Name
Tolmachev Aleksey Vasilyevich
Scholastic degree
•
Academic rank
professor
Honorary rank
—
Organization, job position
Kuban State Agrarian University
Web site url
—
—
Articles count: 34
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 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 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
Availability of cooperation in the field of processing, storing, crediting and selling channels is the key to further successful development of subjects of small agrarian farms. It is shown, that modern cooperation allows creating 1-st level agricultural consumer cooperatives at the district level. Based on the region level, the 2-nd level Unions of cooperatives are being formed. The 3-rd level cooperatives may also appear on the Federal level or the level of Federal districts. The authors give the dynamics of financing of regional target programs of development of agricultural credit and sales cooperation in the Krasnodar region. Today, the province operates a two-level system of consumer agricultural cooperatives with the regional Guarantee Fund, which is supporting their development. The main aim of the Guarantee Fund is to ensure access of small farms to financial and material resources. For the 1-st level cooperatives, the Fund provides the possibility of further development and allows adding on 1 ruble of budget support additionally 9.1 credit ruble. Analysis of economic activity of subjects of small farming has showed that improving of the availability and timeliness of accessing loans from agricultural credit consumer cooperatives for the purpose of production of gross amounts volume and production profitability of agricultural products. Moreover, the development of the practice of multi-level cooperation as condition is to improve the functioning of small agricultural farms, their credit new loan program and product distribution are illustrated
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
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
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
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 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
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