment and Present Environment link The Legal Framework for the Land Market link The New Private Sector link Farm Restructuring link Marketing Services and Infrastructure link Social Services link Lessons for the International Community link 2. Ukraine: the Country and its Agriculture link Historical Background link Table of Contents 2 Land Reform and Farm Restructuring in Ukraine Inherited Economic Structure link Ukrainian Agriculture: Physical Conditions link Agricultural Production link 3. Land Reform Legislation link Principles of Land Privatization link Land and the General Privatization Program link Forms of Land Ownership link Restrictions on Land Ownership link Annex: Ukrainian Land and Farm Legislation link 4. The New Private Sector link National Perspective link Private Farms and Private Farmers in the Survey link Land in Private Farms link Production on Private Farms link Human Resources link Finances and Credit link Cooperation link Standard of Living and General Attitudes link 5. Reorganization of Farm Enterprises link Land Use and Production link Labor link Change of Organizational Form link Land Tenure link Distribution of Land and Assets link Difficulties in the Reorganization Process link Managers' Attitudes link Regional Variation in Reorganization link 6. The Effect of Reorganization on Farm Employees link Land in Household Plots link Production on Household Plots link Commercial Sales from Household Plots link Labor and Earnings link Table of Contents 3 Land Reform and Farm Restructuring in Ukraine Reported Participation of Employees in Farm Restructuring link 7. Market Services and Infrastructure link Supply of Farm Inputs link Product Marketing link Prices Received by Farmers link Export link Processing link 8. Rural Social Services and Restructuring of the Collective link Sector Social Benefits of Farm Employees link Social Services for the Private Farmer link The Burden of Social Services link List of Tables Table A. Sample Structure link Table 1.1. Distribution of Agricultural Land Among Users link Table 1.2. Forms of Land Tenure in Ukraine link Table 1.3. Restructuring of Farm Enterprises in Russia and link Ukraine Table 1.4. "Do You Intend to Become a Private Fanner?" link Table 2.1. Agricultural Production by Type of Farms in Ukraine link Table 2.2. Profile of the Main Agro−Climatic Zones in Ukraine link Table 2.3. Agricultural Gross Product by Sector in Ukraine: link 19901993 Table 2.4. Crop Yields and Livestock Productivity of Ukrainian link Agriculture Table 3.1. Distribution of Agricultural Land Among Users as of link Jan. 1, 1994 Table 3.2. Allowed Uses and Size Restrictions of Privately link Owned Land Table 4.1. Growth of Private Farming in Ukraine 19901993 link Table 4.2. Distribution and Size of Private Farms by Province link (July 1994) Table 4.3. Production of Private Farms Compared to Other link Sectors List of Tables 4 Land Reform and Farm Restructuring in Ukraine Table 4.4. Private Farmers: Average Farm Size and Structure of link Land Holdings Table 4.5. Private Farmers: Crop Production and Mean Yields link Table 4.6. Livestock on Private Farms in Ukraine link Table 4.7. Livestock Production on Private Farms in Ukraine link Table 4.8. Sources of Farm Investment link Table 5.1. Structure of Crop Production in Farm Enterprises link Table 5.2. Farm Managers: Crop Production and Mean Yields link Table 5.3. Livestock Production in Farm Enterprises link Table 5.4. Distribution of Organizational Forms in 1990 and link 1993 Table 5.5. Land Tax by Province as Reported by Farm Managers link Table 5.6. Rights Associated with Land and Asset Shares link Table 5.7. Managers' View of Difficulties in the Process of link Reforms Table 5.8. Managers' Views of Expected Changes Following link Reorganization Table 6.1. Size of Household Plots by Province: 19901993 link Table 6.2. Production Volume Per Household and Average link Proportions Consumed and Sold Table 6.3. Livestock in Households of Farm Employees link Table 6.4. Payments in Kind Received by Farm Employees link Table 6.5. Views of Private Farming Expressed by Employees of link Farm Enterprises Table 7.1. Access of Farms to Supply Channels for Inputs and link Services Table 7.2. Farms Acting as Suppliers of Farm Inputs link Table 7.3. Reported Difficulties with Purchase of Farm Inputs link and Services Table 7.4. Producers and Commercial Producers of Various Farm link Products Table 7.5. Main Marketing Channel by Commodity for link Categories of Producers Table 7.6. Perception of Availability of Alternative Marketing link Channels by Commodity Table 7.7. Marketing Problems by Commodity for Farm link List of Tables 5 Land Reform and Farm Restructuring in Ukraine Enterprises and Private Farms Table 7.8. Prices Received by Producers link Table 8.1. Social Benefits and Services Provided by Farm link Enterprises Table 8.2. Access of Private Farmers to Social Benefits and link Services Table 8.3. Disposition of Social Assets According to Farm link Managers' Responses List of Figures Map of Surveyed Provinces link Figure 2.1. Soil Composition in Ukraine link Figure 2.2. Structure of Land Use in Ukraine link Figure 2.3. Structure of Sown Area in Ukraine link Figure 2.4. Gross Agricultural Product: 19901993 link Figure 3.1. Land Endowment Per Person by Province link Figure 4.1. New Registrations of Private Farms by Month in link 19921993 Figure 4.2. Distribution of Private Farms by Size link Figure 4.3. Structure of Holdings in Private Farms link Figure 4.4. Desired Expansion as a Function of Current Farm link Size Figure 4.5. Land Tenure in Private Farms link Figure 4.6. Sources of Land in Private Farms link Figure 4.7. Sources of Investment Capital by Start−Up Year for link Private Farms Figure 4.8. Accounts Receivable of Private Farms link Figure 4.9. Borrowing Rates of Private Farmers link Figure 4.10.
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