scholarly journals FARM HOUSEHOLDS AND THEIR ROLE IN THE DEVELOPMENT OF THE AGRICULTURAL ECONOMY SECTOR

Author(s):  
Sergey AMONS

Farms (individual and family) are an important component of the agrarian sector of the Ukrainian economy and an effective mechanism that contributes to increasing employment and income growth in rural areas, attracting investment resources in agricultural production. In recent years, there has been a downward trend in the number of farms in Ukraine. The main reason for this situation is the absence of potential start-up capital from the potential agrarian farmers, on the basis of which efficient agrarian production could be built. There are also a number of restraining factors in the development of agriculture in our country, including the imperfection of the legislative framework in the areas of the permit system and licensing, the limited participation in government procurement, the lack of an effective system of training for entrepreneurs in the agricultural sector, etc. Research by domestic and foreign scientists shows that one of the strengths of farms is their resilience. They all operate under conditions of risk and uncertainty that are specific to the agricultural sector, but retain their structure, functions and identity. At present, they have many socio-economic problems and one of them is the organization of competitive production. In conditions of fierce competition, farms can operate successfully, especially if competitive products are produced. Among the basic problems of functioning of farms that require a decision in the legal field, scientists distinguish: imperfection of mechanism of the long-term crediting and taxation of farms; insufficiency of sizes of the landed parcels of land for the conduct of effective menage, absence of projects of organization of the use of land in relation to the еколого-економічного ground of crop rotations and organization of lands; plenty of documents necessary for the receipt of state help. Farming as a form of farming in the countryside is important not only for agriculture, but in general for all areas of material production. Therefore, the development of farming should be explored in the context of the changes taking place in the spheres of public relations. It should be noted that the characteristic features of farms are mainly small sizes, small in size initial capital and land areas, reliance on own funds, orientation on market conditions, focus on output, commercial calculation, risk, entrepreneurship. The revitalization of farming creates favorable conditions for the development of small rural businesses. In recent years, domestic farms have begun to play a significant role in meeting the needs of the internal market and shaping the export potential of agricultural products. Among the main problems that hinder the development of the agricultural movement in our country, it is necessary to note the low level of introduction of modern innovative technologies of agricultural production, which, in turn, is caused by limited financial support, lack of working capital to acquire the appropriate production resources for the new production cycle. Last years, in spite of all problems that are in our state, the amount of farmers in Ukraine grows little by little. On official statistics, by the state on beginning of 2018 for us about 45 thousand farms were counted, for the last year their amount increased on 2%. Certainly, it is a small height, but a general tendency talks that to be a farmer in Ukraine and to engage in an agribusiness becomes a fashionable tendency. Specific gravity of farming in the general amount of agricultural produce in Ukraine hesitated from 6,1 % to 8,7 %. For comparison in the USA the domestic farms of different types together make 99 % economies on the whole and 90 % productions in an agricultural sector. Farming has a high degree of adaptability to market signals, flexibly responds to market conditions through changes in production programs, specialization and diversification of economic activity, but not agriculture, but Ukrainian agricultural holdings provide the lion's share of Ukrainian agricultural exports. Therefore, as soon as possible creating favorable conditions for the functioning of farms in Ukraine is important both to overcome the decline of the village and to streamline the organizational structure of agriculture in accordance with European standards for market conditions through changes in production programs, specialization and diversification of economic activity, but not agriculture, and Ukrainian agricultural holdings provide the lion's share of Ukrainian agricultural exports. Therefore, the earliest possible creation of favourable conditions for the functioning of farms in Ukraine is important both for overcoming the decline of the village and for streamlining the organizational structure of agriculture in accordance with European standards. The conducted research shows that the main problems of state support for farms in Ukraine are low level of awareness of farms about the possibilities of obtaining state support; complex procedural mechanism for obtaining state support; lack of clarity on the timing of state aid; manual allocation mechanism; - insufficient funding for government programs. We believe that a dialogue should be established between the state and FG: a state strategy for the development of the agrarian sector should be clear to producers and communicated through profile associations, sectoral organizations, the agricultural advisory system, while farmers' problems should be a priority for the state. In order to increase the competitiveness of farms, investment activities should cover the introduction of investments in the modernization of production. For the competitiveness of a farm, its technical re-equipment is necessary.

2021 ◽  
Vol 214 (11) ◽  
pp. 67-79
Author(s):  
Lyudmila Dulepinskih ◽  
A. Svetlakov

Abstract. Despite the implementation of production activities in crisis situations, agricultural enterprises are increasing the production of agricultural products. The issues of the development of agricultural production and measures of state support for agricultural business are currently becoming particularly relevant. This article is devoted to the problems of current activities and prospects for the development of the agro-industrial complex in crisis situations. The purpose of our work is to study the causes of uneven development of agricultural enterprises of various forms of ownership, to develop measures that contribute to the creation of favorable conditions in the agro-industrial complex for the production and sale of products. To achieve this goal, we have identified the following tasks: to identify contradictions that prevent an increase in agricultural production; to develop the main directions for the development of agribusiness. Methods. In assessing the development of modern economic policy, mathematical and statistical research methods were used, defining indicators were identified, and factors affecting the development of the agricultural economy in the field of recent changes were considered. Results. The authors considered the key areas of state support for agricultural producers, outlined the tasks of further development of the agro-industrial complex, identified the participants of interaction in the agricultural sector of the economy. Strategic measures of the new economic policy in the agricultural sector of the economy have been developed, aimed at creating favorable conditions for the production and sale of products of the agro-industrial complex, taking into account the implementation of the state plan and state order. The risks and threats that hinder the implementation of strategic measures are grouped. Food consumers interacting with producers in the public procurement system have been identified. The advantages of creating a center for supervision and control to verify the activities of economic entities in the agricultural sector of the economy are outlined. The authors have developed a model of the mechanism for implementing strategic measures of the new economic policy in the agricultural sector of the country's economy. The scientific novelty of the research lies in the development of a model of the mechanism for the implementation of strategic measures of the new economic policy in the agricultural sector of the economy.


2020 ◽  
Vol 8 (2) ◽  
pp. 6-10
Author(s):  
Denis Samygin

The problem of payback of subsidies in agricultural industry due to obligatory payments in the budgetary system of the country rises. It is shown that the minority of this problem for the state is caused by the social and economic importance of the industry for society and inaccuracy of opinion on low budgetary efficiency of allocations in agricultural production. The technique of assessment of efficiency of use of funds of state support from a position of the state financial system is proved. On the basis of the analysis it is revealed that at creating favorable conditions of development of producers not only prerequisites of ensuring food security and preservation of rural territories, but recoverability of means due to obligatory payments in the budget and off-budget funds are formed. By means of the constructed models the optimum ratio of payback of subsidies and profitability of costs of production taking into account conditions of simple and expanded reproduction of resources without loss of cost of the budgetary investments is revealed. The importance of results of a research consists in the revealing opportunities of planning of efficiency of use of the raised funds in production of agricultural products both for agrarian business, and for the state.


Ekonomika APK ◽  
2020 ◽  
Vol 309 (7) ◽  
pp. 84-93
Author(s):  
Vasyl Rusaniuk

The purpose of the article is to summarize the methods of state support for agricultural enterprises in order to increase their competitiveness in determining the directions of support for entrepreneurship in the agricultural sector of Ukraine. Research methods. The methodological basis of the article is the dialectical method of cognition and the systematic approach to the study of the fundamental provisions of science regarding the state support development for subjects of agricultural entrepreneurship. The use of the monographic method has allowed to substantiate aspects of state support for agrarian entrepreneurship. Research results. The state and methods of state support of entrepreneurship in the agrarian sector of Ukraine and the development of entrepreneurial activity in rural areas are investigated. The financial state of agrarian enterprises and the state of state support in the agrarian sector of Ukraine are analyzed. Forms and methods of state support of agricultural enterprises of Ukraine are substantiated. Recommendations for increasing the competitiveness of agricultural enterprises, the competitiveness of their products, increasing export potential and the international image of agricultural production have been developed. Scientific novelty. The directions of state support for the further development of entrepreneurship in the agrarian sector are proposed. The legislative, regulatory and economic aspects of state regulation, the possibilities of its improvement and targeting are considered. Practical significance. The practical recommendations for improvement of state support of agrarians in modern conditions are offered. The conceptual approach to formation of the state regulation of agrarian production which can be the basis for development of measures for state support of agrarian enterprises is substantiated. Tabl.: 3. Figs.: 1. Refs.: 21.


2021 ◽  
Author(s):  
Vitalii Rusan

The article considers the current state of the institutional field of modern state agrarian policy, which consists of a number of legislative acts regulating: the area in which business activities of economic entities of the agrarian sector, features, mechanisms and measures of state support of the agrarian sector, measures to protect natural resources used in agriculture. The main problems that hinder the further development of the agrarian sector are highlighted: deformed structure of agricultural production in favor of export-oriented crop products, lack of program document on agrarian sector development, low efficiency of state support of the agrarian sector, lack of strategic vision and concrete actions to overcome the livestock crisis, access of agricultural producers to bank loans, inefficient use of the potential of Ukrainian lands, environmental problems of agricultural land use, insufficient development of agricultural market infrastructure. Currently, the agrarian sector makes a significant contribution to the country's GDP, the inflow of foreign currency from foreign trade operations provides the domestic market with a wide range of food products at a very acceptable level. However, the current model of functioning of the agrarian sector is inefficient. The lack of effective mechanisms to support small producers leads to a decrease in their competitiveness, reduced production of agricultural products and increasing demand for their imports, deteriorating food security, rising unemployment among the rural population and migration of labor to large cities and abroad. Due to the non-inclusive development of the agrarian sector, Ukraine is losing a significant share of the positive potential of favorable trends in world food markets. The main directions of further reforming of the agrarian sector of Ukraine and ensuring food security of the state, in particular: stimulating investment processes in the agrarian sector of Ukraine, introduction of modern technologies in agricultural production, development of agricultural market infrastructure, development of small agricultural production, development of agricultural cooperatives, rural development.


Author(s):  
Liudmyla PRONKO ◽  
Natalya KULYK

Any transformational changes depend on the state, namely: measures that should take into account current trends in the development of the domestic market, cooperation with foreign producers, who consider Ukraine as a potential supplier of agricultural products. The solution of these problems will contribute to the construction and effective functioning of public administration in various areas of the formation and implementation of socio-economic policies. For the development of the agrarian economy, state support should be balanced and take into account the problems of socio-economic development of the state, by improving the system of public administration and adoption of relevant legislative acts. The main instruments of state support are interest-free budget loans to agricultural producers, tax exemptions, receipts and debt restructuring, partial compensation of expenses for the purchase of agricultural machinery and equipment. However, the system of state support and regulation of agriculture in Ukraine is deformed and lagging behind civilization development and from European standards. Today, the expenditures of the State Budget of Ukraine in support of the agrarian sector make up 5-6% of budget expenditures. At the same time, budget support is almost completely offset by the existing disparity in prices. At 100 UAH budget disbursements are 100 UAH of price costs, when in the EU, on the contrary, 100 euro of budget payments to farmers account for 130 euro of price support. In addition, state support for prices and production is provided to agricultural enterprises, which produce only 40.7% of the gross output of the industry and employ less than a third of able-bodied rural residents. The farmers and the vast majority of farms do not receive such support. Therefore, questions arise regarding the improvement of price policy, which would restore parity and ensure positive price support for agricultural producers, helped to select the means of support and implementation of ways to exit the agrarian sector from a protracted crisis through the application of measures of state protectionism. Such an approach will help to reduce the level of inequivalence in the agricultural exchange trade with other sectors of the economy and ensure the efficient functioning of agricultural production. State support to agriculture in Ukraine covers the budget financing of programs and measures aimed at the development of the industry, preferential tax treatment, partial compensation of interest rates for the use of commercial banks loans, write-off of bad debts to the budget, support for expanded reproduction in agriculture and protection of interests of agricultural consumers products. Unfortunately, today state support in the form of subsidies, subventions and donations is not being implemented effectively. Because agricultural producers either do not receive financial resources due to lack of funds, or receive them with considerable delay in time. This is due to the fact that the budget support programs developed and implemented are often underfunded, and the rules for allocating budget funds, according to the relevant programs, are approved on an annual basis, and therefore change from year to year (i.e. agricultural producers often do not receive support when it comes to them urgently needed). Thus, state support is a combination of various levers and instruments of preferential financing of the most vulnerable enterprises and branches of agro-industrial complex. Therefore, it is advisable for agricultural commodity producers to focus on: - raising the level of production of agricultural products, which will contribute to the growth of livestock feed and increase export potential of the country; - increase in the production of milk milk; - reduction of the level of dependence on imports of agricultural products. The solution of such problems is possible only with the proper state regulation and support of the agroindustrial complexes. Another important direction for improving the economic mechanism of state support is increasing the availability of loans aimed at increasing financial sustainability of the industry. Agrarians should create the necessary conditions for expanded reproduction with the help of credit resources. At the same time, the scheme of granting preferential loans should be modified. Indeed, as convinced by world experience - the basis for creating a rational and sustainable, economic and balanced agricultural production is focused state support Therefore, in order for agricultural production to develop more effectively and to increase its competitiveness, it is necessary to adjust the process of providing state financial support to agricultural producers, to ensure its increase and effective use, in accordance with the principles of a market economy and approaches to state encouragement of agricultural production in other countries. The settlement also requires a system of direct state aid to the agrarian sector. Grants and reimbursements from the state budget should primarily be paid to producers of agricultural products, and the main part of the funds should be directed to financial support for programs that are capable of ensuring the sustainable development of the agricultural sector.


2019 ◽  
pp. 59-73 ◽  
Author(s):  
Nikolai M. Svetlov ◽  
Renata G. Yanbykh ◽  
Dariya A. Loginova

In this paper, we assess the effects of agricultural state support of corporate farms on their revenues from agricultural production sales in 14 Russian regions that differ in technology, environment and institutional conditions. In addition to the direct effect of the state support, the indirect effects via labor and capital are revealed. For this purpose, we identify production functions and statistical models of production factors for each of these regions separately. We find out diverse effects of the state support on revenues among the regions. Positive effects prevail. Negative effects are mainly caused by labor reductions that follow subsidy inflows. Another cause of negative effects is the soft budget constraints phenomenon.


2020 ◽  
Vol 19 (12) ◽  
pp. 2210-2224
Author(s):  
V.M. Sharapova ◽  
T.N. Medvedeva ◽  
E.A. Farvazova

Subject. The article considers a procedure for calculating and distributing State support to depressed agricultural regions in the framework of a new type of budget financing, i.e. compensating and stimulating subsidies. Objectives. The purpose is to evaluate the efficiency of the system of State regulation of agribusiness in a depressed region, determine the priority of modern methods of budgetary support from the State, improve the methodological approach to the distribution of State aid among subjects of the Russian Federation with low level of socio-economic development. Methods. The study draws on the abstract and logical method, methods of statistical analysis, grouping, comparison, and generalization. Results. We realized the objectives of the study, using the agricultural producers of the Kurgan Oblast case. The paper analyzes the condition of agricultural sector in the depressed region, assesses the State support system efficiency for the agricultural sector of the Trans-Ural region, considers government measures related to the regulation of the economy of backward regions. It presents an updated method of budget financing within an incentive subsidy by clarifying the calculations and introducing an additional indicator that reflects the level of remuneration of regional agricultural producers. Conclusions. The updated calculation methodology for incentive subsidies to depressed regions enables to build a certain economic rating of ten depressed regions of the Russian Federation, taking into account not only the volume of production and employment, but also the level of wages of agricultural workers.


1993 ◽  
Vol 74 (2) ◽  
pp. 164-165
Author(s):  
V. A. Kalistratov

The study of the state of health of the population requires special attention due to the difficult socio-economic situation in which the entire national economy and, above all, the agricultural sector found itself. The labor intensity of workers in this industry directly depends on the season of the year, mechanized labor-intensive processes, labor supply. Of particular concern are the unfavorable tendencies that are now manifesting themselves more vividly. The agrarian sector of Tatarstan employs about 400 thousand people, of which almost 300 thousand are directly in agriculture.


2020 ◽  
Vol 28 (3) ◽  
pp. 585-596
Author(s):  
Andrey A. Karavdin

Issues related to state support of the agro-industrial complex are relevant for all countries of the world, including the Russian Federation. The article deals with the key problems of the agro-industrial complex, which are mainly caused by the features of agriculture. The necessity of state support for the agro-industrial complex of Russia on the basis of the identified problems is substantiated. The article analyzes the directions and measures of state support in Russia, the differences between the stated goals in the state program for the development of the agro-industrial complex and the results in practice. The lack of a comprehensive approach to solving existing problems and proper control over the implementation of the state program, ill-considered and insufficient funding of individual programs, lobbying by large agricultural holdings of their interests and the monopolization of agricultural production do not allow to rely on the development of small agribusiness and rural areas.


Author(s):  
I. Smolynets

One of the most important directions in this context is the problems of organizational and legal forms of development of entrepreneurial activity in agriculture. Effective development of entrepreneurial activity in agriculture is hindered by poor adaptation to market conditions and low investment attractiveness of agrarian production and economic formations, unsystematic and dispersed revenues for modernization of production activities, insufficient state support, imperfection of the organizational and economic mechanism for managing the development of various organizational and legal forms of entrepreneurial activity activities in the agrarian sector. In the historical aspect of the development of entrepreneurial activity there are the following forms: private farms, individual holdings, households, peasant farms, private and state agricultural enterprises, collective farms, in particular peasant unions, agricultural companies, inter-farm enterprises and associations, of various kinds and types societies that are divided in form of association and level of responsibility. The most important of these, which have become accustomed and function in agriculture, are agricultural enterprises, in particular private ones, and households. However, today the state of development of entrepreneurial activity in the agroindustrial complex remains rather complicated and requires complex comprehensive reforms, the main role of which should be owned by the state. That is why among the objects of state regulation a special place should occupy the agrarian sector of the economy and the forms of entrepreneurial activity, in particular the agrarian market and the formation of its infrastructure, which is conditioned by the state regulation. The main problems of the agrarian sector development include the low efficiency of agricultural production and the problem of deformation of price proportions, the solution of which is directly related to the perfection of the infrastructure and mechanisms for regulating the agricultural market. The process of establishing enterprises on the basis of co-operation and their integration with processing enterprises will reflect the interests of agricultural producers and promote their stable and efficient development. The most effective form of co-operation is production, sales and service cooperatives, created on the basis of cooperation of shares and natural forage lands, fixed assets, livestock of animals that unite agricultural producers, households, purchasers, enterprises of the processing industry, various catering enterprises, institutions and organizations. Co-operation, by its very nature, is an economic and voluntary phenomenon. Integration is the next stage of effective economic forms of cooperation among the participants in the agrarian market.


Sign in / Sign up

Export Citation Format

Share Document