Scientific Journal of KubSAU

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

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