Strategic planning methodology for public support efficiency in agriculture

• Main Author: Denis Yuryevich Samygin
• Format: Article
• Language: Russian
• Published: Perm State University 2021-04-01
• Series: Вестник Пермского университета: Серия Экономика
• Online Access: http://economics.psu.ru/index.php/econ/article/view/362

Food security maintained with the least budget resources remains to be a topical issue at the current stage of the country’s development. Public support as a strategic planning tool can determine the production of goods which require the least agricultural resources and the minimum expenditures on the citizens’ side to achieve the food security targets. Therefore, there is a need to re-view the criteria for subsidies in agriculture as regards their utilization. The main methodological approaches to the evaluation of the public support efficiency were summarized and critically analyzed to reveal that their imitation capabilities fail to be applied in the strategic planning practices. The purpose of the study was to theoretically justify and to develop the methodological recommendations aimed to improve the evaluation and the planning of the subsidies efficiency in agriculture with regard to the regions’ agriculture potential. The proposed methodology defines the indicators of the profit, pay-off period, capacity and cost-efficiency of the subsidies with regard to the natural and economic conditions of the economic activities as the natural ground for the competitive advantages for the producers in different RF territories, which is seen to be a unique feature of the methodology. To test it, the RF regions are grouped by their cadastral values of 1 ha agricultural land into 5 units. The study found that this factor does not impact the efficiency of the public support, which means a low exploitation of the regions’ strategic potential to solve the food security tasks. Strategic planning tools applied to distribute the budget in agriculture with the focus on more products with the most profitable production output in the context of the particular region and their availability for the consumers will increase the efficiency of the budget spending. The development of these managerial decisions is seen to be the area of the author’s further research.