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Priorities strengthen integration ties with the private farms

This article provides an assessment of the current state of operation of integration ties between private farms and agricultural enterprises and proposed practical ways of their enhancement. Proved that the relationship of owners of private farms of social economy is based primarily on the need to understand that private farms are inherently ancillary and complementary social production.

However, it is important to understand the fact that by virtue of their functions personal farming should be considered as additional production reserves required product form is a combination of public and private interests of rural producers. In addition, social production, provides not only efficient use of available agricultural resources, but also interested in improving the efficiency reserves and private households as an important element of agricultural production.

Under the economic relationship private farms with agricultural production should understand the system of interrelated and interdependent elements, where changing one element will inevitably lead to changes in the other. Thus, the reduction of production in the agricultural sector will inevitably lead to a change of social production and decrease in income from wages will inevitably lead to an increase in other income – including from private households.

Thus, in farms and private farms made up spontaneously specialization in crop production and animal husbandry.
In addition, there are a number of other problems: high intensification housework, labor costs unevenness of men and women, and others. Note that individual commodity farms is the first step towards creating, in some cases, they are transformed into farms.

Foreign practice of the past 25 years shows that the basis of agrarian economy of China is a large number of farms that work under 15-year lease of land and size, no more farms, but the rate of growth of agricultural production is several times higher than in countries with the highest economic development. According to the survey 57,4% of the owners of private farms are ready to develop production in its economy if government support. In addition, as a way to solve many production problems, we recommend doing a joint production of private farms. In particular, it will reduce the cost of purchasing fuel and lubricants, solve the problem of marketing of agricultural products and others.

Thus 31% of respondents expressed a desire to conclude an agreement on industrial cooperation and purchase of agricultural products from private households velykotovarnymy farms. However, 44.9% do not want to do that under any circumstances. Some respondents (13%) have experience with farms and is not intended to interrupt the connection, for example to take the milk for cash payments.

Forms of integration ties large farms personal selenskymy farms may vary, without formation of organizational structure through farm units specifically designed for servicing private households on self-financing basis; through service cooperatives of private farms; through consumer cooperatives and inter-farm integration associations; include in its sphere of influence and personal farms.

It is proved that in a strengthening of the crisis in the field of integration processes studied agriculture not only lost its importance, but rather should be presented in development as an objective process their relationship. Thus, the base should be kept on farms that have large production capacity for activities and as a consequence – the potential economic benefits for the efficiency of production.

We believe the economic feasibility of agroindustrial integration contributes to solving such problems, promotes the effective distribution and utilization of productive capacities entities; smoothing the seasonality in agricultural production and ensure stable income through a combination of many activities; enhance the competitiveness of products; reduce transaction costs; increase the investment attractiveness of agricultural production.

Obviously, being without integration of rural producers and joint efforts, including production capacity, to achieve positive results of production and economic activity becomes difficult, so the paper presents a model farm implement mutual interests of the corporate sector of agrarian economy and private farms in the forming integration ties. The proposed model consists of 5 stages which successively determine the level and the possible directions of realization of mutual economic interests of rural producers. Our studies show that currently the main direction of development of integration ties between corporate farms agricultural economics and private farms are growing and fattening cattle and pigs.

Keywords: agricultural sector, farms, private farms, integration links.

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