Fixed Capital in Agriculture and Indices of the Effectiveness of its Use

Land is the basic source of man's foodstuffs and the principal means of production in agriculture. Its functioning is closely connected with the use of other fixed capital and manpower. Without their interaction the production process in agriculture is impossible. Nonetheless, compared with other means of production, land possesses important particular features: limited area on our planet, physical irreplaceability, and unique fertility properties. What is more, the property of soil fertility is a factor that changes not only under the influence of the forces of nature but also under the influence of man's efforts. When land is used incorrectly, the soil is exhausted. When land is used intelligently, fertility increases. The growth of the yield of grain crops in the last five-year plans can serve as proof. In 1961-1965 the average annual yield of grain crops was 10.2 centners per hectare; in 1966-1970 it increased to 13.7 centners; and in the calculations of the current five-year plan, it will amount to 16.5 centners.