ABSTRACT

In the course of the general reform of the price system, a revision of the principles of price formation is also envisaged for the agriculture and food sector. With the installation of the Gosagroprom system, the multitude of formerly competent authorities for the agriculture and food economy that frequently acted in an uncoordinated manner were compacted and put under uniform management. If one adheres to the view that agriculture is supposed to obtain marginal prices that recover costs, and that productivity of labor and capital continue to grow slower than does the cost of production, then agricultural producer prices are bound in any case to increase. Agriculture offers numerous opportunities in production as well as in the service sector to enter into cooperative association with others. Equally as important as the founding of cooperatives, whether they are genuine ones or disguised family firms, is the use of the lease system as an institution in agriculture.