Production Risk, Technology and Market Access in Different Organisational Forms: Evidence from Tatarstan and Oryol

This paper examines price and technology differentials between agroholdings and independent farms in two Russian regions: Oryol and Tatarstan. Both organisational forms receive on average the same product prices which indicates that they have the same market access. Moreover, their technologies are also very similar, as estimated by a risk production frontier. However, differences in the factor input between organi-sational form lead to differences in the shadow prices of the inputs, resulting from the better access of agroholdings to the input markets. The results suggest that production risk, conditions on the product market and inefficiency significantly affect agricultural production. Thus, to improve the conditions, agricultural policy is required to tackle all the issues in parallel using a mix of appropriate policy measures.