In the former Soviet Union, a cooperative agricultural enterprise operated on state-owned land. Under the policy of collectivization, which was pursued most intensively by Joseph Stalin in 1929–33, peasants were forced to give up their individual farms and join large collective farms. They objected violently and in many cases slaughtered their livestock and destroyed their equipment before joining. By 1936 almost all the peasantry had been collectivized, though millions had also been deported to prison camps. With the breakup of the Soviet Union in 1990–91, the collective farms began to be privatized.
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Being a collective farm, a kolkhoz was legally organized as a production cooperative. The Standard Charter of a kolkhoz, which since the early 1930s had the force of law in the USSR, is a model of cooperative principles in print. It speaks of the kolkhoz as a “form of agricultural production cooperative of peasants that voluntarily unite for the purpose of joint agricultural production based on ... collective labor.” It asserts that “the kolkhoz is managed according to the principles of socialist self-management, democracy, and openness, with active participation of the members in decisions concerning all aspects of internal life”.
Yet in practice, the collective farm that emerged after Stalin’s collectivization campaign did not have many characteristics of a true cooperative, except joint ownership of non-land assets by the members(the land in the Soviet Union was nationalized in 1917) and remuneration in proportion to labor and not capital from residual profits. Thus, the basic principle of voluntary membership had been violated by the very process of forced collectivization; members did not retain a right of free exit, and those who managed to leave could not take their share of land and assets with them (neither in kind nor in cash-equivalent form); the role of the “sovereign” general assembly and the “democratically elected” management in fact reduced to rubber-stamping the plans, targets, and decisions of the district and provincial authorities, who together with imposition of detailed work programs also nominated the preferred managerial candidates . The kolkhozy very rapidly metamorphosed from cooperatives to a mere offshoot of the state sector (although notionally they continued to be owned by their members). As a result, there were many instances since mid-1930s of kolkhozy changing their status to sovkhozy or vice versa, depending on current taxation policies and other discriminatory practices applicable to workers in the two categories of farms. The faint dividing lines between collective and state farms were obliterated almost totally in the late 1960s, when Khrushchev’s administration authorized a guaranteed wage to kolkhoz members, similarly to sovkhoz employees, thus in fact recognizing their actual status as hired hands rather than authentic cooperative members. The guaranteed wage provision was actually incorporated in the 1969 version of the Standard Charter.
After the kolkhoz amalgamations of 1950 the territorial successor of the old village kolkhoz was the "complex brigade" (brigade of brigades), a sub-unit of the new enlarged kolkhoz.
In a kolkhoz, a member, called kolkhoznik (колхо́зник, feminine колхо́зница), was paid a share of the farm’s product and profit according to the number of workdays, while a sovkhoz employed salaried workers. In practice, many Kolkhoz did not pay their "members" much at all. In 1946, 30 percent of Kolkhoz paid no cash for labor at all, 10.6 paid no grain, and 73.2 percent paid 500 grams of grain or less per day worked. In addition the kolkhoz was required to sell their crop to the State which fixed prices for the grain. These were set very low and the difference between what the State paid the farm and what the State charged consumers represented a major source of income for the Soviet government. In 1948 the Soviet government charged wholesalers 335 rubles for 100 kilograms of rye, but paid the kolkhoz roughly 8 rubles. Nor did such prices change much to keep up with inflation. Prices paid by the Soviet government hardly changed at all between 1929 and 1953 meaning that the State did not pay one half or even one third of the cost of production.
Members of kolkhoz were allowed to hold a small area of private land and some animals. The size of the private plot varied over the Soviet period but was usually about . Before the Russian Revolution of 1917 a peasant with less than was considered too poor to maintain a family. However, the productivity of such plots is reflected in the fact that in 1938 3.9 percent of total sown land was in the form of private plots, but in 1937 those plots produced 21.5 percent of gross agriculture output.
Members of the kolkhoz were required to do a minimum number of days work per year on both the kolkhoz and on other government work such as road building. In one kolkhoz the requirements were a minimum of 130 days a year for each able-bodied adult and 50 days per boy aged between 12 and 16. That was distributed around the year according to the agricultural cycle. If kolkhoz members did not perform the required minimum of work, the penalties could involve confiscation of the farmer's private plot, a trial in front of a People's Court that could result in three to eight months of hard labour on the kolkhoz, or up to one year in a corrective labor camp.
In both the kolkhoz and sovkhoz, a system of internal passports prevented movement from rural areas to urban areas. Until 1969 all children born on a collective farm were forced by law to work there as adults unless they were specifically given permission to leave. In effect, farmers became tied to their sovkhoz or kolkhoz in what may be described as a system of "neo-serfdom", in which the Communist bureaucracy replaced the former landowners.
See collectivisation in the USSR and agriculture in the Soviet Union for general discussion of Soviet agriculture.
Kolkhozes and sovkhozes in the USSR: number of farms, average size, and share in agricultural production
| Year | Number of kolkhozes | Number of sovkhozes | Kolkhoz size, ha | Sovkhoz size, ha | Share of kolkhozes | Share of sovkhozes | Share of households |
|---|---|---|---|---|---|---|---|
| 1960 | 44,000 | 7,400 | 6,600 | 26,200 | 44% | 18% | 38% |
| 1965 | 36,300 | 11,700 | 6,100 | 24,600 | 41% | 24% | 35% |
| 1970 | 33,000 | 15,000 | 6,100 | 20,800 | 40% | 28% | 32% |
| 1975 | 28,500 | 18,100 | 6,400 | 18,900 | 37% | 31% | 32% |
| 1980 | 25,900 | 21,100 | 6,600 | 17,200 | 35% | 36% | 29% |
| 1985 | 26,200 | 22,700 | 6,500 | 16,100 | 36% | 36% | 28% |
| 1990 | 29,100 | 23,500 | 5,900 | 15,300 | 36% | 38% | 26% |
Number of kolkhozes and all corporate farms in Russia, Ukraine, and Moldova 1990-2005
| Russia | Ukraine | Moldova | ||||
| Year | Number of kolkhozes | All corporate farms | Number of kolkhozes | All corporate farms | Number of kolkhozes | All corporate farms |
| 1990 | 12,800 | 29,400 | 8,354 | 10,792 | 531 | 1,891 |
| 1995 | 5,522 | 26,874 | 450 | 10,914 | 490 | 1,232 |
| 2000 | 3,000 | 27,645 | 0 | 14,308 | 41 | 1,386 |
| 2005 | 2,000 | 22,135 | 0 | 17,671 | 4 | 1,846 |
Kolkhozy have disappeared completely in Transcaucasian and Central Asian states. In Armenia, Georgia, and Azerbaijan the disappearance of the kolkhoz was part of an overall individualization of agriculture, with family farms displacing corporate farms in general. In Central Asian countries, corporate farms persist, but no kolkhozy remain. Thus, in Turkmenistan, a presidential decree of June 1995 summarily "reorganized" all kolkhozy into "peasant associations" (Turkmen: daikhan berleshik). In Tajikistan, a presidential decree of October 1995 initiated a process of conversion of kolkhozy into share-based farms operating on leased land, agricultural production cooperatives, and dehkan (peasant) farms. However, contrary to the practice in all other CIS countries, one-third of the 30,000 peasant farms in Tajikistan are organized as collective dehkan farms and not family farms. These collective dehkan farms are often referred to as "kolkhozy" in the vernacular, although legally they are a different organizational form and the number of "true" kolkhozy in Tajikistan today is less than 50. Similarly in Uzbekistan the 1998 Land Code renamed all kolkhozy and sovkhozy shirkats (Uzbek for agricultural cooperatives) and just five years later, in October 2003, the government's new strategy for land reform prescribed a sweeping reorientation from shirkats to peasant farms, which since then have virtually replaced all corporate farms.