Agrarian economy of Russia

Agrarian economy is considered to be an important component of the development of the country. The basic task of this sector is to optimize the use of limited resources to get the maximum benefit.

Development of agrarian economy of Russia

In the last period in the agrarian economy of Russia there are real changes.

At the federal and local levels, state programs aimed at solving a whole range of problems in the agro-industrial complex of the country are being implemented. However, the pace of development of the agrarian economy of Russia still lags behind the economy of the most developed countries.

Thus, in 2016, only 8-9% of domestic products are produced with the use of innovative approaches and ideas, while in the US this indicator has reached 65%, and in Japan exceeded 95%.

Insufficient growth rates of the Russian agricultural sector are associated with a number of indicators. After joining the WTO, the Russian government undertook to reduce measures to support the agrarian sector of the economy. Similar actions were put under the blow of such industries as the production of machinery for agriculture, pig breeding and dairy industry.

In the wake of the reduction of the duty on cheap foreign food, domestic companies have lost competitiveness. It is impossible to say that the agrarian economy of the country as a whole.

However, the latest changes and the introduction of sanctions have allowed Russia to take effective measures to develop agriculture without pressure from the western suppliers.

The policy of import substitution allowed to reproduce many productions that were lost as a result of dumping prices of foreign agricultural producers.

Today as two important positive trends should be noted:

• relatively high growth rate of agro-products in the average for the last 5 years (102.3%) in comparison with the index of industrial production (100.6%) and GDP of Russia (100.5%);


• increase in exports and decrease in imports more than 1.7 times.

All this speaks of the increase in the level of food security of the country.

Now the Russian state provides planned support for the APC. There are regular programs to reduce interest rates on bank loans for agricultural enterprises, there are direct government subsidies.

In some sectors, the state compensates firms for a certain part of the cost of production.

The system of procurement and commodity interventions reduces fluctuations in the price of offers on the market. Insurance allows you to compensate for losses that are not related to the work of the farmer (natural disasters, drought, cases and diseases of cattle).

State regulation of the agrarian sector of the Russian economy

Thus, the mechanism of state regulation of the agricultural sector is developing in several directions - it is:

• dotization systems;
• preferential taxation;
• lending on special terms;
• procurement and commodity interventions in agricultural markets;
• price policy;
• leasing.

The main program for the development of agro-industrial complex of Russia is "State program for the development of agriculture and regulation of markets for agricultural products, raw materials and food for 2013-2020", approved on April 15, 2014.

Besides, the normative base consists of:

• Federal law of 29.12.2006, 264 FZ;


• Concept of long-term socio-economic development of the Russian Federation for the period up to 2020 (from 17.11.2008, order № 1662);


• Doctrine of food security of the Russian Federation, approved by the Decree of the President of the Russian Federation dated 30.01.2010. №120;


• Methodological decrees of the Ministry of Economic Development of Russia on the development and implementation of state programs of the Russian Federation (Order № 690 of 22.11.2013).

The main tasks of the agrarian economy are the provision of full food independence of Russia, the output of the number of leaders in the supply of agricultural products, as well as the increase in the level of life of rural population and the introduction of new methods.

Agrarian sphere of development of Russia

The agricultural sector occupies a special place in the economic development of any country. It is this sector that provides food and raw materials for the population.

Ignoring the multiplicity of existing forms of land use, under the agrarian sphere in a narrow sense, the word implies agricultural production.

Also related to this segment are related branches:

• equipment production, packaging;
• marketing;
• development of new varieties of agricultural products;
• market expansion.

The type of market economy, which belongs to the agrarian sphere, implies the predominance of enterprises in the private form of ownership with relative freedom in pricing. The advantage of this type of economy is in the optimal offer of essential goods, based on own resources.

In the modern world, agrarian production needs integration processes, new approaches to the system of relations between the state and the economy.

The economy of the agricultural sector is assigned a separate block due to the specific nature of this area of ​​production.

First of all, the agrarian sector in many developed countries is an absolutely competitive business environment. There is a large number of sellers, there is a lack of volume of offers, which has a real impact on the price. Besides, in the agrarian sector there is an easy way out of the market.

Second, the agrarian sphere depends on weather, natural and geographical features. Strong rains or droughts, diseased plants or livestock do not improve the investment climate and reduce the circle of potential participants in the agrarian economy at the risk of losing crops and profits.

In the third, follows the low differentiation of agricultural products, which is reflected in the prices. Low elasticity of demand develops the problem of agrarians - a slow growth of consumer potential.

Agrarian relations in the economy

All processes related to agrarian relations, which occur in agriculture, are related to the ownership and use of land and other means of agricultural production. Agrarian relations in the economy are inextricably linked with the politics of the state, because the state of agriculture depends on the food security of the country.

The role of the state is reflected in the regulation of market processes. One of the ways of similar regulation is the policy of protectionism. Such an economic strategy to support domestic production applies not only to the agricultural sector. But it is here that protectionism works to its full potential.

In the economy of an agrarian enterprise there is a restriction on the choice of products due to natural conditions and specifics of the industry.

Land is a special and obligatory liability, which is limited by area. Therefore, the economy of agrarian enterprises carries a seasonal character and is favorable for investment. In a market economy, the use of investments drives the development of the agricultural sector.

More about the trends in the development of agrarian relations, agrarian economy of Russia and other countries can be found at the annual exhibition Agroprodmash!