Subsidy - a guarantee of the territorial integrity

Topic: PaletteScience and modernization
Author of publication: Andrei Smirnov

Posted on: 04/05/2013 13:07

Subsidy - a guarantee of the territorial integrity

 In the Far Eastern Research Institute of Economics, organization and planning of agro-industrial complex of the Russian Academy of Agricultural Sciences voiced by analysis of the Khabarovsk Territory companies receiving support from the federal and regional budgets.

Director of the Institute of Economic Sciences Professor Dr. Alex Shelepa tried to answer the question - whether farms are doomed to perpetual subsidies? Recently, the authorities carried out extensive work to increase the level of wages in the public sector. At the same time, the agrarian sector of the speech is not conducted. It is believed that the increase in producer support budgets do not survive, so it is necessary to raise incomes of farmers by overcoming disparities in food prices relative to the prices for the products of other industry sectors.

Under the influence of price disparity of agricultural budgets each year is taken up to 20 percent of the revenue base, which leads to the destruction of productive capacity. In the past five years thanks to a series of measures taken by households with a margin of 6.6 percent in 2005 to 12.8 percent in 2011, but they still remain unprofitable in the absence of subsidies and modernize the interest rate on loans without providing simple reproduction. As a result of withdrawal of funds from the agricultural sector investment attractiveness of the industry falls. Investment in the regions average five times lower than in Russia. Given the rise in prices and tariffs, investment flows are not observed, and if the fixed assets in the Russian Federation are updated in 10 years, in the Khabarovsk Territory - for 16 years.

The backlog accumulated, making the industry unattractive to investors. Negative impact on the agricultural sector co-financing mechanism, as in agriculture no possibility of reproduction of fixed capital. Acquisition of equipment does not compensate its loss. Growing load per unit of mechanization, and the credits for the majority of households remain inaccessible. Little consideration of the fact that agriculture contributes to the solution of social problems and support the local population, and most importantly - maintain economic control over the vast and sparsely populated areas of the region. Thus, the stability of the agricultural sector - a factor to preserve the territorial integrity of the Russian Far East. By industry should be approached not as a business but as a part of the social component of providing quality of life and the formation of human capital.

   Need to adopt a federal law on parity pricing and cost recovery producers caused by the faster growth of prices for industrial products - said the scientist. Accelerate the adoption of the law on areas with unfavorable climatic conditions for agricultural production. Cancel the order of compulsory co-financing of programs from the regional budget and create a fund projects that ensure the growth of food production. It is important to encourage the development of the consumers and to attract investments under the public-private partnership. Allocate funds to protect land from flooding and involve mechanisms of stimulation of energy efficiency. In areas with small forms of management to create a machine - process plant equipment for collective use on a contractual basis. It is necessary to increase the budget investments in the diversification of the economy of settlements. Responding to questions from experts, Alexei Shelepa stressed that the annual demand human milk is 150 pounds, and in the Khabarovsk Territory was satisfied with only one-third. The problem of production subsidies could be solved by imported milk, but for reasons of maintaining control over the territories of the Far East of the Russian government will not abandon support for the industry. Enabling pricing regulation on food could smooth out the situation as half of producers income into the pockets of resellers. Because questions of subsidizing a guaranteed increase in profitability can only be solved in conjunction with other support measures.

Andrei Smirnov, Khabarovsk. 

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