Scientific Journal of KubSAU

Availability of cooperation in the field of processing, storing, crediting and selling channels is the key to further successful development of subjects of small agrarian farms. It is shown, that modern cooperation allows creating 1-st level agricultural consumer cooperatives at the district level. Based on the region level, the 2-nd level Unions of cooperatives are being formed. The 3-rd level cooperatives may also appear on the Federal level or the level of Federal districts. The authors give the dynamics of financing of regional target programs of development of agricultural credit and sales cooperation in the Krasnodar region. Today, the province operates a two-level system of consumer agricultural cooperatives with the regional Guarantee Fund, which is supporting their development. The main aim of the Guarantee Fund is to ensure access of small farms to financial and material resources. For the 1-st level cooperatives, the Fund provides the possibility of further development and allows adding on 1 ruble of budget support additionally 9.1 credit ruble. Analysis of economic activity of subjects of small farming has showed that improving of the availability and timeliness of accessing loans from agricultural credit consumer cooperatives for the purpose of production of gross amounts volume and production profitability of agricultural products. Moreover, the development of the practice of multi-level cooperation as condition is to improve the functioning of small agricultural farms, their credit new loan program and product distribution are illustrated

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

Industrial policy is a set of organizational and economic regulators to improve the technological, organizational and institutional infrastructure level, allowing stimulating industrial activity. There are economic instruments that focus on creating a favorable economic environment for the industry; information and communication tools based on the provision of information and advice to industry on the basis of regular monitoring of production, market–tactical, legal and regulatory processes; institutionally–in–law measures that are aimed at creating an effective and adequate regulatory framework and effective legal protection. We have highlighted a group of preselected based on the analysis and systematization of scientific sources of positive («catalyst») and negative (respectively – «inhibitors») factors, which are structured by us on several subgroups: the factors nature of globalization; macro factors; organizational and economic factors; territorial and sectoral factors (factors of specialization); social factors; technical and technological factors. We have attempted to outline the most important elements of the environment factor, the totality of which determines the level and nature of the development of the industrial sector of the economy, as well as the specifics of the required content of the relevant industrial policies. Consideration of the above factors has allowed us to identify some of the contradictions in the process of industrial development. Their understanding of the formulation and in the context of the resolution of an opportunistic nature of processes of formation and development of industrial potential, industrial production may be the conceptual basis for the development of proposals for improving the incentives for industrial growth mechanisms, including the use of information tools

The problem of determining the correct potential market size for commodity products produced by small businesses is a subject of a great importance, as the excess of unsold products become a source of loss and default of management. Sales of produced agricultural and food produce for subjects of small business is crucial and, therefore, is a subject of increased interest. The author notes that today the main thing is not to produce products, but to effectively realize what is being produced. For this reason, for manufacturers of products, the correct prediction of production volumes given the potential market size is a problem of current interest. For more accurate results, the author recommends dividing the consumer groups of the population depending on the level of food consumption. To achieve that, it is suggested to divide consumers’ social, specific, and other characteristics. These essential features are accounted by the instrumentation panel surveys. The proposed approach with the right content recommended formula allows to define and model the volumes of agricultural products, which the market is able to absorb; to plan specific levels of production of subjects of small farms, the volume of product offerings that will find buyers, what will significantly reduce the risks of losses and occurrence of illiquid stocks

Industrial region passport is a comprehensive information tool for forming the sustainable consistent conception about the industrial economic sector of administrative territorial unit for third-party users. This content is being formed by taking into account following elements: maximum completeness of the provided information, minimization of the facts distortion and empirical data; simplicity and clarity of the data provided in an accessible form with informative and illustrative material; classifier by potential users’ interests’ availability. In the article, exemplary structure of the industrial passport according to the developed requirements is proposed. In addition, the formation of a working group in the structure of economy sector government bodies is proposed; its tasks include organization and carrying out the relevant works. The article describes a proposed phased-gradualist procedure for creating the industrial passport of the area or district. The developed industrial passport can be used: in the investors attraction activities to the regions with an industrial orientation of the economy; within industrial exhibitions, convents and conferences conducting; as a tool for operational diagnosing a certain industrial potential; as a tool for information accumulating for comparative analysis of the industrial sector functioning in the territorial and temporal dimension; among with other complex tools for the area investment attractiveness increase; as a reasoning element for project platforms necessary for the cluster forms of industrial production organization

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

Availability of selling channels is the key to further successful development of subjects of small agrarian farms. Today, the share of large chain retailers continues to grow, breaking the 25% bar of all retail sales, and the share of agricultural markets and fairs reduced by reason of redundancy for the control and regulation of trade. Recent monitoring revealed that prices of cabbage, carrots, tomatoes, potatoes, onions, and beets at agricultural fairs were 15-20% lower than in stores. So, if to destroy small market infrastructure, the peasant farm, personal subsidiary and other small agricultural production, provision of their products to local farm markets just dies. However, agricultural markets are waiting for bad changes – they will be obliged to work only indoor, in permanent buildings. Agricultural markets, which can not cope with the implementation of the new law, will be forced to close, to withdraw from the market. The authors predict that the closing of small markets will lead to a rise in price of foods on the average on 15% and believe the decision of postponing the implementation of the law to 2010 is correct, including transferring territorial authorities the right to carry agricultural markets in capital structures, allocation to mobile trading in a separate category with a simplified procedure of regulation, and making transparent and unified principles of regulation of non-stationary trade

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 definition of "small agricultural businesses" (SAB) is clarified, the effective functioning and regulation of development of subjects SAB are elaborated. The authors used the principles of systemic-functional analysis, methods, rationale, economic-statistical, monographic, SWOT-analysis, graphic and others. The author's definition of small agricultural businesses was offered. The functioning and regulation of development of subjects of SAB are refined and systematized. The modern competitive opportunities of SAB and others are identified and systematized. It’s 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 SAF subjects development

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