State Support Of The Agro-Industrial Complex

The article analyzes the literature on state agrarian policy and highlights the problems. If in the USA it is environmental protection, in Western Europe it is the impact of the EU's common agricultural policy on agricultural producers, in Russia it is a lack of state funding due to complex climate and institutional factors (legislation, corruption, expensive loans, etc.). In Western Europe, the transition to bourgeois manufacturing began earlier – with the beginning of the "Little ice age". In the XVII – XIX centuries, an industrial revolution took place. One of the sources of industry formation was agriculture, which drained the latter of blood. In Russia, however, there were no other sources of initial capital accumulation that were present in Western Europe - usury and overseas colonies. Therefore, the burden of industrialization from the beginning of the twentieth century to the end of the 30s fell on the peasants. Agriculture is not a self-sufficient industry, and the food market is not self-regulated. Demand and supply of agricultural products are inelastic. In rural areas, state assistance is required in creating infrastructure, subsidizing the production of agricultural machinery, fertilizers, food, etc. Taking into account Russia's entry into the WTO, state support for agriculture should not direct methods (subsidies, subventions, etc.) and indirect (through tax benefits, protectionist foreign policy and domestic market protection, preferential crediting of agricultural producers, etc.).