STATE SUPPORT FOR AGRICULTURE IN DIFFERENT PRODUCTION CONDITIONS

Issue № 6, 2025, article № 15, pages 159-167

Section: Land use and land relations

Language: Russian

Original language title: ГОСУДАРСТВЕННАЯ ПОДДЕРЖКА ЗЕМЛЕДЕЛИЯ В РАЗНЫХ УСЛОВИЯХ ПРОИЗВОДСТВА

Keywords: LAND RENT, FARMER, AGRICULTURE, SOIL FERTILITY, PROFIT, PROFITABILITY OF PRODUCTION AND SALE OF LAND PRODUCTS, THE WORST, AVERAGE AND BEST PRODUCTION CONDITIONS

Abstract: The study is devoted to the study of farming conditions, which differ in soil fertility, their location in relation to the markets for the sale of land products and the amount of advanced production capital invested in the land. The traditional classification of agriculture into the best, average and worst production conditions has been adopted as a methodological tool in the study. It has been empirically established that land plots of different fertility bring different economic benefits, measured by the absolute and relative value of land rent, profit per unit area of the plot, and profitability of production and sale of crop production. The greatest benefit is provided to the farmer by average and better production conditions. It has been confirmed that the price of land products is based on marginal costs in the worst production conditions, in contrast to industry, where the price of final products is determined by the average production costs in the industry. This fact allows us to assert that in order to create equal economic conditions in agriculture, it is necessary at least to bring the profitability of production in the worst conditions to the average value in the crop industry. Otherwise, the introduction of valuable arable land resources in the worst production conditions is doomed to failure and the tendency for the rural population to leave their ancestral places will continue. Without creating favorable economic conditions in agriculture, one should not count on the revival of the village.

Authors: Polunin Gennadii Andreevich