During the past decade and a half considerable effort has been put into agricultural restructuring in the countries of Central and Eastern Europe (CEE) that are undergoing transition to a market economy. The last decade has also coincided with considerable increase in inequality in all transition economies. The fall in agricultural output in the CEE during the 1990’s, can be accounted for by declining factor use such as declining land and labor use, lower input use, and deteriorating machinery stock. However, the reasons for the decline of these productive factors are structural. They reflect the continuing rigidities in the land, product, and credit markets.