Importance The competitive development of agricultural production segments should be driven by the effective use of natural and economic conditions and agricultural potential of municipalities. Objectives The research differentiates areas and extent of the State aid to the region’s municipalities depending on their efficiency in using resources. It also formulates the methodological framework for local and industrial specialization of regional agricultural production in accordance with natural, climatic, resource and infrastructure diversity of rural areas. Methods The research employs abstraction, logic, monographic, economic, statistical, mathematical methods and cartographic modeling. Results It is reasonable to optimize the agricultural production network so to enhance its development. We suggest grouping the Russian regions into zones in line with their forage lands, their estimated productivity and appropriateness of natural conditions. There is no differentiated approach to allocation of budgetary funds, considering the quality of land, agricultural production, extent of land fertility use, and property potential of agricultural entities. The article presents methodological approaches to local and industrial specialization of regional agricultural production and allocation of budgetary funds among municipalities. The approaches are based on natural, climatic, resource and infrastructure diversity of rural areas.
Keywords: resource potential, efficiency, climatic conditions, allocation, State aid
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