Governmental Regulation and Support of Agro-Industrial Complex: Situation, Problems, Prospects

Abstract

The purpose of the study is to analyze the current state, problems, and prospects of the governmental regulation of the agro-industrial complex of the Russian Federation. The study revealed the need and importance of state support for agricultural producers in the current economic conditions. The Russian Federation has created a regulatory framework that substantially controls the activities and development of agriculture and agro-food markets. The natural and productive potential of Russian agriculture is rated high, despite a number of identified development problems; however, domestic and foreign practice shows that without control and support from the state at all level of government this potential can not be fully realized. The purpose of the state support for agriculture is to protect the economic, and especially food security of our country. For agricultural producers and agro-food markets, direct, indirect, and intermediated forms of support are applicable. Another important condition for solving the problems of the agricultural sector is the elimination of differences in the living standards and living conditions of the rural and urban population. There is an urgent need to determine the optimal combination of the state regulation and the market levers in the agricultural economy. Such an optimum has not been theoretically found or practically implemented until now. As a result, it was concluded that there is a need to form a system of indicators to assess the effectiveness of such support, and on its basis, a set of measures that use the entire spectrum of direct, indirect, and intermediated influence on the agro-industrial complex to obtain the maximum and sustainable positive effect.