Agrarian Economy 2023 Т. 16 № 1-2: 9-22

DEVELOPMENT OF FAMILY FARM ENTERPRISES IN THE CONDITIONS OF WARTIME AND IMPLEMENTATION OF THE POST-WAR RECONSTRUCTION OF UKRAINE

Yu. Lupenko, Doctor of Economic Sciences, Professor, Academician of the NAAS
ORCID ID: 0000-0001-6846-0300
O. Shpykuliak, Doctor of Economic Sciences, Professor, Corresponding Member of the NAAS
ORCID ID: 0000-0001-5257-5517
M. Malik, Doctor of Economic Sciences, Professor, Academician of the NAAS
ORCID ID: 0000-0001-9198-4460
K. Ksenofontova, Senior Researcher
ORCID ID: 0000-0002-8412-9666
A. Morozova, Junior Researcher
ORCID ID: 0009-0009-7475-5100
National Scientific Center «Institute of Agrarian Economics»

https://doi.org/10.31734/agrarecon2023.01-02.009

ANNOTATION

The institutional significance and role of family farm enterprises in overcoming the crisis caused by the Russian military aggression and in the post-war development of the state's economy is studied in the work. It is based on improvement of the conceptual foundations of realization of these economic entities’ potential, evaluation of efficiency and formation of proposals on organizational, economic, institutional support of the practice of their activities.

By applying a systemic approach and summarizing the world experience of family farm enterprises, the authors determine their institutional status, which involves the family character of employment and the voluntary acceptance of obligations to ensure the socio-economic development of rural areas of residence and management. The research substantiates expediency of state support and stimulation of development of this form of entrepreneurial activity as a guarantor of employment in the countryside and compliance with the conditions of inclusiveness of rural development, which will ultimately contribute to achievement of the goals of sustainable development for the period till 2030.

The best practices to adapt domestic family farm enterprises to the conditions of wartime include using innovative approaches to the development of a network of sale of agricultural products, implementation of "green" methods of organizing agribusiness and specialization in craft products, which are the embodiment of the traditions of production and consumption of agricultural products, food on a certain area.

The institutional and organizational factors of the family farm enterprises development in Ukraine are, in particular, the potential of the project approach as an effective tool for implementation of state, corporate and public initiatives to support and stimulate development of family farms in the adverse conditions of wartime. Emphasis is made on the increasing importance of various forms of integration to acquire competitiveness and additional profit-making opportunities. Specific forms of simple cooperation are proposed for implementation, i.e. simple companies for common activity as integrated structures are able to strengthen the capabilities of family farmers in the sustainable development of rural areas due to the consolidation of resources for solving economic and social tasks and business scaling.

The main problems of family farming in the current conditions are classified and a conceptual vision of the ways to solve them is formed. It is specified in a set of measures aimed at ensuring development of family farm enterprises, implementation of their potential in the conditions of wartime and post-war reconstruction of the economy of Ukraine.

KEY WORDS

family farms; rural development in the conditions of wartime and post-war reconstruction of the economy of Ukraine; integration; cooperation; craft production; projects to support small producers of agricultural products

FULL TEXT

LINK

  1. AgroNews.ua, 2022. In Ukraine, a project aimed at the economic activity of communities during the war is being implemented [online] Available at: https://agronews.ua/news/v-ukrayini-realizuyut%ca%b9-proekt-spryamovanyy-na-ekonomichnu-aktyvnist%ca%b9-hromad-pid-chas-viyny/ [Accessed 2 July 2022] [in Ukrainian].
  2. AgroPortal.ua, 2021. Diversification and business incubator for sole traders. Experience of Zimnivska TG [online] Available at: https://agroportal.ua/publishing/analitika/diversifikatsiya-i-biznesinkubator-dlya-edinolichnikov-opyt-zimnovskoi-to [Accessed 24 July 2022] [in Ukrainian].
  3. AgroPortal.ua, 2022 a. Main investors are local farmers. Experience of the Sukhopolovyansk TG [online] Available at: https://agroportal.ua/publishing/analitika/golovni-investori-miscevi-agrariji-dosvid-suhopolov-yanskoji-tg [Accessed 24 July 2022] [in Ukrainian].
  4. AgroPortal.ua, 2022 b. Candidacy for EU membership: what Ukraine will get in logistics [online] Available at: https://agroportal.ua/news/ukraina/kandidatstvo-na-chlenstvo-v-yes-shcho-ukrajina-otrimaye-v-logistici [Accessed 3 July 2022] [in Ukrainian].
  5. AgroPortal.ua, 2022 c. On the way to membership in the EU: what opportunities will the agricultural sector receive [online] Available at: https://agroportal.ua/publishing/lichnyi-vzglyad/na-shlyahu-do-chlenstva-v-yes-yaki-mozhlivosti-otrimuye-agrarna-galuz [Accessed 3 July 2022] [in Ukrainian].
  6. AgroPortal.ua, 2022 d. Marshall plan for agriculture: agriculture in the recovery plan of Ukraine [online] Available at: https://agroportal.ua/news/ukraina/plan-marshalla-dlya-agro-silske-gospodarstvo-v-plani-vidnovlennya-ukrajini [Accessed 7 July 2022] [in Ukrainian].
  7. AgroPortal.ua, 2022 e. The Polish baker will develop family bakeries in the Rivne region [online] Available at: https://agroportal.ua/news/ukraina/polskiy-pekar-rozvivatime-na-rivnenshchini-simeyni-perkarni [Accessed 24 July 2022].
  8. AgroPortal.ua, 2022 f. Food Platform: Demand Outstrips Supply. [online] Available at: https://agroportal.ua/news/ukraina/prodovolcha-platforma-potrebi-perevishchuyut-propozicji [Accessed 3 July 2022] [in Ukrainian].
  9. AgroPortal.ua, 2022 Mumber of users of the national food platform is 5 thousand [online] Available at: https://agroportal.ua/news/ukraina/chislo-koristuvachiv-prodovolchoji-nacplatformi-perevishchilo-5-tisyach [Accessed 3 July] [in Ukrainian].
  10. AgroPortal.ua, 2022 h. How to make a million from 100 hectares. Experience of Opishnyansk TG [online] Available at: https://agroportal.ua/publishing/analitika/milyon-zi-100-ga-dosvid-opishnyanskoji-tg [Accessed 24 July 2022] [in Ukrainian].
  11. AgroPortal.ua, 2023 a. Existence of small farms is a big question [online] Available at: https://agroportal.ua/news/ukraina/isnuvannya-malih-gospodarstv-pid-velikim-pitannyam [Accessed 20 March 2023] [in Ukrainian].
  12. AgroPortal.ua, 2023 b. A farm on the front line: the birth of baby goats to the sounds of explosions and the breeding of new breeds [online] Available at: https://agroportal.ua/multimedia/ferma-na-liniji-frontu-narodzhennya-kozenyat-pid-zvuki-vibuhiv-ta. [Accessed 20 March 2023] [in Ukrainian].
  13. AgroTimes.ua, 2022. Dairy farms predominate among family farms in Lviv Region [online] Available at: https://agrotimes.ua/tvarinnitstvo/sered-simejnyh-ferm-lvivshhyny-perevazhayut-molochni/ [Accessed 20 March 2023] [in Ukrainian].
  14. Barzo, I., 2022. Evolution of the farm «Karpus», or how a «Small» should survive. Farmer of Ukraine, October, p. 5 [in Ukrainian].
  15. Chandran, Nair, 2020. Sustainable Development State. Future of government, economy and society. Trans. from English Iryna Granovska. Kyiv. Nash format [in Ukrainian].
  16. Concept of development of farms and agricultural cooperation for 2018-2020: Order of the Cabinet of Ministers of Ukraine dated September 13, 2017 No. 664, 2017 [online] Available at: https://zakon.rada.gov.ua/laws/show/664-2017-р [Accessed 20 March 2023] [in Ukrainian].
  17. European Green Course: Communiqué of the European Commission 11.12.2019, COM [2019] 640 final, 2019 [online] Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52019DC0640 [Accessed 23 March 2023] [in Ukrainian].
  18. Family dairy farms, 2017. Family dairy farms project. [online] Available at: https://smf.org.ua/about-project/; https://invest.smf.org.ua [Accessed 20 March 2023] [in Ukrainian].
  19. Family dairy farms, 2022. 5 years of the project! [online] Available at: https://smf.org.ua/5-rokiv-proiektu/ [Accessed 20 March 2023] [in Ukrainian].
  20. Family Dairy Farms, 2023. Financial presentation of the Family Dairy Farms project [online] Available at: https://invest.smf.org.ua/wp-content/uploads/2023/03/Investitsiyna-prezentsiya_03_2023.pdf. [Accessed 20 March 2023] [in Ukrainian].
  21. FAO and WHO, 2019. United Nations Decade of Family Farming 2019-2028 - Global Action Plan. [online] Available at: https://www.fao.org/3/ca4672ru/ca4672ru.pdf [Accessed 23 March 2023] [in Ukrainian].
  22. Friedrich, List, 2021. National System of Political Economy. Translated from German by M. Gavrish. Kyiv. Our format [in Ukrainian].
  23. Hubeni, Yu. E., 2022. Entrepreneurship: accessible, concise for villagers. Information brochure. Lviv: CC «Kamyanka-Buzka district printing house» [in Ukrainian].
  24. Information Center «Green Dossier», 2021. Ukrainian green path from farm to fork: step by step. [online] Available at: https://dossier.org.ua/wp-content/uploads/Final_Publication_web.pdf [Accessed 20 March 2023] [in Ukrainian].
  25. Lupenko, Yu., Khodakivska, O., Nechyporenko, O., & Shpykuliak, O., 2022. Conditions and trends of agricultural development in the structure of the national economy of Ukraine. Scientific Horizons [online] 25 (6), p. 121–128. Available at: https://sciencehorizon.com.ua/web/uploads/pdf/ Scientific%20Horozons_2022_Vol.%2025,%20No.%206-121-128.pdf [Accessed 24 October 2022] [in English].
  26. Lupenko, Yu. O., Malik, M. Y., Shpykuliak, O. H. et al., 2021. Concept of development of family farms for the period until 2030: project. Kyiv: NSC «IAE» [in Ukrainian].
  27. Lupenko, Yu. O., Malik, M. Y., Shpykuliak, O.H. et al., 2019 a. Organizational and economic support for the development of family farms: monograph. Kyiv: NSC «IAE» [in Ukrainian].
  28. Lupenko, Yu. O., Malik, M. Y., Shpykuliak, O. H. et al., 2020. Organization of family farms: methodical recommendations. Kyiv: NSC «IAE» [in Ukrainian].
  29. Lupenko, Yu.O., Malik, M.Y., Shpykuliak, O.H. et al., 2022 a. Joint activity of small and medium-sized producers of agricultural products as a simple form of cooperation (in the form of a simple partnership agreement): methodical recommendations. Kyiv: NSC «IAE» [in Ukrainian].
  30. Lupenko, Yu. O., Malik, M. Y., Shpykuliak, O. H., et al., 2022 b. Strategy for the development of entrepreneurship, cooperation and agro-industrial integration in the conditions of wartime and post-war recovery of the agrarian economy of Ukraine. Kyiv: NSC «IAE» [in Ukrainian].
  31. Lupenko, Yu.O., Malik, M.Y., Shpykuliak, O.H., at al., 2022 c. Formation and functioning of integrated structures in the agrarian sector of the economy of Ukraine on the basis of sustainable development of rural areas. by. ed. O.H. Shpykuliak Kyiv: NSC «IAE» [in Ukrainian].
  32. Lupenko, Yu. O., Shpykuliak, O. H., Mesel-Veselyak, V. Ya. et al., 2019 b. Perspective forms of organization of economic activity in the countryside: scientific report. Kyiv: NSC «IAE» [in Ukrainian].
  33. Malik, M.Y., Mamchur, V.A., 2020. Socio-economic orientation of family farms in entrepreneurial activity. Economics of AIC, 9, p. 38 [in Ukrainian].
  34. Ministry of Agrarian Policy and Food of Ukraine, 2023 a. Report on the approved modular greenhouse construction projects for the purpose of providing grants for the creation or development of a greenhouse economy as of March 2, 2023 [online] Available at: https://minagro.gov.ua/pidtrimka/nadannya-grantiv-dlya-stvorennya-biznesu/granti-dlya-teplichnogo-gospodarstva [Accessed 20 March, 2023] [in Ukrainian].
  35. Ministry of Agrarian Policy and Food of Ukraine, 2023 b. Report on approved grant projects for creation or development of horticulture, berry growing and viticulture as of March 2, 2023 [online] Available at: https://minagro.gov.ua/pidtrimka/nadannya-grantiv-dlya-stvorennya-biznesu/granti-dlya-sadivnictva-yagidnictva-ta-vinogradarstva [Accessed 20 March, 2023] [in Ukrainian].
  36. National Council for the Recovery of Ukraine from the War, 2022. Materials of the «New Agrarian Policy» working group of the Recovery Plan of Ukraine project. [online] Available at: https://www.kmu.gov.ua/storage/app/sites/1/recoveryrada/ua/new-agrarian-policy.pdf [Accessed 23 March 2023] [in Ukrainian].
  37. Norberg, Yu., 2019. Progress. Ten reasons to look forward to the future. Translated from English by N. Melnyk. Kyiv [in Ukrainian].
  38. On farming: Law of Ukraine dated June 19, 2003 No. 973-IV, 2003 [online] Available at: https://zakon.rada.gov.ua/laws/show/973-15 [Accessed 20 March 2023] [in Ukrainian].
  39. On making changes to the Tax Code of Ukraine and some laws of Ukraine regarding stimulation of the formation and operation of family farm: Law of Ukraine dated July 10, 2018 No. 2497-VIII, 2018 [online] Available at: https://zakon.rada.gov.ua/laws/show/2497-19 [Accessed 20 March 2023] [in Ukrainian].
  40. On the approval of the Government's priority action plan for 2023: Decree of the Cabinet of Ministers of Ukraine dated 03/14/2023 No. 221 2023 [online] Available at: https://www.kmu.gov.ua/npas/pro-zatverdzhennia-planu-priorytetnykh-dii-uriadu-na-2023-rik-221r-140323 [Accessed 20 March 2023] [in Ukrainian].
  41. On the Sustainable Development Goals of Ukraine for the period until 2030: Presidential Decree dated September 30, 2019. No. 722/2019, 2019 [online] Available at: https://zakon.rada.gov.ua/laws/show/722/2019#Text [Accessed 20 March 2023] [in Ukrainian].
  42. Shelenko, D., Balaniuk, I., Shpykuliak, O., Sas L., Humeniuk, М. and Matkovskyi, P., 2022. Simulation of change in performance indicators (net profit, land area, number of employees) of agricultural cooperatives of Ukraine. Scientific Papers Series Management, Economic Engineering in Agriculture and Rural Development [online] 22(1), p. 569–578 Available at: http://managementjournal.usamv.ro/pdf/vol.22_1/volume_22_1_2022.pdf [Accessed 24 July 2022] [in English].
  43. Shepel, T. V., 2022. Impact of Russian aggression on the food security of Ukraine and the world. Business Inform [online] 7, p. 133–142. Available at: https://doi.org/10.32983/2222-4459-2022-7-133-142 [Accessed 26 March 2023] [in Ukrainian].
  44. Shpykuliak, O. H., Alekseeva, O. V., 2021. Development of farms in the organizational and economic provision of employment of the population. Economics of AIC [online] 4, p. 95–107. Available at: https://doi.org/10.32317/2221-1055.202104095 [Accessed 26 March 2023] [in Ukrainian].
  45. Shpykuliak, O. and Bilokinna, I, 2019. «Green» cooperatives in the formation of an institutional mechanism of development of the alternative power engineering in the agrarian sector of the economy. Baltic Journal of Economic Studies [online] 5(2), рр. 249–255. Available at: https://doi.org/10.30525/ 2256-0742/2019-5-2-249-255 [Accessed 24 September 2022] [in English].
  46. Shpykuliak, O. H., Malik, M. Y., 2019 a. Institutional analysis of the development of entrepreneurship in the agrarian sector of the economy: methodical aspect. Economics of AIC, 6, p. 73–82 [in Ukrainian].
  47. Shpykuliak, O. H., Malik, M. Y., 2019 b. Formation of the organizational and economic model of family farming in Ukraine: institutional foundations, problems and priorities. Economics of AIC, 9, p. 86–98 [in Ukrainian].
  48. State Statistics Service of Ukraine, 2023a. Agriculture of Ukraine 2020 [online] Available at: http://www.ukrstat.gov.ua [Accessed 20 March 2023] [in Ukrainian].
  49. State Statistics Service of Ukraine, 2023b. Socio-demographic characteristics of Ukrainian households in 2021 [online] Available at: http:// https://ukrstat.gov.ua/druk/publicat/kat_u/2021/zb/07/zb_cdhd_21.pdf [Accessed 20 March 2023] [in Ukrainian].
  50. Some issues of granting business grants: Resolution of the Cabinet of Ministers of Ukraine dated 21.06.2022 No. 738, 2022 [online] Available at: https://zakon.rada.gov.ua/laws/show/738-2022-%D0 %BF#n347 [Accessed 20 March 20 2023] [in Ukrainian].
  51. Starikova, L., 2022. Common agricultural policy of the EU and the tasks of Ukraine in the context of European integration (a plan for approximation of policies and harmonization of legislation). [online] NGO «Analytical Center of the Agrarian Union of Ukraine» Available at: http://www.auu.org.ua/media/publications/1894/files/CAP_2023_02_10_12_36_02_818740.pdf [Accessed 26 March 2023] [in Ukrainian].
  52. Transforming our world: the 2030 Agenda for sustainable development: Resolution of the General Assembly of the United Nations of 25.09.2015 No. 70/1, 2015 [online] Available at: https://ips.ligazakon.net/document/MU15167 [Accessed 23 March 2023] [in Ukrainian].
  53. UNDP, 2022. Express assessment of the impact of the war on micro, small and medium enterprises in Ukraine. Analytical report. [online] Kyiv: United Nations Development Program in Ukraine. Available at: https://www.undp.org/sites/g/files/zskgke326/files/2022-10/UA_Rapid_Assessment_of_War_on_MSMEs_in_Ukraine_0.pdf Accessed 20 March 2023.
  54. U.S. Embassy in Ukraine, 2022. United States announced the launch of a $100 million agriculture sustainability initiative in Ukraine [online] Available at: https://ua.usembassy.gov/uk/the-united-states-announces-100-million- ukraine-agriculture-resilience-initiative-agri-ukraine [Accessed 20 July 2022] [in Ukrainian].
  55. Vechirniy Kyiv, 2022. Six options for your own business: The government launched grant programs [online] Available at: https://vechirniy.kyiv.ua/news/68486/ [Accessed 2 July 2022] [in Ukrainian].