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Regional Economics: Theory and Practice
 

The program of domestic food aid as a tool of State support to agricultural producers

Vol. 13, Iss. 8, FEBRUARY 2015

PDF  Article PDF Version

Available online: 15 February 2015

Subject Heading: THE STATE AND BUSINESS

JEL Classification: 

Pages: 50-62

Shakhnazaryan G.E. Research Financial Institute of Ministry of Finance of Russian Federation, Moscow, Russian Federation
Goarsh@mail.ru

Importance The article deals with the issues of domestic support, one of the most common instruments of which is the organization of domestic food assistance. The paper assesses risks of expansion in emerging food markets through products of economically more advanced States. The author studies the protectionist measures used to limit these risks: the means for tax and customs policy; the association of producers for the protection of the interests of businesses and ensure the stability of the market; the imposition of restrictions to international trade networks; the holding of national advertising campaigns. The paper considers the experience of foreign countries to support domestic producers.
     Objectives The purpose of the study is to identify the characteristics of such a tool to support agriculture as domestic food aid, as well as the possibilities and restrictions on its use in Russian practice.
     Methods The author used econometric methods of research and a comprehensive analysis of the existing experience of provision of domestic food aid in the Russian Federation and abroad. The author shows the dual nature of the identified support tool and justifies recommendations for the effective use of this tool in domestic practice.
     Results The author substantiates the approach to domestic food aid as an instrument combining the elements of social policies with the mechanisms of support for agricultural producers. The paper shows that strengthening the sustainable channel of food, which is the system of education, health, social protection, etc., will help stabilize prices, increase demand by advertising the products and encourage expansion of production.
     Conclusions and Relevance The author concludes that the use of this tool will help create the prerequisites for the growth of production of competitive farm products and justifies the necessity to use a differentiated approach to the domestic food assistance in different regions of Russia. The recommendations proposed can be used during the formation of domestic food assistance in the regions of Russia.

Keywords: agriculture, agricultural production, consumption, products, rational norms, food assistance, sales, logistics system, social policy

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