Factors that facilitate development of small agricultural cooperative farm alliances

Abstract

Although cooperative movement in Russia has a pretty long history, achieving its proper functioning failed for a variety of reasons. With new support measures in place, namely, to establish a basic infrastructure - since 2015, to acquire assets and farm equipment, agro-processing equipment - since 2019, cooperatives in Russia geared to promoting small farms are expected to flare up. In this context, this paper reviews key statistical indicators of the current structural changes in agro-industry, as well as the health and contribution of small farms to the agricultural industry in general. This work aimed to identify preconditions for Russian farmers to form cooperatives. This is of the utmost importance since small farms produce nearly half of the country’s total agricultural output, own 37% of arable land, 56% of cattle, and ensure a quarter of employment. Through the research, a range of malpractices affecting the progress of small farms has been identified. They are dearth of modern technology, efficient staff, impossibility to invest in working capital, problems with marketing of produced goods, etc. Creating well-functioning agricultural cooperatives will address the above challenges today’s Russian farmers face.