Scientific Journal of KubSAU

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

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 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 economic position of the agricultural sector of the Krasnodar region and the place of small business in economy of the region is considered. It is noted that in structure of agricultural production of the country today the region produces 8%, in gross regional product – about 13% of the total material production. The main share of agricultural production is still produced by agricultural organizations, in 2013, they generated more than 61% of total production, farm population - 24%, domestic farms - 15%. Regional plant growing today produces more than 72% of all agricultural products. In the sphere of animal husbandry, the authors recommend stabilizing dairy herd, to restore the normal functioning of pig farms, build and reconstruct farms and complexes, to increase the supply of quality feeds, to restore the productivity of animals and poultry, the quality level of the staffing industry. It is noted that the production of milk has become a pretty beneficial business; its profitability has risen to 37%. But meat production remains unprofitable due to weak motivation of investing, and problems with lending. There are also serious problems in technical support, especially to the sector of small farm management. As a result, producers suffer from significant financial losses due to the great timing of major agricultural companies. Attention is drawn to the unused opportunities of leasing machinery and equipment, negative policy of low wages for rural workers, and high number of farms which are in bankruptcy proceedings. To increase the stability of development of the agrarian economy, the authors recommend taking into account the peculiarities of financial-economic activity of small rural businesses

Theoretical, transformational and practical provisions for the development and regulation of small businesses and farms in the country's economy and agriculture are being cleared up. In the process of studying the problem we used logical reasoning, methods of comparing, and monographic, economic and statistical methods also. It is shown that small farming forms (SFF) in agriculture are essential for progressive development of agriculture, which is now recognized as a growth point of import substitution in all national economy. Given the author's interpretation of the category definition "small farming form" in agriculture differs from other definitions, in a more complete evaluation and statistics, provisions regarding private cottages and households as the SFF, their locality of functioning, independence in taking risks, increased adaptation, economic and legal binding, spectrum of production. The article shows the history of definitions of small business and small farming forms, stages of small business development, the scope of its practice abroad and in our country. It is said that a leading role in the formation of small farms belonged to households, which are still playing a leading role in production of agricultural products for their own consumption (without selling on the market). It is noted that at the present stage of industrial transformation of small businesses and small farms they often have a low mechanization level, high cost structure of manual labor. They have problems in adapting to the sector of services, in embedding into a complex system of relationships with medium and large business on the basis of technological specialization and also promoting innovation. It is emphasized that today the growing role of small businesses, small farms makes it more pragmatic to assess the prospects of development of this sector in our country

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 article describes a new method of modeling and factor analysis of industrial competitiveness, using the methodology of the transactional analysis in the study of competitive processes involving industrial enterprises