Farm Reform in Uzbekistan

Abstract

Land-reform processes are catalyzing agricultural transition in the Commonwealth of Independent States (CIS), and this is well illustrated by the process of farm restructuring in Uzbekistan. In Khorezm, a region in the northwest of the country, this process is mirrored in the nationwide reforms: state-induced farm restructuring, state ownership of land, land reform to transfer land from collective to individual use, and continuation of area-based state targets for cotton at fixed prices. This study has the following two key objectives: (1) to explain how the land reform has changed the production structure in private farms, and (2) to describe the main changes in private farming during the reform process. The development of private farming since independence in 1991 has taken place in four phases, which are distinguished by the speed of reform, number and average size of farms, their structural specialization, and changes in the farms’ cropping pattern. In the first two phases, farm restructuring led to a downsizing of producing units and to many independent farmers in coexistence with the old farming system. In the following period, the old system was completely dismantled. The final and most recent phase, imposed by national policy, has reversed this trend, and farms were increased to sizes similar to those in Soviet times; many farmers had to give back their long-term lease contract. Although it was expected that sooner or later farms would have to be larger to obtain viable and sustainable production units, it is argued that changing farm size alone, without any other supportive structural measures, will not provide sufficient incentives for reaching economically efficient farm enterprises. Along all stages of the farm restructuring process, the setup of agricultural infrastructure did not change much, or if it did change, then by state-imposed initiatives, which is constraining the development of farms and sustainable farming systems and practices.