Scientific Journal of KubSAU

The authors note, that the system of state regulation of agribusiness sets the rules and creates a relatively equal competitive opportunities for all market participants. The state support though is directed to increase efficiency of the state regulation of all agricultural subjects, including small-scale farming. Classics of retrospective of market relations’ development have shown that the manufacturing business can be quite successful in a self-regulatory market. Later, the practice of using the Marxist economic theory revealed the insolubility of the contradictions in the functioning of the classical market model. The Paradigm of the Keynesian school has confirmed the contradictions of the classical equilibrium theory of the free market. In the result, the strategy of the industrial markets development has swept in the direction of the neo-conservative models of regulation. Today, the integration models that are using synthesis of state-and market-based regulatory instruments are remaining the philosophy of many Worlds’ developed economies. At the same time, in our agrarian economy, the balanced and equilibrium proportions of the development are absent, what requires greater state involvement in the regulation of the agribusiness growth. The authors believe that the latest Western sanctions provide additional opportunities for the development of domestic agricultural production. The state should actively use its capabilities in the development and strengthening of domestic agricultural production and access to foreign commodity markets. After achieving adequate competitive position providing sustainable economic growth of the agricultural economy, the intervention of state protectionism can be reduced and, simultaneously, the role of the liberal approaches should be increased

It is noted that the grain market has a key influence on food supply in our country. Today, in the conditions of import substitution, many animal products continue to be received from abroad in large volumes, among which grain is a feeding base, although those products can be produced domestically with high profits. In recent years, our country has become a large grain exporter and had been set among the four world's largest grain sellers at the world market. Now, the main problem of the grain business has become not manufacturing but the effective management and marketing of grain sale on domestic and foreign markets. Under the "grain market", the authors understand an integrated mechanism covering the entire process of production - processing - logistics - marketing of grain products, ensuring access to the consumer. The authors note that today there should not be rigid boundaries in the management segments of the grain market, as all sectors of the market are technologically linked through a set of integrated activities. Also they are bringing up their model of functioning management of the grain market, which clearly demonstrates the basic blocks of the investigated production systems, their connections and relationships. The practical implementation of such cooperation promises to participants of the grain market to get a certain synergistic effect due to the systemic functioning of technological, logistics, marketing and other business relationships between all parties; as well as adjustments to price ratios and more sophisticated economic instruments for investment in that business

Small agrarian and personal peasant farms present an important segment of agricultural production along with other subjects. Their role is becoming more prominent with the increasing of their own production potential. Nevertheless, their resource base remains very weak, the basic means of production are worn out, and many of them are unable to improve technical equipment. In this segment, leasing options are limited, there are problems in logistics management, and small entities do not have market power in the market of production resources and in products marketing. The lack of collateral generates high cost lending and permanent bankruptcy. On the other hand, it is noted that small entities have a large diversity of organizational and legal forms, an informal control system high interchangeability of production functions, they combine the status of the owner and the manager. They significantly reduce the social tension in rural areas; they play a significant role in import substitution. Characteristic features of small agricultural farms (SAF) are high autonomy, independence, self-protection from environmental factors. They spend little money on creating jobs, have low fixed costs and independently overcome the difficulties. However, an underdeveloped industrial infrastructure of small business hinders the improvement of the technological level. They work with constant external interference, which reduces their production efficiency and market competitiveness. All of them highly depend on local production conditions, capacity of territorial markets. Low level of cooperation of participants SAF significantly limits the number of sales channels, increases the volatility realization. The analysis showed a high need for realization of the revealed reserves of efficiency growth

Practice shows that the state support in our AIC comes to the wrong addressees. Helping big agricultural businesses at the expense of other participants, which often are inherently more efficient and competitive, still makes the position of the existing system of state support very problematic. More correctly in this situation would be to increase help for small- and medium-sized businesses, which are often created from scratch without any support, and, therefore, are more motivated to efficiency and growth. For example, small farms are producing up to 40% of the total agricultural production, but receive only about 10% of the state support allocated to agriculture. This imbalance distorts the competitive environment and hides great injustice of the entire agricultural policy. This is the main reason for incomplete implementation of the reserves in the segment of small businesses. This has a great negative impact on the key units of crediting and selling of small agribusiness forms (SAF). The authors propose restructuring the general support of regional agriculture by blocks of crop production and small agricultural economy in benefit of the SAF due to the possibilities of state support of crop production in the ratio of 2:1, that is to leave the crop to 66.7%, and for the SAF to 33.3%. Under this scheme, small forms over the next 5 years will receive 14.2 billion rubles instead of the planned 6.4 billion. This decision will contribute to the emerging of a healthy competitive environment in the domestic agricultural market and increase the faith of the owners of small businesses in possibilities of their growth and weakening of the principles of cooperation

Practice shows that the level of development of small agricultural farms is an important indicator of favorability of the conditions created by government for development of production and rural territories. Conversely, the degree of development of rural areas has an impact on the development of small agricultural entities. It is necessary to increase the independence, motivation, municipal authorities in socioeconomic development of given territories. However, today, there is a relative decrease in the level of support for small businesses. Since 2007, the Support of agriculture in our region has grown almost by three times, but small agrarian business grew only by 34.3%, that is, in fact, observed as a negative trend, when adjusted for inflation. Without a system of state support of small business it is problematic to conduct a correct reproduction of the herd and to increase the volume of industry’s output. Such situation results in: lower rural incomes, especially in private subsidiary farms; the number of jobs, increase of unemployment, social tension in society, and a negative effect on the regional economy. It is necessary to improve the economic mechanism of state support of small businesses, to improve the conditions of lending and investments, to create conditions for increasing production of marketable products and new jobs, to increase rural employment, to improve the system of cooperation in production, processing, storage, transportation and sale of products to small businesses, to improve social infrastructure, to improve the quality of rural life. The authors have developed and offered corrective suggestions for implementation of the regional target program of development of small forms of businesses for 2016- 2020 with the definition of deadlines and funding, by blocks of the organization of competitive production, support for family farms, system of agricultural cooperation, and marketing of commercial products

It is said, that small agrarian economy takes an important place in the market economy, creates new jobs, new sources of income in excessing labor resources of the rural sector .The transformational stages of small business development, motivation of starting up cooperation, conditions of formation of mixed economy is discussed. The development of diverse economic forms is considered here. The main ones are: small agricultural farms with low technical and energy equipment of labor, low level of mechanization and high level of manual labor. Small agricultural businesses were developed in the provision of production services in agriculture; the production of small agricultural forms of management that are embedded in a complex system of relations between technological specialization with medium and large businesses; small farms, which are independently or in cooperation aimed at commercial implementation, development and realization of innovations. It is shown that today's best practices in support of small business implement a number of avenues to reduce tax contributions to the pension funds of entities that use high technology; the use of tax holidays on property; the abolition of tax on profits of small industries, obtained through the sale of paper funds and other assets; the extension of preferential privatization rented small industries of real estate, with exemption from payment of tax on value added; the provision of annual financial aid packages to small businesses; the transfer to the budgets of the municipalities collected payment for the sale of patents from small entrepreneurial activity and other areas of support. The necessity of improving the economic instruments, replacement of the existing inefficient structure of domestic small entities, a greater motivation in creating new jobs, raising the living level of participants of subjects of small forms of managing

The article shows the role of famous scientists, academician Ivan T. Trubilin and professor Viktor V. Eroshkin in the organization of agricultural science in our region who have shown outstanding leaders of the largest agricultural University in the country, managed to organize and direct the work of a large group on the improvement of quality of preparation of specialists of agriculture, the solution of urgent scientific problems of the agroindustrial complex development. Under the leadership of the rector Ivan Trubilin, the science in the Kuban State Agrarian University (KubSAU ) has risen to a new level. The research was conducted on the plan of scientific-research work of University, Federal and regional scientific and technical programs. In their implementation, there were involved professors, teachers, researchers, doctoral students, post-graduate students. His scientific works and research on the development of scientific problems to improve economic efficiency and organizational forms of agricultural production are being continued and developed by the scientists of KubSAU. For many years, V. Eroshkin as a brilliant scientist worked together with academician I. Trubilin like his companion and the assistant in science. He has published more than 100 scientific works. The most important ones were: "Economic efficiency of oilseeds cultivation ", "Oilseeds in virgin areas", "Сalculation of crops acreage on the bases of perspective plan for the development of collective farms", "Principles of labor scientific organization", "Intensive tractors use and lowering work technical cost in collective farms". Under his leadership, dozens of dissertations were approved. His lectures were always marked with originality and accessibility and his ideas were easily perceived by students. All who knew and worked together with academician I. Trubilin and professor V. Eroshkin, will always remain these dedicated scientists, who were strictly following the principles of academic science

The goals of import substitution, import data and export resource features of the agrarian economy, through which you can generate significant competitive advantage are discussed. It is noted that the flight of the capital abroad creates jobs not for our economy, but for our competitors, that low interest rates on loans create obvious unequal starting opportunities throughout the domestic business. As a result the cost of imported food in value-chain terms reached in our country an enormous rate of $45 billion and that government realized the need of strengthening of food security, transferring of production of traditional kinds of products which form the basis of consumption of the population in our country, to the domestic market. It is noted that we need temporary moderate state protectionism and protection of the domestic market with the aim of modernizing the economy, attracting investors in the important field of production with high risks. The main problems and solutions that will help to further successful implementation of this strategy in the sectors of our economy are highlighted. It is proposed to establish a network of specialized information centers to support import substitution with a database of technological profiles of organizations. The author block diagram of the information support and import substitution is given. The importance of federal and regional programs functioning in the import substitution is noted. The author's plan for their implementation is given . Predictive modeling of short-term, medium-term and long-term positive and negative consequences of import substitution and export orientation are implemented. The authors stress that the substitution should be seen as a transition to export orientation of the agricultural economy.

The features of the process of functioning, development and regulation of agricultural growth of small agrarian farming forms (SAFF) with the participation of the state are discussed. It is noted that systematization of features of small agricultural farms plays a big role in the increasing of economic efficiency and state regulation. It is said that in certain circumstances, the same features can have both positive and negative, problematic impact, so the authors conducted their separate classification. They consider a great influence of SAFF on local development, rural employment, tax and social preferences, opportunities of cooperation, low costs and risks to create new jobs, informal management, combining the functions of manager and owner in one person, a high sensitivity to government regulation, protection of the population from the local monopoly of employers, selfdevelopment, responsibility, self-defense from external factors, and others to be positive. But SAFF work in the environment of perfect competition in the absence of market power, low, often only declared security, an underdeveloped industrial infrastructure of small farms, a high probability of unauthorized interference from shadow entities, supervisory bodies, local bureaucracy, institutional limitations in the access to information, counseling material and financial resources, low mobility, small size of economy, high dependence on local conditions, capacity of local raw material and consumer market, limited distribution channels, permanent market volatility, distrust of the practice of production and consumer cooperatives, the scarcity of capital, problematic accessibility to financial instruments, the high cost of credit, low legitimacy, the credibility of the decisions of the local bureaucracy is considered to be negative

The author shows the classification of the stages of development of state regulation of agrarian economy, consisting of four blocks; and provides a brief description of them. There are shown the boundaries of state authority regulation, which are defined by legal, legislative, budgetary, tax, social, and environmental functions of the state. Methods of regulation with participation of the state are divided into direct (administrative) and indirect (economic). Economic and administrative tools have some similarities and common features, and, at the same time, they are the opposed. The author notes the predominance of economic methods, at the same time dividing five areas of economics, in which the use of administrative methods is compulsory to achieve the condition of balanced development of agrarian economy. With that being said, it is very important to: have governmental control over monopolistic markets, prevent negative impact on non-renewable resources, environment, and ecological situation; as well as maintaining acceptable living standards of the rural population. A special place takes the support of international trade links, politics of a moderate protectionism for the protection of agricultural markets with customs barriers, export licensing, import control policy. It is noted that the indirect intervention of the government in the agricultural economy implies the implementation of a system of measures affecting external and internal economic environment. Here, the authors refer fiscal policy by manipulating the state budget, government spending and taxation, measures of credit regulation, monetary and investment policy, regulation of the system of labor recruitment, employee income, and other tools