Scientific Journal of KubSAU

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

Domestic and foreign experience of operation of the segment of "small" rural economy shows that its capabilities are still being used not completely out of the difficulties and risks of development. The main reason for the slow dynamics of the modern development of subjects of small farming (SAF), according to the authors, is the inaccessibility of the credit market in this sphere since the key rate of the Central Bank at 10.5%, which is too high and, therefore, significantly reduces the efficiency of the investments in this risky industrial sector. In addition, the most narrow «neck bottle» is remaining a unit of realization of products of small businesses. The authors propose a refined definition of "small agricultural businesses" that differs from the previous definitions by its conciseness and by including small enterprises of not only 1-st production, but also the 2-nd processing of agricultural sector. The study revealed that the most distinctive features of small agricultural forms are: high autonomy, independence, and self-protection from adverse environmental factors. The authors propose to adjust the long-term regional development program, and suggest the method of determining the capacity of the market for products of small agricultural farms with possibilities of a differentiated accounting of consumers by their income, residency, and consumption of domestic and other animals. They believe that the problem of affordability of lending and perfecting of system of marketing of small agricultural farming today is largely able to solve with the multi-level agricultural credit and sales-living cooperatives. The authors believe that the government should create a high-in-demand SAF productive assets and then transfer them to the operational management of cooperatives, with subsequent transformation of them into equity of the small participants of cooperatives

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

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 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

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

The definition of "small agricultural businesses" (SAB) is clarified, the effective functioning and regulation of development of subjects SAB are elaborated. The authors used the principles of systemic-functional analysis, methods, rationale, economic-statistical, monographic, SWOT-analysis, graphic and others. The author's definition of small agricultural businesses was offered. The functioning and regulation of development of subjects of SAB are refined and systematized. The modern competitive opportunities of SAB and others are identified and systematized. It’s 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 SAF subjects development

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