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Investment in Agriculture 1953-64 (Problems in Agriculture 1954-64…
Investment in Agriculture 1953-64
Improved incentives
1954, Khrushchev changed the relationship between collective farms and the government to incentivise higher production rates.
He wanted to invest in farming by offering farmers higher price for their produce. He
reduced the quota
compared to Stalin's and also higher prices for everything.
Led to
250% rise
in farm income between 1952 and1956
Investment in Resources
Invested in farm equipment and fertilisers
1954 announced the construction of new fertiliser factories and an increase in the production of tractors
By 1955 resulted in 30% increase in number of tractors available and 40% increase in amount of fertiliser produced
Virgin Land Scheme
Most ambitious agriculture policy with significant investment. Launched
September 1953
Khrushchev hoped to increase agriculture production by turning unarmed lands in the northern Caucasus, Kazakhstan, and western Siberia into new farms
agriculture investment grew from under 3% a year to 12.8 of the soviet budget between 1954 and 1959 leading to significant increase of farmland
Successes
initially extremely successful
grain harvests, meat and milk production all rose significantly between 1953-58
Overall, agricultural production increased by around 35.3%
between 1953-58
led to greater availability of food in shops thus better standard of living for the people
Greater production led to 400% rise of income to farm workers.
The success of the scheme allowed Khrushchev to consolidate his position and produce more ambitious schemes
1956, Khrushchev introduced a new commitment to produce more food than the US by 1960
This requires 300% increase in production in 4 years
The Corn Campaign
From 1958 Khrushchev encouraged farmers in Ukraine to grow maize
Maize to be fed to animals which would therefore increase meat available to population
Planned to shift wheat production to the Virgin Land farms while maize would be produced Ukriane
Problems
Caused the deaths of million through famine in Ukraine and Kazakhstan.
Farms only able to produce 50% of corn per hectare that US farms produced. because of difference in climate, lower labour productivity and inferiority of Soviet tractors and fertilisers
Growing more maize made less hay production
animal feed produced dropped by 30% between 1958 and 1964
Problems in Agriculture 1954-64
Soviet agriculture remained extremely inefficient
Virgin Land Scheme was very expensive
Kazakhstan is naturally very dry so farms needed sophisticated irrigation systems which are expensive to run and maintain
Soviet agriculture was labour intensive
During 1950's-60's, between 44-54% soviet population worked on farms
Comparison, 5% USA population worked on farms producing twice as much food. Therefore USSR far less inefficient
Later effects
harvests in 1959-60 were slightly below 1958 levels
targets Khrushchev proposed in 1956 were far below what he proposed
Problems with Khrushchev's policies
Machine and tractor station (MTS) were abolished
farmers less ale to maintain modern equipment
Centrally directed campaigns were ineffective as they did not reflect local conditions. So labour, fertilisers, farmland was wasted
Soviet planners did not always deliver fertilisers to the right farms or at right times
He repeatedly reformed ministries dealing with agriculture. Contradicting reforms led to administrative confusion
Pay for agriculture workers increased but work remained inadequate
Farms had inadequate storage facilities so some food was wasted
Khrushchev cut investment from
12.8%
a year from 1954-59 to
2%
a year in 1960