History of the UBPCs
The law was passed to link the workers to the land, establish material incentives for increased production by tying workers' earnings to the overall production of the UBPC, and increase managerial autonomy and participation in the management of the workplace.
The Cuban government hoped that these structural changes in the agricultural sector, coupled with other economic reforms, would alleviate the hardships experienced during the Special Period which followed the collapse of the Eastern Bloc and the COMECON.
Performance of the UBPCs
The profitability of a UBPC is influenced by the type of crop it grows, with those growing milk or sugar, for example, being less profitable than those growing livestock or citrus. Profitability is measured by the return on the investment measured in Cuban pesos. An UBPC that receives one peso of profit per 50 centavos invested is more profitable than one that receives one peso profit per 80 centavos invested.