Regional allocation methodology for agricultural support

Abstract

The problem of the methodology of quota allocation for agricultural support to regions is raised. It is shown that the problem is related to the selection of criteria and applied key figures for distribution. It has been proved that the share of regions in production and economic results in agriculture does not indicate the efficiency of economic activity and the effective impact of state support on this. Current scientific studies on this problem have been summarized and model calculations have been carried out using econometric analysis tools. It has been established that the largest dependence on agricultural support is observed in the volume of gross production, profit from sale and the level of profitability. It is justified that these indicators should be used in the methodology of allocation of budgetary funds to the regions in order to create conditions for formation of food independence, improvement of production efficiency, ensuring reproduction of resources. It is argued that this approach will increase the impact of subsidies in regions with different levels of agricultural development.