PRODUCTION EFFICIENCY OF AGRICULTURAL SECTOR OF SOUTHERN REGIONS OF RUSSIA

Abstract

Introduction. Agriculture is one of the key types of economic activity of the re- gions, which are part of the Southern Federal District (SFD) and North Caucasus Federal Dis- trict (NCFD). Russia's food security largely depends on the efficiency of the agricultural sector of the southern regions, where the predominant role the crop production is played. The brief analysis is given of the main indicators of crop and livestock farming, draw attention to the complexity of efficiency assessment due to the differences in the institutional structure of the regions agriculture sector. The goal of this study is comparative analysis of agricultural produc- tion efficiency of the subjects of SFD and NCFD using a model approach. Materials and meth- ods. Based on the model of production function with two input factors (the number of people employed in the agricultural sector and the cost of fixed funds) and one output (gross agricultur- al product), a Pareto-efficiency analysis on the two-factor plane of dimensionless criteria and ranking of regions by relative efficiency were performed. The model approach proposed makes it possible to provide an objective assessment of efficiency and interpret interregional differ- ences of agricultural production as well as to present the results in a visual form thus eliminating the disadvantages of multifactor models and methods that rely on ratings based on subjective assessments of production factors. Research results. The Republic of North Ossetia-Alania ap- peared the most efficient within the framework of the model used, while the Chechen Republic and the Republic of Ingushetia were the least efficient. Analysis in the coordinate system «capi- tal-labour ratio-labour» productivity showed that no significant connection between these indi- cators was found but allowed to identify three clusters for a deeper understanding of the causes of inefficiency. Discussion and conclusion. In accordance with the performed studies it is possi- ble to draw an initial conclusion that many regions of Southern Russia have significant reserves for improving efficiency. It is pointed out that in addition to common problems for a number of agricultural producers in the South, such as moisture deficit in steppe arid zones, soil erosion, lack of grain storage capacity, difficulties in acquiring imported quality vegetable seeds and breeding livestock each region has its own specific problems. It is also noted that increasing the efficiency of agricultural sector requires the attraction of qualified personnel, which is impossi- ble without improving the living standard of rural residents and the development of village so- cial infrastructure.