Russian agriculture has been in bad shape since the collapse of the Soviet Union in 1991. Investors avoided the sector and turned towards raw material instead.
Over negligence period Russia lost about 35 million hectares of arable land, an area almost the size of Germany.
Things have started to change in 2014 with the introduction of Western anti-Russia sanctions and Moscow’s response.
"In recent years, the share of agriculture in the Russian economy has increased, contrary to the global trend," the report said.
It further quotes that in the past year, Russia for the first time earned from agricultural exports more than from the sale of arms.
Grain production rose over the last six years and in 2015 Russia unseated the US as the world’s biggest wheat producer and exporter.
According to the Russian Ministry of Agriculture this year’s harvest will be at least 110 million metric tons.
At the moment, Russia exports 22.5 million metric tons of grain and this is expected to increase by 4.5 million tons for 2016/17.
Wheat exports from Russia are expected to outpace the European Union this year, according to the US Department of Agriculture.
Russia has won contracts to export 120,000 tons of wheat to Egypt, and will start supplying wheat to China soon.