their physical
and human resources. Collective farms are subordinated to the National
Union of Agricultural Production Cooperatives and are also subject to
the direction of the Ministry of Agriculture, Food Industry, and Waters
(referred to as the Ministry of Agriculture) and of county authorities.
Collective farm associations are organized for various types of
specialized production.

In theory and according to law, but not in actual practice, collective
farms are jointly owned by their members. The ownership supposedly
extends to the land, other productive resources, and the annual farm
output. About 11 percent of the collective farm land, however, is
allocated for the personal use of members, and almost half the livestock
other than horses is individually owned. No information is available on
the existence of any provision for the compensation of members who are
authorized to leave the farms for employment in other sectors of the
economy.

Regulations concerning the allocation of their income by collective
farms among investment funds and various social and other obligatory
funds and distribution to members were modified in late 1970 or early
1971 with a view to stimulating the members' interest in raising the
efficiency of production. Under the old system, distribution to members
was made from residual funds remaining after all statutory public and
social obligations were met. The revised farm statutes authorize the
farms' general assemblies to allocate net income in ratios ranging from
18 to 25 percent for investment and from 75 to 82 percent for
consumption. In actual practice, however, income distribution is
reported to follow a somewhat different pattern, which tends to reduce
the share available for distribution to members. The new regulations
have not altered the generally acknowledged fact that farm incomes
remain very low, particularly on the poorer farms.

The system of remuneration for collective farmers was also modified in
1970 with a view to strengthening work incentives. The new method
provides for monthly payments on account, in cash and in kind, based on
the farms' planned annual receipts and for a share of profits in excess
of those planned. Payment to individual members is to be based on
centrally established work norms and rates of pay for various categories
of operations, similar to the practice in industry and construction. The
system is intended to relate individual remuneration more closely