Under conditions in which the collective farms operate with equipment they themselves own, the question of amortization of basic equipment, and of the repair of tractors, harvester combines, and other agricultural machines arises in a new light. Previously, when the overwhelming bulk of equipment was in machine and tractor stations, no write-off for amortization was made. Expenses for the repair of equipment were made good out of the budget within the limits of standards for costs per hectare of work by tractors. At the present time, when agricultural machinery is concentrated in the collective farms, the state farms, and the repair and equipment stations which are all on a cost accounting basis, it is necessary to set aside funds for amortization to renovate and repair basic equipment. These funds will serve as one of the most important sources of agricultural capital investment, will reinforce cost accounting, and will make for highly productive utilization of machinery and proper maintenance thereof.
