S.S. Ovanesyan1, N.I. Cherkharova2
1Irkutsk State Agricultural Academy, Russia, Irkutsk region, village Youth
2Chita Institute of Baikal National University of Economics and Law, Russia, Chita, Anokhina str., 56
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Summary. The current mechanism of subsidizing in Russia is based on State Program, namely on the measures to increase competitiveness of Russian producers. However, the Program points out only the major issues, but the process of distribution is not determined. The mechanism of distribution is regulated by the Regional Resolution on subsidizing through the budget of the Russian Federation provinces. Applying for financing from the budget a queue number is essential and financing is done on the “rest principal”. In our point of view, such principals of distribution are not targeted at improving the prosperity of the rural population. The authors suggest an absolutely new method to determine the amount of subsidies. The aim of this method is to increase the efficiency of the production. We are sure that the efficient production process depends greatly on the motivation of the business entity. Thereby, state subsidies are suggested to view as a tool of increasing the motivation of the agricultural producers to take entrepreneurship. To measure motivation in quantity we suggest through the ratio of net profit to the new value, which is divided between the enterprise and the state. This ratio shows the enterprise share. We suggest to determine the amount of subsidies through the current level of motivation and to subsidize the farmers in the sums needed to reach the essential level of motivation. According to the suggested approach the amount of subsidizing will depend on the final performance of the farmer and will stimulate the agricultural activity in the whole (not some kinds of products) as business in agriculture is highly diversified and finally this approach will strenghten the position of agricultural enterprises. The research was made on the basis of statistical data of Zabaikalsky kray for 2006-2012, some results of this research are given in this article.
Keywords: calculation of subsidies for agricultural enterprises, farmers’ subsidizing, motivation of farmers, the ratio of motivation.