Agribusiness is the most important component of the domestic economy

In connection with the demographic growth of the population in Russia, the need for quality and affordable food is constantly increasing. The optimal solution is to increase the production of agricultural products. But in this case, agribusiness should develop intensively. This is one of the most important and promising branches of material production, which ensures not only the country's food security, 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 kind of activity in the agricultural sphere is agribusiness. The scale of enterprises can be very different, ranging from a small family farm to large agrofirms. The official status of the enterprise is determined by its size and form of management.

Agribusiness is a structure responsible for the production, storage, processing, transportation and supply of agricultural products to the end user.

Organizational forms of agricultural business

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

• Personal subsidiary farming. This form of activity does not involve hiring employees, so registration in the tax structure is not required. Owners of subsidiary farms have the right to sell their products in small amounts without paying taxes.
• Family Farm. As it is clear from the title, the management is conducted by members of the same family, however, outsourcing of employees is possible. One of the owners of the family farm must be registered as an individual entrepreneur. Such enterprises can participate in various targeted programs, receive subsidies, etc.
• Peasant farming. Usually this is a large enterprise, which is a collective form of ownership. The head of such an economy should be registered as an IP or a legal entity. KFH enjoy state support and have good prospects for development.

Choice of the form and direction of activity

Opening your own business is always fraught with difficulties and risks. Businessmen who decided to tackle agribusiness are faced with many questions, the most important of which are the choice of the optimal form and direction of management, the amount of necessary start-up investments and monthly expenses, the profitability of the future enterprise, etc.

Of course, all these questions need to try to find answers even at the stage of creating a business. A competent business plan will help in this, in which all possible risks must be taken into account. As for the choice of the direction of activity, then experienced farmers are advised to build on existing experience in any branch of agriculture, the availability of knowledge and, naturally, from their own material base.

The need for agribusiness development

Unfortunately, Russian agrarians are still experiencing many difficulties due to the low level of state support. Improving the agro-food policy will allow small, medium and large-scale agricultural enterprises to fully realize their potential and achieve competitive advantages in the agricultural production of highly profitable products, which will contribute to strengthening Russia's economic position in the world markets.

In economically developed countries, state support for agribusiness is a different kind of subsidies, subsidies and benefits. At the same time, the amount of financial investments in the agricultural sphere is actually two times higher than the market value of the output.

Problems of agribusiness in Russia

In our country, unfortunately, the situation looks quite different. Today there are a huge number of issues that must be solved at the state level. In particular:

• Attracting investors through various benefits, lower tax rates, etc .;
• Regulation of prices for agricultural products by the state;
• Simplification of the crediting system for small and large farmers;
• Introduction of land-mortgage loans;
• Stimulation of development of medium and small farms;
• Control the accuracy of the accrual and timely payment of salaries to workers in the agricultural sector;
• Simplification and reduction in the cost of the procedure for cadastral registration;
• Creation of targeted programs aimed at stimulating personnel and attracting young people to agriculture;
• The development of a system of state support for agro-enterprises of all forms of ownership;
• Formation of a comprehensive program to protect Russian farmers.

We hope that the article was interesting and useful for you.