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

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

The paper clarifies the conceptual apparatus of subjects of small farms in agriculture, sup-plemented theory of the balance development of the market products, systematized the in-struments of state control of the development process of SFB in AIC subject to the condi-tions of economic space WTO

The article systematizes the singularity de-velopment and management of small farms (SFB), analyzes their competitive position, the technique of definition of the capacity of their market segment, is a model of a con-sumer cooperative multi SFB

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 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 deals with problems and possibilities in agriculture import substitution conditions and considers the significant role of small agrarian forms in this economy processes. The article notes that the main aim of import substitution is improving the competitiveness of domestic agricultural products through greater motivation of technological, modernization and innovation policy in production, through the development of new innovative, more competitive food products with higher consumer parameters. Practice shows that the most effective substitution is carried out in the agricultural sector and the food industry. The Krasnodar region has the most efficient developed agriculture production structure with the best natural and investment climate in the country, with enlarged of crop rotation fields, excessive and relatively low labor cost with the best experience in agricultural production. The author discusses about the detail problems of import substitution with participation of small businesses in the areas of grain production, sugar beet, about the difficulties in material and technical equipment, provision of seed and other problems. The problems of the financial component in large and small businesses specifically mentions, also in the field of cost management processing, pricing, formation of gross profit. The article emphasizes the importance of recovering the lost possibilities of breeding in animal husbandry, especially in pig and cattle. The most difficult situation is with lending, where the author recommends the reduction of rates for farmers in the short and medium term lending to the level of 3-5%. The author considers a changes in the mechanism of redistribution of public support in favor of livestock very important, where there are large risks, difficulties of long-term credits, problems of technological discipline observance and more

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

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 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