Soviet agricultural reform distorts land valuation, hindering property relations and growth.
The article examines how land valuation in Soviet agriculture affects farmers in Lithuania. By analyzing data from over 1000 farms, researchers found that the current pricing system and lack of land markets make it difficult for farmers to pay for land use. In a well-functioning economy, land would earn its value based on its productivity. The study compared actual prices received by farmers to estimated values based on production data. The findings suggest that the current system hinders the adoption of new property relations in agriculture.