After working for one year in a Russian-German project for „ Restructuring Large Agricultural Firms in the Region of Vladimir the author has made an in-depth analysis of the current economic situation of farms in Russia. The goal of the project is to develop approaches to restructuring farms, to build up an extension service and to give advice on regional agricultural policy. Accordingly, a series of adjustments in the management of the pilot farms involved in the project was developed Areas of suggested change in farm management include reconsidering the legal form of the enterprises, evaluating competence and responsibility of the leaders and improving information flow and communication between the owners andfarm workers. The economic situation for Russian farms has got so difficult that fundamental adjustment to the new market economy is inevitable. Therefore technical and management improvements are necessary, and deconcentration and decentralization of the farms is imperative. The cost of these restructuring efforts must be borne by the farms themselves, which makes the whole process even more difficult. This makes great demands on the managers of the farms.