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Economic Analysis: Theory and Practice
 

On the role of private subsidiary farms in rural development and approaches to their support by the State

Vol. 19, Iss. 3, MARCH 2020

Received: 3 February 2020

Received in revised form: 11 February 2020

Accepted: 21 February 2020

Available online: 30 March 2020

Subject Heading: ECONOMIC ADVANCEMENT

JEL Classification: Q01, Q10, Q12, Q13, Q14

Pages: 402–415

https://doi.org/10.24891/ea.19.3.402

Sharipov Sh.I. Dagestan State University of National Economy(DSUNE), Makhachkala, Republic of Dagestan, Russian Federation
sharips@mail.ru

https://orcid.org/0000-0002-2820-8247

Subject The article addresses the role of private subsidiary farming in the development of rural areas.
Objectives The purpose of the study is to analyze trends and prospects for private farms and household plots, identify their role and importance in the development of rural areas, and suggest areas for government incentives.
Methods The study draws on monographic, abstract-logical, statistical, and analytical methods.
Results The paper revealed that in many regions of the country, private subsidiary farming still plays an important role in food supply, income generation, and rural development. It established close relationship between the state of private farms and household plots and the percentage of rural population in the total population. Despite the fact that about one third of total agricultural output of the country is produced by private subsidiary farms, they are not covered by the State support provided from the Federal budget. I underpin the need for expanded research to identify the potential and develop effective government incentives.
Conclusions It is crucial to devise a set of systemic measures to promote the growth of private subsidiary farms and include them in government incentive schemes; explore the practice of certain regions regarding the support for these farms through regional budgets. Streamlining procedures for expanding the land utilization for this category of households and creating a system to disseminate knowledge about agricultural technologies focused on private subsidiary farms are extremely important.

Keywords: private subsidiary farming, rural area, rural development, local government

References:

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