Agriculture in the Soviet Union was mostly collectivized, with some limited cultivation of private plots. It is often viewed as one of the more inefficient sectors of the economy of the Soviet Union. A number of food taxes (mainly prodrazverstka and prodnalog) were introduced in the early Soviet period despite the Decree on Land that immediately followed the October Revolution.^{[citation needed]} The forced collectivization and class war against (vaguely defined) "kulaks" under Stalinism greatly disrupted farm output in the 1920s and 1930s, contributing to the Soviet famine of 1932–33 (most especially the Holodomor in Ukraine). A system of state and collective farms, known as sovkhozes and kolkhozes, respectively, placed the rural population in a system intended to be unprecedentedly productive and fair but which turned out to be chronically inefficient and lacking in fairness. Under the administrations of Nikita Khrushchev, Leonid Brezhnev, and Mikhail Gorbachev, many reforms (such as Khrushchev's Virgin Lands Campaign) were enacted as attempts to defray the inefficiencies of the Stalinist agricultural system. However, Marxist–Leninist ideology did not allow for any substantial amount of market mechanism to coexist alongside central planning, so the private plot fraction of Soviet agriculture, which was its most productive, remained confined to a limited role. Throughout its later decades the Soviet Union never stopped using substantial portions of the precious metals mined each year in Siberia to pay for grain imports, which has been taken by various authors as an economic indicator showing that the country's agriculture was never as successful as it ought to have been.^{[citation needed]} The real numbers, however, were treated as state secrets at the time, so accurate analysis of the sector's performance was limited outside the USSR and nearly impossible to assemble within its borders. However, Soviet citizens as consumers were familiar with the fact that foods, especially meats, were often noticeably scarce, to the point that not lack of money so much as lack of things to buy with it was the limiting factor in their standard of living.

Despite immense land resources, extensive farm machinery and agrochemical industries, and a large rural workforce, Soviet agriculture was relatively unproductive. Output was hampered in many areas by the climate and poor worker productivity. However, Soviet farm performance was not uniformly bad. Organized on a large scale and relatively highly mechanized, its state and collective agriculture made the Soviet Union one of the world's leading producers of cereals, although bad harvests (as in 1972 and 1975) necessitated imports and slowed the economy. The 1976–1980 five-year plan shifted resources to agriculture, and 1978 saw a record harvest. Conditions were best in the temperate chernozem (black earth) belt stretching from Ukraine through southern Russia into the east, spanning the extreme southern portions of Siberia. In addition to cereals, cotton, sugar beets, potatoes, and flax were also major crops. Such performance showed that underlying potential was not lacking, which was not surprising as the agriculture in the Russian Empire was traditionally amongst the highest producing in the world, although rural social conditions since the October Revolution were hardly improved. Grains were mostly produced by the sovkhozes and kolkhozes,^{[citation needed]} but vegetables and herbs often came from private plots.

The term "Stalin's revolution" has been used for this transition, and that conveys well its violent, destructive, and utopian character.

Leon Trotsky and the Opposition bloc had advocated a programme of industrialization which also proposed agricultural cooperatives and the formation of collective farms on a voluntary basis. According to Fitzpatrick, the scholarly consensus was that Stalin appropriated the position of the Left Opposition on such matters as industrialisation and collectivisation. Other scholars have argued that the economic programme of Trotsky differed from the forced policy of collectivisation implemented by Stalin after 1928 due to the levels of brutality associated with its enforcement.

During the Russian Civil War, Joseph Stalin's experience as political chief of various regions, carrying out the dictates of war communism, involved extracting grain from peasants, including extraction at gunpoint from those who were not supportive of the Bolshevik (Red) side of the war (such as Whites and Greens). After a grain crisis during 1928, Stalin established the USSR's system of state and collective farms when he moved to replace the New Economic Policy (NEP) with collective farming, which grouped peasants into collective farms (kolkhozy) and state farms (sovkhozy). These collective farms allowed for faster mechanization, and indeed, this period saw widespread use of farming machinery for the first time in many parts of the USSR, and a rapid recovery of agricultural outputs, which had been damaged by the Russian Civil War. Both grain production, and the number of farm animals rose above pre-civil war levels by early 1931, before major famine undermined these initially good results.

At the same time, individual farming and khutirs were liquidated through class discrimination identifying such elements as kulaks. In Soviet propaganda, kulaks were portrayed as counter-revolutionaries and organizers of anti-Soviet protests and terrorist acts. In Ukraine the Turkic name "korkulu" was adopted, which meant "dangerous". The word itself is foreign to Ukraine. According to the Ukrainian Soviet Encyclopedia, struggle with kulaks in Ukraine was taking place more intensely than anywhere else in the Soviet Union.

Coincidentally with the start of First "pyatiletka" (5 year plan), a new commissariat of the Soviet Union was created, better known as Narkomzem (People's Commissariat of Land Cultivation) led by Yakov Yakovlev. After the speech on collectivization that Stalin gave to the Communist Academy, there were no specific instructions on how exactly it had to be implemented, except for liquidation of kulaks as a class. Stalin's revolution was one of the factors which led to the severe Soviet famine of 1932–33, better known in Ukraine as the Holodomor. Official Soviet sources blamed the famine on counterrevolutionary efforts by the kulaks, though there is little evidence for this claim. Another contributing factor to the famine suggested by some historians, was poor weather conditions and poor harvests. The famine started in Ukraine in the winter of 1931 and despite the lack of any official reports the news spread by word of mouth rapidly. During that time restrictions on rail travel were set by authorities. Only next year in 1932-33 the famine spread outside of Ukraine to agricultural regions of Russia and Kazakhstan, while the "news blackout continued". The famine led to the introduction of the internal passport system, due to the unmanageable flow of migrants to the cities. The famine finally ended in 1933, after a successful harvest. Collectivization continued. During the second five-year plan Stalin came up with another famous slogan in 1935: "Life has become better, life has become more cheerful." Rationing was lifted. In 1936, due to a poor harvest, fears of another famine led to famously long breadlines. However, no such famine occurred, and these fears proved largely unfounded.

During the second five-year plan, under the policy of "cultural revolution" , the Soviet authorities established fines that were collected from farmers. Citing Siegelbaum's Stakhanovism in her book Everyday Stalinism, Fitzpatrick wrote: "...in a district in the Voronezh Region, one rural soviet chairman imposed fines on kolkhoz members totaling 60,000 rubles in 1935 and 1936: "He imposed the fines on any pretext and at his own discretion - for not showing up for work, for not attending literacy classes, for 'impolite language', for not having dogs tied up... Kolkhoznik M. A. Gorshkov was fined 25 rubles for the fact that 'in his hut the floors were not washed'".