Agriculture is an important sector of the national economy. The economic development of the country largely depends on his condition. This is one of the fastest growing industries. In it, you can observe several areas for investment. However, there are problems. It is extremely important to ensure the appropriate conditions for the harmonious development of the industry.
Therefore, issues of agricultural development should not be ignored. The main trends in this sector of the economy will be discussed later.
General trends
The development of industry and agriculture is a strategic task pursued by governing bodies. In the 90s, an unsuccessful, ineffective policy was carried out in this area, which affected the state of the industry. Since 2005, the government began to send subsidies to the development of agriculture. Agricultural insurance and lending have allowed many to open their own business in the sector.
At the same time, the industry began to develop harmoniously. Even in the crisis year of 2015, when the growth rates of production in most areas of the national economy of Russia decreased, agriculture showed growth. It amounted to 2.9%, compared with the previous reporting period.
In 2016, production also increased. The growth rate was 5%. This is a record for the industry. This situation indicates a competent policy in the field of agricultural development. Even numerous sanctions could not reduce the growth rate of the agricultural sector.
Features
The development of agriculture in Russia is taking place with the help of a special state support program. This made it possible to support this strategic direction of the national economy. Agriculture includes a number of industries that mainly specialize in the production of raw materials for the food industry.
In addition to ready-to-eat and food processing products, there are other products of this industry that are in demand by a number of industrial enterprises. These include pharmacology, textile, footwear industry. Today, biofuels are also actively produced from plant materials.
Agriculture is part of the agro-industrial complex (AIC), in which the industry is a key link. This sector also includes the sectors of processing, food industry, the provision of agriculture with material resources and means of production, infrastructure sectors, etc.
Promising areas
Economic development of agriculture in the current conditions is impossible without a competent government policy in the industry. Much attention is paid to export. It is gradually increasing. At the same time, the priority export positions are grain, pork, fish, poultry, seafood, and vegetable oil.
To ensure stable agricultural growth, the government allocated 75 billion rubles to develop the industry. in 2017. One of the priority areas of financing is updating the fixed assets of enterprises in the industry. Technical modernization allows to increase labor productivity, reduce production costs.
The state also allocates significant amounts of funds to support the greenhouse cultivation of vegetables, seed production, development of the breeding herd, etc.It is modernization that is capable of ensuring a stable level of development of crop production and animal husbandry.
State program
In connection with the strengthening of sanctions by foreign countries, the State Program for the Development of Agriculture was developed. It is designed for 13 years and lasts from 2013 to 2020. This program pursues several goals, the main of which is to maintain a high level of food security in Russia, as well as its independence from imports.
The government directs financing to increase the investment attractiveness of the industry, increase in its composition of new enterprises. The state program distributes resources between sub-sectors of agriculture in a certain way. This allows you to optimize the structure of the agro-industrial complex as a whole.
When developing the program, the state seeks to create favorable conditions for doing business in this sector of the economy, as well as to increase the level of competitiveness of products in the domestic and foreign markets. The goal is also the sustainable development of rural areas.
Tasks of the State Program
The state program for the development of agriculture poses a number of challenges for farmers. Financing stimulates the growth of food production, the main areas of agriculture. Preventive measures are being taken to prevent especially dangerous diseases of farm animals.
State support is also provided in the field of infrastructure of the agri-food sector, regulation of markets for the production of raw materials and finished products. Provides support for small businesses. Management mechanisms are being improved in the agro-industrial complex, and information support systems for the sector.
The development of innovative technologies, their implementation in the production processes of the industry. Scientific work in this direction is stimulated. We study the factors affecting the profitability of agriculture, increasing this indicator. Constraining growth factors are eliminated.
The conditions are created for the restoration and maintenance of a high level of soil fertility. Funding is being allocated for the development of land reclamation. The economy needs diversification. This is also one of the tasks of the state program. The level of employment in the industry is increasing, as well as the quality and standard of living of the population in rural areas.
Development factors
The governing bodies of the country identified the main factors of agricultural development. The funds included in the State Agro-Industrial Complex Support Program are sent here. With the money received, farmers can purchase animals for farming, seeds or planting material.
Funding is also directed to the purchase of fertilizers, formulations for processing crops, and means of preventing disease in animals. An important place is the financing of fixed assets. Upon receipt of a subsidy, a farmer can purchase new equipment, agricultural machinery for cultivating sown areas or livestock.
The government also considers the development of the industry to be land plots, structures and buildings, engineering networks that farmers will need to carry out their activities in this area. For other purposes, the owner of the agricultural enterprise cannot send the funds received. If the farmer directs the money received for other purposes, this will be regarded as fraud, which entails criminal liability.
Financing in 2017
Considering the development of agriculture, we should consider this process on the example of 2017. The priority was the substitution of imported products with goods of our own production. This is the key and most important direction of agricultural development in the Russian Federation.
After the imposition of sanctions by a number of countries, Russia reduced the import of pork, cattle, poultry into the country. The supply of salted, smoked, dried meat and fish, crustaceans, mollusks, and also dairy products (cheese, cottage cheese, milk, etc.) was also significantly reduced. The import of vegetables, fruits, and nuts was reduced.
As a result, financing was aimed at developing sectors that would fill the need for products not allowed on the domestic market. As a result, today foreign-made products on the shelves of our stores account for only 20% of the total.
Prospects
The level of agricultural development in our country depends entirely on competent state policy in this area. The forecast of growth in agricultural indicators indicates a slight decrease in this indicator in the future. In the past few years, Russian agriculture has reached a high level on the development path. To exceed this level, it will take several years.
In recent years, the climate has contributed to a plentiful harvest. This made it possible to export a large number of agricultural products and to provide a significant measure of domestic needs. Grain and buckwheat harvest is expected to be excessive next year. They will be exported.
It will be possible to provide the domestic market with its own products gradually. In 1-2 years, the need for meat (pork, chicken, beef) will be fully provided by its own resources. The market will be fully supplied with its own dairy products in 6-9 years. Russian consumers will be fully provided with domestic vegetables and fruits in 2-4 years.
Restraining factors
The development of the agricultural market is constrained by a number of factors. Farmers are heavily dependent on such imported components as seeds, feed supplements, drugs for the prevention of diseases of animals, plants, etc.
Products are supplied to the domestic market. When the ruble depreciates, farmers suffer losses. Therefore, an important condition for strengthening the position of the agricultural industry is to strengthen the exchange rate of the state currency. In this case, entrepreneurs can purchase the necessary seeds, preparations.
A particularly large level of influence of imported products is observed in animal husbandry. The growth of the Russian economy as a whole will significantly improve the position of domestic farmers not only in the domestic, but also in the foreign market. Exports can be delivered to different countries that are now inaccessible to agricultural products in Russia. Stimulating domestic demand while increasing the salaries of citizens of the country will positively affect the entire economy.
Financing problems
Agricultural development is carried out quite harmoniously. However, when financing certain elements of the agro-industrial complex, a number of problems and inconsistencies are observed. So, a significant part of the funds is allocated for subsidizing livestock. At the same time, fodder production, without which this industry cannot function correctly, remains unreached by the state support program.
Lack of funding is also observed in the field of reconstruction of storage facilities, modernization of greenhouses. The level of credit debt of agricultural enterprises is growing. This reduces economic performance, the stability of agricultural enterprises.
On average, the level of funding in the country is declining. Attention is paid to large projects. At the same time, small business remains aloof. The subsidizing process is complicated by bureaucracy, the inability to obtain certain certificates, examinations. There are also many hidden conditions that are not listed in the official documentation.
Main conclusions
In general, despite some difficulties, the development of agriculture is harmonious.Stable growth indicators in the industry indicate a competent government policy in this area. It is important to reduce the influence of constraints on the industry, to ensure normal conditions for the development of the agricultural sector.
Having considered the features of agricultural development in Russia, one can note the high influence of state support in the development of the industry.
