Scientific Journal of KubSAU

The article shows the economic mechanism of operation of the vertical cooperation of small agricultural farms and their quantitative characteristics. There is great attention paid to the work of Revising Union; and there are shown: its objectives, its stabilizing role in lending to small businesses, and the volume of regional lending. The proposed project is meant to improve the current economy mechanism of vertical cooperation, to increase efficiency of regulation of the development process of consumer cooperatives of small farming with future possibility of public offering of constituent entities of the production infrastructure created with participation of the state. The authors recommend creating joint infrastructural facilities for small business with active engaging of the government, which will increase currently low motivation of participants of small-scale agricultural farming (SAF) in building a new cooperation. It is recommended to actively enhance the process of creating of infrastructure of economic activity, the state features in the construction of production, supply, logistics, processing, marketing and other necessary for practical objects in the form of storage facilities, slaughterhouses, depots mine-mineral fertilizers etc. It is proposed to enhance preparation and retraining of personnel for working with small farms and especially in their consumer cooperatives. To increase efficiency of the informative-consultative instrument of development of small business by adding more state funding, more actively implement a scheme of public-private partnerships with cooperatives of small agricultural farming. The crucial condition for successful development of SAF is lobbying interests of participants of small agrarian business by giving opportunities from regional Chambers of commerce and industry, by establishing associations of small forms of management to protect interests of participants in use of land, resources provision, lending, product sales, and other important concerns

The problem of determining the correct potential market size for commodity products produced by small businesses is a subject of a great importance, as the excess of unsold products become a source of loss and default of management. Sales of produced agricultural and food produce for subjects of small business is crucial and, therefore, is a subject of increased interest. The author notes that today the main thing is not to produce products, but to effectively realize what is being produced. For this reason, for manufacturers of products, the correct prediction of production volumes given the potential market size is a problem of current interest. For more accurate results, the author recommends dividing the consumer groups of the population depending on the level of food consumption. To achieve that, it is suggested to divide consumers’ social, specific, and other characteristics. These essential features are accounted by the instrumentation panel surveys. The proposed approach with the right content recommended formula allows to define and model the volumes of agricultural products, which the market is able to absorb; to plan specific levels of production of subjects of small farms, the volume of product offerings that will find buyers, what will significantly reduce the risks of losses and occurrence of illiquid stocks

It is proposed to differentiate the housing by the various qualifying characteristics, including ways of conducting transactions on the primary and secondary markets, organized and unorganized; in and out of the exchange markets. The signs of the functional purpose of the housing market are systematized, the composition of market participants are detailed. The author provides the statistical information on the key participants in the regional housing market, and the main investors in this market, indicating areas of interest. As investors, in the local housing market are considered: the organs of management of state property, municipal property, civil persons, legal entity, organizations, physical and legal foreign persons, and other participants in housing projects. It is noted that in practice, the greatest distribution was achieved by the following forms of participation in the construction: equity, the issuance of securities to attract investors, banking and mortgage lending. Than, this practices are analyzed, and the advantages of each of these systems are systematized. There is also a system of performance indicators of the regional housing market, consisting of three groups: volumes of housing construction, the cost and availability of housing. For the third group, it is proposed to add the housing affordability index for which the method of its calculation is shown. The simplicity of the recommended approach allows to carry out operative calculations in the practice of construction with determination of affordability of housing for certain categories of population based on its income, at all regional housing markets. The economic essence of this indicator characterizes the ratio of the market price of housing and the income level of the population. The retrospective and prospective trends of development of regional housing policy are shown

Availability of selling channels is the key to further successful development of subjects of small agrarian farms. Today, the share of large chain retailers continues to grow, breaking the 25% bar of all retail sales, and the share of agricultural markets and fairs reduced by reason of redundancy for the control and regulation of trade. Recent monitoring revealed that prices of cabbage, carrots, tomatoes, potatoes, onions, and beets at agricultural fairs were 15-20% lower than in stores. So, if to destroy small market infrastructure, the peasant farm, personal subsidiary and other small agricultural production, provision of their products to local farm markets just dies. However, agricultural markets are waiting for bad changes – they will be obliged to work only indoor, in permanent buildings. Agricultural markets, which can not cope with the implementation of the new law, will be forced to close, to withdraw from the market. The authors predict that the closing of small markets will lead to a rise in price of foods on the average on 15% and believe the decision of postponing the implementation of the law to 2010 is correct, including transferring territorial authorities the right to carry agricultural markets in capital structures, allocation to mobile trading in a separate category with a simplified procedure of regulation, and making transparent and unified principles of regulation of non-stationary trade

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

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 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