Agricultural holdings and farms: The right to development

Abstract

Subject. We consider development prospects for agricultural organizations of different categories. Objectives. The aim is to conduct a multifaceted study of positive and negative aspects of the production activities of agricultural holdings and farms, assessed by their contribution to the economic and social development of Russia. Methods. We employ general scientific methods of research. Results. The paper emphasizes high competitive performance of agricultural holdings, which displace farms from the market. This is mainly due to the administrative support to large corporate structures by regional and federal governments. We show that in the event of redistribution of available public funds to agriculture and increased assistance for farmers, the latter will be at a much higher level of economic efficiency of production vs. the current level. At the same time, the main advantage of small farms over agroholdings, i.e. the predominance of their environmental preservation-style of economy, will remain. Conclusions. The growing economy of farms and their interest in higher output will assist in restoration of agricultural lands that are now abandoned. It is likely that in the future, farms will outpace agricultural holdings in their development and become leading large-scale producers of agricultural goods.