Influence of agribusiness on rural development

Issue № 8, 2021, article № 9, pages 61-72

Section: Development of rural territories

Language: Russian

Original language title: ВЛИЯНИЕ АГРОБИЗНЕСА НА РАЗВИТИЕ СЕЛЬСКИХ ТЕРРИТОРИЙ

Keywords: INSTITUTIONAL CONDITIONS, RURAL AREAS, COMPETITIVENESS, DIVERSIFICATION, ENTREPRENEURIAL ACTIVITY, NARROWING OF SPACE, MIGRATION

Abstract: The purpose of the study is to identify the main factors contributing to the development of rural areas in the region, to develop proposals for the stabilization of the economy of rural areas. It is established that in recent years, in the context of a decline in state support for agriculture in the harsh conditions of the Northwestern Federal District of the Russian Federation, agricultural activity is developing in the southern regions of the region, around the St. Petersburg agglomeration and the cities of the regional centers of the region. In other territories, especially in the Arctic zone of the region, there is a compression of economic space, a reduction in agricultural production, a reduction in jobs, and an increase in the migration outflow of the working-age population to cities. In the Northwestern Federal District of the Russian Federation, on average, the growth rate of agricultural production and average monthly wages in agriculture is more than two times lower than in the whole of the Russian Federation. Agribusiness in the northern regions of the region carries an additional burden on the payment of northern and territorial allowances to the wages of employees, which significantly reduces their competitiveness of products. The oversupply of labor in the rural labor market contributes, among other factors, to the low rate of wage growth. Agricultural holdings-leaders in the industry, as well as large agricultural organizations that have achieved comparable labor productivity in agriculture at the level of developed countries, pay low wages to employees, it is significantly lower than the average wage in the region's economy. At the same time, most agricultural holdings continue to invest in increasing the scale of production by optimizing the funds allocated to the wage fund of employees, thereby infringing on their interests. The main sources of rural development at this stage in the region are the investments attracted to the agriculture sector, the level of state support for agribusiness, and the budget revenues of rural settlements. There is a trend of decreasing budget revenues in rural settlements in the average for the Northwestern Federal District of the Russian Federation in the dynamics from 2013 to 2017. It is almost analogous to the decline in the indicators of investment in agriculture and the volume of state support for the industry. The scientific novelty lies in the identification of trends in institutional changes and problems of uneven spatial development of rural areas. Proposals have been developed to stabilize the economic activity of rural areas in the region.

Authors: Dibirov Abusupian