Issue №1, 2020

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The formation mechanism of state support of development of agrarian sector of the Northern region

 

DOI: 10.34130/2070-4992-2020-1-13-22

Full article 

Ivanov V.A. – Doctor of Economics, Institute of Social, Economic and Power Problems of the North of the Komi Scientific Center Federal research center of the Ural Division of the Russian Academy of Sciences, Syktyvkar, Russia, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The agricultural sector of the Republic of Komi is characterized by the destruction of its production potential, the reduction of crop and livestock production, and the decline in the level and quality of life of farmers. Overcoming the crisis situation is connected with the strengthening of the state's influence on the development of the agricultural sector and the development of effective mechanisms for its implementation. The article analyzes the volume and direction of subsidies to agriculture. The decisive role in state support of the agricultural sector of the regional budget is shown. It is revealed that the volume and share of expenses for current activities and their increase for investments are decreasing in the structure of state support. There is an increase in subsidies for dairy cattle and their fall on the production of crop products, beef and poultry. It is established that the existing state support is focused on the development of large-scale agricultural production at the expense of financial support for small and medium-sized businesses and the agricultural sector of the rural periphery. An assessment of the effectiveness of state support for agriculture is given. It is shown that the strengthening of state support contributed to the improvement of financial indicators in agricultural organizations, increasing production in meat poultry and pig farming. The measures taken did not allow overcoming the negative situation in cattle breeding. The directions of perfection of state regulation of development of the agrarian sector related to the increase in volumes of direct state support and the increasing role of the Federal budget, the redistribution of subsidies in favour of medium and small agricultural structures, households and agriculture in remote regions, the use of indicative planning, availability of preferential credit, improvement of price regulation. The results obtained should be taken into account when preparing and implementing regional and municipal agricultural development programs.

Keywords: agricultural sector, state support, directions, methods and mechanisms of regulation, Komi Republic.

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For citation: Ivanov V. A. The formation mechanism of state support of development of agrarian sector of the Northern region // Corporate governance and innovative economic development of the North: Bulletin of the Research Center of Corporate Law, Management and Venture Capital of Syktyvkar State University. 2020. No. 1. Р. 13–22. DOI: 10.34130/2070-4992-2020-1-13-22.