In 1861 he proclaimed the emancipation of 20 million privately held serfs. Local commissions effected emancipation by giving land and freedom to the serfs. The land allotted to the peasants was bought from the owners with the State's assistance. The government issued bonds to the landowners for this purpose and collected redemption payments from the peasants at the rate of 5% of the total cost yearly. The government had envisioned that the 50,000 former landlords who possessed estates of more than 1.1 km2 would thrive without serfs and would continue to provide loyal political and administrative leadership in the countryside. The government also had expected that peasants would produce sufficient crops for their own consumption and for export sales, thereby helping to finance most of the government's expenses, imports, and foreign debt.