Rural area infrastructure as a factor in the development of organic farming

Abstract

This paper analyzes the impact of rural infrastructure in the regions of the Siberian Federal District on the organic farming development. Authors determine that the Novosibirsk and Omsk regions and southern part of the Krasnoyarsk Territory are characterized by the most favorable conditions for the organic farming development in terms of engineering, transportation and social infrastructure. The infrastructure is relatively well developed in the Altai Territory, the Republic of Khakassia, Kemerovo, Tomsk, and Irkutsk regions. Weak infrastructure development characterizes the Republics of Tuva and Altai, as well as remote areas of the Krasnoyarsk Territory, Irkutsk, and Tomsk regions. The primary mechanisms by which infrastructure influences the organic agricultural sector development are: reducing transportation and transaction costs and increasing profits in producing high-value-added products close to cultivation areas, enhancing the attractiveness of rural employment for skilled professionals, and generating solvent demand among the local population. The article proposes various options for increasing the efficiency of government and business actions in rural areas, including public-private partnerships for implementing infrastructure projects, associated training contracts, institutionalization of remote jobs, government procurement of organic agricultural products with advantages for local agricultural producers.