Agribusiness is an important component of the domestic economy

In connection with the demographic growth of the population in Russia, the need for quality and affordable food products is constantly increasing. The best solution is to increase agricultural production. But in this case, it needs to vigorously develop agribusiness. This is one of the most important and promising branches of material production, which not only ensures food security of the country, but also the social well being of its citizens. In addition, agriculture plays a major role in shaping the domestic economy.

The Concept of agribusiness

Any activity in the agricultural sector – agribusiness. The scale of enterprises can be very different, ranging from small family farms to large agricultural companies. The official status of the enterprise is determined by its size and form of management.

Agribusiness – a structure that is responsible for the production, storage, processing, transportation and supply of agricultural products to the final consumer.

Organizational forms of agricultural business

There are several forms of doing business in the field of agriculture. The choice of a particular variant depends on the planned scale and development model of the enterprise. The most common forms are:

• Private farming. This does not imply the involvement of employees, so check with the tax structure is not required. Owners of farms have the right to sell our products in small quantities without paying for the taxes.
• Family-run farm. As the name implies, management are members of the same family, however, possible and hiring outside workers. One of the owners of the family farm must be registered as an individual entrepreneur. Such enterprises can participate in various targeted programs, to subsidies, etc.
• The Peasant farm. This is usually a large enterprise, which is a collective form of ownership. The head of such enterprises must be registered as an individual entrepreneur or a legal entity. KFKH enjoy state support and have good prospects for development.

Choose form and activities

Starting your own business is always fraught with difficulties and risk. The entrepreneurs, who decided to do agribusiness raises many questions, chief among which are the choice of the optimally suitable form and direction of management, the amount of required startup costs and monthly costs, the profitability of the future enterprise, etc.

Of Course, all of these questions need to try to find answers at the stage of business creation. Will help to make a competent business plan, which must be taken into account all possible risks. As for the choice of directions, then experienced farmers recommend to build on existing experience in any field of agriculture, knowledge and, of course, from their own material base.

The need for the development of agribusiness

Unfortunately, the Russian farmers today still have a lot of difficulties, due to the low level of state support. Improvement of agro-food policy will allow small, medium and large agricultural enterprises to fully realize their potential and achieve a competitive advantage in agricultural production highly profitable products that will contribute to the strengthening of economic positions of Russia in the markets of the world.

In economically developed countries the state support of agribusiness – different kinds of subsidies, grants and benefits. The size of financial investments in the agricultural sector is actually in 2 times exceeds the market value of products.

Problems of agribusiness in Russia

In our country, unfortunately, the situation looks completely otherwise. Today, there are many issues that must be addressed at the state level. In particular:

• Attracting investors through various incentives, lower tax rates, etc.;
• Price controls on agricultural products by the state;
• Simplification of system of crediting of small and large farmers;
• Introduction of land mortgage loans;
• Encourage the development of medium and small farmers;
• Control the correctness of calculation andthe timeliness of payment of salaries to workers of the agricultural sector;
• Simplification and cheapening of the procedure of cadastral registration;
• Creating targeted programs designed to stimulate personnel and the involvement of youth in agriculture;
• Development of system of state support of agricultural enterprises of all forms of ownership;
• Developing a comprehensive programme to protect Russian farmers.

I Hope the article was interesting and useful for you.