Scientific Journal of KubSAU

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 reviews financial and other criteria indicators, related to the production of small agricultural farms. Our law establishes that the annual turnover for micro-entity shall not exceed the amount of 60 million rubles, or USD 755.6 thousands at the current exchange rate (which at 20.01.2016 is 79.41 rubles/USD). For the category of small businesses, the ceiling of the cash proceeds must be in the range of 60 to 400 million rubles (in dollar terms from USD 0.756 to USD 5.037 million). Respectively for the medium enterprises criteria, revenue must be from 400 million to 1 billion rubles, or USD 5.037 and USD 12.259 million). The size of the business over 1 billion rubles should be classified as Large Businesses. According to the Federal law No. 209 financial data levels must be adjusted after five years of operations. All commercial organizations with less than 15 employees/ (inclusive) are classified as Micro Enterprises, and with 16 to 100 employees – to the category Small Enterprises. /Accordingly, medium-sized enterprises are organizations with 101 to 250 employees. Today, it is noted that in World’s practice, the criterion for the classification of enterprises to the relevant category is defined not by generated financial flows and assets of the enterprise, but by simple employ. In our practice, simultaneous consideration of the number of employees, annual receipts, number of livestock, and area of agricultural land make it possible to analyze dynamics of productivity using small agricultural farms, management decisions on investment expediency of innovations, improvement of production technologies, and infrastructure of product realization

It is noted that the grain commodity market is the basis of the Russian agro-industrial complex. Earlier the state support was about $4 billion, in 2016 it is expected to reach 237 billion rubles (less than $3 billion). Russia's accession to the WTO brought its farmers more minuses than pluses, less regulation opportunities, protection of the market. The urgency of improving the development methodology, development of practical recommendations for the decision of efficiency enhancing of the grain market, increased due to the globalization of socio-economic processes in the world. Over the last 5 years in the Krasnodar region state support of agro-industrial complex amounted to 32 billion rubles ($0.4 billion), or 1 664 rub/ha ($20/ha) in 2014. Today, once again the growth of prices for supply of industrial resources has overcome the growth of prices for production of agriculture products that seriously has limited the development of the agro industry. The authors consider that the success of the grain industry depends on combination of the following factors: 1) modern equipment and technology; 2) qualified professionals; 3) state financial support; 4) reasonable credit resources. Now nobody needs production at any cost, it necessary to lower the cost of grain, to get the maximum profit and invest it in modernization of the enterprise. To increase productivity, to produce more at a less cost. For producers of grain it's time to invest in the development of their own livestock, or they will be late for this growing market. This vector of development will improve the stability of the grain business and the accompanying livestock, will reduce the seasonal dependence of financial flows, reduce unit costs, increase profitability, competitiveness, expand business, create new jobs, increase the number of its buyers

The main direction of the development of crops in the current year and the next year, according to the authors, still remains the further development of the production. The producers of rice should work to find new efficient rice varieties, to diversify the range of finished products, to realize the possibilities of import-substitution. These data show a rather dynamic development of the grain production in the Krasnodar region, indicate sufficient potential development opportunities of scientific and technological progress, new technologies and systems of machines for the production of grain. An important component of the Russian grain market in the last decade is the factor of grain export. The weakening of the ruble has made foreign trade in grain a very profitable business and in this sector there are new investors who began selling the products abroad, which caused a sharp increase in domestic prices, therefore, from 1 July 2015 new restrictive export duties on grain were introduced. The measure was introduced to increase the attractiveness of the wheat supply to the domestic market and for price controls. A significant growth of exports of wheat flour and wheat-rye (an increase in supply volume in 6 times and in monetary terms in 9.9 times) should be noted as a positive factor for the diversification and growth in the number of technological conversions of the raw materials. Grains today are exported to over 50 countries; we are in the top 5 of largest grain exporters. The analysis of imports of grain shows that the structure of food import in 2014 was 1,22%, and it was mainly seed corn. Much of this imported position was implemented in other regions of our country

It is being said, that with a large number of studies on the functioning and regulation of the growth of small agricultural farms there is remaining a number of problematic provisions research on conceptual framework of small management, forecasting, process optimization, management decision making, and innovative development of small agricultural farms. It is noted, that in processes of support and regulation of small farms today it is invested more and more of the state budget. Their use is closely tied to the definition of "small farms", the correct assignment of entities for this field. In this regard, the authors offer a definition of small agricultural businesses, which differs from the widely used in scientific and industrial practice the definition of small farms by greater brevity, and referencing to these entities all small agricultural producers, including domestic urban economy. Among the features of small agricultural entities, the authors emphasize: the independence, poly productive model orientation, low development and applicability of management techniques, economic knowledge, culture of market relations, information, consulting services, and general infrastructure of production. Strengths of small entities include small initial capital to "uplift business", high autonomy, flexibility, process management, high efficiency, low fixed costs, and possibilities of effective mobilization of material and financial resources. It is also proposed to enhance the development of relationships for IV sphere of agricultural sector: consulting, research, educational, financial, informational, and other services to improve the efficiency of functioning of small agricultural farms

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

The article says that small agricultural farms (SAF) play a significant role in import substitution of food, which is aimed at replacing imported agricultural commodities and finished products to domestic security. SAF subjects of Krasnodar region made a significant contribution to the increase of efficiency of regional economy. The share of small agricultural farms is 29% of regional production of grain and meat, 36% of milk, 47% of egg, 10% of sugar beet, 30% of sunflower and 95% of potatoes, 70% of vegetables, and 29% of grapes which makes a significant contribution to the process of import substitution. In addition, the SAF showed a large positive impact on the sustainability of farming, the development dynamics of the entire rural economy, increase the competitiveness of the whole field due to the increase in segment sales, improving market sales in the infrastructure. Today SAF perform a priority vector of development of regional agrarian policy. However, when the share of regional agricultural production segment is more than 35%, a small management gets only 10% of the sum of all sources of state support. In recent years, stimulation measures of subjects of small agrarian farms aimed at increasing the size of the land, the abolition of the standards concerning the number of animals, improving lending conditions, facilitating the starting of economic conditions, union efforts to organize sales channels and other programs. However, the situation with crediting SAF is improving too slowly due to lack of sufficient collateral, and only a small part of them can use loans. Besides, the bureaucratic and departmental barriers are still saved. They still face trade discrimination in the retail markets and great difficulties due to the new requirements of the construction markets, the endowment channels marketing of products etc. All this dictates the need for further improvement of the economic mechanism of regulation of small agricultural development

It is being said that the competitive position of subjects of small agrarian farms (SAF) are often provided with increasingly innovative approaches with flexibility of internal management, the ability to quickly adapt to constantly changing conjuncture market. However, as practice shows, the direction of development in small economies does not act as a priority of modern agricultural policy in this field, often dominated by declarative intent rather than running behind these statements required volumes of investment in regulation of subjects SAF development. It is noted that there the following actions should be taken: to supply the participants of small agricultural farms with necessary land resources; to create an affordable banking scheme for obtaining investment credits, subsidies, and cooperative credit for small business entities; to expand the scope of production and service; to continue development of opportunities for industrial cooperation, joint logistics, processing, marketing research, and marketing of products; to facilitate the access of small actors to local retail markets. A high rate of inflation, directly affecting the cost of credit, fuel prices, updating the technical and material base of production, and difficulties with working capital are still remaining the major problem. The solution to these problems would be enhancing the market competitiveness of small agrarian businesses

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

Theoretical aspects of the regional housing market formation are considered in the article. It is noted that the economic reform of our country has shifted to regional level of practical social tasks to ensure the population to affordable housing. Housing construction, until recently, acted as the growth driver of the entire economy. Therefore researching of the economy effect on the housing sector on effectiveness in the development of the regional socioeconomic system is very up-to-date and is in great demand. The authors present the region definition as a complex multilevel structure with its own economic environment, dynamics of development, made through part of the national economy. The article is setting goals for regional development construction housing market. With regard to the housing market, they have identified the general economic, investment, social, stimulating, informational, sanitizing, providing, backbone, space-educational and regulatory-corrective function. In addition to the aforementioned features they have included in this list and the control and regulatory function, it is designed to promote greater efficiency in the use of land for construction of housing, the balanced demand, preparation of proposals on the local residential market, coordination of other listed functions. To the specific functions they include measures to expand the market segment, the diversification of the construction business, strengthening relationships with other regional participants in the housing markets, the increasing role of the region in the economy of the country