Zvi Lerman

Comparative performance of cooperatives and investor-owned firms in US food industries

The comparative financial performance of cooperatives and investor-owned firms (IOFs) in the fruit and vegetable processing and the dairy industries was analyzed for the years 1976 through 1987. Contrary to theoretical expectations, the cooperatives in both industries were found to perform as well as or better than the comparable IOFs by profitability, leverage, and interest coverage measures. No clear evidence was found of the hypothesized overinvestment in fixed assets or pronounced moral hazard behavior in cooperatives. The lack of significant differences in profitability between the two types of firms suggests that cooperatives may be following goals similar to IOFs.

Agricultural Output and Productivity in the Former Soviet Republics

The paper reviews agricultural development in the fifteen former Soviet republics over the period 1965-1998. Production functions are estimated and productivity differences and changes calculated. Large differences were found in terms of productivity and growth between the republics. The differences grew after 1990 reflecting variation in reform policies.

Size and industry effects in the performance of agricultural cooperatives

The objective of this study is to determine if there are important size and industry effects on financial performance of agricultural cooperatives. The performance of 43 dairy, food, grain, and farm supply cooperatives in the U.S. was analyzed over the period 1970-1987 using financial ratios derived from accounting data. The analysis revealed significant size and industry effects. Large regional cooperatives are more efficient in utilizing their assets to generate sales, while small regional cooperatives have higher profitability. The findings suggest that the emphasis on growth may not always produce beneficial results among agricultural cooperatives. Among the four industries studied, the dairy regional cooperatives appear to be the strongest performers, while the food marketing cooperatives are characterized by the lowest performance measures. Since both dairy and food cooperatives engage in value-added processing, this difference in performance makes it difficult to reach clear conclusions about possible advantages of disadvantages or vertical integration relative to traditional cooperative activities. Trend analysis indicates that the profitability of the agricultural cooperatives in all industry and size categories declined in response to the downturn in U.S. agriculture after 1980. While the decline in profitability was at similar rates for both large and small cooperatives, the variation of efficiency and leverage was in opposite directions. Large cooperatives may be expected to continue improving their asset utilization without relative improvement in profitability, and increasing the level of their debt in relation to equity.

Land consolidation as a factor for rural development in Moldova

Abstract This article draws on data from several recent surveys in Moldova to examine the question of land consolidation within the process of agrarian reform. It suggests that larger individually owned farms produce higher family incomes than smaller ones and thus farm augmentation makes a positive contribution to the well being of the rural population. Also, for farms of a given size, productivity increases as the number of parcels decreases. The article then proceeds to discuss the actual use of various market mechanisms for land consolidation, including leasing as well as buying and selling of land. According to various surveys, farms with leased land are in fact larger than farms that rely on owned land only. The article argues that land consolidation leads to better economic performance, while land leasing is actually used as a market mechanism for consolidation, which benefits both lessees, through increased farm incomes, and lessors, through income from lease payments for their land.

Diversification of rural incomes and non-farm rural employment: evidence from Russia.

The results of a rural survey in two Russian regions demonstrate that agriculture is no longer the main source of income for rural families. Rural families are diversifiers, earning non-agricultural income through both non-agricultural wage employment and non-farm self-employment. The rural population is risk-averse, preferring the relative security of wage employment to individual entrepreneurship. Although all respondents would like to earn more, they are reluctant to consider the option of changing their place of work and are afraid of losing their current job. It may be difficult for new profit-oriented employers to offer equitable solutions to all segments of the rural population without properly designed government support programmes, which furthermore should be targeted to the labour force of the future, i.e., the Russian youth.

Agricultural Development in Central Asia: A Survey of Uzbekistan, 2007-2008

A noted international economist specializing in agricultural development in the countries of the former Soviet Union and Eastern Europe presents the results of a survey of 797 dekhan (relatively small) and 803 peasant (larger) farms in Uzbekistan, conducted from August 2007 to May 2008. After analyzing the legislative framework for the countrys agrarian reform, the author focuses on its impact on land holdings and the livestock economy (particularly dairying). Also discussed are herd sizes, milk yields, cattle breeding, feed crops, as well as household incomes and standards of living of rural inhabitants. The relevance of the survey to the state of the agricultural economies of Central Asian and other CIS countries is noted in the concluding section.

Land and Water Policies in Uzbekistan

Three economists, based on World-Bank-sponsored field research in 1994 and 1995, review land use and water policies in Uzbekistan and assess their feasibility with respect to current agrarian reform initiatives. Initial sections of the paper focus on cropping patterns, land tenure systems, and water management practices inherited from the Soviet period. Subsequent sections are devoted to describing processes of land reform and evaluating production and resource use efficiency in Uzbekistan in the period following the dissolution of the USSR. Final sections explore the potential role of state intervention and interstate water basin management initiatives in shaping land and water policies. 9 tables, 5 figures, 35 references. Journal of Economic Literature, Classification Numbers: R14, Q15, Q20.

Rural livelihoods in Armenia

This article explores the structure of the rural economy in Armenia from a farm household perspective. Ownership of capital and access to activities are examined on the basis of data from a recent large‐scale survey of farm households in Armenia. Different measures for the outcome of livelihood strategies in terms of well‐being are observed. Income‐poor households are found to be less well endowed especially with financial and social capital. They derive smaller income shares from economic activities and more from dissaving and social payments. The findings are relevant to policies aimed at alleviating rural poverty.

Land and Farm Structure in Transition: The Case of Poland

This paper examines the relationship between size of land holding and family income, based on a recent survey of rural households in Poland. In general, the results indicate a positive relationship between income and size of land holdings, suggesting that successful Polish farmers are expanding their farm holdings through land market transactions. Constraints to efficient functioning of these land markets in Poland are investigated as well, which include high government-determined land transaction costs, complex registration procedures, poor access to mortgage facilities, and a bias against larger farms built into the unemployment benefits system. Journal of Economic Literature, Classification Numbers: O18, Q15, Q24. 5 figures, 12 tables, 10 references.

Restructuring of traditional farms and new land relations in Ukraine

This paper reports the results of a 1993/1994 survey of 2500 farm managers, farm employees, and private farmers in Ukraine, highlighting changes at the farm level in response to programs of land reform and farm restructuring. As of early 1994, Ukrainian reform had moved to the first stage, which involves privatization of much of the agricultural land and creation of shareholding farms. Over 60% of agricultural land in Ukraine has been transferred from state to collective ownership; among the collective and state farms surveyed, nearly 75% have reorganized and most of them have allocated land and asset shares to members. The number of independent private farmers in Ukraine exceeds 30 000, but with an average farm size of 20 ha they cultivate less than 2% of farmland. Reform at the farm level in Ukraine has thus begun, but at present is at a very early stage.