IMPROVING THE EFFICIENCY OF FARMS

Abstract

Despite of multi-aspect researches by domestic scientists concerning the search of the problem of farms operation efficiency, further scientific grounding is required by the questions of the search of main directions of supporting efficient development of private farms taking into account contemporary challenges of their functioning external environment.

Private farm is a contemporary form of organization of agricultural business, free agricultural entrepreneurship, that is carried out based on the principles of economic benefit. It is based on private (individual) property over the means of production, including land, and on small-group, that’s mostly family, form of labour exploitation.

Within the structure of domestic agricultural industry, individual farms produce 15,5% of gross agricultural output.

Increase of agricultural crops yield has been noticed. At the same time, in relation to most of crops, private farms have lesser crops yield than agricultural companies in whole.

The task of increasing the yield capacity can be solved by means of using breakthrough technologies with the use of scientific achievement, study of the experience of leading companies and ensuring high quality of labour. But it should be also taken into account that commencing production of intensive crops and sorts can have negative consequences. Development of intensive arable farming without compliance with respective conditions leads to soil depletion.

During the last 7 years one can notice a significant fluctuations of the level of profitability of agricultural products that is a sign of its great dependence on natural and climatic circumstances of respective year. In plant industry, decrease of sunflower and grape profitability within the period from 2012 to 2017 has been detected. In livestock breeding almost all types of products are loss-making, apart from milk, that requires taking effective actions, including those from the part of state bodies, to support this industry. Developing livestock breeding provides for ensuring keeping rational planting rotation in plant industry and is also socially significant within the context of supplying rural population with workplaces.

The main strategic direction of individual farms development in Ukraine should be: improvement of legislation and regulations that could ensure steady development of agricultural industry; production of organic, safe and ecologically clean agricultural products; setting market prices to products that would ensure profitability of production thereof for the main amount of manufacturers; introduction of scientific and technological progress and innovations; involving young people to agricultural industry; ensuring fare wages in agricultural industry, etc.

State support should be aimed at development of informative-consulting support, development of insurance, availability of loans, agricultural leasing. Available loans shall enable farmers to overcome seasonal lack of financial funds, to accelerate production of goods, accumulation and development of material and technical base.

Farming is high-potential part of complicated agricultural industry that dynamically develops. Removing obstacles slowing the development of farms and creation of normal conditions for their development shall enable to increase the income of rural population, give a powerful stimulus for increase of food supplies production, create legal and economic conditions for carrying out farmer’s activity.

Further development of farming in Ukraine requires introduction of scientific and applied researches aimed at development of mechanism of integrational links with participation of individual farms, that should enable to apply progressive methods of processing, decrease loss of raw materials, increase the quality of processed products and simplify marketing thereof.