The influence of scale factor on the realization of natural potential of grain farming in the region

Abstract

Abstract The development of grain farming is considered in the article as the backbone and the most important direction of agricultural production in Kursk region. The research has shown that since 2014 there has been a twofold increase in the share of large grain-sowing farms in the structure of sowing and gross grain harvest, exceeded 60%. The aim of the research is to identify the perspectives of the development of grain farming on the basis of the implementation of the concentration of sowing in a narrow list of large agricultural organizations’ holdfast. The clustering method has been used as the main analysis tool. Its results have made it possible to compare various groups of agricultural organizations formed according to the sowing size of cereal crops due to the main productive and economic indicators of efficiency of grain production. The features of functioning of large agricultural organizations are shown in the research. They determine as the generation of benefits and so they form the difficulties to provide the improvement of the results of grain production. The scale effect enables large business to provide more effective and resultative production, however, the results of the analysis testify that the largest organizations have a relatively lower efficiency of grain cultivation. In the research there has been a conclusion: in the current financial and economic conditions the concentration of land resources in large producers’ holdfast is not the best way to activize the processes of intensification and the increase of productivity and profitability of grain production. It will lead to the formation of an oligopoly in the regional grain market.