Financial Aspect Of Grain Elevator Functioning In Modern Russia

Abstract

The grain sub-complex is the leading sector of Russian agriculture and the agro-industrial complex. Food security of grain, as its biological value, safety, availability and adequacy for consumers, is essential for the health of the nation. Grain elevators occupy an intermediate position between grain producers and consumers; their pricing policy and services fees significantly affect the level of grain prices. There is little study of the financial aspects of grain elevators, apart from accounting and taxation. The article aims to identify and systematize the financial features of grain elevators functioning under the doctrine of food security and export orientation of modern Russia. The study results in the following findings. First, the authors identified the specifics of grain elevator finances in terms of general and specific factors, including the technological features of their functioning. Secondly, they assessed and analysed the place and role of grain elevators in the grain market, revealing their leading role in preserving the quality and volume of harvested grain. Thirdly, the study identified the main problems of grain elevators in modern Russia, namely their insufficient number, irrational distribution among owners, outdated geographical locations, worn-out funds with insufficient storage capacity. Fourthly, the researchers proposed directions for improving the activities of grain elevators from the position of optimizing their financial relations with internal and external stakeholders. The authors propose (1) to develop field-based farmer mini-elevators through franchising large elevators to farmers; (2) to encourage elevators to enter the grain exchange market. They also highlighted areas for further scientific research.