Scientific Journal of KubSAU

Polythematic online scientific journal
of Kuban State Agrarian University
ISSN 1990-4665
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Papahchyan Inna Aramovna

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Kuban State Agrarian University
   

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Articles count: 12

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DEVELOPMENT OF REGIONAL AGRICULTURAL ECONOMY AND THE ROLE OF SMALL FARMS

abstract 1111507044 issue 111 pp. 776 – 792 30.09.2015 ru 1212
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
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ECONOMICS OF OPERATION AND STATE REGULATION DEVELOPMENT OF THE REGIONAL AGRICULTURE

abstract 1121508044 issue 112 pp. 604 – 618 30.10.2015 ru 939
The article considers current economic situation in the economy of the Krasnodar region, the importance of import substitution in the future functioning and regulation of regional development of agro-industrial complex. The positive impact on the agricultural economy, double sided grocery sanctions, the leadership of the rural economy of the region with annual growth of GDP of 9.2% (in Russia – 4,5%) is pointed. The article shows that the growth of quantitative and qualitative indicators in the industry was provided with additional targeted investment to increase profitability of crop production to 44%. The advantages of big business that produces mostly grains are pointed out, because this factor will continue to determine the vector of development of agriculture. A big positive point of the livestock industry is the growth of profitability of milk production to 37%. At the same time, cattle breeding with the margin of 19.7% is still highly problematic on observance of technological discipline. Production of cattle meat remains unprofitable. A significant segment of production in farming is still taken by small farms. In 2014 the government regulated their development supporting them with money in the amount of more than 700 million RUB . The author believes to keep further growth of the livestock on it is necessary to stabilize the number of livestock, especially dairy cattle, to restore the production of pork, to continue the construction and reconstruction of farms and complexes, to provide animals with high quality food. The author also stresses the importance of development of business of rice growing, vegetable growing, fruit growing, the importance of updating and development of material and technical base. The work provides the data that at the expense of state regulation (support) profitability of agriculture in the region has grown by an additional 7%, so it creates new opportunities for growth of the agricultural economy of our region
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ECONOMICS OF THE DEVELOPMENT AND REGULATION OF THE MODERN GRAIN MARKET

abstract 1161602098 issue 116 pp. 1535 – 1549 29.02.2016 ru 802
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
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ENHANCING THE ROLE OF THE STATE REGULATION IN MANAGING DEVELOPMENT OF AGRICULTURAL PRODUCTION

abstract 1211607022 issue 121 pp. 499 – 510 30.09.2016 ru 684
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
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MANAGEMENT OF DEVELOPMENT OF AGRARIAN PRODUCTION ON THE BASIS OF VERTICAL COOPERATION

abstract 1211607025 issue 121 pp. 539 – 551 30.09.2016 ru 380
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
195 kb

MODERN TOOLS OF STATE REGULATION FOR AGRICULTURAL PRODUCTION

abstract 1321708038 issue 132 pp. 464 – 483 31.10.2017 ru 641
This article notes that agricultural production is not a self-regulating system. The article highlights specific features of agricultural production and forms of ownership of the major productive resource – land, ineffective policies of promoting development and introduction of innovative technologies. It is noted that the system of measures and tools of state regulation of agricultural production have two directions of influence: governmental regulation of the agricultural market mechanism and industrial governmental support for manufacturers. The authors give classification of methods and instruments of state regulation, liberalization of the agricultural sector in the WTO, levels of aggregate support for agriculture; as well as identifies the key growth areas of the governmental support and discusses the basic institutions of governmental regulation: ownership, legal Institute of economic management and the Institute of organization management. It's pointed out that the current dynamics of the development of agricultural production in our country is determined by four major external factors: the Institute of Western sanctions imposed against our country, Russia's integration into the international market by joining the World Trade Organization, the functioning of the Single Economic Space within the Customs Union, and the necessity of solving problems of import substitution and food security of our country. Implementation of these methods requires significant institutional transformation and transition into the new levels of legal, commercial, and economic regulation with observance of equitable international cooperation. In conclusion, the authors discuss an insufficient level of development stimulation in domestic agriculture
147 kb

THE ESSENCE AND THE STAGES OF THE STATE REGULATION OF AGRICULTURAL ECONOMY

abstract 1221608032 issue 122 pp. 448 – 460 31.10.2016 ru 307
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
188 kb

THE FEATURES OF THE DEVELOPMENT AND THE STATE REGULATION OF SMALL RURAL FARMING

abstract 1151601032 issue 115 pp. 480 – 497 27.01.2016 ru 592
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
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THE IMPORT SUBSTITUTION AS A TRANSITION TO EXPORT ORIENTATION APC

abstract 1111507034 issue 111 pp. 615 – 633 30.09.2015 ru 1121
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.
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THE PERFORMANCE AND NEW FEATURES OF THE STATE PROGRAM FOR STIMULATION OF AIC DEVELOPMENT

abstract 1301706045 issue 130 pp. 651 – 669 30.06.2017 ru 282
Practice shows that the state support in our AIC comes to the wrong addressees. Helping big agricultural businesses at the expense of other participants, which often are inherently more efficient and competitive, still makes the position of the existing system of state support very problematic. More correctly in this situation would be to increase help for small- and medium-sized businesses, which are often created from scratch without any support, and, therefore, are more motivated to efficiency and growth. For example, small farms are producing up to 40% of the total agricultural production, but receive only about 10% of the state support allocated to agriculture. This imbalance distorts the competitive environment and hides great injustice of the entire agricultural policy. This is the main reason for incomplete implementation of the reserves in the segment of small businesses. This has a great negative impact on the key units of crediting and selling of small agribusiness forms (SAF). The authors propose restructuring the general support of regional agriculture by blocks of crop production and small agricultural economy in benefit of the SAF due to the possibilities of state support of crop production in the ratio of 2:1, that is to leave the crop to 66.7%, and for the SAF to 33.3%. Under this scheme, small forms over the next 5 years will receive 14.2 billion rubles instead of the planned 6.4 billion. This decision will contribute to the emerging of a healthy competitive environment in the domestic agricultural market and increase the faith of the owners of small businesses in possibilities of their growth and weakening of the principles of cooperation
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