Scientific Journal of KubSAU

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

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 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