Agriculture in Russia is an important part of the economy of the Russian Federation. The agricultural sector survived a severe transition decline in the early 1990s as it struggled to transform from a command economy to a market-oriented system. Following the breakup of the Soviet Union in 1991, large collective and state farms – the backbone of Soviet agriculture – had to contend with the sudden loss of state-guaranteed marketing and supply channels and a changing legal environment that created pressure for reorganization and restructuring. In less than ten years, livestock inventories declined by half, pulling down demand for feed grains, and the area planted to grains dropped by 25%.
The use of mineral fertilizer and other purchased inputs plummeted, driving yields down. Most farms could no longer afford to purchase new machinery and other capital investments. Following a nearly ten-year period of decline, Russian agriculture has experienced gradual ongoing improvement. The 2014 devaluation of the rouble and imposition of sanctions spurred domestic production; in 2016, Russia exceeded Soviet Russia's grain production levels, and in that year became the world's largest exporter of wheat. In recent years, Russia once again emerged as a big agricultural power, despite also facing various challenges.
