The marketing of farm products by collective farms is based on
officially fixed prices and monopoly-buying powers of state procurement
agencies and the food-processing industry. Products move into government
stocks through contracts between the farms and state agencies for
quantities specified by the government; through payments in kind for
services rendered by agricultural mechanization stations, flour mills,
and other specialized government agencies; and, in the case of meat and
wool, in the form of compulsory deliveries. Any products remaining after
the obligations to the state have been met may be sold in open markets.
State Farms
Through consolidation of 370 previously existing state agricultural
enterprises, the farm reorganization of February 1971 created 145 larger
enterprises subordinated to the Department of State Agriculture in the
Ministry of Agriculture. In addition, seventy-four state agricultural
enterprises for fattening hogs, raising poultry, and producing feeds and
hothouse vegetables were subordinated to four specialized trusts. The
consolidation increased the average size of the state enterprises from
16,000 acres to 34,600 acres of farmland. The enterprises comprised
about 3,000 state farms on an area of over 5 million acres. Romanian
sources reported that the reorganization was intended to bring
management closer to production, to ensure improvement in all aspects of
farm operation, to intensify concentration and specialization of
production, and gradually to attain agro-industrial integration.
In official terminology, state agricultural enterprises will operate on
the principle of economic self-administration. The enterprises will be
responsible for their subordinate farms and will supervise operations
according to the principle of internal economic administration. Briefly,
this means that the agricultural enterprises and the farms must be
financially self-sustaining, that directors of enterprises and farms are
accorded a certain measure of discretion in planning and organizing
production and in the use of resources, and that financial rewards
beyond the normal pay accrue to each farm's managerial personnel and
workers in accordance with the farm's own performance, regardless of the
results obtained by other farms within the enterprise or by the parent
enterprise itself.
Individual state farms, nevertheless, have no juridical status or bank
accounts, nor may they enter into direct relation with other economic
entities outside the state agricultural enterprise of which they are a
part. In large measure, they remain subject to the direction of the
enterprise management. Information on the division of authority between
the agricultural enterprises and the Department of State Agriculture in
the ministry is not available. Complaints have been voiced in the
Romanian press about unwarranted interference by higher authorities in
the management of both the farms and the agricultural enterprises.
Public-domain text, read in full here on John Shaqi.
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