With independence and the abolition of the Soviet era's planned economy the dominant organisations of agricultural production, i.e. kolkhozes and sovkhozes, had become obsolete. These organisations had to be restructured and family farms, or more generally private farms, were supposed to form the backbone of farm production. However, development since then has been difficult. Based on a literature review, this study reviews and assesses this development in terms of the changing institutional conditions. The Russian government's policies, by interchangeably supporting large-scale farming organisations or private farming, have created uncertainties for private farmers. Russian farmers were once strongly influenced by the mentality from Soviet times, but there are indications that they are gaining strength, possibly as a consequence of a more benevolent political order, more entrepreneurial attitudes and developing organisational arrangements.