Functioning field of farm enterprises in Russia: uncertainty and risks

Abstract

The article presents the results of research of the market and institutional field of farming development in Russia, including formed risks and uncertainties in it. The main hypotheses can be summarized by saying that the fact that the work of farmers (except for environmental characteristics) are significantly affected by such distinctive features of the farms themselves as their internal organizational structure, behavioral patterns, and applied strategies. Moreover, to perceive the state of the environment and adapt to it for farmers are important both purely economic motivation and other value orientations, in particular social and environmental ones. Verification of the proposed hypotheses about the differentiation of assessments by farmers of the environment surrounding their work is carried out based on the most significant surveys of economic science and analytical data obtained in the course of a large-scale survey of farm heads in the Kurgan Region. As a result, the results of empirical researches show that in each group of farms (united in their size and age of their heads), firstly, the estimates of uncertainty and risks, and secondly, the ways of adaptation to them. The results of the interpretation and analysis of subjective assessments of farm heads regarding the state of the institutional and market field (including uncertainty and risks) can be used both to determine farming development strategies in the region and to develop directions and instruments for modern agricultural policy.

Determinants of Indebtedness: Influence of Behavioral and Demographic Factors

“…Risk perception overcomes uncertainty. Loretts et al (2019) stated that perception of risk is influenced by the characteristics of farms, whereas market risk is associated with price. Gärling et al (2009) highlighted that risk perception is an essential component of financial decision-making and other risk-related behaviors.…”

Rural entrepreneurship in the region

“…The significant dependence of the functioning of peasant (farmer) households on a number of factors, including economic, social, political and other processes, determines a special conceptualization of the prospects for the development of domestic farming in a mobile institutional environment, in conditions of high uncertainty and risks, challenges and threats. The interdisciplinary conceptual approach developed in the course of our study is distinguished by both methodological novelty and applied possibilities of its use in the study (and forecasting) of development of farming in Russia [11,10]. The scientific novelty of the research, as a result, lies, on the one hand, in its fundamental content (development of a concept for determining promising trajectories for development of farms in the face of modern challenges and threats), on the other hand, in the originality of the applied research results, namely, in the fact that the obtained during the implementation of the project, scientific and practical recommendations can be used in the specification of the role and capabilities of peasant (farmer) households in overcoming consequences of a pandemic, and in a broader sense in determining such important aspects of their activities as functioning in new environmental conditions, associated with modern restrictions (violation of international, interregional and local relations, closed territories, suspension of some enterprises, selfisolation of the population, etc.…”