Regional Aspect of Rural Sector Support

Evgeny Alexandrovich Likholetov, Tatyana Aleksandrovna Dugina, Aleksandr Vladimirovich Nemchenko, Andrei Vladimirovich Belyakov and Aleksandr Alexandrovich Likholetov

Volgograd State Agrarian University, Volgograd city, 400002, Universityavenue, 26 Volgograd Academy of the Ministry of Internal Affairs Russian Federation, Volgograd City, Historical Street, 130.

ABSTRACT: Conditions of agricultural producers support from the budgets of different levels. Objective: to investigate the state of the agricultural sector internal support at the regional level and its compliance with WTO requirements. Results of work: studies have shown that during the study period directions and instruments of state support for agriculture changed, and since 2013 it is carried out within the “green” and “amber” boxes. The support related to the “green box”, is insignificant in the equationmodels of subsidies impact on gross production, revenue and profit. In this case the support allocated in the “amber box”, has a beneficial effect on the results of management. Measures are suggested for improving the efficiency of “amber” and “green” boxes subsidies. Conclusion: Currently, the amount of direct subsidization of the agricultural sector in the Volgograd region is below the prescribed limit. In the context of the WTO it is required to increase the “amber box” measures, bringing them closer to the allowed limit support. This is primarily a means for agricultural production, material and technical resources that directly affect the technical equipment and operation of agriculture, increase its competitiveness in the domestic and foreign markets, create financial prerequisites for rural territories development. In addition, ‘green box’ filling should be realized by measures of domestic support which have a positive impact on the social development of rural areas and settlements, securing qualified cadres, improving the quality of life for rural residents, indirectly contributing to the development of domestic agricultural production.

KEYWORDS: Agricultural production; The WTO; government support; Subsidies; budget; Volgograd region

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