kolkhoz, in the former Soviet Union, a cooperative agricultural enterprise operated on state-owned land by peasants from a number of households who belonged to the collective and who were paid as salaried employees on the basis of quality and quantity of labour contributed. Conceived as a voluntary union of peasants, the kolkhoz became the dominant form of agricultural enterprise as the result of a state program of expropriation of private holdings embarked on in 1929. Operational control was maintained by state authorities through the appointment of kolkhoz chairmen (nominally elected) and (until 1958) through political units in the machine-tractor stations (MTSs), which provided heavy equipment to kolkhozy in return for payments in kind of agricultural produce. Individual households were retained in the kolkhozy, and in 1935 they were allowed garden plots.
An amalgamation drive beginning in 1949 increased the pre-World War II average of about 75 households per kolkhoz to about 340 households by 1960. In 1958 the MTSs were abolished, and the kolkhozy became responsible for investing in their own heavy equipment. By 1961 their production quotas were established by contracts negotiated with the State Procurement Committee, in accordance with centrally planned goals for each region; the kolkhozy sold their products to state agencies at determined prices. Produce in surplus of quotas and from garden plots was sold on the kolkhoz market, where prices were determined according to supply and demand. With the collapse of communism and the breakup of the Soviet Union in 1990–91, the kolkhozy began to be privatized. See also collectivization.