SUBSIDIARY FARMING: PHENOMENON OR OBJECTIVE CIRCUMSTANCES?
Journal Title: ЕКОНОМІЧНИЙ ДИСКУРС - Year 2016, Vol 1, Issue 1
Abstract
Introduction. Private farms business significantly impacts not only on agricultural production in our country, but also on one of the main sources of income of their members. Thus in times of economic crisis or other social upheavals agricultural production this dynamic form of management must increase. So for the past twenty-four years of existence in Ukraine households, the main component of which is personal farms, produced from 29.6% in 1990 to 45% in 2014 gross agricultural production. However, current processes of Ukrainian entry into the European community need to study the implementation of legal principles and standards of conditions of family forms of agricultural management in EU countries. Purpose. Research institutional aspects of agricultural economies of foreign countries based on the principles of family forms of management, including the EU. Methods. Applying the dialectical method of knowledge and a systematic approach, methods of abstract-logical method and studied the works of local and foreign scientists can conclude that the difference in organizational, economic conditions and legal principles of managing private farms, compared with similar households constructed on family-based management economically-developed countries, is to OSG Ukraine the status of a non-profit entity and, therefore, does not levy income tax. Results. For all other parameters OSG Ukraine are consistent practice, the existence of family farms EU. So in 2010, the 28 EU countries were 5,7 million. Farms smaller than 2 hectares of land, and only one in Romania, the number of farms was 2,7 million. Units. Thus, similar to domestic private farms, the majority of small family farms are semi-subsistence EU economy: they sell less than 50% of their products, and the rest is used for consumption in their own economy. Discussion. Past studies suggest that despite of the legal classification of OSG subject to non-profit activities, organizational, legal and industrial relations in these farms satisfy the requirements of EU agricultural production based on principles of family forms of management. Therefore the opportunity of agricultural production OSG, by taking into account the conditions and standards of agricultural activities in the EU, needs legislative and methodological explanation.
Authors and Affiliations
Maksym Kropyvko
Keywords
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