Top 10 Agricultural Countries by GDP Contribution 2016
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The agriculture in Russia had survived a severe transition after the decline in early 1990s as it had struggled to transform from command economy to an economy which was market oriented.
Following the end of Soviet Union in 1991, very large and collective farms which were the backbone of Soviet agriculture had to contend with loss of state guaranteed supply and marketing channels. A changing legal environment which created pressure for reorganisation and restructuring.
In almost less than 10 years, inventories of livestock decline by half which brought down the demand for grains used as feed and the area planted by grains also dropped to 25%. The mineral fertilizer and other inputs purchased inputs demand declined driving the yield down. Most farms didn’t have the purchasing power to buy new machinery and do capital investments. Following a near decline of nearly 10 yrs., Russian agriculture experience gradual recovery. The transition to market oriented system introduced made this sector more fiscally responsible which helped them increase the efficiency as farmers tried in maintaining productivity along with resource crunch.
The farms have emerged strong in newer environment and are producing more in aggregate value than total output of large corporate farms which have succeeded in traditional collectives. Wheat which is produced in abundant quantities accounts for over 70% of total grains produced in the country. Russian farmers usually cultivate wheat twice a year, both winter and spring season. During winter wheat is cultivated in North Russia and during spring in Don Basin. There is also a great opportunity for investors from foreign to invest in wheat as they can reap great benefits irrespective of season.
Agriculture contribution to GDP: 59,613.03 million dollars