The Challenge of Sustainability in Agricultural Systems: Volume 2 (Lecture Notes in Networks and Systems, 206) 3030721094, 9783030721091

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Lecture Notes in Networks and Systems 206

Aleksei V. Bogoviz   Editor

The Challenge of Sustainability in Agricultural Systems Volume 2

Lecture Notes in Networks and Systems Volume 206

Series Editor Janusz Kacprzyk, Systems Research Institute, Polish Academy of Sciences, Warsaw, Poland Advisory Editors Fernando Gomide, Department of Computer Engineering and Automation—DCA, School of Electrical and Computer Engineering—FEEC, University of Campinas— UNICAMP, São Paulo, Brazil Okyay Kaynak, Department of Electrical and Electronic Engineering, Bogazici University, Istanbul, Turkey Derong Liu, Department of Electrical and Computer Engineering, University of Illinois at Chicago, Chicago, USA; Institute of Automation, Chinese Academy of Sciences, Beijing, China Witold Pedrycz, Department of Electrical and Computer Engineering, University of Alberta, Alberta, Canada; Systems Research Institute, Polish Academy of Sciences, Warsaw, Poland Marios M. Polycarpou, Department of Electrical and Computer Engineering, KIOS Research Center for Intelligent Systems and Networks, University of Cyprus, Nicosia, Cyprus Imre J. Rudas, Óbuda University, Budapest, Hungary Jun Wang, Department of Computer Science, City University of Hong Kong, Kowloon, Hong Kong

The series “Lecture Notes in Networks and Systems” publishes the latest developments in Networks and Systems—quickly, informally and with high quality. Original research reported in proceedings and post-proceedings represents the core of LNNS. Volumes published in LNNS embrace all aspects and subfields of, as well as new challenges in, Networks and Systems. The series contains proceedings and edited volumes in systems and networks, spanning the areas of Cyber-Physical Systems, Autonomous Systems, Sensor Networks, Control Systems, Energy Systems, Automotive Systems, Biological Systems, Vehicular Networking and Connected Vehicles, Aerospace Systems, Automation, Manufacturing, Smart Grids, Nonlinear Systems, Power Systems, Robotics, Social Systems, Economic Systems and other. Of particular value to both the contributors and the readership are the short publication timeframe and the world-wide distribution and exposure which enable both a wide and rapid dissemination of research output. The series covers the theory, applications, and perspectives on the state of the art and future developments relevant to systems and networks, decision making, control, complex processes and related areas, as embedded in the fields of interdisciplinary and applied sciences, engineering, computer science, physics, economics, social, and life sciences, as well as the paradigms and methodologies behind them. Indexed by SCOPUS, INSPEC, WTI Frankfurt eG, zbMATH, SCImago. All books published in the series are submitted for consideration in Web of Science.

More information about this series at http://www.springer.com/series/15179

Aleksei V. Bogoviz Editor

The Challenge of Sustainability in Agricultural Systems Volume 2

Editor Aleksei V. Bogoviz Independent researcher Moscow, Russia

ISSN 2367-3370 ISSN 2367-3389 (electronic) Lecture Notes in Networks and Systems ISBN 978-3-030-72109-1 ISBN 978-3-030-72110-7 (eBook) https://doi.org/10.1007/978-3-030-72110-7 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Preface

This volume is a collection of original contribution to researching, building, and maintaining sustainable agricultural systems. The book brings together segmental knowledge from various disciplines, creating innovative insights into the sustainability and innovative development of agricultural systems, critically analyzing individual system components: (1) agricultural agribusiness, (2) policies and institutions, and (3) farming systems. Not only these components are critically studied by the leading scholars and practitioners. They additionally look into the interactions existing between these components and external environments, offering practical solutions to complex sustainability problems faced by agricultural systems in Russia and abroad. The authors note that the sustainable development of agricultural systems is one of the conditions for the progressive development of the Russian economy, allowing for the development of rural areas, achieving food security, and reducing Russia’s dependence on raw materials exports. The chapters reveal the challenges and opportunities for sustainable development of agricultural systems in the instability of external environments and the expansion of digital globalization. Nevertheless, the current situation in the Russian economy, especially in rural areas, is negatively impacted by external factors, heavily influencing the internal economic situation in the country. The researchers note that some sectors included in large agricultural systems are developing steadily and successfully, especially in the energy sector, but the lag in the development of rural areas from these sectors of the national economy is obvious and gradually increasing. In addition, the researchers discuss the gradually growing importance of social factors in the development of agriculture. The compelling collection of chapters presents critical, comparative, and balanced perspectives on what changes are needed to achieve and maintain sustainability in agricultural systems, actively leading to new ways of thinking about these complex issues. The research presented relies on an array of methods developed within complex systems science, addresses the existing gaps in the scholarship, and uses original data collected on the development of agricultural systems. The authors studying agricultural systems note the extreme unevenness in the development of agriculture in different regions of the country, the instability and high volatility of economic and social development, the lag of Russian agriculture v

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Preface

in terms of energy efficiency and high resource intensity of agricultural production, low indicators of direct investment in agriculture, low dynamics of innovative development, etc. The presented volume is a bright collection of advanced research on technologies, policies, and management systems enabling sustainable agricultural development. The authors provide robust conclusions and recommendations for both scholars and practitioners in the field of studying, constructing, and maintaining sustainable agricultural systems. A rich variety of practical cases presented and critically examined in the book could be used to move from theories to reality. The book appeals to both academics and professionals working in the field. Moscow, Russia

Aleksei V. Bogoviz Doctor of Economics, Professor

Contents

Agricultural Agribusiness The Effectiveness of Reserves Development to Increase Effectiveness in Agricultural Organizations: Economic Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Andrey A. Polukhin, Alexandra B. Yusipova, Alexander V. Panin, Dmitriy V. Timokhin, and Olga V. Logacheva Economic Value-Added of Agricultural Business . . . . . . . . . . . . . . . . . . . . Nikolay G. Baryshnikov, Denis Yu. Samygin, and Nadezhda Yu. Rozhkova Value Assessment of Shares of Corporate Issuers by Applying the Methods of Fundamental Analysis in the Stock Exchange Market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . George D. Abuselidze and Anna N. Slobodianyk Key Development Strategies for Small Regional Agribusinesses . . . . . . . Marina A. Kholodova, Svetlana G. Safonova, and Marina S. Sheykhova

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25 41

The Model of Budget Management Based on the Process Approach in Wine Production Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Zoya V. Udalova, Lyubov V. Postnikova, and Andrey A. Udalov

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Globalization of the Russian Agri-Food Sector and Market Strategies of Foreign Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Svetlana V. Ivanova, Tatyana I. Kuzmina, and Artyom V. Latyshov

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The Effectiveness of Developing Branches of the Agricultural Sector in Peasant (Farm) Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Svetlana S. Sushentsova, Tatyana A. Bayer, and Nina I. Litvina

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Innovative Approaches in Management of Agricultural Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Victor M. Volodin, Yousef D. Bahteev, and Nataliya A. Nadkina

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Integration and Diversification in Modern Agribusiness . . . . . . . . . . . . . . Natalya V. Sergeeva and Yuliya S. Vasyukova Digitalization Assessment in Agricultural Organizations: Prospects for Implementing a New Initiative in the Oryol Region (Russia) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sergey A. Rodimtsev, Tatyana I. Gulyaeva, and Elena Yu. Kalinicheva Bankruptcy Prevention with the Unified Accounting System . . . . . . . . . . Yuri I. Sigidov, Sergey P. Pershin, Natalya S. Vlasova, and Marina A. Korovina Accounting for Reserves to Ensure Sustainable Development of an Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aigul U. Abdrakhmanova, Anargul S. Belgibayeva, Utegen K. Sartov, Elvira S. Madiyarova, and Lyazat Z. Karimova Nutrition of Winter Wheat in the Central Ciscaucasia . . . . . . . . . . . . . . . Evgeniy V. Golosnoy, Sergey A. Korostylev, Maxim S. Sigida, Elena A. Ustimenko, and Yuliya I. Grechishkina Qualitative Assessment of an Industrial Business Entity: Economic Potential and Maximum Performance . . . . . . . . . . . . . . . . . . . . Victor A. Fursov, Natalia V. Lazareva, Oksana V. Takhumova, Liliy V. Semenova, and Elena N. Kushch Agricultural Enterprises Bankruptcy in the Altai Region, Russia . . . . . Viktoria V. Vorobyova, Sergei P. Vorobyov, Daria V. Rozhkova, and Aleksandra S. Savchenko Effectiveness of State Support Measures for Small Businesses in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Julia G. Chernysheva, Irina A. Polyakova, Garii I. Shepelenko, and Dmitry A. Mikhailin Problems and Main Mechanisms for Improving Innovative Management in Insurance Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elvira A. Rusetskaya, Lubov V. Agarkova, Lubov K. Ulibina, Irina A. Belozerova, and Yuri N. Belugin

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Information Support for Evaluating Personnel Security in a Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Natalia N. Karzaeva

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Innovative Formation of an Effective Management System for Working Assets in Organizations of the Krasnodar Krai . . . . . . . . . . Anna A. Khramchenko

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The Efficiency of Investments in Energy Saving Technologies . . . . . . . . . Olga A. Pyataeva and Elena V. Borisova

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Modernization and Financial Sustainability of Agricultural Enterprises Based on the Working Capital Management of the Krasnodar Krai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Anna A. Khramchenko On the Issue of Insurance Premiums for Agricultural Producers . . . . . . Nadezhda N. Shelemekh, Vera V. Mizyureva, Margarita A. Shadrina, Anastasiia O. Satina, and Aleksandr Yu Ilyin Improving the Methodology for Analyzing Organizational Creditworthiness Based on the Time Factor . . . . . . . . . . . . . . . . . . . . . . . . . Lubov V. Agarkova, Elvira A. Rusetskaya, Marina K. Chistyakova, Angelika B. Dudareva, and Natalya V. Alentieva Methodology for Assessing Bankruptcy Risks and Financial Sustainability Management in Regional Agricultural Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Irina V. Taranova, Irina M. Podkolzina, Fatima M. Uzdenova, Oksana S. Dubskaya, and Alla V. Temirkanova Entrepreneurial Ecosystem: Strategies and Prospects . . . . . . . . . . . . . . . . Victoria V. Prokhorova, Elena M. Kobozeva, Tatyana G. Gurnovich, Alexandr A. Mokrushin, and Oksana N. Kolomyts Universalization of Organizational and Methodological Approaches to Setting Environmental Management Accounting . . . . . . Natalia N. Balashova, Anna S. Gorbacheva, Elena V. Tokareva, Nadezhda V. Chernovanova, and Elena V. Yagupova A Cognitive Approach to Determining the Effectiveness of Teamwork . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alexandra V. Voronina, Oksana G. Sorokina, Olga V. Elchaninova, Alexander V. Okhotnikov, and Tatyana A. Kiyaschenko Implementation of an Innovative Audit Strategy in Human Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatiana Y. Bezdolnaya, Alexey V. Nesterenko, Elena M. Puchkova, Olga N. Nikulina, and Svetlana V. Kutarova Developmental Prospects of Management Accounting in Russia . . . . . . . Nelly P. Agafonova, Elizabeth A. Medvedeva, Alexey A. Serdyukov, Andrew A. Kempf, and Olga G. Kalashnikova Building an Effective System of Material Incentives for Human Resources in Trade Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Victor S. Yakovenko, Ruslan H. Ilyasov, Galina S. Marahovskaya, Kira A. Artamonova, and Tamara V. Skrebtsova

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Innovative Aspects of Personnel Training for the Agrarian-Oriented Region: Problems and Prospects . . . . . . . . . . Alexey V. Nesterenko, Tatiana Y. Bezdolnaya, Elena N. Kushch, Ruslan H. Ilyasov, and Julia I. Germanova The Essence and Economic Content of Income and Expenditures in the Accounting System of an Economic Entity . . . . . . . . . . . . . . . . . . . . Lubov V. Postnikova, Sergey A. Tunin, Natalia V. Kulish, Olga E. Sytnik, and Victoria S. Germanova Features of Professional and Psychological Training of an Accountant-Analyst for Making Management Decisions in an Economic Crisis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alexey N. Bobryshev, Genaz S.-H. Dudaev, Natalya F. Krivorotova, Maria A. Vahrushina, and Lyudmila A. Meshcheryakova Foreign Economic Activity of Agricultural Organizations in Russia: Risk Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lubov V. Postnikova, Lyudmila I. Khoruzhy, Daria D. Postnikova, Lyudmila V. Urazbakhtina, and Yuliya A. Myrksina Digital Transformation of Accounting and Control Functions in Agricultural Holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Svetlana M. Bychkova and Daria O. Zabaznova Optimization Decisions in Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Roman V. Nuzhdin, Anna N. Polozova, Irina N. Maslova, Natalia I. Ponomareva, and Lyudmila N. Sotnikova Auditing the Settlements of Loan Liabilities in Accordance with International Standards: Methodological Approach . . . . . . . . . . . . . Tamara I. Logvinova, Elena Yu. Dyachenko, Natalia A. Gorlova, Maria N. Tatarinova, and Ludmila I. Fedulova Methodological Tools to Account for Long-Term Investments in Agricultural Organizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vladimir G. Shirobokov, Elena Y. Dyachenko, Marina V. Feskova, Tamara I. Logvinova, and Natalia A. Gorlova Analytical Procedures in the Audit of Finished Products in Agricultural Enterprises . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena E. Golova, Marina N. Gapon, and Irina V. Baranova Organizational and Economic Mechanisms to Develop Joint Business in the Stavropol Region of Russia . . . . . . . . . . . . . . . . . . . . . . . . . . Alexey N. Gerasimov, Oksana P. Grigoryeva, Stanislav A. Molchanenko, Yuri S. Skripnichenko, and Dmitriy I. Karlov

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Strategic Partnership of Business and Education in Management Accounting: Global and Russian Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena N. Makarenko, Nikolay T. Labyntsev, Elena A. Sharovatova, and Irina A. Omelchenko Economic and Legal Aspects of Taxation of Small and Medium-Sized Business Entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Larisa V. Kuleshova, Natalia V. Splavskaya, Inna V. Kobeleva, Irina V. Oseledko, and Viktoriya V. Korosteleva Accounting Practice and Accounting Information Disclosure on Intellectual Capital: Systematization of International Approaches . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Maria A. Vakhrushina and Alina A. Vakhrushina Consulting Service as a Tool to Support Decision-Making by Rural Producers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vladimir V. Makovetskiy, Valery M. Koshelev, Larisa E. Kresova, Maria A. Sukharnikova, and Andzhelika V. Sharapova Current Financial Stability of Agricultural Producers in Southern Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Igor Y. Sklyarov, Yulia M. Sklyarova, Fatimat A. Mambetova, Salambek Kh. Sulumov, and Movsar M. Mustaev Smart Methods in Management Decisions-Making in the Agro-Industrial Complex . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Valentina E. Parfenova, Galina G. Bulgakova, Konstantin I. Kostyukov, Svetlana Yu Shamrina, and Asya Ts Ionova

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Policies and Institutions The Analysis of the Size and Methods of Accumulation of the Population’s Savings in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatiana V. Sabetova, Ludmila A. Zaporozhtseva, and Julia V. Narolina Depreciation Policy: Objective and Subjective Approaches . . . . . . . . . . . Elena V. Kovaleva Creating High-Performance Sectors in the Agro-Industrial Complex Under Digital Economy as a National Development Goal of the Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dmitriy A. Pashentsev, Aleksandra A. Dorskaia, and Datkajim A. Abdieva Innovation-Oriented Government Support of Agricultural Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Margarita A. Grudkina, Tatyana I. Grudkina, and Tatyana S. Kravchenko

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Differentiations in Educational Services in Urban and Rural Areas in the Republic of Bashkortostan (Russia) . . . . . . . . . . . . . . . . . . . . . Dilara I. Yapparova and Alfiya R. Kuznetsova

479

Directions and Forms of Public–Private Partnership in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Zlata A. Ivanova

487

Youth Unemployment in the Labor Market of Uzbekistan: Problems and Ways of Solution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Madina Kh. Saidova, Azizahon M. Maksumkhanova, and Khabiba Kh. Karimova On the System of State Support for the Dairy Subcomplex in Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alesya N. Anishchenko, Daler I. Usmanov, and Konstantin A. Zadumkin

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The Features of Cooperation in the Republic of Tatarstan . . . . . . . . . . . . Alsu R. Nabiyeva

505

Poverty in Russia: Problems and Solutions . . . . . . . . . . . . . . . . . . . . . . . . . . Elena I. Semenova, Natalia V. Bykovskaya, and Alexey I. Afonin

511

Development of IFRS for Food Security . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatiana Y. Bobovnikova and Tatiana M. Vorozheykina

521

The National Technological Initiative FoodNet Market: Regional Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ekaterina G. Agalarova, Julia A. Gunko, Olga N. Kusakina, Olga A. Cherednichenko, and Zuhra S. Dotdyeva HR Management in Russian Higher Educational Institutions: Mechanisms to Foster Sustainable Development of Regional Socio-economic Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sergey M. Kosenok Demographic Problems with Human Resources for Agricultural Production in the Region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marina G. Leshcheva, Tatyana N. Steklova, Tatyana N. Uryadova, Arif G. Ibragimov, and Vyacheslav G. Borulko Tax Payments Optimization for Agricultural Producers . . . . . . . . . . . . . . Olga. A. Moiseeva Diversification of Regulatory Powers in Social, Environmental, and Economic Relations as a Factor for Stimulating Regional Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatiana Yu. Anopchenko, Elena I. Lazareva, Anton D. Murzin, Roman V. Revunov, and Evgeniya V. Roshchina

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Economic Growth in Russia: Main Problems at the Current Stage . . . . Viktoriya V. Rakhaeva Innovative Activity in Organizations in the New Technological Order: International Perspectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga N. Kusakina, Svetlana V. Levushkina, Yulia V. Narolina, Tatiana V. Sabetova, and Galina V. Tokareva

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Assessing Design Decisions in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . Oksana G. Karataeva, Oleg P. Andreev, Olga V. Chekha, Mihail V. Stepanov, and Lidiya M. Trushina

591

Spline Analysis of Flow Correlation in Economic Systems . . . . . . . . . . . . Ruslan H. Ilyasov and Victor S. Yakovenko

599

Economic Foundations for Developing Human Resources in the Stavropol Region of Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatyana N. Uryadova, Marina G. Leshcheva, Tatyana N. Steklova, Natayia P. Adintsova, and Elena P. Zhuravleva Improving the Mechanism of Taxation Within State Environmental Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elena V. Kouzmina, Tatyana P. Satsuk, Olga V. Koneva, Alla A. Geizer, and Alexandr A. Frolov The Algorithm for Assessing Regional Foreign Trade Relations . . . . . . . Svetlana N. Bludova, Olga V. Elchaninova, Elena V. Filimonova, Irina N. Kiseleva, and Gulnara I. Alekseeva Social Health of Students Studying at the Stavropol State Agrarian University . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Svetlana I. Tarasova, Tatyana N. Dukhina, Olga O. Limonova, Natalia B. Drozhzhina, and Evgenia V. Taranova

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Management of Complex Socio-Economic Systems on the Example of the Mining Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inna V. Zhukova and Aleksandr E. Zubarev

643

Eurasian Agricultural Technological Platform for Technical and Technological Modernization of Agriculture in the EAEU Member States: Thematic Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vasiliy I. Nechaev, Sergey A. Arzhantsev, Pavel V. Mikhailushkin, Lyudmila I. Khoruzhy, and Tatiana G. Bondarenko

653

Labor Resources in Agricultural Regions of the South of Russia: Assessment, Trends, and Development Patterns . . . . . . . . . . . . . . . . . . . . . Alexey N. Gerasimov, Evgeniy I. Gromov, Yuri S. Skripnichenko, Ekaterina I. Lelikova, and Viktoriya Yu. Skripnichenko

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Contents

Managing the Development of Innovative Regional Industries Using Field of Forces Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alexey V. Scherbina and Mikhail V. Grechko Accounting as a Tool for Achieving Global Sustainable Development Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga E. Sytnik, Natalia V. Kulish, Sergey A. Tunin, Aleksandr V. Frolov, and Viktoria S. Germanova Financial Market Development Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga N. Uglitskikh, Irina I. Glotova, Yuliya E. Klishina, and Elena P. Tomilina Problems of Assessing the Debt Sustainability of Federal Subjects of the Russian Federation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Irina I. Glotova, Elena P. Tomilina, Yuliya E. Klishina, and Olga N. Uglitskikh Increasing the Availability of Financial Services as a Factor in Ensuring Socio-economic Stability in the Region . . . . . . . . . . . . . . . . . . Elena N. Lapina, Artur A. Orazaliev, Anastasia Y. Kalnaya, Irina N. Kiseleva, and Irina V. Oseledko Developing the International Regulation System of Organic Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tatyana G. Gurnovich, Natalia R. Saifetdinova, and Alexander R. Saifetdinov

681

689

697

705

715

725

Farming Systems The Influence of Concentration of Nutrients on the Productivity of Red Beet with Inner Jet Intra-soil Irrigation of Seeds During Sowing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alexander N. Babichev, German A. Senchukov, and Dmitry V. Martynov

735

Obtaining a Fast and Reliable Diagnostic Result of Acidovorax Citrulli with the Sample Enrichment Method . . . . . . . . . . . . . . . . . . . . . . . . Olga Y. Slovareva, Konstantin P. Kornev, and Galina N. Bondarenko

743

The Productivity of Spring-Planted Potatoes Depending on Doses of Mineral Fertilizers Used on Irrigated Land in the South of Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sergey M. Vasilyev, Valeriy A. Monastyrskiy, and Vyacheslav D. Gostishchev

753

The Adaptation of In Vitro Potato Materials Applying Microbiologic Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Julia N. Fedorova, Nadezhda V. Lebedeva, and Larisa N. Fedorova

761

Contents

Potato Selection and Seed Production as a Sustained Unified Process of Accelerated Development in the Potato-Product Subcomplex of the Russian Agro-Industrial Complex . . . . . . . . . . . . . . . . Sergey V. Zhevora, Vladimir V. Tulcheev, and Elena V. Oves

xv

771

New Canned Products for Dietetic Nutrition Based on Animal Hearts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga A. Mitryashkina, Lidija V. Shulgina, and Yuriy P. Shulgin

781

Applying the Precision Irrigation Technology to Address the Deficit of Water Resources in the South of Russia . . . . . . . . . . . . . . . . Sergey M. Vasilyev, Alexander N. Babichev, and Vladimir I. Olgarenko

789

The Effectiveness of Plant Growth Regulators with Fungicidal and Antibacterial Properties Used on Soybean . . . . . . . . . . . . . . . . . . . . . . Olga A. Shapowal, Irina P. Mozharova, and Maria T. Muhina

797

Numerical Analytical Study of Hydroturbines with Flexible Blades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Aleksey G. Terentyev, Ivan I. Maksimov, and Nikolay A. Fedorov

807

The Effect of Fertilizers on the Formation of the Symbiotic Apparatus and the Productivity of Sowing Peas . . . . . . . . . . . . . . . . . . . . . Matvei A. Alyoshin

819

Changing Compositions of Sourdough with Prolonged Fermentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vadim K. Khlestkin

831

Using Non-traditional Organic Waste During Vermicomposting in Closed Ground and Humic Formation in the Northern Cities . . . . . . . Nikolay V. Nakonechnyy, Marina V. Ptukha, and Dinara V. Ibragimova

839

Problems and Prospects of Using Artificial Intelligence to Monitor Phytosanitary Conditions of Crops . . . . . . . . . . . . . . . . . . . . . . Elena V. Khudyakova, Irina V. Slastya, and Victoria S. Semenyuk

847

Productive Use of Cows in Dairy Cattle Breeding . . . . . . . . . . . . . . . . . . . . Nikolay N. Shumeiko

855

Optimum Feed Balance for Livestock Development . . . . . . . . . . . . . . . . . . Vladimir M. Kosolapov, Lidia P. Silaeva, and Sergey A. Alekseev

863

Production of Environmentally Friendly Hop Raw Materials . . . . . . . . . Oksana G. Karataeva, Nicholas I. Malin, and Abdurahman G. Gamidov

871

The Effect of Juniper Supplements on the Quality and Nutritional Value of Bread . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Valentina I. Krishtafovich, Dmitry V. Krishtafovich, Valentina V. Bronnikova, and Olga V. Savina

875

xvi

Contents

Efficiency of Agricultural Machinery: How to Integrate Traditional and Alternative Methods of Economic Evaluation? . . . . . . . Andrey V. Malakhov and Artem A. Borisov Technologies for the Production and Application of Organic Fertilizers in Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Anatoly M. Bondarenko, Lyudmila S. Kachanova, Aleksey V. Baryshnikov, and Sergey A. Novikov The Impact of Agricultural Activities on the Substitution of Chemical Elements in the Black Soils of the North Caucasus Federal District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Olga Yu. Lobankova, Alla A. Belovolova, Natalia V. Gromova, Anastasia O. Kravchenko, and Aleksander V. Voskoboynikov Influence of Soil Salinity and Fertilizers on Seed Germination and Formation of Vegetative Organs of Sunflowers . . . . . . . . . . . . . . . . . . Alla A. Belovolova, Alexander N. Esaulko, Natalya V. Gromova, Yuliya I. Grechishkina, and Olga Yu. Lobankova Shelterbelts of the 3rd Agroclimatic Zone in the Stavropol Region, Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alexander V. Loshakov, Margarita G. Kasmynina, Stanislav V. Odintsov, Sergey Yu. Gorbachev, and Lyudmila V. Kipa Indicators of Natural Resistance in Chicken Organism . . . . . . . . . . . . . . . Anna A. Menkova, Evgeny M. Tsygankov, Ilya M. Oleynikov, Olga V. Vikarenko, and Tatyana. A. Kazimirova Vertigenesis of Alkaline-Compacted Soils in the Central Ciscaucasia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Valery S. Tshovrebov, Vera I. Faizova, Vera Y. Lysenko, Alexander N. Maryin, and Andrey A. Novikov Licensing as a Tool for Maintaining and Improving Soil Fertility . . . . . . Victor Yu. Rogov, Olga N. Kuznetsova, Viktoriia Yu. Deich, Olga I. Deich, and Irina G. Sharapieva The Design of a Seeder for Sowing Cereal Crops with Local Application of a Moisture-Absorbing Ameliorant . . . . . . . . . . . . . . . . . . . . Viktor V. Timoshenko, Maxim V. Ulyanov, Alexander N. Matasov, and Alexander V. Kharlashin The Ameliorative Role of Forest Strips in Crop Yield Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lyudmila V. Trubacheva, Olga V. Mukhina, Olga I. Vlasova, Elena B. Drepa, and Alexander V. Loshakov

885

897

907

917

925

933

941

949

955

963

Contents

Application of the Electric Drive of the Power Unit of the Small Traction Tractor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Anton V. Bizhaev, Valery L. Chumakov, Oleg P. Andreev, Alexandr G. Levshin, and Nikolay E. Kabdin Theoretical Studies of the Method of Electromagnetic Mechanical Activation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Marina M. Bezzubceva, Vladimir S. Volkov, Natalya Yu. Krishtopa, Maksim A. Mastepanenko, and Shaliko Zh. Gabrielyan The Innovative System of Soil Resources Restoration in Organic Agrarian Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Anatoly M. Bondarenko, Tatyana I. Gulyaeva, Vladimir I. Savkin, and Lyudmila S. Kachanova

xvii

971

981

991

Winter Wheat Grain Production in the Conditions of the Central Ciscaucasia: Improving the Efficiency with Application of Calculated Rates of Mineral Fertilizers to the Planned Yield Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1001 Aleksandr N. Esaulko, Alena Yu. Ozheredova, Anatoliy I. Podkolzin, Victor G. Sichev, and Dmitriy E. Galda The Milking Unit Adapted to the Physiological Requirements for Machine Milking of Cows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1011 Ivan V. Kapustin, Elena I. Kapustina, Dmitry I. Gritsay, Vitaly A. Alekseenko, and Igor I. Shvetsov Influence of Direct Seeding Technology and Forecrops on the Agrophysical and Agrochemical Properties of Dark Chestnut Soils and Winter Wheat Yield . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1021 Elena V. Pismennaya, Margarita Yu. Azarova, Vladimir A. Stukalo, Vera M. Perederieva, and Irina A. Volters Transport Navigation Systems in Agriculture of the Oryol Region, Russia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1029 Sergey A. Rodimtsev, Tatyana I. Gulyaeva, Aleksey V. Krasov, and Yuriy A. Yudin Sustainable Phytosanitary Development of the Host-Parasite System on the Example of Head Blight of Winter Wheat . . . . . . . . . . . . . 1037 Anna P. Shutko, Elena G. Shek, Lyudmila V. Tuturzhans, Lyudmila A. Mikhno, and Elena V. Pashkova Decision Support System in Precision Irrigated Agriculture Based on a Combination of Electromagnetic Moisture Measurement, Thermography of the Underlying Layer, and Agro-Hydrological Modeling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1045 Anatoly M. Zeyliger, Olga S. Ermolaeva, Alexandr I. Golyshev, and Tatyana F. Cherevatova

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Contents

Intelligent Authentication System Based on Machine Learning Algorithms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1053 Ludmila Yu. Noginova Biological Efficiency of Protective Measures for Winter Wheat Crops in the Central Ciscaucasia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1061 Natalya N. Glazunova, Yuliya A. Bezgina, Lyubov V. Maznitsyna, Anna N. Shipulya, and Denis V. Ustimov Innovation in Mushroom Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1069 Tatyana I. Ashmarina, Tatiana V. Biryukova, Natalya V. Sergeyeva, and Andrey N. Romanov Analytical Determination of Technological Parameters in the Work of a Self-driving Machine for Soil Loosening and Weeds Removing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1079 Alexander N. Matasov, Aleksey N. Ceplyaev, Maksim V. Ulyanov, Viktor V. Timoschenko, and Alexander V. Harlaschin Methodical Approach to Evaluating Quality Indicators of the Power Supply System at Early Development Stages . . . . . . . . . . . . 1087 Ivan V. Atanov, Vladimir Ya. Khorolsky, Maksim A. Mastepanenko, Shaliko Zh. Gabrielyan, and Vitaly N. Shemyakin

Agricultural Agribusiness

The Effectiveness of Reserves Development to Increase Effectiveness in Agricultural Organizations: Economic Assessment Andrey A. Polukhin , Alexandra B. Yusipova, Alexander V. Panin , Dmitriy V. Timokhin , and Olga V. Logacheva Abstract The effectiveness of agricultural production is marked with the rational use of natural and human-made resources. The main criterion for the effectiveness is the output indicator in physical and value terms per unit of production cost. Therefore, the reduction of cost production relative to the already achieved level of a plan or standard, combined with an increase in production volume, is the main task of business entities and a criterion for assessing their effectiveness. In real conditions, the effectiveness of agricultural production may depend on a whole range of factors. These factors can be controlled (the use of material and technical resources, specialization, industry orientation, etc.) and uncontrolled (natural and climatic conditions). This set of factors can reduce the actual production effectiveness compared to the potential. In this regard, it is necessary to determine the reserves for increasing effectiveness, the level, and effectiveness of the implementation of measures for their development on an economically feasible basis. Therefore, there is a growing demand for scientifically based methodological developments with allowances for the natural, organizational, and economic factors of agriculture and possible reserves for their rational use. This paper discloses methodological approaches to assessing the effectiveness of reserves development for increasing the effectiveness of agricultural organizations. Keywords Agricultural economics · Economic assessment methods · Effectiveness · Growth reserves

A. A. Polukhin (B) All-Russian Research Institute of Legumes and Groat Crops, Streletskoye, Russia A. B. Yusipova · O. V. Logacheva Federal Research Center for Agrarian Economy and Social Development of Rural Areas–All-Russian Research Institute of Agricultural Economics, Moscow, Russia A. V. Panin Russian State Agrarian University–Moscow Timiryazev Agricultural Academy, Moscow, Russia D. V. Timokhin Moscow State University of Humanities and Economics, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_1

3

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A. A. Polukhin et al.

1 Introduction The scientific community widely discusses the subject of the economic evaluation of reserves for effectiveness growth. Buzilov and Sokolov [1] interpret effectiveness as a vector for reducing unit costs of labor, financial, and material resources while maximizing income. At the end of the twentieth century, both Soviet and foreign scholars evaluated effectiveness as the ratio of the obtained results (productivity or effect) to the incurred costs [2, 3]. However, these scholars focused on the social effects and positions of the country’s economy as a whole, which are not always applicable to individual economic entities. Several modern Russian scholars interpret effectiveness as the state of the economy in which societal needs are met to the fullest possible extent [4]. Other scholars often identify the concept of effectiveness with performance [5]. In our understanding, the effectiveness of agricultural organizations is the ratio between the results (effects) obtained during production, economic activities, and production costs. The industry features of agricultural production form commercially oriented (commercial products, yield, and animal productivity, financial result) and socially oriented results (provision with production and social facilities infrastructure, age and qualification structure of staff, and staff satisfaction) [6]. When estimating the reserve level, it is necessary to calculate the range of changes in performance indicators from the actual to the potential value while implementing the relevant organizational and economic measures [7].

2 Materials and Methods This research develops scientific, methodological, and practical recommendations for assessing the organizational and economic reserves of increasing the effectiveness of agricultural organizations. We formed the information base of the study using the statistical data of the Unified Interdepartmental Information and Statistical System [UISIS] [8] and reports of the Federal State Statistics Service [9]. The research objective is to propose an algorithm for substantiating the effectiveness of the reserves development to intensify agricultural production based on optimality criteria. One more objective is to develop methodological approaches for justifying the reserves for increasing the effectiveness of production resources use by agricultural organizations according to the available data. During the study, we used such complex methods as: • Monographic method (to review the economic literature and clarify the viewpoints of Russian and foreign scholars on the studied problems); • Computational and analytical method (to asses agricultural development trends); • Comparative analysis (to substantiate the classification of farms in the agricultural sector of the economy);

The Effectiveness of Reserves Development to Increase …

5

• abstract-logical method (to develop a working hypothesis for research on methodology and theoretical and conceptual aspects of the economic categories of reserves for increasing the effectiveness of agricultural production); • statistical and economical method (to process and analyze information on research objects); • design-constructive method (to develop and justify recommended methodological approaches in assessing the effectiveness of the implementation of projects for the development of reserves for improving the effectiveness of agricultural organizations).

3 Results During the research on the problem of agricultural effectiveness, we evaluated the dynamics of agricultural development from the standpoint of effectiveness at the federal, regional, and organizational levels (Table 1). Nevertheless, there is a noticeable decrease in the profitability of agricultural organizations (including subsidies) by 3.6%. However, compared to 2017, it increased by 0.5%. There is a fall in the labor productivity index in 2018 relative to 2014 by 2.3%. Moreover, compared to the previous year, in 2018, the decrease in the labor Table 1 The assessment of the relative indicators’ dynamics of agricultural effectiveness at the state level Indicators

Years 2014

Produced value-added 2,706.9 cost generated in agriculture, billion rubles

2015

2016

2017

2018

Growth rate, % to 2014

3,158.2

3,603.9

3,694.7

3,265.2

+20.63

The growth rate of agricultural exports, %

117.6

86.0

104.7

121.4

119.1

+1.5

The profitability of agricultural organizations (including subsidies), %

16.1

20.3

16.4

12.0

12.5

−3.6

Index of labor productivity to the previous year, %

103.3

104.5

103.5

103.8

101.0

−2.3

The number of high-performance jobs, thousand jobs

325.2

284.6

305.0

365.8

314.6

−3.26

Source Calculated based on [10, 11]

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A. A. Polukhin et al.

productivity index amounted to 2.8%. It is also evident that the number of highperformance jobs is reduced by 3.26%. In 2018, compared to the previous year, it amounted to 14%. One of the critical parameters demonstrating the effectiveness of agricultural production is the volume of its profitability, both in general for agriculture and in the context of product types (Tables 2, 3 and 4). Analyzing the data from Table 2, we can see a significant difference in the profitability of agricultural organizations for all activities, including and excluding subsidies. The assessment of profitability excluding and including subsidies for three five-year periods indicates the following: in 2004–2008, the average level of profitability, including and excluding subsidies, amounted to 11.94% and 4.02% respectively, in 2009–2013 it amounted to 9.78% and −3.12%, and, in 2014–2018, 15.64% Table 2 The level of profitability in agricultural organizations for all activities Years The level of profitability with subsidies, % The level of profitability without subsidies, % 2009

9.4

−3.2

2010

8.3

−5.4

2011

11.8

−0.4

2012

12.1

1.4

2013

7.3

−5.2

2014

16.1

6.3

2015

20.3

11.8

2016

17.3

9.3

2017

12.0

5.3

2018

12.5

6.5

Source: Developed by the authors based on [11]

Table 3 The assessment of the level of production profitability (excluding subsidies) of the main crops, % 2018 ± to 2017, %

Type of product

2017

2018

Cereals and legumes

18.6

25.5

7.4

14.6

+7.2

Sunflower

42.0

33.2

−8.8

Sugar beet

13.2

26.6

+13.4

Potatoes

19.8

23.0

+3.2

Protected ground vegetables

12.0

5.7

−6.3

Soy

16.9

24.4

+7.5

The profitability of crop products

20.0

23.0

+3.0

Corn

Source Calculated based on [11]

+6.9

The Effectiveness of Reserves Development to Increase …

7

Table 4 The assessment of the level of production profitability (excluding subsidies) of the main types of livestock products, % Type of product

2017

2018

2018 ± to 2017, %

26.2

15.0

−11.2

−30.1

−31.4

−1.3

Pork

32.5

40.8

+8.3

Sheep and goat meat

Raw milk Cattle meat

−9.9

−5.8

+4.1

Poultry of all kinds

2.2

7.4

+5.2

Eggs

5.8

8.9

+3.1

10.0

9.2

−0.8

The profitability of livestock products Source Calculated based on [11]

and 7.84%. These data indicate that the effectiveness of budget subsidies use for 2014–2018 (15.64 − 7.84% = 7.8%) relative to 2009–2013 (9.78% − (−3.12%) = 12.9%) decreased more than 1.5 times. However, in 2014–2018, there is a significant increase in the level of profitability, excluding subsidies, in relation to 2009–2013, by more than three times. Next, let us consider the production profitability (excluding subsidies) for the main types of crop and livestock production. The data in Table 3 also indicate an increase in the production profitability (excluding subsidies) of the main crop types in 2018 relative to 2017, including grain and leguminous crops (6.9%), corn (7.2%), sugar beet (13.4%), potato (3.2%), soybeans (7.5%). In general, the increase in crop production profitability in 2018 compared to 2017 amounted to 3%. In relation to 2017, in 2018, the profitability (excluding subsidies) of livestock products was as follows: raw milk (−11.2%); cattle meat (−1.3%); pig meat (+8.3%); sheep and goat meat (+4.1%); poultry of all types (+5.2%); eggs (+3.1%). The overall profitability (excluding subsidies) of livestock products decreased by 0.8% (cattle, sheep, and goat meat continue to be unprofitable). It is currently advisable to evaluate agricultural organizations’ main financial and economic situation by indicators reflecting their commercial effectiveness. As shown in Table 5, there are no changes in the share of groups of agricultural organizations receiving state support in 2018, compared to 2017. Thus, the share of organizations: – – – – – –

With the profitability of over 60% decreased by 0.1%; With the profitability of 30–60% decreased by 0.71%; With the profitability 0–30% increased by 1.01%; With the profitability from −30 to 0% increased by 0.09%, With the profitability from −60 to −30% increased by 0.86%; With the profitability below −60% decreased by 0.07%.

Thus, more than half of the agricultural organizations receiving state support work cost-effectively. Moreover, organizations cultivating grain and leguminous and row

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A. A. Polukhin et al.

Table 5 The grouping of agricultural organizations receiving state support by the level of profitability Groups of organizations in terms of profitability, %

2017

Total

18,178

100.00

17,499

100.00

1413

7.77

1343

7.67

Over 60% 30–60%

2018

Number of units Group share to total, Number of units Group share to total, % %

2355

12.96

2144

12.25

11,332

62.34

11,085

63.35

From −30 to 0%

1806

9.94

1756

10.03

From −60 to −30%

423

2.33

559

3.19

Below −60%

649

3.57

612

3.50

0–30%

Source Calculated based on [8, 11]

crops, pig-breeding organizations, and milk producers stably demonstrate high profitability. The allocated funds of state support have a significant impact on the effectiveness of production and economic activities. It is also important to note that the profitability indicator does not always fully enable us to evaluate the real effectiveness and reserve for its increase.

4 Discussion The effectiveness of agricultural production marks the rational use of natural and human-made resources. The main effectiveness criterion is the indicator of output in physical and value terms per unit of production costs. Therefore, reducing the cost of production relative to the already achieved level of a plan or standard, combined with an increase in production volumes, is the main task of business entities and a criterion for assessing their effectiveness. The effectiveness of agricultural production in real conditions may depend on a whole range of factors. These factors can be controlled (organization of material and technical resource use, specialization, industry orientation, etc.) and uncontrolled (natural and climatic conditions). This set of factors can reduce the actual production effectiveness compared to the potential. In this regard, it is necessary to determine the reserves for increasing the efficiency, level, and effectiveness of the implementation of measures for their development on an economically feasible basis. Production effectiveness is a complex economic category and a form of expression of the production purpose. It is necessary to distinguish between the concepts of effect and economic effectiveness.

The Effectiveness of Reserves Development to Increase …

9

The set of indicators proposed to substantiate the plan for implementing the project for the reserve development of effectiveness growth is presented in Table 6. The proposed system of indicators, in contrast to the methodology proposed by the authors [12], is a system of indicators adapted to the particularities of agricultural Table 6 Performance indicators recommended for assessing the reserves of economic effectiveness growth throughout the organization Indicator

Economic essence (calculation procedure)

Net profit per 1000 hectares of crops, thousand Net profit per 1000 hectares of crops rubles Revenues per 1000 hectares of crops, thousand Sales revenue per 1000 hectares of crops rubles Return on sales

The ratio of profit from product sales to the amount of revenue. It shows the share of profit in gross revenue of the enterprise in %

EBITDA per 1000 hectares of crops, thousand rubles

Profit before deduction of depreciation, interest, and taxes, per 1000 hectares of crops

EBIT

Profit before deduction of interest and taxes

The ratio of current assets turnover

The ratio of revenue from product sales to the average annual value of current assets. The coefficient marks the effectiveness of the working capital use in terms of sales (the turnover number of working capital for the period)

The ratio of assets turnover

The ratio of sales revenue to the average annual value of fixed assets. The coefficient marks the effectiveness of the fixed assets used in terms of sales (volume of sales from 1 monetary unit of the value of the fixed assets)

The dynamics of capital productivity

It marks the change in the effectiveness indicator of fixed assets use. It is especially important to evaluate this dynamic when developing reserves of effectiveness growth through technical modernization of production

The dynamics of labor productivity

The development of organizational and economic reserves of the agricultural organization’s effectiveness should be accompanied by an increase in the effectiveness of labor resources use. This indicator should be evaluated both per employee or unit of labor costs and per ruble of wages

The dynamics of material productivity

Technological reserves of effectiveness growth imply a change in the volume and structure of material costs, necessitating assessing the dynamics of the rate of material return

Source Developed by the authors

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production with allowances for the significant difference between economic entities in terms of production scale and level of technical equipment. In this regard, it is quite relevant to use specific and dynamic performance indicators per unit area or involve the indicators in comparing the results before and after the implementation of projects for the development of growth reserves. Thus, the development of organizational and economic reserves of the effectiveness of agricultural organization is assessed by several indicators marking the general change in financial and production results, profitability, and effectiveness of particular resource use. Moreover, it is essential to evaluate these indicators comprehensively and in dynamics, which will allow making more objective management decisions. However, the general change in the effectiveness of the organization’s production and economic activity is formed from the results of the reserve development in certain areas. In this regard, we propose a system of indicators for a more in-depth assessment of the effectiveness of reserve development in specific areas (Table 7). We believe that it is essential to evaluate the dynamics of production costs by elements at the first stage of evaluating the effectiveness of the development of reserves for increasing the effectiveness. This will allow us to track the change in the level of costs in the development of reserves for increasing the effectiveness. UnC = (MCr − MCb ) + (LCr − LCb ) + (Conr − Conb ) + (Dr − Db ) + (Otr − Otb )

(1)

where ΔUnC MC r −MC b LC r −LC b Conr −Conb Dr −Db Ot r −Ot b

the dynamics of unit costs for the production of specific product types; the change in specific material costs in the production of a particular agricultural product type; the change in unit labor costs in the production of a particular agricultural product type; the change in specific contributions to social funds in the production of a particular agricultural product type; the change in specific depreciation in the production of a particular agricultural product type; the change in other specific costs in the production of a particular agricultural product type.

A phased approach in calculating the change in unit costs will allow us to evaluate the change in the cost structure of in particular cost elements. The growth rate of prices for a particular product type in relation to the growth rate of regional average prices is proposed to be calculated using the following formula: GRPi =

Pir /Pib Piarpv /Piarpr

(2)

The Effectiveness of Reserves Development to Increase …

11

Table 7 Indicators marking the effectiveness of reserve development in specific areas Indicators

Economic essence

The dynamics of unit costs for the production of The indicator marks the change in the cost of specific products an agricultural production unit by type, including the dynamics in the context of elements and (or) cost items (Formula 1) The growth rate of prices for a particular product type in relation to the growth rate of regional average prices

The indicator marks the growth of quality indicators of products with allowances for the factor of market changes in price, inflation, and volatility (Formula 2)

The dynamics of the individual crop yield

The development of technological reserves allows increasing crop yields through effective fertilizing forms, varieties, plant protection products, and technological methods

The dynamics of animal productivity by species In short-term, productivity growth is possible due to changes in the diet, conditions of keeping. In the long-term, it is possible due to changes in the breed composition of the herd The effectiveness of resource development

The indicator allows us to evaluate the effectiveness of organizational and economic measures for the development of reserves to grow the economic effectiveness of agricultural organizations (Formula 3)

The payback period of capital costs in the development of reserves of the effectiveness of the agricultural organization

The development of technical and technological reserves for the growth of agricultural organizations’ effectiveness requires capital investments. In this regard, an important indicator is the payback period of capital investment for the development of reserves based on technical and technological modernization (Formula 4)

Source Developed by the authors

where GRPi Pir Pib Piarpv Piarpr

the growth rate of prices for a particular product type in relation to the growth rate of regional average prices; the price for a specific agricultural product type after reserve development; the price for a specific agricultural product type before reserve development; the average regional price for similar products at the time of valuation; the average regional price for similar products at the beginning date of the reserve development.

A coefficient will be obtained as a result of calculating this indicator. If it is higher than unity, then the organization shows a dynamic growth in the quality indicators of its products and (or) its more effective promotion.

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Furthermore, let us assess the ratio of the additional benefits received to the incurred additional costs, which will make it possible to assess the reserves’ annual development. Eres =

i Add C

(3)

where Eres i Add C

the effectiveness of reserve development; the number of additional benefits received from the reserve development by product type; additional costs for the reserve development.

We believe it is crucial to determine the payback period for capital costs when developing the reserves of the effectiveness of agricultural organization, since the development of reserves through technical and technological modernization of production often allows for long-term effects, while capital costs are too high for a one-year payback. Payback period =

Capital expenditures for technical and technological modernization (4) Additional benefits − Additional costs for the reserve development

The calculation of the indicator provides data on the payback period of capital investments expressed in years. In general, the proposed methodology for substantiating projects for the development of reserves for increasing the effectiveness of agricultural organizations is universal, taking into account industry and regional specifics.

5 Conclusion Agricultural effectiveness should also be evaluated by indicators reflecting the interests of enterprises and organizations of the third sphere of the AIC, investors, creditors, participants in integrated and cooperative formation, and co-owners of capital goods. The results of activities of specific agricultural organizations should be evaluated by indicators reflecting their commercial effectiveness. These indicators are as follows: – The output of gross and marketable products per hectare of farmland, one employee, unit of value of cash, and used resource potential; – The profitability of marketable products with and without budget subsidies; – The amounts of debt per unit of revenue; – The level of worker wages, the growth rate of productivity and wages;

The Effectiveness of Reserves Development to Increase …

13

– The development prospects, the availability of own sources of capital investment financing, market competitiveness, and several other indicators. Agriculture operates based on two groups of production factors: – Natural: land, natural fertility, other substances and phenomena (moisture, temperature, wind, natural disasters, etc.); – Artificial: work-force (labor of entrepreneurs and workers) and capital (fixed and circulating assets, created fertility of the land). The total value of the production factors acts as resource potential, available and used for a given period of production activity. Our studies indicate significant differences in quantitative and qualitative features of production factors in the country. This fact necessitates the consideration of these differences when evaluating economic performance indicators. Each agricultural organization has internal reserves for increasing its effectiveness. This refers to new available organizational and economic mechanisms for the use of production factors. These mechanisms consider scientific advances and best practices. Their introduction can provide a higher level of profitability of marketable products or reduce unprofitability. The paper proposed an algorithm for substantiating the effectiveness of developing reserves for intensifying agricultural production based on optimality criteria. The developed methodological approaches to the substantiation of reserves for increasing the effectiveness of the resources of agricultural organizations allow a phased and objective assessment of the appropriateness of the development of certain reserves for the growth of economic effectiveness of agricultural organizations.

References 1. Buzilov YT, Sokolov VI (1978) Economics and organization of agricultural production. Study Guide. Moscow, Russia, Mysl 2. (1990) Political economy. Politizdat, Moscow, Russia 3. Porter M (1993) International competition. International Relations, Moscow, Russia 4. Sandu IS et al (eds) (2013) The effectiveness of agricultural production: guidelines. Federal State Scientific Institution “Rosinformagroteh”, Moscow, Russia 5. Harutyunyan FG, Toporov VT (2007) Stimulating the growth of labor productivity in agriculture. Federal State Scientific Institution “Rosinformagroteh”, Moscow, Russia 6. Yusipova AB (2016) The essence and performance indicators of social production. Econ Entrepreneurship 12(part 4):449–452 7. Polukhin AA, Alekseev KI, Ryzhkova SM, Kruchinina VM, Stavtsev AN, Lankin AS (2019) Economic evaluation of directions of state support of producers of energy capacities for agriculture in Russia. Int J Eng Adv Technol (IJEAT) 9(1):5013–5017 8. UISIS (2019) Official website. Retrieved from https://www.fedstat.ru/ 9. Federal State Statistics Service (2019) Official website. Retrieved from https://www.gks.ru/. 10. FAOSTAT (2019) Official website. Retrieved from https://www.fao.org/faostat/en/ 11. Government of the Russian Federation (2019) National report on the progress and results of the implementation in 2018 of the “State program for the development of agriculture and the

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regulation of agricultural products, raw materials, and food markets”. Approved by the decree of the government of the Russian federation on June 22, 2019 No. 1352-r. Moscow, Russia 12. Polukhin AA, Semenova EI, Novoselov EA (2018) Methodology for substantiating livestock breeding projects. Agric Econ Russ 12:35–39

Economic Value-Added of Agricultural Business Nikolay G. Baryshnikov , Denis Yu. Samygin , and Nadezhda Yu. Rozhkova

Abstract The paper is devoted to the problem of increasing the investment attractiveness of the agricultural business, indicated in the national priorities of the state for agriculture. The paper demonstrates that this problem is hard to solve only through budgetary mechanisms for attracting financial and credit resources to the agricultural sector. The paper reveals the decrease in private investment and overall investment activity in the agricultural business against the background of borrowed capital growth on the example of the Penza Region producers. The conditions of uncertainty require effective tools, adequately describing the return on the investment process or means of supporting the adoption of investment decisions. The methodology for diagnosing the investment attractiveness of the agricultural business is generalized. It is systematized by the indicators of the method of assessing economic value-added and supplemented with models of the functional dependence of the profitability spread on invested capital, which makes it possible to substantiate the effectiveness of potential investments and show the return on invested capital. The research information resources were financial reporting data in the context of agro-industrial enterprises in the region. We considered two possible scenarios of rising prices for products: in the conditions of openness of the domestic market (Scenario 1) and the conditions of “anti-sanction” (Scenario 2). The performed analytical and model calculations show the presence of economic and financial incentives from investing financial resources in the agricultural business in both scenarios. The owners of the invested funds will receive significant value in the first scenario, and large profitability of the agricultural business in the second one. The study results will be useful to AIC management bodies for coordinating strategic decisions to create a favorable investment climate in agriculture. Keywords Agricultural business · Investment attractiveness · Invested capital · Economic value-added · Profitability spread N. G. Baryshnikov · N. Yu. Rozhkova Penza State Agrarian University, Penza, Russia D. Yu. Samygin (B) Penza State University, Penza, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_2

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1 Introduction The primary way of the progressive development of the agricultural economy is the widespread introduction of innovations in agricultural production. For the wide use of innovations in the AIC, large foreign companies invested billions of dollars in research on biotechnology and genetic engineering and are now monopolists in this field [1]. The domestic agricultural sector is solving the problems of ensuring food security and independence of Russia, ensures the competitiveness of domestic products on world food markets. To put agriculture on an innovative development path, it is necessary to change the traditional agricultural sector through the widespread introduction of biotechnology [2]. There is a need for an investment breakthrough and an increase in the investment attractiveness of the agricultural sector. The catalyst for the warming of the investment climate in the agricultural business of Russia was the adoption of several critical strategic documents on agriculture [3], which, in 2017, allowed to increase the budgetary provision of agriculture to more than 234 billion rubles, which is 12 times higher than the level of 2005. Given the budget deficit, the authorities are trying to use additional financing sources for farmers to increase the economic interest of investors in creating new and modernizing existing agricultural facilities. The compensation mechanism of interest rates on loans made it possible to attract bank funds to the agricultural sector. In 2017, the total volume of loans issued to agricultural enterprises amounted to more than 1 trillion 200 billion rubles. Regional experience in attracting investment in the agricultural business shows that there has been an increase in budget and borrowed sources of financial resources for agriculture throughout the activation of agrarian policy. For example, in the Penza Region, with an increase in the total volume of investment by almost three times in 2017, the borrowed sources of financing for agricultural production grew more than 3.5 times compared to 2010. Previous studies show that the growth in borrowed funds of credit institutions in recent years was caused by the activation of financially stable agricultural firms, whose credit potential is limited for objective reasons [4]. A significant part of agricultural producers has low creditworthiness, which does not allow them to attract monetary resources from banks [5]. These factors contributed to the creation of agricultural holding—strengthening, the position of large companies and the displacement of medium and small enterprises [6]. According to our estimates, only for 2016–2018, in the Penza Region, against the background of growth of long-term (+24%) and short-term (+37%) sources, there was a decrease in the share capital and authorized capital (−29%), which indicates a low investment attractiveness of the agricultural sector for private investors. The decision of commercial banks to invest in the agricultural business is carried out based on credit indicators, which have recently improved due to the Russian agricultural policy for increasing the financial stability of producers. However, this is not enough for private investors. Given the objective risks of investing in agriculture and not

Economic Value-Added of Agricultural Business

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receiving the desired profit, many prefer to keep money on bank deposits or in government and corporate securities and use them in financial markets. To mobilize the involved sources of financing, find new reserves, and attract free capital from other investors, it is necessary to create fundamentally different instruments of the organizational and economic mechanism to increase the investment attractiveness of agricultural enterprises, which allows changing the view of capital owners on the return on investment [7]. The research purpose is to formulate tools to support investment decisions in the agricultural sector, including a method of analyzing economic value-added, measuring financial risks, and models for assessing the effectiveness of potential investments in the agricultural business.

2 Materials and Methods It is advisable to build a methodology for functional diagnostics of the investment attractiveness of agricultural sector on the methods of quantitative assessment of business value, which can be divided into two groups: 1. 2.

The method of net assets and the method of future income discounting. The method of the economic added value of the agricultural business.

A comparative analysis of the data on the value of the agricultural business obtained by the first group methods allows us to evaluate the overall prospects for its continuation in the context of future incomes of agricultural activities. The second method allows us to assess the possible increase in the business’s market value. Therefore, the combined use of these methods is advised [8]. The first group of methods is standard, the indicators are used, and the calculation algorithms are set out in the regulatory acts of the Ministry of Finance of the Russian Federation and the Ministry of Economy of Russia. The second group is based on the discounting of cash flows by assessing the economic value added. Economic value added arises if it was possible to earn a return on the invested capital higher than the return rate of an investor for a given period [9]. The methodology of the analysis of economic value added consists of several stages and includes several indicators (Fig. 1). At the same time, the investor needs to know how and to what extent the of the enterprise will change when additional funds are invested in it. That is, it is important to know what increases in market value are expected with every currency unit invested in the business. In this case, it is necessary to carry out functional diagnostics of establishing the nature of the relationship and the parameters of the interdependence between the above criteria. Therefore, the methods of financial management in the study are supplemented by the method of statistical grouping and an econometric analysis of factors of economic value added based on the financial statements of 220 agricultural producers of the Penza Region for 2013–2017.

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Fig. 1 The method of diagnostic of economic value-added. Source Systematized based on [10–14]

The number of groups of farmers was determined by a qualitative criterion, which variational basis was taken as a criterion for the return on invested capital. The levels of return on invested capital were selected as the gradations of the variation feature, which should be compared with the loss ratio, the level of the average weighted cost of capital, the average rate of return for the region, the level of inflation, and the level of alternative rate of return. All calculations were carried out, taking into account the fact that the effect of the “anti-sanction” regime in the field of the embargo on the import of agricultural products from several foreign countries could affect the business value. During this period, a guaranteed sales market and an increase in price based on changes in the ratio of supply and demand for food due to a decrease in the latter could be one of the factors in the growth of business value. To take this fact into account, the discounting of future incomes is carried out in two scenarios: a scenario of food markets open to imports and a slight increase in prices for agricultural products (January 1, 2013–January 1, 2014, Scenario 1), and a scenario of the influence of “anti-sanctions” and a rise in prices (January 1, 2016–January 1, 2017, Scenario 2).

Economic Value-Added of Agricultural Business

19

The calculation of financial indicators was carried out using the specialized financial management application package “FinEcAnalysis” and “Your Financial Analyst.” Functional diagnostics of the parameters of the relationship of factors of economic value added were carried out using the statistical package SPSS.

3 Results The diagnostics of the value of the agricultural business carried out by the method of net asset value, and the method of discounting future income made it possible to obtain the final price quotation, calculated as the arithmetic average of the estimates, using the indicated methods (Fig. 2). The value calculated by discounting future income (more than 42 billion rubles) is much higher (1.8 times) than the estimated value of net assets (about 24 billion rubles). A comparative analysis of the results confirms the hypothesis of leading scholars that it is currently more profitable to continue the agricultural business than to sell it. Several intermediate iterations are carried out to assess the factors of the price of equity: 1.

The analysis of factors of the price of equity capital of agricultural enterprises of the Penza Region (Fig. 3).

The nominal risk-free rate was below the inflation rate. As a result, the risk of this investment can be assessed as an average for the market. The closedness premium is

Fig. 2 The diagnostics of the value of the agricultural business. Source Calculated by the authors

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Fig. 3 The analysis of factors of the price of equity capital of agricultural enterprises of the Penza Region. Source Calculated by the authors

75% of the risk-free rate. Thus, based on the analysis, we can conclude that the risk of investing in agriculture in the Penza Region can be assessed as high. 2.

The analysis of the parameters of economic value-added.

The studies show an increase in the market value of agricultural companies over the book value of assets in recent years and a positive trend in this direction. Thus, the owners lost their invested capital due to the loss of profitability only in 2014. Before that (Scenario 1), on average, the earned return exceeded the amount required by investors by more than 7% over the period. The increase in the market value of agricultural enterprises over the book value of assets amounted to more than 280 million rubles. A similar situation developed in the subsequent period (Scenario 2), where the average earned return exceeded the amount required by investors by more than 2%, and the increase in the market value of assets over their book value amounted to more than 1 billion 306 million rubles. This allows us to talk about the existing incentive for owners to invest additional funds in entrepreneurial activities and business in this industry, both in the first and in the second scenario (Fig. 4). The return spread shows the economic value added received per ruble of invested capital. It indicates how much the market value of the enterprise will increase when additional funds are invested. Thus, each invested ruble leads to an increase in the market value of the agricultural business in the first scenario (2012–2013) by more than 7 kopecks, and by almost 2.5 kopecks in the second scenario (2015–2016). The parameters of such investment efficiency allow us to argue the necessary size of investment in the real sector of the agricultural economy at a certain market value of the business.

Economic Value-Added of Agricultural Business

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Fig. 4 The diagnostics of economic value-added parameters in the agricultural business of the Penza Region. Source Calculated by the authors

4 Discussion The relationships between the factors of economic value added were revealed using the method of statistical grouping (Table 1). The study allows us to confirm the hypothesis that as the level of return on invested capital increases, the economic value-added and the spread of profitability increase. At the same time, the largest share (almost 38.5%) in the structure of invested capital belongs to farmers with a return on invested capital over the level of alternative returns (15%). The increase in return on invested capital is more likely to be associated with an increase in the share of invested capital in the structure of total capital. Thus, farmers with a return on invested capital above the average regional share of this capital above 80%. Moreover, these producers can increase their market value while increasing the relative volume of investment. The functional dependence of the return spread on the amount of invested capital shows that the most substantial relationship is manifested in a power-law model (Table 2). With a 98% probability, each invested ruble will contribute to an increase in market value, and the elasticity of the model indicates that with an increase in invested capital by 1%, the market value will increase by 1.04%. Checking the adequacy of the power-law model and the significance of its parameters shows that it satisfies the Fisher condition (F-significance = 0.0034 < 0.05)

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Table 1 Grouping of the Penza Region agricultural enterprises in terms of return on invested capital in the agricultural business Groups of farmers by return on invested capital, million rubles

The share of households in the group, %

The average return on invested capital in the group, %

The share of invested capital in the capital structure, %

Economic value added to the group, million rubles

The spread of the return on invested capital in the group, rubles/rubles

Up to 0%

21.50

−15.53

75.65

−1297

−25.87

From 0 to 6.56%

28.50

1.25

75.37

−1137

−9.05

From 6.56 to 8.88%

4.21

6.89

66.72

−37.1

−3.46

From 8.88 to 11.4%

4.67

10

83.73

−0.16

−0.07

From 11.4 to 15.0%

7.48

13.19

88.56

83.84

3.11

Over 15.0%

33.64

31.56

86.99

2,915.9

21.57

Source: Calculated by the authors

and Student’s criteria (P-value = 0.0001 < 0.05). It can be used to construct forecast values of the spread of the return on invested capital on the value of the investment.

5 Conclusion Summing up, we can conclude that the strategic investment attractiveness of agriculture aims to attract bank capital to the agricultural sector through a budgetary measure to support the interest rate on loans. The successes are mainly associated with the involvement of credit resources in the activities of commodity producers. Simultaneously, the taken steps have not yet made it possible to interest other investors and attract their free capital to the agricultural business. They are scared away by high agricultural risks, the instability of the food market situation, etc. Simultaneously, the calculations showed that in both scenarios, there is a return on investment in the agricultural business, the earned return exceeds the amount required by investors. The general conclusions are that the risk of agricultural activities is higher in the first scenario, where the growth rate of the value of the agricultural business for each ruble of additional investment is also higher, the increase in the market value of assets over their book value is higher in the second scenario. In other words, the owners of the invested funds in the conditions of the “anti-sanction” regime will receive greater profitability of their business, and in the conditions of open markets—their high cost.

0.01 0.18 0.01 0.98

y = 419,072 – 0.4184x

y = 4E + 06-4E + 05ln(x)

y = 8E-07 × 2 – 1.695x + 501,071

y = 330,217,711.45 × 1.04

Linear

Logarithmic

Polynomial

Power

Source: Calculated by the authors

Degree of dependence (R2)

Functional

Type of dependency

0.0034

0.7456

0.0569

0.0478

Adequacy of the Fisher model (F-significance)

Table 2 Functional dependencies of the profitability spread (y) on invested capital (x) in the agricultural business

0.0001

0.4553

0.1214

0.0755

Student’s significance (P-value)

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In modern Russian conditions of agricultural development, it is difficult to do without an explicit description of investment processes and their impact on the industry’s production indicators. Our calculations using the tools of functional diagnostics of investment capital allow us to solve these problems: justify the effectiveness of potential investments, show the return on invested capital.

References 1. Wang Y-C (2016) The optimal capital structure in agricultural cooperatives under the revolving fund cycles. Agric Econ-Czech 62:45–50 2. Bespakhotnyy GV (2016) Financing of government import substitution programs in agriculture. Econ Agric Process Enterprises 1:19–22 3. Altukhov AI, Drokin VV, Zhuravlev AS (2019) Increasing competitiveness in the agro-food complex is impossible without its rational territorial organization. IOP conference series: earth and environmental science vol 274 4. Baryshnikov N, Samygin D, Murzin D (2019) Forecasting bankruptcy models for agrarian business. IOP conference series: earth and environmental science vol 274 5. Samygin D, Kudryavtsev A (2018) Strategic Instruments of state support distribution in the agrarian sector. Ekonomicheskaya Politika 13(5):156–175 6. Frumkin BE (2016) Food embargo and food import substitution: Russian experience. J New Econ Assoc 4(32):162–169 7. Kelejnikova S, Samygin D, Imyarekov S, Katajkina N, Abelova L, Artamonova Ju (2017) Diagnostics and optimization of the vegetable market. Ponte 73(3):270–283 8. Samygin D, Baryshnikov N, Vinnichek L, Glasunov I (2017) Strategic models of optimization of support of farmers. Ponte 73(4):146–157 9. Gamba A, Triantis AJ (2008) The value of financial flexibility. J Financ 63:63–96 10. Cordeiro JJ, Kent DD Jr (2001) Do EVA(TM) adopters outperform their industry peers? Evidence from security analyst earnings forecasts. Am Bus Rev 19(2):57 11. Gamidullaeva LA, Vasin SM, Surovitskaya GV (2019) Towards combining the triple helix concept with the competence-based approach of educational management theory. Glob Bus Econ Rev 2:23–34 12. Lukasevich IY, Lvova NA, Sukhorukova DV (2018) Creation of corporative financial stability index: integrated approach. J Rev Glob Econ 7:703–709 13. Mesly O (2015) Fear, predatory webs, and blind trust mark market bubbles. J Wealth Manage 17(4):21–41 14. Stewart B (2013) Best-practice EVA: the definitive guide to measuring and maximizing shareholder value. Wiley, New York, NY

Value Assessment of Shares of Corporate Issuers by Applying the Methods of Fundamental Analysis in the Stock Exchange Market George D. Abuselidze

and Anna N. Slobodianyk

Abstract The paper describes the economic content of the category “fundamental analysis,” namely, its essence and implementation stages. It reflects the peculiarities of the securities valuation of corporate issuers and the main approaches and methods for determining the fair value of securities. The authors analyzed the infrastructure of the Ukrainian stock market, the poultry industry sector, and the financial condition of “Myronivsky Hliboproduct” PJSC. The authors, together with the expert of fundamental analysis, determined the fair value of the shares of “Myronivsky Hliboproduct” PJSC and described how to improve the valuation of corporate issuers’ securities. The paper provides recommendations for improving fundamental analysis. It is substantiated that the relevance of assessing the value of company securities by the methods of fundamental analysis is revealed through the development of the stock market, the establishment of new companies in public trading, and the introduction of the necessity for the application of the scientifically approved approach allowing to make strategic decisions regarding these companies. The authors proved that the use of fundamental analysis by investors is one of the primary methods successfully applied in the study of investment objects. It was confirmed that the fundamental analysis is popular due to its efficiency. Therefore, the research departments were established to conduct the analysis. It is proved that in the conditions of uncertainty (for example, in trade), market participants should carefully balance between optimization of performance and preparation for unpredictability. As a rule, traders tend to pay too much attention to the former and not enough to the latter. It is shown that the fundamental analysis is based on the assessment of issuer: its income, its position in the market, the value of assets and liabilities, and other indicators showing the company’s activity. The analysis is based on balances, reports, and other materials published by the company. It was also revealed that data on the state of the economy and affairs in the industry is studied during fundamental analysis.

G. D. Abuselidze (B) Batumi Shota Rustaveli State University, Batumi, Georgia A. N. Slobodianyk National University of Life and Environmental Sciences of Ukraine, Kyiv, Ukraine © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_3

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According to the research, the price of securities is too high or low compared to the real value of assets. Keywords Fundamental analysis · Stocks · Securities · Corporate issuers · Fair value · Valuation

1 Introduction The stock market is in the leading positions in the world economy and the economy of each country. The stock market occupies a significant and integral part of the stock exchange market. The stock market redistributes monetary resources and concentrates capital and production. Stock market opportunities can be applied to cover the budget deficit. The stock market also allows its participants to hedge their risks, perform informational and stimulating functions, and regulate economic processes. The investment process ensures the stability of the securities market, which plays a significant role in the development of the financial market in general, which, in turn, is an indicator of the state of the entire economy. The stock market is a strong indication of the country’s economic conditions [1]. The stock exchange provides a neutral ground for brokers and companies to invest. The mobilization of investments is one of the real leverages for the development of the national economy [2]. Modern investors should analyze and forecast the future price of the share that will allow them to accomplish an investment decision-making process regarding the type of position that should be taken in this stock [3]. An investor can thoughtlessly reject important classes of investment assets, bonds, or stocks, even if this particular asset plays a vital role in the development of the best strategy for achieving the goals [4]. Return on assets and risk assessment used both in ordinary and alternative investments policy, should be perspective and effective and reflect the connection of primary economic risks regarding assets [5]. Fundamental analysis is one of the methods for making such a prediction. It is based on the determination of the “fair” value of a company’s shares based on the detailed analysis of a particular enterprise, by taking into account the business peculiarities and development, as well as its strengths and weaknesses [6]. The fundamental analysis proposes a comprehensive assessment of the fundamental factors affecting the value of securities. Analysts calculate the fair value of the security and compare it to the market value. Based on their analysis and comparison, they make an investment decision. The type of analysis chosen by the investor should be based on its capabilities and investment objectives. The results should be as relevant, reliable, useful, and effective as possible. In modern studies, significant attention is paid to addressing alternative investments in the production of eco-friendly products. Consequently, investing in agricultural production is considered as one of the essential spheres of alternative investments. Namely, the construction of “greenhouses” and increasing support from the state makes this sphere attractive for investment [7].

Value Assessment of Shares of Corporate Issuers by Applying …

27

2 Materials and Method The paper uses research assessment and quantitative methods, more specifically, the system analysis method. The study material is divided into parts, each of which covers the assessment of each part and includes the final results. Statistical data, tables, and diagrams are used to analyze and conclude the issue within the quantitative method of research. The relevance of the paper is determined by the research of the theoretical basis and the methods of fundamental analysis. The fundamental analysis tools were practically applied in assessing the value of shares of corporate issuers of “Myronivsky Hliboproduct” PJSC in Ukraine [8].

3 Results and Discussion The implementation of investments in the stock market creates the necessity for making investment decisions concerning the objects worth to be invested in. In this regard, the “investment decision” is the conclusion of the analyst on the appropriateness of investing in the shares of a particular corporate issuer at a given time. It is quite necessary to understand that the investment decision is made at a certain point in time since the securities market itself is rather dynamic. Therefore, considering specific circumstances, an investor can make various investment decisions on the same share. According to the dictionary, the word “decision” means a conclusion or the completion of something [9]. Since the future result of the investment depends on the made decision, it is necessary to justify any decision. For this purpose, financial analysts and investors use various types of analysis, including fundamental. Referring to stock analysis before making investment decisions is one of the most important and integral stages. Its necessity is confirmed by both professional investors and scientists in this sphere. Securities analysis includes the study of certain types of securities (or groups of securities) within the main categories. One of the purposes of such an assessment is identifying those securities that are currently incorrectly evaluated [10]. When analyzing a public joint-stock company, the most important goal is the assessment of its shares. The analyst needs to determine the “fair” value of this stock and compare it with its market rate. Therefore, the primary purpose of the analysis is to determine the correctness of the stock market assessment by comparing the calculated (real) value and the current market price. In the mass number of approaches to the share analysis, the most popular, and the most accurate and effective are the fundamental, technical, and rating analyses. The overwhelming majority of investors judge a company by relying on its financial statements. The indicators of financial statements value demonstrate an assessment of current success, foresee future achievements, and compare companies with

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each other by determining the success of one over the other. When using the fundamental analysis, an investor should possess reliable and comparable information on the studied enterprise. When making investment decisions, fundamental analysis is considered as an independent approach applied by analysts and investors in the securities market. The task of the area of financial knowledge is to analyze individual securities aimed at assessing the investment results. The purpose of the fundamental analysis is to determine the fair value of the security and further monitoring for making appropriate investment decisions. Comparing the received assessment with the current market condition, they conclude the overestimation or underestimation of the goods [11]. B. Graham, D. Dodd, and S. Cottle, the authors of the book “Analysis of Securities,” are considered the founders of the Western theory of fundamental analysis. In this work, the concept of “fundamental analysis” was introduced and defined as a tool for forecasting future share price. In this case, the object of the research of fundamental analysis, according to the researchers, is “financial performance, income, and dividends of the share issuers as well as the state of the economy” [12]. The results of the research, made on the factual basis of the American stock market, showed that there are different interdependencies between returns and risks of financial assets at different investment horizons which differ significantly in terms of types of assets (stocks, bonds, and treasury bills) and duration of the investment horizon. The studies of Zakharkin and colleagues [13] show that with an increase in the investment horizon, the volatility of stocks significantly decreases, making them more attractive for investors than bonds. The volatility of European stock markets was researched by Porter [14], Harrison and Moore [15], Gjika and Horvath [16], Yavas and Dedi [17], and others. M. Tomsett defines fundamental analysis as the process of “researching the state of the economy, industry, and financial condition of the issuer of shares to determine the market value of the company’s shares” [18]. The fundamental analysis is based on the interpretation of the issuer’s performance indicators in the external environment (economic and political situation, legislation, market conditions, etc.). It consists of two key stages—the analysis of the overall situation within a country, industry, or region and the analysis of the security issuer, its financial condition, and results of the operations in the market. Another peculiarity of the fundamental analysis is its focus on a certain circle of users, including investors studying the activities of the issuer in terms of determining risks, profitability, and liquidity for investment. The specificity of the fundamental analysis methods is in applying the approaches used in the entire economic and financial analysis of the share issue (Fig. 1). When using the top-down approach, the fundamental analysis is started not from the issuer of the shares but the operating environment. Exchange rate forecasting carried out under these conditions raises several uncertainties and problems. Fundamental analysis allows us to overcome them by using a systematic approach since it covers three interrelated areas.

Value Assessment of Shares of Corporate Issuers by Applying … Top-down

General economic analysis Analysis of the industry Analysis of the value of the issuer’s shares

Making decisions

29 Down-up

Analysis of the value of the issuer's shares Analysis of the industry General economic analysis

Making decisions

Fig. 1 Approaches to the fundamental analysis. Source Calculated by the authors based on [11]

General economic or macroeconomic analysis, which has a global aspect, should be started with an analysis of international factors affecting its activities. Therefore, the analysis of the prospects for the development of the issuer according to the scheme “from general to private” should begin from the world economy. At the same time, it is necessary to consider the estimations of international financial organizations on the development prospects of national economies, to carry out a comparative assessment of key indicators, including GDP of the countries, the dynamics of the stock market, the level of interest rates, the monetary policy of the leading countries, the volume of world trade, exchange rate fluctuations, and credit default swaps. The macroeconomic analysis involves working with reports of macroeconomic analysts engaged in the forecasting of inflation changes in exchange rates, income growth, and GDP. Analysts can use the data of the state statistics provided by authorities of various countries and international organizations. International organizations (World Bank, WTO, etc.) also publish analytical and statistical information, including forecasts. Access to a large amount of information is provided by special information terminals (such as Bloomberg and Reuters). Before assessing the value of shares of “Myronivsky Hliboproduct” PJSC [“MKP” PJSC], we need to investigate the situation and features of the enterprise development. As already noted, “MKP” PJSC is a leading poultry meat producer in Europe, possessing one of the strongest food brands in Ukraine and one of the largest grain producers in Ukraine with significant potential for growth. Additionally, it is considered as the largest producer of processed meat in Ukraine. The company has a significant advantage among other agricultural holdings, namely, the vertical integration of the production process. It is responsible for all stages of the chicken production process, from the production of hatching eggs to the distribution and sale of the final products, from growing their grain to the production of the food necessary for poultry feeding. This provides complete control over

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quality and cost—from the field to the table. A unique business model and intensive investment in the development and construction of new production facilities with a high level of efficiency is the main advantage of the company compared to its competitors. Vertical business integration guarantees consistent, high-quality standards and control over the cost of final products due to the large scale of production, which is especially important for the development of the Ukrainian economy. As for the growth of chicken production, “MKP” PJSC plans to continue providing the main ingredients (corn, wheat, sunflower, and soy) necessary for the production of animal feed. The company also continues to explore additional ways of using waste products. In the poultry sector, “MKP” PJSC, the leading company of the Ukrainian chicken market, covers about 35% of the total chicken consumption and more than 55% of the Ukrainian market of industrial chicken production. The shareholder capital of “MKP” PJSC, as of May 09, 2008, consisted of 110,770,000 shares, with a nominal value of e 2.00 each. In May 2008, “MKP” PJSC implemented an initial public offering [IPO]. The free float share of “MKP” PJSC as of May 16, 2009, accounted for 22.32% of the shares issued by the company. Their global depositary receipts [GDR)] are listed on the London Stock Exchange (LSE) under the code “MKP” PJSC. Each GDR represents one ordinary share. Since February 2, 2015, the company’s shares also became available on the Ukrainian Stock Exchange. On March 5, 2013, the board of directors approved the adoption of the dividend policy, which maintains a balance between the investment necessary for further development and the rights of shareholders to distribute the net profit of the company. The dividend policy indicates the intention of the company to pay annual dividends to shareholders regularly. The amount of the paid dividends is determined on an individual basis by the board of directors and approved at the general meeting (to pay out up to 50% of the consolidated net profit for the relevant year). Figure 2 shows the dividend payment forecast. The leading analysts are expecting a dividend growth of +21.32% against the last payment. Additionally, in April 2013, “MKP” PJSC completed the Eurobonds placement in the amount of % 750 million. The payment will begin in 2020. The interest rate of the bond is 8.25% per year. The interest will be paid on April 2 and October 2 annually, starting from October 2, 2013 (Fig. 3). On April 29, 2010, “MKP” PJSC completed the Eurobonds placement of $330 million; the payment began in 2015. In addition to the new bonds, the company refinanced 97% of the Eurobonds ($250 million) paid in 2011. The bond interest rate was 10.25% per year. Interest on bonds was paid every six months on April 29 and October 29, starting from October 29, 2010. On November 30, 2006, “MKP” PJSC completed the placement of high-yield bonds worth $250 million on the London Stock Exchange. Payment on bonds was scheduled for November 30, 2011. Interest on bonds was calculated at a rate equal to 10.25% per annum. Interest on bonds was paid to bondholders, whose entry immediately precedes May 15 and November 15, once every six months on May 30 and November 30 from May 30, 2007.

Value Assessment of Shares of Corporate Issuers by Applying …

31

Fig. 2 Dynamics of shares of PJSC “MKP.” Source Calculated by the authors based on the data from “Myronivsky Hliboproduct” PJSC

Fig. 3 Forecast of dividend payment for corporate issuers. Source Calculated by the authors based on (Financial Times, n.d.)

If we analyze the crop sector, we can make the following conclusions: – The company has 370,000 hectares of land under corn, sunflower, wheat, rapeseed, and soybean; – The volume of crop production is high, with high yields compared with the average yield of Ukraine; – EBITDA—$400–450 per 1 hectare, despite the low world price on grain. Prospects: in the medium term, the land bank should grow up to 550,000 hectares (Fig. 4). After studying the poultry sector, the following conclusions can be made: – A gradual increase in capacity at poultry farms (2016 – 40 kt, 2017 – 30 kt). – Self-sufficiency in the production of hatching eggs since July 2016. Prospects for the company: – New production – Vinnitsa complex (Phase 2).

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G. D. Abuselidze and A. N. Slobodianyk

Fig. 4 Land bank “MKP” PJSC. Source Calculated by the authors based on “Myronivsky Hliboproduct” PJSC

– CAPEX for phase 2 is about $350 million (the launch of the first line in 2018 and of the second line after 2020). – The main part of the products from Phase 2 will be exported (Fig. 5). – The sector of poultry farming has the highest growth rate (CAGR). – Annually, world export of poultry equals to 11–12 million tons. – Saudi Arabia, the United Arab Emirates, and Europe were the main poultry importers in 2011–2015, they are expected to increase imports, which creates great potential for exports of “MKP” PJSC (Fig. 6).

Fig. 5 Prospects for the development of poultry farming. Source Calculated by the authors based on “Myronivsky Hliboproduct” PJSC

Value Assessment of Shares of Corporate Issuers by Applying …

33

Fig. 6 Poultry consumption forecast, million tons. Source Calculated by the authors based on “Myronivsky Hliboproduct” PJSC

When assessing the market value of shares, companies usually apply three main commonly accepted approaches—comparative, profitable, and cost. Our research paper will assess the value of the shares of “Myronivsky Hliboproduct” PJSC by profitable and cost approaches. According to the method of net assets, the value of an enterprise is defined as the difference between assets and current liabilities. The net asset is a value determined by subtracting the amount of liabilities accepted for calculation from the amount of assets. The valuation using the net asset method is based on the analysis of the financial statements of the company. The results for determining the value of the shares of the company “Myronivsky Hliboproduct” PJSC by the method of net assets are given in Table 1. The market value of “Myronivsky Hliboproduct” PJSC, calculated by the method of net assets, based on the balance sheet data of the company, is $1,702,600,000. The fair price of an ordinary share is $16.02. In the framework of the income approach, the fair value is determined by using the discounted cash flow model, where the fair value of a company is defined as the value of its core business by the deduction of debt obligations having priority over ordinary shares. The value of the company’s main business equals to the present Table 1 Value assessment of shares of “Mironovsky Khleboprodukt” PJSC by the method of net assets

Indicators

Value (as of December 31, 2015) Meaning (December 31, 2015)

1

2

Assets, million dollars

2076

Short-term liabilities, million dollars

373.4

The value of the company, million dollars

1702.6

Number of shares in circulation, PCs

106,250,399

The fair value of ordinary shares, dollars

16.02

Source Calculated by the authors

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G. D. Abuselidze and A. N. Slobodianyk

value of the expected free cash flow. The cost of the business is divided into two intervals—a certain forecast period and the subsequent time. Thus, the value of the business is defined as the sum of the present value of cash flow during the forecast period and the present value of cash flow after the end of the forecast period, which is called the continuing value. The following formula determines the continuing value: Continuingvalue =

NOPAT ∗ (1 − g)/RNNI WACC − g

where NOPAT is the net operating profit deducting adjusted taxes (in the first year after the end of the forecast period); RNNI (return on net new investment) is gain on the profitability of a new invested capital; g is the expected growth rate. The results determining the value of shares of “Myronivsky Hliboproduct” PJSC using the DCF model are shown in Table 2. It should be noted that the discount rate applied to free cash flow should reflect the alternative expenses of all capital sources weighted by the relative contribution of each to the total capital of the company. The results for determining the weighted average cost of capital of “Myronivsky Hliboprodukt” PJSC are given in Table 3. Thus, the cost and income approaches helped us to determine the fair value of “MKP” PJSC. According to the method of net assets, the value was $16.02 per share, and the income approach was $17.84 per share. Since the market value of “Myronivsky Hliboproduct” PJSC is $9 per share, it can be confirmed that it is undervalued and should be necessarily bought. Leading analysts also conclude that it is necessary to buy shares of “MKP” PJSC since they are undervalued (Fig. 7). As we can see, leading analysts expect three options for the development of the share price, with the highest level expected to be $12.50 over the next year, the average level—$10.70, and the lowest—$8. We used analytical data and forecasts of the Thomson Reuters platform for the research. At the current level of the share price of “Myronivsky Hliboproduct” PJSC, this platform also confirms our conclusion and suggests to buy the shares (Fig. 8). As we can see, the share price is at a minimum level, which confirms our conclusion. Therefore, the peculiarity of the fundamental analysis is its orientation to a certain circle of users, including investors investigating the activities of the issuer in terms of determining risks, profitability, and liquidity for investments. The specificity of fundamental analysis is the application of the approaches used in the entire economic and financial analysis of the stock issuer. The fundamental analyst or investor consciously, intuitively, or mechanically assumes that the price of a stock is sensitive to a certain set of factors (related through

Value Assessment of Shares of Corporate Issuers by Applying …

35

Table 2 Discounted cash flow model Indicators

2015

2016

2017

2018

TV

Revenue

1183

1297

1394

1670

1670

Net income

−133

−15

180

299

299

Plus: D&A

85

84

102

93

93

Plus: Interest expense*(1–Tax rate)

181

95

80

78

78

Tax rate

20

20

20

20

20

Less: CapEx

145

143

187

67

67

Less: Working capital changes

60

90

34

97

97

FCF, e million

−72

−69

141

307

307

WACC, %

8.73

8.73

8.73

8.73

8.73

DFCF

−72

−64

119

239

220

Residual growth

0.35

Terminal value

2619

Enterprise value, $ million

2842

Net debt, $ million

946

Equity value, $ million

1896

Share outstanding, million

106.25

Target share price, $

17.84

Current price

9

Upward, %

98.26

Source Calculated by the authors Table 3 Weighted average cost of capital (WACC)

Risk–free rate Beta

1.42 1.38

Equity risk premium

10.98

Cost of equity

16.57

Cost of debt

3.28

Tax rate

0.2

The after-tax cost of debt

2.62

Share of Equity

0.44

Share of debt

0.56

WACC

8.73

Source Calculated by the authors

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G. D. Abuselidze and A. N. Slobodianyk

Fig. 7 Forecast of the value of “Myronivsky Khleboproduct” PJSC shares in 2018–2019. Source Calculated by the authors based on [19]

Fig. 8 The Thomson Reuters recommendations for the purchase of PJSC “MKP” shares. Source Calculated by the authors based on the Reuters terminal

intrinsic value) having different influence forces, different disclosure periods, and different durations. Despite the presence or absence of feedback between the shares and the issuer, the investor is interested in the current assessment of the difference between the intrinsic value and the market price of the share. However, it should be noted that the profitability of issuers and the market price of their shares are to some extent conditioned by external factors, primarily by all the general state of the economy and the stock market. The source of the expected profitability of ordinary shares is the growth of the stock price, not dividend payments. The real incentive to invest is the difference in prices when purchasing and selling shares. Since it is impossible to provide a reliable forecast of the long-term future stock prices, it is important not to overpay when buying them. The low purchase price should be the main factor in providing safety investment. The stock market is exposed twice by taking into account the factor of the effective management of the securities issuer. The share price reflects the high returns resulting from qualified management. Accordingly, the dynamics of profit is a critical factor in the analysis and evaluation of ordinary shares. Profit growth should be taken

Value Assessment of Shares of Corporate Issuers by Applying …

37

into account as an indicator of good prospects. The display on the chart of sales, profits, and other financial indicators of the issuer or industry are complemented by calculating indicators of absolute and relative dynamics and the construction of trends. In addition to the problems of analyzing the financial condition of an individual organization, there are problems in analyzing the macroeconomic situation, since there is an official version and the real situation within the country, respectively, it is necessary to assess both points of view and especially the market reaction to their intersection. It is also necessary to analyze the market in which an enterprise operates; accordingly, specific industry knowledge is required. Thus, fundamental analysis is a labor-intensive process requiring considerable knowledge and skills. However, at the same time, it is almost the only way to determine the long-term trend of development of an individual company, the trend of any financial instrument. For the effectiveness of the results of this analysis, two conditions must be accomplished: (1) (2)

The analyst should receive the results of the analysis before other investors; Other contributors should come to similar conclusions.

Due to the presence of certain problems in conducting fundamental analysis, investors must consider recommendations to create favourable conditions for a specific analysis. Investors conducting fundamental analysis in the Ukrainian economy can be given the following recommendation: (1)

(2)

(3)

(4)

It is necessary to pay attention to calculating official statistical data on the macroeconomic state of the economy. The fundamental analysis revealed that the study of the published data and comparison with indicators of other countries leads to distorted results. To increase the efficiency of the analysis, the investor should consider the method of calculating indicators and, if it turns to be irrational, find out the reasons for its application. It is necessary to develop their own set of indicators for analysis. The theoretical basis of the fundamental analysis revealed a wide variety of indicators and approaches to their calculations. The analyst does not need to calculate each of them. It is much more rational to choose a personal list of coefficients and factors. The maximum information about the investment object should be “extracted.” The more information the analyst receives from the company itself, the more effective the fundamental analysis. This category of information is not officially accessible, and, therefore, gives the analyst a competitive advantage over other investors, at the same time allowing to solve problems associated with the lack of data from official sources. It is necessary to focus on the income approach. In fact, after analyzing the evaluation approaches, the vibro-method can be formulated differently: which of the existing approaches is less inappropriate in the conditions of the Ukrainian

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(5)

G. D. Abuselidze and A. N. Slobodianyk

economy? The cost approach requires detailed and reliable information on each balance of the company. The comparative approach by the capital market method is poorly applicable due to the lack of analogs. The method of transactions in this regard is simpler, but an investor has to deal with information restrictions. The comparative approach by the method of sectoral coefficients is not applied in Ukraine at all. Therefore, a profitable approach is applied. The income approach requires information based only on analyzing companies and not as detailed as necessary for the cost method. The income approach ensures the correct forecast for the main indicators of the company, which can be implemented by the analyst alone based on the past period analysis, as well as by trying to find out the information in the company itself. The second problem the analyst may encounter is negative cash flows. If the first problem is solved with a high probability, then facing the second problem, an investor will have to resort to a comparative approach. This is the peculiarity of the Ukrainian market—one of the largest retail areas, which shows growth and generates negative flows. Various factors should be taken into account. Based on these recommendations, the degree of effectiveness of the conducted fundamental analysis under Ukrainian conditions can be significantly increased. Nevertheless, it is necessary to consider that several factors can be taken into account and appropriately evaluated.

4 Conclusion To estimate the company, we used fair value-, cost-, and income-based methods. The analysis of the economy showed that Ukraine is in a challenging economic and political situation. The livestock industry has one of the best growth dynamics in the last 10–15 years. The potential of the domestic market to ensure sustainable production growth is objectively limited by its oversaturation with the products of the industry. Consequently, the prospects for the poultry industry are directly related to the development of exports to traditional and new world markets. The analysis of the financial condition of the company and its internal potential revealed the strengths, weaknesses, and peculiarities of its activities. The securities of “Myronivsky Hliboproduct” PJSC are attractive for investment, which was later confirmed by the assessment of the fair value of the securities. The assessment of the fair value of company showed that its shares are undervalued, and its intrinsic value is higher than the real market value of the securities. The calculations, confirmed by the recommendations of leading analysts of investment companies, showed the practical application and the effectiveness of using fundamental analysis in existing conditions. Fundamental analysis plays a vital role in making investment decisions in the Ukrainian environment. Nevertheless, it is rather complicated and can be implemented only under certain conditions and the availability of the necessary resources. Most often, fundamental analysis is applied when making long-term decisions. This

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39

approach is fundamental to the long-term investment strategy of the participants. The main goal of the fundamental analysis is to determine the internal value of securities, compare it with market indicators, and analyze the excess profit of the security on the market in the long-term.

References 1. Khan U, Aadil F, Ghazanfar M, Khan S, Metawa N, Muhammad K, Mehmood I, Nam Y (2018) A Robust Regression-Based Stock Exchange Forecasting and Determination of Correlation between Stock Markets. Sustainability 10(10):3702. https://doi.org/10.3390/su10103702 2. Abuselidze G (2018) Georgia’s capital market: functioning problems and development directions in association with EU. J Appl Econ Sci 13(7) 3. Sharpe, W. (1964). Capital Asset Prices: A Theory of Market Equilibrium Under Conditions of Risk, the Journal of Finance, 19(3), 425–442 4. Abuselidze G, Slobodianyk A (2019) Investment of financial instruments and their influence on the exchange stock market development. Proceedings of the 2019 international conference “Economic science for rural development”, pp 211–221. https://doi.org/10.22616/ESRD.201 9.124 5. Abuselidze G, Beridze L (2018) The role of alternative investments in the development of capital markets: in terms of the transformation of Georgia with the EU. In: Staníˇcková M, Melecký L, Kováˇrová E, Dvoroková K (eds) Proceedings of the 4th international conference on European integration 2018. VŠB—Technical University of Ostrava, Ostrava, Czech Republic, pp 29–41 6. Copeland, T. E., Koller, T., & Murrin, J. (1994). Valuation: Measuring and managing the value of companies. Wiley frontiers in finance. Retrieved from https://elibrary.bsu.az/books_ 200/N_1.pdf. 7. Kendall, M. (2016). Investing in Sustainable Agriculture. An analysis of federal funding for agroecological research shows tremendous untapped potential. Retrieved from https://www. elsevier.com/atlas/story/resources/investing-in-sustainable-agriculture. 8. Myronivsky Hliboproduct” PJSC. (n.d.). Official website. Retrieved from https://www.mhp. com.ua. 9. Agapov A (2010) Stock earthquakes. Finance 5:48 10. MaBiCo. (2019). Official website. Retrieved from https://www.mabico.ru/lib/127.html 11. Damodaran A (2011) Investment assessment: Tools and methods for assessment of any assets (Transl.), 7th edn. Alpina Publisher, Moscow, Russia 12. Graham B, Dodd DLF, Cottle S (1934) Security analysis. McGraw-Hill, New York, NY 13. Zakharkin, O., Zakharkina, L., & Antoniuk, N. (2018). A comparative analysis of stock market volatility depending on the investment time horizon. ECONOMIC ANNALS-XXI, 167(9–10), 49–52. https://doi.org/10.21003/ea.V167-10 14. Porter ME (2008) The five competitive forces that shape strategy. Harv Bus Rev 86(1):78–93 15. Harrison B, Moore W (2012) Forecasting stock market volatility in Central and Eastern European countries. J Forecast 31(6):490–503. https://doi.org/10.1002/for.1214 16. Gjika D, Horvath R (2013) Stock market comovements in Central Europe: Evidence from the asymmetric DCC model. Econ Model 33:55–64. https://doi.org/10.1016/j.econmod.2013. 03.015 17. Yavas BF, Dedi L (2016) An investigation of return and volatility linkages among equity markets: A study of selected European and emerging countries. Res Int Bus Financ 37:583–596. https://doi.org/10.1016/j.ribaf.2016.01.025 18. Gitman, L. D., & Jocky, M. D. (1999). Basics of investment (Trans.). Moscow, Russia: Business. 19. Financial Times. (n.d.). Retrieved from https://markets.ft.com/data/equities/tearsheet/foreca sts?s=MHPC:LSE.

Key Development Strategies for Small Regional Agribusinesses Marina A. Kholodova , Svetlana G. Safonova , and Marina S. Sheykhova

Abstract Modern production and economic relations in the agricultural sector of the economy require the search for effective approaches to expanding the participation of small agribusiness entities in providing the population with the food of own production. The paper aims to substantiate the conceptual provisions for the formation of strategies for the development of small agribusiness in the implementation of state priorities. General scientific research methods are the methodological basis of the study. The study analyzes the activities of small businesses in rural areas at the regional level. The reasons hindering the development of small agribusiness are substantiated. The key factors determining the strategic guidelines for the functioning of entrepreneurship in rural areas include the state of the institutional environment, the level of state support, and the potential competitiveness of small businesses, especially their interaction through rural consumer cooperation. Different strategies of development of small agribusiness (patienta, commutata, vilenta, and experenta) are highlighted based on the different strategies of development of small agribusiness. The significant potential of the National project “The creation of a system of support for farmers and the development of rural cooperation” was noted as a tool for the progressive movement of small agribusinesses through agricultural consumer cooperation, providing the maximum synergetic effect. Keywords Subjects of small agribusiness · Agricultural production · Competitiveness · Development strategies · Conceptual approaches

M. A. Kholodova (B) All-Russian Scientific Research Institute for the Economy and Standards–Branch of the Federal Rostov Agrarian Scientific Center, Rostov-on-Don, Russia S. G. Safonova · M. S. Sheykhova Don State Agrarian University, Persianovsky, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_4

41

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M. A. Kholodova et al.

1 Introduction The current stage of development of the Russian economy, marked with global challenges and threats, affects the functioning of agricultural production and necessitates the search for effective strategies for the development of small agribusiness in the countryside. In this regard, the priority direction for the development of small agribusiness in the region is the development of agricultural consumer cooperation. Its main task is not only to increase the efficiency of farmers and increase the participation of small agribusinesses in providing the population with food products. The practice of developing small agribusiness in a vast agricultural region of southern Russia, the Rostov Region, where a third of the population lives in rural areas, is of highest scientific and practical interest. In 2018, small businesses produced about 90.0% of milk products, 84.5% of vegetables, 69.1% of potatoes, 46.7% of meat, 37.2% of sunflower, and 32.6% of cereals [1]. The development of small agribusiness in the Rostov Region contributes not only to ensuring food security of the country but also to the development of multistructure forms of farming in the countryside, self-employment of the rural population, improvement of the rural infrastructure, the dynamic growth of real cash incomes of the population and the formation of the middle class in the rural outback, preserving the historical heritage.

2 Materials and Methods The object of the study is the regularity of the development of small agribusiness in the Rostov Region under the conditions of modern challenges and threats. The information-analytical basis of the study is the data of the Ministry of Agriculture and Food of the Rostov Region for 2006–2018.

3 Results In the context of ensuring a breakthrough scientific, technological, and socioeconomic development of the Russian economy, regional authorities actively encourage the development of alternative forms of activity (i.e., small agribusiness) [2, pp. 39−40]. These business entities are more flexible and quickly adapt to the unstable and contradictory macroeconomic situation in the country, stimulating rather high rates of economic growth in the agro-industrial complex [AIC] (Fig. 1) [3, pp. 35–37]. The vector of modern agricultural policy of the Rostov Region, which defines key areas and tools for the development of the production, economic, and social sphere of

Key Development Strategies for Small Regional Agribusinesses

43

130 120 110 100 90 80 2013

2014

2015

Agricultural associations

2016

2017

Private farms

Collective (farm) households

Fig. 1 The dynamics of economic growth in the agricultural sector of the Rostov Region in the context of farm categories for 2013–2017, %. Source [1]

the village, consisting in large-scale modernization of the rural economy, the formation of a qualitatively different model of economic growth, and a healthy competitive environment, is the development and implementation of support programs for small agribusiness. They include the National project “The creation of a system of support for farmers and the development of rural cooperation.” During the implementation of support programs for small agribusiness in the region (2006–2018), the amount of their financing increased by 9.0 times, amounting to 1,440 million rubles against the background of consolidation of farms (Table 1). Thus, to expand the scale of production and economic activity, farmers of the Rostov Region actively acquired land plots, the total area per one farm increased by 1.8 times during the study period, amounting to 220.8 hectares (Table 1). Additionally, a stock of highly productive farm animals was purchased. It had a positive effect on the average annual milk yield per cow (an increase of 44.5% in 2018 compared to 2006). Modern agricultural machinery and livestock equipment were also purchased. There was a demand for grant support for beginner and family livestock farms in meat and dairy cattle breeding. It accounted for 68.4% of the total grants in 2018. In particular, 36.4% of the grants were allocated for raising livestock meat, 32.0%—for the development of dairy cattle breeding, and 31.6%—for the development of the crop industry. It is explained by the fact that the livestock industry has lower profitability, high capital intensity, and contributes to the creation of more jobs compared with the sub-sectors of crop production. Providing the production of a significant share of the main types of agricultural products in the region, small-scale forms of management are experiencing serious Table 1 The scale of activity of farms in the Rostov region for 2006–2018 Indicator

2006

2018

Average milk yield per cow, kg

2018 to 2006, %

3716.0

5371.0

144.5

The total land area on average per farm, ha

122.9

220.8

179.6

Financial support of the state, million rubles

160.0

1440.0

Source [1]

9.0 times

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M. A. Kholodova et al. fresh tomatoes

62.2

10.4

fresh carrots fresh white cabbage

52.3

7.8

fresh cucumbers

78.1

13.0 65.6

6.3

onion

5.0

potatoes

5.8

0.0

79.5 57.3 20.0

40.0

Non-network organizations and individual entrepreneurs

60.0

80.0

Large retail chains

Fig. 2 The share of sales of vegetable products and potatoes by the small agribusiness of the region through various distribution channels in 2018, %. Source [1, 4]

difficulties associated with well-functioning food distribution channels. The analysis of small agribusiness products in the region showed that only a small part of it is sold through large retail chains (Fig. 2). The main volume of sales of vegetables and potatoes by Don agricultural producers in various forms of retail chains indicates that a significant part of farm products is sold through non-network organizations and individual entrepreneurs. Thus, only 13.0% of carrots produced in the region are sold through large retailers (including Auchan, Lenta, O’key, Magnit, Pyaterochka, Apeks, Assorti, and others), 10.4% of fresh cucumbers, 7.8% of fresh tomatoes, 6.3% of cabbage, 5.8% of potatoes, 5.0% of onions. Surplus vegetables and potatoes produced by local farmers focused on the central regions of Russia are sold in small batches on the markets and in vegetable stalls by individual entrepreneurs. Sales of pork and poultry produced in the large organizations of the Don Territory are carried out mainly through large retail chains (Fig. 3). The sales of beef, one of the most expensive types of meat, which production is concentrated mainly on households and farms, prevailed among non-network organizations and individual entrepreneurs (86.2%). In 2018, the sale of beef from Don agricultural producers through large retail and retail chains amounted to 13.8%. This indicates the high competitiveness of larger participants in the agri-food market.

21.7

poultry meat

36.8 32.8

pork beef

40.7 86.2

13.8 0.0

20.0

40.0

60.0

Non-network organizations and individual entrepreneurs

80.0

100.0

Large retail chains

Fig. 3 The share of sales of main types of meat by the small agribusiness of the region through various distribution channels, 2018. Source [1, 4]

Key Development Strategies for Small Regional Agribusinesses

45

A serious problem hindering the further development of small agribusiness in the countryside is their small size, which does not allow them to compete with the “sharks” of the food market.

4 Discussion Fierce competition forces medium and small agricultural producers to pay special attention to the priority areas of their business development. It leads to the need to find alternative markets for products through the agricultural consumer cooperation system, which proved its effectiveness in various socio-economic systems [5, p. 24]. This process requires time and active support from the state because the effective functioning of small businesses in the countryside contributes to ensuring the food security of the country and the dynamic development of the countryside. Our studies show that in the face of modern challenges and threats, the development of rural consumer cooperation should be the fundamental basis for the development of agribusiness in the countryside within the framework of the National Project “The creation of a support system for farmers and the development of rural cooperation,” which will create an appropriate institutional environment for developing a framework for small agribusiness development regarding the development of new markets. We developed and considered various options for the development of small businesses through a cooperation system, depending on the impact of global challenges and threats (Fig. 4). The implementation of the proposed options for the development of small-scale forms of farming in rural areas of the Rostov Region provides for the application of a set of specific, consistent measures in the field of development of production and economic relations of small businesses in the agricultural sector in cooperation with the state through a system of consumer cooperation aimed at creating a new institutional environment of high-quality. It allows them to compete with the commercial structures of the agro-food market [6, pp. 35–37]. Thus, given the insufficient level of competitive potential of small agribusiness entities, their development strategy can be defined as “patient” (niche), focused not just on specialization, but on the concentration of efforts in the production of products in limited demand, for example, the production of meat and organic dairy products that are indispensable for a specific group of consumers in the city. The implementation of this strategy is of particular importance for small businesses in rural areas as it increases the chances of small agribusiness in the fight against large players in the agri-food market under the import substitution policy. If the state does not take an active position aimed at the dynamic development of small forms of farming in the countryside under the conditions of a complete ban or discrimination on food imports, with a low level of competitive potential of small agribusinesses, the implementation of the “commutative” (adaptive) strategy is possible. The source of strength of the “commutators” in the competition on the

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Fig. 4 Typology of development strategies of small agribusiness in rural areas. Source Developed by the authors

agri-food market is the immense multiplicity of households, farms, and individual entrepreneurs, their increased flexibility, and adaptability. The main qualitative characteristics of the “commutative” strategy in the field of Russian agribusiness are: – – – –

Mainly small-scale production; The predominance of manual labor, due to the high capital intensity of the industry; The provision of an individual approach to the client; The lack of clear and precise strategic and tactical development priorities.

Key Development Strategies for Small Regional Agribusinesses

47

Currently, the “commutative” strategy is the most common among small agribusinesses in the Rostov Region, which is marked with a massive change in the type of activity under the change of external conditions (selling prices, tax laws, and relative profitability). Such a strategy will lead to the adaptation of small agribusiness entities to the prevailing economic conditions. At the same time, the market infrastructure of the agri-food market does not change. The key factor influencing the formation of a “healthy” competitive environment for small entrepreneurship in the countryside is the development of industrial and economic relations in the AIC through the cooperation system, which makes it possible to use the advantages of the integration process effectively. In this regard, the implementation of the “vilenta” (power) strategy is of the most significant practical interest. Based on the presence of a developed service, purchase, and sales network, the organization of large advertising campaigns, the availability of credit resources, and the synergistic effect, small agribusiness should occupy a dominant position in the vast food market, since, currently, most of the needs of the population in vegetables, potatoes, and milk are met through the development of small businesses. The implementation of the “vilenta” strategy will contribute to the development of large cooperative movements, the synergistic effect of participation in which will ensure the progressive development of small agribusiness. The vector development of the industrial, economic, and social sphere of the village consisting of a large-scale qualitative modernization of the rural economy and the formation of a high level of competitive potential of small agribusiness entities is due to the active support of the state. Thus, in the framework of the National Project “The creation of a system of support for farmers and the development of rural cooperation” in the medium term, it is possible to implement the “experenta” (pioneering) strategy. Its essence is to improve the institutional environment for the interaction of small agricultural producers through a system of cooperation with the state. This strategy will provide a search for alternative decisions on the entry of small agribusiness entities into the food markets of neighboring countries. The implementation of the “experenta” strategy for the development of small business forms is currently a new path for sustainable growth in the agrarian and national economy.

5 Conclusion In the medium term, the strategic vector for the development of small agribusiness entities in the Rostov Region will be determined by the laws governing the small forms of farming in the countryside, their integration through the agricultural cooperation system, the behavior of large food retailers in the market, and government policy on this issue. At the same time, the system of agricultural cooperation should become an economic platform called for integration, increasing the synergetic effect, and, in general, developing small agribusiness in the countryside.

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References 1. Ministry of Agriculture and Food of the Rostov Region (2019) Agro-ind complex Rostov region. Rostov-on-Don, Russia 2. Tkach A, Cherevko A (2017) Cooperation in the agro-industrial complex of Russia at the present stage: trends, problems, prospects. Econ Agric Process Enterprises 7:39–48 3. Tkach A, Zhukov O (2018) Cooperative business in improving food security. Econ Agric Russ 3:35–41 4. Government of the Rostov Region (2018) Information and analytical material on the results of the regional study of the share of certain types of products of regional producers in the total sales of similar products in the retail network in the Rostov region. “DSTU-Consultservice” LLC, Rostov-on-Don, Russia 5. Truba AS (2017) Conceptual approaches to the development of an effective mechanism of rational economic behavior. Econ Agric Process Enterprises 7:23–32 6. Kholodova M (2018) Conceptual approaches to the development of the import substitution strategy in the field of food. Econ Ecol Territorial Entities 2(3):33–42

The Model of Budget Management Based on the Process Approach in Wine Production Industry Zoya V. Udalova , Lyubov V. Postnikova , and Andrey A. Udalov

Abstract The paper aims to develop a model of management budget for the primary and auxiliary business processes in organizations of the wine industry. The model allows us to keep track of the costs of subprocesses and technological stages and to determine the costs of growing grapes and producing wine. It also guides the necessary information for making current and strategic decisions in achieving the planned results. Keywords Budget · Management · Wine production · Process approach · Agro-industrial complex

1 Introduction Successful and competitive functioning of economics is possible only if new management methods are used [1]. The competition of wine production organizations is becoming global. The pace of innovation in grape and wine production saw a sharp increase. Therefore, companies are striving to improve business processes to create consumer value. The wine production industry is of great economic importance. It is a subcomplex of the agro-industrial complex [AIC], which includes enterprises for the cultivation of grapes, processing of raw materials, the organization of secondary winemaking, as well as harvesting, storage, transportation, and sell of final products (wines and cognacs).

Z. V. Udalova (B) Rostov State University of Economics, Rostov-on-Don, Russia L. V. Postnikova Russian State Agrarian University–Moscow Timiryazev Agricultural Academy, Moscow, Russia A. A. Udalov All-Russian Scientific Research Institute for the Economy and Standards–Branch of the Federal Rostov Agrarian Scientific Center, Rostov-on-Don, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_5

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Four spheres are usually distinguished as part of the wine production sub-complex: (1) (2) (3) (4)

Production of machines for viticulture and equipment for processing grapes; Production of grape and planting material; Processing of viticulture products; Infrastructure of the sub-complex (procurement, storage, transportation, and sale of products) [2].

One of the main conditions for the dynamic development of the wine production sub-complex is to ensure the proportionality and balance of all four .areas, including specific business processes. From the contribution of each sphere to the cost of the final product, one can judge the rational structure of the sub-complex. In developed countries, the bulk of the cost of the final product is created in three and four areas (integrated waste-free processing of grape raw materials, its storage, pre-packing, and packaging of finished products). For example, in the USA, 80% of the retail value of processed products is created in these areas, and in the Russian grape-growing and winemaking subcomplex, not more than 40%.

2 Materials and Methods A process approach to management gives any organization the ability to increase the efficiency of operations and ensure the quality of management. The development of a managerial budget model predetermines the need for an appropriate algorithm of actions that provide managers with the necessary information for making effective decisions on current and strategic planning. Accounting and cost analysis for existing business segments in the context of each business process should be the main feature of forming the model of the managerial budget in wine production. Such a problem in the organizations involved in wine production is relevant due to industry specifics, the presence of auxiliary and service industries, the specifics of the organizational structure, and constantly changing regulatory framework. In this case, it is necessary to take into account the inherent features of viticulture, including the frequency of fruiting, a share in the structure of marketable products of non-standard products difficult to sell fresh, the seasonal nature of the supply of raw materials, and the low level of mechanization of labor. The agribusiness analytical center “AB-Center” analyzed the grape market, particularly the total area of vineyards in all categories of Russian farms. In 2016, it amounted to 87.6 thousand ha (including the area of vineyards in fruiting age—70.5 thousand ha). Concerning 2015, the size of the area increased by 3.0% or 2.5 thousand ha. Over the year, the area of fruiting age increased by 4.9% or by 3.3 thousand ha. In 2016, grape production in Russia amounted to 551.7 thousand tons. Over the year, the yield increased by 16.1% or 76.5 thousand tons (Russian [2]. Thus, there is an increase in the area and production of grapes (including Crimea). According to the Concept of the Development of Viticulture and Winemaking in Russia for the period 2016–2020 and the planning period until 2025, at the first stage

The Model of Budget Management Based on the Process Approach …

51

(until 2020), the main efforts are supposed to focus on updating the material and technical base and creating a favorable investment climate. During the second stage (2021–2025), it is planned to “create the export potential of the Russian Federation and bring domestic winemaking to the world level” [3] However, the Draft Federal Law No. 226612-7 “On the Development of Viticulture and Winemaking in the Russian Federation [4] is yet being considered, which negatively affects the development of viticulture. It is advisable to keep management records and independently develop a budget for each business process in the wine production enterprises.

3 Results and Discussion In world practice, the management of the enterprise is carried out based on strict budgeting, accounting for the quantitative expression of the centrally established indicators of the enterprise plan for a certain period and monitoring their implementation. The main goal of introducing a budgeting system and developing a managerial budget model based on a process approach at the enterprises of the wine-growing industry is the achievement of reliable business planning and cost management. After implementing this system, employees of the management apparatus will be able to objectively evaluate the income and expenses of the main business processes and determine the break-even point for each of them. In well-managed wine production organizations, the budgeting cycle is marked with the following features: • Planning is carried out as a whole for the enterprise, as well as for individual departments; • Actual results are compared with forecast values; • The reasons for deviations from budgets are studied. Foreign scholars Horngren et al. [5, p. 33] note that processes in the course of economic activity take place in a particular sequence, forming a chain of operations or events, at each stage of which the product or service acquires additional utility and value. Given the sequence of processes and adding value to each of them, the term “value chain” appeared. In turn, Harrison et al. [6, p. 28] emphasize that the business process is a set of steps that follow in a particular order and allow to solve specific problems in business. Wine production organizations have main and supporting business processes to ensure high financial results formed by segments and stages of production. Each process should be considered not only as one of the links in the general production system aimed at the production of the final product but also as an independent variant of existence with the product for sale and obtaining profit. This requires a clear understanding of what each business process produces and for whom, what costs are involved in this production, and which of the presented options will be optimal for obtaining the best final result. At the same time, there is a need for information accumulated in cost centers and centers of economic responsibility, which will allow for prompt internal control. In the organizational structure of the enterprise of the

52

Z. V. Udalova et al. Grape production

Storage, aging

Grape Processing – Spinning, Wort Production Fermentation Process – Production of Untreated Wine Wine processing – production of finished raw materials for wine (blending, purification, filtration)

Selling

Wine bottling

Fig. 1 The structure of the main business processes of organizations in the wine production industry Source Developed by the authors

wine production industry, several main business processes should be distinguished, each of which specializes in the production of a product that can be both an integral part of the primary production of the plant (wine) and an independent line of business (Fig. 1). Following the developed structure of business processes in the wine industry organization by building a model of the business economy, we distinguished the subprocesses and technological stages of the business process for the production of the final product to plan all components of the overall production process more efficiently. The managerial budget model is developed based on the process approach, in which the budget data for the entire enterprise is formed based on the budgets of the central business processes. In turn, the budget for business processes is formed by the budgets of auxiliary business processes (Fig. 2). It should be noted that the plan for the production of grapes is at the forefront, which is the foundation for the formation of the entire budget. Budgets for all subsequent stages of production are developed based on the data on the planned grape harvest. It gives reasons to conclude that the primary business process in the organization is the business process for the production of finished products (grapes) ready for sale. Accordingly, the main goal of management accounting is cost accounting and determination of the cost of finished products, since the cost of production as an object of management. It is the leading indicator of the effective implementation of this business process. For more detailed budgeting of wine (grape) production, cost accounting, and costing, it is necessary to distinguish the technological stages of each subprocess justified by industry characteristics and the regulatory and technological procedures for production. Based on the selected technological stages, the costs that should be included in the production cost of the finished product and for which budgets for the necessary resources in production will be drawn up are taken into account and controlled. This

The Model of Budget Management Based on the Process Approach …

53

Fig. 2 The model of management budget for organizations in the wine production industry Source Developed by the authors

will allow forming the production cost of each product of the overall production chain separately. Thus, even if the final result turns out to be positive, it is possible to determine the use of added value for each technological process, for all expenditure items (wages, contributions to extra-budgetary funds, energy carriers, seedlings, etc.), the directions for optimizing control objects, ways of eliminating unproductive actions and improving the activities efficiency. To compile management reports (production reports) and compare indicators with budgetary ones, it is necessary to account for

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costs for subprocesses of the production. In the financial accounting system, it is necessary to form an information base on production costs for each main business process according to cost items.

4 Conclusion The developed model for budgeting business processes is based on financial accounting data. It eliminates the need for double accounting. Accordingly, the design and accounting of costs will be carried out using financial accounting techniques. Based on the data of financial accounting for the documents, it is possible to calculate the cost of each product, a subprocess of production by technological stages for use in the management accounting system. Thus, the model of the managerial budget of the wine production enterprise and the industry as a whole allows us to take into account the costs of sub-processes and technological stages of growing grapes and wine production with determining their cost. It also provides the necessary information for making current and strategic decisions in achieving the planned result reflected in the consolidated budget.

References 1. Altukhov AI, Kulikov IM, Semin AN, Kurdyumov AV et al (2018) The food complex of Russia: state and development prospects. Moscow, Russia: federal state budget scientific institution all-Russian institute of horticulture and nursery 2. Russian Federation (2017) Draft Federal law No. 226612-7 “On the development of viticulture and winemaking in the Russian federation”. Moscow, Russia. Retrieved from https://www.con sultant.ru/cons/cgi/online.cgi?req=doc&base=PRJ&n=185757#0591897083449827 3. Crimean Bureau of Grapes and Wine (n.d.) The concept of the development of viticulture and winemaking in the Russian Federation for the period 2016–2020 and the planning period until 2025. Retrieved from https://kbvw.ru/images/docs/koncepciya17062016.pdf 4. Agribusiness Expert Analytical Center (2017) Grape market: dynamics of production, import, prices. Retrieved from https://ab-centre.ru/news/rynok-vinograda-dinamika-obemov-proizvods tva-importa-cen 5. Horngren CT, Foster J, Datar S (2008) Management accounting. St. Petersburg, Russia, Piter 6. Harrison R, Noreen E, Brewer P (2010) Management accounting. In: Karlik MA (ed) St. Petersburg, Russia, Piter

Globalization of the Russian Agri-Food Sector and Market Strategies of Foreign Companies Svetlana V. Ivanova , Tatyana I. Kuzmina , and Artyom V. Latyshov

Abstract The paper focuses on the degree of involvement of Russia as a whole and its agri-food sector, in particular in the formation of a trans boundedness network, which carries the danger of increasing the heterogeneity of the economic space and the deformation of conventional national state functions. The study analyzes the phenomenon of the expanding Russian presence in the global grain markets and the risk of increasing export orientation due to the successful implementation of the revised Federal Project “The Export of Agricultural Products” in Russia. The mechanism of foreign capital entry into the Russian market of dairy products in direct investment is considered separately. The paper assesses the market strategies of various foreign multinational companies [FMCs]. The work notes that FMCs successfully implement glocalization practices. The study reveals the combination of import, the substitution of goods, export orientation, and maximum localization of foreign capital on Russian territory as a feature of modern Russian state policy (including in the AIC). The paper concludes that the high Russian share in the global grain market and the dominance of products of multinational companies of foreign origin in the domestic market of milk and dairy products, juices, and baby food suggest a high degree of involvement of the Russian agri-food sector in the processes of globalization. Given the hierarchy of the global space, the agenda is currently focused on the qualitative changes of Russian presence in global agricultural markets, rather than on quantitative growth. Keywords Globalization · Glocalization · Global grain market · Russian market of milk · Dairy products

S. V. Ivanova (B) · T. I. Kuzmina · A. V. Latyshov Plekhanov Russian University of Economics, Moscow, Russia T. I. Kuzmina e-mail: [email protected] A. V. Latyshov e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_6

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1 Introduction The term “globalization” is used so often that it seems that there is no need for its thorough analysis. However, the meaning of the cliche “in the context of globalization” is still not fully understood by society. In its purest form, global society presupposes the disappearance of national states (according to the system of the Westphalian sovereignty) and the disappearance of all related institutes and institutions, ideologies, and the very mentality of the state citizen. A trans boundedness network concept lies at the essence of the term “globalization.” The implementation of the neoliberal doctrine principles outlined in the theses of the Washington Consensus [1] radically strengthened this process and created “societies of global risk and uncertainty.” In these conditions, the concept of “global food security” is being formed, all while adjusting the practices of ensuring national food security. The globalization of agri-food sector is marked with a large concentration of capital in ascending and descending industries related to agriculture, especially in retail. This concentration has natural constraints, due to the involvement of living organisms, animals, and plants in agricultural production, and the strong influence of natural and climatic factors. At the same time, the growing demand for food (especially in Asian countries), technical and technological changes in production, and the liberalization of foreign trade increase the inclusion of agriculture in global processes in various countries, including Russia.

2 Materials and Methods The research is based on a conceptual understanding of the “globalization” and the process of determination of the Russian role in economic globalization and the measure of its participation in this process. Foreign economic relations of the agroindustrial complex companies are considered as a special case of Russian presence in global markets. The purpose of the study is to determine the measure of inclusion of specific segments of the agro-industrial complex in the process of globalization, as well as to formulate the risks of an open agricultural economy, based on the interests of the national producer and the priority of rural development. Research methods include historical, abstract-logical, monographic, comparative analysis, and statistical methods.

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3 Results 3.1 The Role of Russia in the Process of Globalization Russia plays a significant role in globalization. The collapse of the socialist bloc and the USSR dramatically increased the coefficient of globalization of the world. The KOF Swiss Economic Institute, with the participation of the Swiss Federal Institute of Technology, calculates the KOF Globalisation Index. According to the index of economic globalization, the current leaders are relatively small, often island offshore-economy companies with a limited internal market (Hong Kong, Malta, Cyprus). Singapore occupies the first position (Table 1). Different spheres of activity are included in globalization to varying degrees. We believe that agriculture is less global due to its binding to specific land and special social significance. Nevertheless, Russia has several well-known competitive advantages in the production and export of agricultural products. This is primarily the scale of land suitable for agribusiness and significant reserves of freshwater. In recent years, Russian agriculture entered the forefront of globalization. Russia is represented in many global markets of agricultural products. It imports products from the markets of butter, powder milk, and meat and exports grain, oilseeds, and other goods. Thus, the implementation of the export-oriented model for the development of the Russain AIC certainly contributes to the growth of the economic globalization index in the country. Table 1 Index of economic globalization, 2016

Rating

Country

1

Singapore

Index value 93.94

2

The Netherlands

89.01

3

Belgium

88.56

24

Germany

79.39

65

USA

67.12

74

Japan

65.08

77

Belarus

64.06

108

RSA

55.34

113

Russia

54.22

123

Kazakhstan

53.01

140

China

46.36

158

India

39.68

173

Brazil

35.59

Source [2]

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3.2 The Risks of Agricultural Export Growth Due to the implementation of the Russian Federal Project “The Export of Agricultural Products,” adopted in 2016, the share of food products and agricultural raw materials in Russian exports increased to 5.5%, while the share of imports of these commodity groups in total Russian imports decreased to 12.4% [3]. The 2018 “May Decree” of the President of the Russian Federation provides for a double increase in agricultural exports from $ 21.6 billion in 2017, up to $ 45 billion by 2024 [4]. A certain decrease in the volume of wheat harvest and exports in 2019 may reduce Russian market share in the world wheat market from 23% (2018) to 19% [5]. Figure 1 shows the growth of Russian grain and leguminous exports over the past 19 years, which outlines the overall success of the project. The positive fallout of Russian entry into the global markets of agricultural products (including the effects beneficial for the Federal budget) is coupled with its risks. These risks include: 1.

2. 3.

The presence of per capita underconsumption of food in the country. In particular, the per capita consumption of milk and dairy products in Russia amounts to 225 kg per year or nearly 30% below the medical norm (325 kg) [3] and significantly below the consumption levels in the USSR, due to the reduction of the market resource base and the decline in the real purchasing power of the population. The level of consumption of fish and fish products that are actively exported from Russia is not high enough. The country undergoes food inflation. In 2018, consumer prices for meat increased by 5.8% in general [7], due to a relative shortage of feed. The modern structure of Russian agricultural export is still based on such raw materials as the export of grain and sunflower seeds. Meanwhile, the OECD forecasts a long-term moderate decline in real global wheat prices, taking into account the existing global wheat stocks [8].

Fig. 1 Russian export of grain and leguminous crops, 2001–2019. Source [6]

Globalization of the Russian Agri-Food Sector and Market …

4.

5.

6.

59

The pursuit of the volume of wheat export reduces its quality, making it impossible to produce high-quality flour and pasta products for domestic consumption. The grey market for flour is growing within the country. More than half of the grain produced in Russia is exported. A high level of export orientation creates a high dependence on global market conditions and increases the volatility of domestic market. A high share of presence of foreign companies among grain traders leading in Russia. According to Rusagrotrans [9], in the 2017–2018 season, the top 30 exporters of Russian grain included multinational companies of American origin: Glencore, Cargill, Bunge, and several others.

3.3 The Attraction of Direct Foreign Investment The attraction of direct foreign investment presents another form of globalization for the agri-food sector in Russia. In Russia, the Federal law “On Foreign Investments in the Russian Federation” (July 09, 1999 No 160-FZ) is the basic document regulating the arrival of foreign FMCs. In connection with the activities of FMCs on the Russian territory, it is appropriate to recall that by paragraph 2.19 of the System of National Accounts (SNA), “the domestic economy is defined by the categories of institutional units… An institutional unit is a resident unit of a country if the predominant center of its economic interests is located on the economic territory of this country…” [10]. Following article 246.2 of The Russian Tax Code, tax residency practices are currently in use [11]. Multinational companies are immanent to expand business by transferring their production activities to different countries of the world. The entry of non-residents in the “milk” segment originally took the “greenfield” approach. This is how the divisions of the French multinational company Danone appeared on the Russian dairy market. These divisions include “Danon-Industriya” (Chekhov, the Moscow Region, 2000) and “Danon-Volga” (Tolyatti, the Samara Region, 1995). These divisions immediately entered the top group of dairy products (yogurts) manufacturers. By the beginning of the twenty-first century, the Russian national capital was consolidated. New owners were formed, and the leaders of the dairy industry were identified. They included OJSC “Vimm-Bill-Dann” [VBD] and “Unimilk Company” OJSC, which in 2007 accounted for at least 67% of the whole-milk market in the country [12]. Russian companies with foreign capital, including “Ostankino dairy plant” OJSC, held no more than 20.6% of this market (by value). In 2010, with the permission of the Federal Anti-Monopoly Service of the Russian Federation, two international business mergers and acquisitions took place that radically changed the balance of power. The French multinational company Danone absorbed “Unimilk,” while the American multinational company PepsiCo bought “VBD.” As a result of M&A, PepsiCo became the leader of three Russian markets at once. These are

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the markets of milk and dairy products, juices, and baby food. It occupies a dominant position in the juice market. The latter was divided between two American companies: PepsiCo and Coca-Cola [12]. According to the Russian Dairy Research Centre [13], in 2016, the Lianozovsky dairy plant (owned by PepsiCo) remained the largest dairy processing plant, while “Danon-Industriya” LLC occupied the second position. In 2017, due to the optimization of production capacities of Danone, the first position in Russia in terms of processed milk belonged to an American company, which accounts for more than 8.3% of all processed milk in Russia. Anti-Russian sanctions and the devaluation of the ruble generally encourage the localization of foreign production companies in Russia. The revenue of the Russian divisions of PepsiCo and Danone is growing. According to this indicator, PepsiCo is consistently among the top 10 foreign manufacturing companies in Russia, and Danone is in the top 20 [14]. It should be noticed that glocalization practices used by foreign companies are very successful. When buying Russian businesses, the popular brands familiar to the local consumer are preserved (“Domik v derevne,” “Prostokvashino”). These practices help to adapt relatively new products (yogurts) to local tastes.

4 Discussion During the conceptual discussion of general trends in globalization, it is important to keep in mind that the world is transforming the existing international economic relations. It consists of a changing balance of power, business models, digitalization, and the changing role of the state. The awareness of the transition stage is reflected through the emergence of new concepts along with the preservation of the previous ones. Russia joined several international organizations, including the World Trade Organization (2012), which confirmed the commitment of the country to the opening of the domestic market. At the same time, Russia did not abandon the concepts of national sovereignty and national security. In this context, the food security doctrine of the Russian Federation [15] includes criteria for the food self-sufficiency of the country. At the same time, the agricultural sector (as well as the Russian economy as a whole) has an open-door policy for direct foreign investment. In financial globalization and the location of world currency-issuing centers outside Russia, global companies born in the bosom of established foreign markets have advantages over the Russian national capital. Therefore, in international M&A transactions, Russian companies often act as a target company, which can exacerbate the geopolitical risks and monopolization of markets in the Russian Federation.

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61

5 Conclusion Contrary to the established opinion, it is proved that Russia is actively involved in forming a transborder space. The globalization in modern Russia (and in particular its agricultural sector) is implemented through policies of import substitution of goods and focus on exports with simultaneous maximum possible localization of foreign capital in the country. The analysis of specific segments of the Russian agri-food system shows a high level of involvement in globalization [16]. In terms of participation in international flows of agricultural products, Russian grains took a leading position within the global market (specifically wheat). About half of the produced grain is exported. The current objectives include the improvement of the quality of the exported grain, the priority in meeting domestic grain needs for food and feed purposes, control of food inflation, and increased economic availability of food for the general population, the development of deep grain processing in both traditional and new directions. The study proves that the level of presence of foreign FMCs in the Russian dairy business is very high. The investment of these FMCs (from the perspective of their interest) resulted in marginality, market power, geographical, and commodity differentiation. Glocalization practices were successfully applied, which purchased Russian businesses latent for the local consumer, despite the significant change in market forces. From the point of view of scientific research, the ambiguity of the estimates of considered international M&A transactions stems from the existing political, economic, and legal (the concept of residency) approaches. In the first case, a foreign company registered and operating in Russia continues to be a carrier of foreign capital (which is significant, given the trade, political, and military contradictions between the countries). It would be logical to take into account the volume of imported goods and the volume of products produced by foreign companies on the Russian territory. A high level of inclusion of the agricultural complex in globalization involves active positioning in the hierarchies of trans boundedness and defense of national producer interests outside and within Russian territory.

References 1. Williamson J (1993) Democracy and the “Washington consensus.” World Dev 21(8):1329– 1336 2. Savina G, Haelg F, Potrafke N, Sturm J-E (2019) The KOF globalisation index–revisited. Rev Int Organ 14:543–574 3. Government of the Russian Federation (2019) Decree “National report on the progress and implementation of the state program for agricultural development and regulation of markets for agricultural products, raw materials and food in 2018” (June 22, 2019 No 1352-p), Moscow, Russia. Retrieved from https://government.ru/docs/37271/

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4. Ministry of Agriculture of the Russian Federation (2019) Federal project “Export of agricultural products.” Retrieved from https://mcx.ru/ministry/departments/departament-informatsionnoypolitiki-i-spetsialnykh-proektov/industry-information/info-federalnyi-proekt-eksport/ 5. Finanz.net (2019) Russia’s share in global wheat exports in 2019 will decrease from 23 to 19%—expert. Retrieved from https://www.finanz.ru/novosti/aktsii/dolya-rossii-v-mirovomeksporte-pshenicy-v-2019-g-sokratitsya-s-23percent-do-19percent-ekspert-1027932795 6. Internet portal “Agrovestnik” (2019) Russian export of grain and leguminous crops in 2001– 2019. Retrieved from https://agrovesti.net/lib/industries/cereals/eksport-zernovykh-i-zernob obovykh-kultur-iz-rossii-v-2001-2019-gg.html 7. Slobodyan E (2019) Infographic: how much meat is eaten in Russia? Retrieved from https:// www.myaso-portal.ru/news/analytics/infografika-skolko-myasa-sedayut-v-rossii/?filter_det ail=%D0%A1%D0%BA%D0%BE%D1%82%D0%BE%D0%B2%D0%BE%D0%B4%D1% 81%D1%82%D0%B2%D0%BE 8. OECD/FAO (2018) OECD-FAO agricultural outlook 2018–2027. Retrieved from https://www. fao.org/publications/oecd-fao-agricultural-outlook/2018-2027/en/ 9. Pavensky I (2018) Top 30 exporters of grain. The market was unloaded by 53 million tons. Retrieved from https://www.agroinvestor.ru/rating/article/30049-top-30-eksporterov-zerna/ 10. The United Nations Organization (2012) System of national accounts 2008. Retrieved from https://unstats.un.org/unsd/nationalaccount/docs/sna2008russian.pdf 11. Government of the Russian Federation (2000) The Russian tax code (Part 2) (August 5, 2000 No 117-FZ). Moscow, Russia 12. Ivanova SV (2013) Transnationalization of the Russian dairy subcomplex in an emerging market economy. Autoabstract of the dissertation of doctor of economic sciences. Plekhanov Russian university of economics, Moscow, Russia. Retrieved from https://www.dissercat.com/content/transnatsionalizatsiya-rossiiskogo-molochnogo-pod kompleksa-v-usloviyakh-ekonomiki-s-formiruy 13. Russian Dairy Research Centre (2017) Top 50 milk processing companies. Retrieved from https://www.dairynews.ru/news-image/2017/November/20171123/top50.2016.compre ssed.pdf 14. Forbes (2019) Top 50 foreign companies. Retrieved from https://www.forbes.ru/rating/369567zarubezhnyy-kapital-reyting-krupneyshih-inostrannyh-kompaniy-2018 15. Presidential Executive Office (2010) Decree of the Russian Federation “On approval of the food security doctrine of the Russian Federation” (January 30, 2010 No. 120) Moscow, Russia. Retrieved from https://kremlin.ru/acts/bank/30563/page/1 16. Bogoviz AV, Sandu IS, Demishkevich GM, Ryzhenkova NE (2019) Economic aspects of formation of organizational and economic mechanism of the innovational infrastructure of the EAEU countries’ agro-industrial complex. Adv Intell Syst Comput 726:108–117

The Effectiveness of Developing Branches of the Agricultural Sector in Peasant (Farm) Enterprises Svetlana S. Sushentsova , Tatyana A. Bayer , and Nina I. Litvina

Abstract The role of the farming sector in the production of agricultural products and food saw a gradual and steady increase in the modern development of the agricultural economy. According to the All-Russian Agricultural Census 2016, the number of peasant (farm) enterprises and individual entrepreneurs [P(F)E] amounted to174.6 thousand, while the area of land in their use amounted to 42 million hectares [4]. In 2003–2016, the volume of manufactured products increased 13.4 times, while its share among all agricultural products increased from 4.9% in 2003 to 12.5% in 2016. The share of farm products in total grain production in 2017 amounted to 29.1%, sugar beet—11.6%, and sunflower—31.5%. The production volume of these products increased by 3–4 times compared to 2003. However, as practice shows, a large volume of production does not always act as the primary condition for farm activity effectiveness. Thus, the authors tried to analyze the system of indicators characterizing the production efficiency of the main types of agricultural products in the P(F)E under economic conditions of a particular Russian region. During the study, the authors used analytical methods, statistical analysis, and expert assessment. The research structure includes several stages. The initial stage aims to identify the most demanded agricultural branches among farmers. The research proceeds to evaluate the efficiency of the production of the corresponding products. It analyzes the effective use of the primary production resources of P(F)Es within this combination of branches and assesses the financial and economic activities of P(F)Es. Except for a few regions, Russian P(F)Es specialize in crop production [13, 14]. The profitability of farms still needs to be increased even if the production resources are used efficiently. This development proves the high dependence of modern P(F)Es on the external economic conditions of their existence (the possibility of lending, sales of products, and relations with the state).

S. S. Sushentsova (B) · T. A. Bayer Federal Research Center of Agrarian Economy and Social Development of Rural Areas–All Russian Research Institute of Agricultural Economics, Moscow, Russia N. I. Litvina Russian State Agrarian Correspondence University, Balashikha, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_7

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Keywords Peasant (farm) enterprises · Efficiency · Crop production · Animal husbandry · Agriculture · Branch · Agricultural production · Production resources · Profitability · Expenses

1 Introduction Legislatively and essentially, modern Russian P(F)Es belong to a set of business structures marked with independence in making economic decisions and the desire to realize the entrepreneurial spirit of their owners aiming to obtain higher income from their activities over many years. The features of this farming form presuppose the ability of its business executive to correlate the viability of chosen branches, the innovative elements, the territorial and bioclimatic conditions of the location of the P(F)E, the situation on local, regional, and global markets, as well as other factors affecting the achievement of the goal in correct proportions [10]. During the formation of peasant (farm) enterprises in Russia (the beginning of the 1990s), their organization had a spontaneous nature. They were established without any serious studies of future activities and did not factor in the availability of labor and financial resources [8]. Creating equal economic conditions for various forms of ownership in agriculture has increased the access of farmers to land as the primary means of production [6, 7]. However, their allocation was carried out by agricultural organizations, which, as a rule, allocated the worst land in terms of fertility (idle or inarable land) to P(F)Es. This land was usually located far from all available means of communication. A questionnaire survey of farmers who organized their farms before 1998 showed that 38.2% of owners of peasant (farmer) enterprises rated their “first” land as the worst, while 61.8% described it as average. Not a single participant in the survey rated their land as the best. Within the transition to market relations, the structure of production was determined by economic entities (including farmers) exclusively factoring in the market conditions of products and the effectiveness of their sales. For example, in farms located in the raw material zones of processing enterprises, a significant share in the structure of crops was occupied by industrial crops, the processing of which on tolling terms made it possible to obtain guaranteed sales markets. It is possible to assess the justification of this one-factor approach to the organization of economic activities using a system of performance indicators. The concept of efficiency implies the ratio of the result to the cost of funds or resources spent on its achievement, while the dynamics of the values of these indicators will reveal the degree of improvement or deterioration of resources [9]. Currently, the country changed the economic conditions, meaning, and functions, as well as the internal structure and quality of the farming sector. The efficiency of economic activities of P(F)E requires an assessment and search for solutions to an immense set of problems. These problems arise in connection with the internal reform of the AIC and the global interests of the state to ensure food security through import substitution mechanisms.

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65

The study analyzes the efficiency of farm production branches to identify on-farm reserves to increase the overall efficiency of the financial and economic activities of P(F)Es.

2 Materials and Methods The research applies unified methodological schemes, methods, and standards developed for agricultural producers. The paper indicates (where possible) the main features of peasant (farm) enterprises, a wide variety of their standard sizes, and the specifics of the agricultural production conditions by region. The paper applies methods of economic and statistical evaluation of the time series of dynamics for 5–20 years for particular performance indicators. The authors conducted questionnaire surveys of farmers and delegates of AKKOR to identify the attitude of P(F)E owners regarding various stages of development of their business [1]. The paper is based on the selective use of literary and analytical generalization, expert evaluation, monographic experience, etc. During this research, we used such information resources as scientific and reference literature, data of the Russian Federal State Statistics Service (including the results of the All-Russian Agricultural Census 2006 and 2016), regional consolidated annual accounting reports of P(F)Es and their cooperatives, monographic research of the scholars. The extensive scientific and analytical material collected during the study allowed us to conduct a qualitative and objective analysis of the effectiveness of agricultural branches in peasant (farm) enterprises.

3 Results In Russia, peasant (farm) enterprises specialize in crop production, as evidenced by the sectoral structure of agricultural production (Table 1). Moreover, the share of livestock production varies from 43.3% in 1998 (the maximum value for the study period) to 20.3% in 2018 (the minimum value), never exceeding the 50% threshold. The concealed nature of collecting and processing statistical information on the financial and economic activities of peasant (farm) enterprises in Russia makes it impossible to conduct adequate monitoring of the development of the entirety of P(F)Es within the country. A change in the overall situation would increase the ability of management bodies and scientific institutions to develop more informed decisions on determining the levers and directions for improving the efficiency of farm production. We selected one of the Russian regions marked with basic indicator values of the farm sector development, close to the national average. For example, the share of crop production obtained by farmers of the Tula Region in 2018 amounted to 88.1%, while their share of livestock production amounted to 11.9%.

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Table 1 Sectoral structure of agricultural production in the P(F)Es of the Russian Federation, % Year

Units of measurement

Agriculture

1998

Billion rubles

6.7

%

100

56.7

43.3

2002

Billion rubles

38.3

27.9

10.4

%

100

72.8

27.2

Billion rubles

147.6

116.8

30.8

%

100

2012

Billion rubles

281.2

%

100

2017

Billion rubles

635.6

%

100

Billion rubles

670.0

%

100

By a factor of

100.0

pp

–

%

105.4

pp

–

2007

2018

Horticulture 3.8

Animal husbandry 2.9

79.1

20.9

208.6

72.6

74.2

25.8

499.2

136.4

78.5

21.5

530.2

139.8

79.1

20.9

Changes in 2018 to 1998 2017

139.5

48.2

22.4

−22.4

106.2

102.5

0.6

−0.6

Source Developed by the authors based on [5]

A more detailed analysis of the specialization indicators of studied region showed that P(F)Es prefer growing grain and potatoes, which accounted for 57.9% and 20.1%, respectively, in the structure of sales revenue for 2018 (Table 2). The methodology for evaluating the production efficiency is based on the natural values of the gross production of a specific product correlated to the primary production source of its manufacture. The de facto harvested sown areas act as the primary source of crop production, while livestock fulfills this role in animal husbandry. The analysis of crop yields and animal productivity showed consistent growth, except the average daily increase in the live weight of cattle (Table 3). Primary production resources include land, labor, and fixed assets. The land-use efficiency in peasant (farm) enterprises of the Tula Region is generally increasing. This is indicated by the annual increase in the cost of gross agricultural production per unit of land area, which amounted to 48.1% during the study period (Table 4). This result was achieved due to the intensification of farm production and an increase in the area of farmland used by the owners of P(F)Es (6.7% per year). The cost of fixed assets grew by 9.7% annually, while the return on assets increased by 64.4%. The annual productivity of labor in P(F)Es also outpaced the number of their employees, while the size of the increase in wages indicates an increase in their skill level.

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67

Table 2 Volumes and structure of production of main agricultural products within the P(F)Es of the Tula region (2011, 2014 in comparable prices, 2017, 2018 in actual prices) Production type

Year 2011

2014

Thousand rubles Grain Rapeseed Soy Grain maize Sugarbeet Sunflower Potato Vegetables Cucurbits

19,986.0 1591.2

% 25.5 2.0

2017

Thousand rubles 53,824.3 3206.3

2018

%

Thousand rubles

%

Thousand rubles

%

47.5

1,812,396.2

42.8

2,944,373

57.9

6.7

463,700

9.1

2.8

285,000.9

10.0

0.0

488.9

0.4

7587.0

0.2

11,735.0

0.2

0.0

0.0

120.7

0.1

382.0

0.0

4345.0

0.1

586.7

0.7

924.0

0.8

79,428.0

1.9

54,368.0

1.1

351.1

0.4

44,413.4

56.7

189.0 41,941.4

0.2

885,321.0

20.9

31,564.0

0.6

37.0

747,216.0

17.6

1,025,164

20.1

33,726.0

0.8

47,579.0

0.9

7779.1

9.9

4703.1

4.2

31.7

0.0

126.9

0.1

0.0

0.0

0.0

0.0

Hay

234.2

0.3

596.3

0.5

16,681.0

0.4

10,761.0

0.2

Meat: cattle

562.5

0.7

2694.7

2.4

5865.0

0.1

144,804.0

2.8

1699.1

2.2

200.7

0.2

87,543.0

2.1

3130.0

0.1

102.4

0.1

113.3

0.1

18,281.0

0.4

12,198.0

0.2

Pigs Sheep and goats Poultry

54.3

0.1

183.6

0.2

5825.0

0.1

4572.0

0.1

Milk

970.3

1.2

3808.5

3.4

249,107.2

5.9

329,427.0

6.5

Eggs

4.9

0.0

14.7

0.0

1425.0

0.0

1020.0

0.0

Honey Total

8.8

0.0

112.8

0.1

618.0

0.0

476.0

0.0

78,385.8

100

113,249.3

100

4,236,402.3

100

5,089,216

100

Source Developed by the authors

The choice of the system of final performance indicators for financial and economic activities of P(F)E is largely determined by the profitability of certain types of products, sources of financing, and marketability of production. The performance indicators for production potential harnessing in independent P(F)Es of consumer and low-commodity types (not involved in cooperation) must be adjusted for the cost of services involved. The chosen sales system largely determines performance indicators of a peasant farm existing at its own expense and the final production results. If P(F)E is actively involved in the long-term lending, then indicators of the financial condition of agricultural producers characterizing their solvency and stability become important for assessing the quality of its work. In this case, the farm’s assets, liquidity, the ratio of own, borrowed, and attracted funds are taken into account. However, the selection and adjustment of performance indicators of the P(F)E development are based on their overall totality.

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Table 3 Crop yield and animal productivity of P(F)Es of the Tula region Values

Year 2015

2016

2017

2018

Average chain growth index, %

2011

2013

2014

Grain

15.4

25

29.2

27.1

25.4

27.6

28.6

110.3

Rapeseed

13.5

12.8

12.8

13.4

14.2

17.2

14.7

101.7

Soy

10.5

19.1

6.9

15.4

15.8

10.1

15.2

121

Grain maize –

58.4

17.8

41.5

56.1

51.8

32.5

110.8

Sugarbeet

646.6

506.3

266

258.5

213.5

297.9

476.1

Sunflower

8.9

15.9

11.5

16.4

13.9

9.2

13.8

112.2

Potato

232.6

217.7

188.8

268.2

308.4

281

281.3

104.2

Vegetables

209.9

203.1

176.7

200.2

261.9

308.8

245.4

104.4

Yield, c/ha

102

The productivity of farm animals Average daily growth, g: cattle

784.2

786

731.6

676.9

684.2

494

614.1

97.2

Pigs

515.2

561.2

599.8

494.7

763.6

535.7

455.6

101.3

Sheep and goats

249.3

166.8

155.3

184.1

159.7

111.4

190.6

101

Average 2882.40 5809.70 6683.30 4763.90 4764.70 5222.20 5525.30 117.2 annual milk yield from 1 cow, kg

For P(F)Es of the Tula Region, the highest level of marketability belongs to sugarbeet (for the entire period of the study). It either amounted to or was close to 100% (Table 5). A detailed analysis of the farm products marketability indicates that its level is still pretty low. This fact is due to the peculiarities of the organization of P(F)E as a family enterprise, the owner of which seeks to use the final product to cover the personal needs of the family and further production needs (animal feed, seeds, etc.). One of the most significant incentives for increasing marketability is the possibility of recouping the costs spent on production, sales, and decent business operations (settlement of payable accounts, tax charges, etc.), as well as accommodation costs for family members and employees of the P(F)E. All this largely depends on the market price of the manufactured products. In 2018, the Tula Region farmers sold all types of crop production at a price higher than in 2017. The only livestock products sold at a lower price were poultry meat (by 34.6%), eggs (by 16.1%), and milk (by 4.6%) (Table 6).

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69

Table 4 Economic efficiency of the use of production resources of the Tula region Values

Year 2017

2018

Average chain growth index, %

2011

2013

2014

2015

2016

Farmland area, thousand ha

137.7

148.0

164.8

185.2

200.6

195.7

201.5

106.7

Ploughland area, thousand ha

135.8

141.9

148.4

171.3

169.5

165.6

175.4

104.5

The degree of 98.6 plowing, %

95.9

90.0

92.5

84.5

84.6

87.1

The gross 569.3 output cost per 100 ha of farmland, thousand rubles

1263.0 687.1

1911.7 1652.4 2165.0

2525.8

1902.8

−1.9 pp 148.1

Produced on 100 ha of agricultural land, c Grain

902.8

1617.6 2031.4 1988.6 1524.5 1849.7

Milk

925.6

1144.0 78.0

60.7

66.3

71.7

98.1

93.7

The number 992 of permanent workforces, people

940

1151

1433

1501

1322.0

1509.9

108.1

Number of workers per 100 ha of farmland people

0.6

0.7

0.8

0.7

0.7

0.7

101.1

3370.6

148.6

14.3

15.5

116.2

674.0

124.8

109.7

0.7

Annual labor 790.2 productivity, thousand rubles

1988.1 983.9

2470.6 2208.6 3204.5

The average monthly salary per employee, rubles

6.7

9.7

10.8

13.7

12.8

The cost of the basic production assets, million rubles

1731.3 220.4

720.6

877.5

1170.5

1.57

4.03

2.83

Return on 0.45 assets, rubles

0.85

Source Developed by the authors

6.29

1.173

4.08 164.4

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S. S. Sushentsova et al.

Table 5 The level of marketability for main types of agricultural products in P(F)Es of the Tula region, % Product type

Year 2011

2012

2013

2014

2015

2016

2017

2018

Grain

65.2

68.7

61.6

88.0

64.8

84.3

78.2

80.3

Rapeseed

78.7

91.8

102.9

91.4

98.3

94.1

87.0

102.4

Soy

–

99.2

62.2

20.8

70.1

51.3

59.5

23.4

Grain maize

–

–

75.8

100.0

59.6

81.7

6.5

21.0

Sugarbeet

76.9

103.4

100.0

100.0

100.0

100.0

100.0

97.5

Sunflower

60.8

60.8

10.6

24.0

82.8

97.7

51.9

112.9

Potato

35.4

33.6

55.8

52.9

40.2

49.0

56.6

46.4

Vegetables

37.9

81.1

55.8

86.7

69.6

64.2

35.0

53.3

Meat: cattle

71.1

100.3

92.7

94.9

100.7

95.9

97.5

97.7

Pigs

19.3

93.9

95.8

62.0

47.2

85.9

89.5

51.0

Sheep and goats

53.9

71.6

94.0

92.4

83.3

99.9

82.4

81.7

Poultry

55.4

79.2

97.8

73.5

147.8

95.6

155.0

91.1

Milk

62.5

79.3

84.7

83.7

78.8

78.0

79.5

78.3

Eggs

11.4

78.2

71.5

79.4

98.0

87.5

2.9

90.3

Honey

81.6

67.5

58.2

9.7

132.5

97.7

78.8

63.0

Source Developed by the authors Table 6 The sales price for the main agricultural product types in P(F)Es of the Tula region, rubles/c Product type

Year 2016

Grain

The ratio of 2018 in % to 2017

2018

2016

2017

819.54

639.91

955.98

116.6

149.4

Rapeseed

2344.62

1734.66

1947.98

83.1

112.3

Soy

1784.33

1580.63

2377.43

133.2

150.4

Grain maize

535.24

580.55

640.19

119.6

110.3

Sugarbeet

476.00

166.68

266.94

56.1

160.2

Sunflower

567.34

1134.66

1555.87

274.2

137.1

Potato

690.73

959.14

1051.97

152.3

109.7

1206.07

898.55

1125.81

93.3

125.3 116.0

Vegetables Meat: cattle

10,002.75

9750.90

11310.52

113.1

6074.85

14,578.67

17,468.75

287.6

119.8

Sheep and goats

10,824.24

16,275.82

16,572.69

153.1

101.8

Poultry

Pigs

15,124.29

19,921.34

13,025.64

86.1

65.4

Milk

2046.68

2231.42

2127.74

104.0

95.4

Eggs

6443.09

8372.5

7024.79

109.0

83.9

13,222.22

44.1

103.1

Honey

29,956.76

Source Developed by the authors

12,821.58

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Table 7 P(F)E revenue structure in the Tula region Sources

Year 2011 2012 2013 2014 2015 2016 2017 2018

Revenue–total

100

100

100

100

100

100

100

100

Including: gained through the sale of 81.2 agricultural products

79.4

80.4

87.0

87.9

85.4

83.5

89.4

Gained through providing services, conducting operations

1.6

1.7

1.4

1.1

2.0

3.9

3.8

2.9

State support (subsidies from budgets of all levels)

7.9

8.1

10.9

9.3

6.6

6.4

9.0

4.9

Other

9.4

10.8

7.4

2.5

3.5

4.4

3.7

2.8

Source Developed by the authors

The impact of price changes on the overall result of the development of P(F)E branches can be estimated by comparing it with the total amount of costs spent on the manufacture of one production unit. Profitability is the main criterion for the effectiveness of a peasant (owner-operated) farm [11,12]. Its objectivity is determined not only by the fact that income is the natural goal of the farmer but also because the normal development of any farm is impossible without it. The received income allows us to meet consumer needs and cover family expenses. It also allows one to create an insurance fund and conduct expanded production. P(F)Es act as agricultural producers. The share of income achieved through the sale of agricultural products in all years exceeded 80% (Table 7). In this regard, the final indicators of economic efficiency are formed by this industry. The net income of farm production is defined as the difference between the total amount of income (including sales revenue) and total production costs. In general, it is calculated using the following formula: W = (B + PR) − IP − N

(1)

where: B PR IP N

revenue (cost of sold products), rubles; other revenue items, rubles; production costs, rubles; taxes, rubles.

As a result of financial and economic activities, the P(F)Es of the Tula Region received income in 2014, 2015, 2016, and 2017 for the entire eight-year period of the study (2011–2018) (Table 8). Moreover, the level of profitability never reached 9%. The reason for that was the outpacing growth in taxes paid by farmers (by 34.8% annually on average) over the increase in their total income (by 22.8%).

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Table 8 Profitability of P(F)Es in the Tula region Years

Income, thousand rubles

Expenses, thousand rubles

Paid taxes amount, thousand rubles

Net income (loss), thousand rubles

Profitability level (loss), %

2011

1,501,302

1,661,985

47,168

(207,851)

(12.2)

2012

2,140,459

2,192,187

53,939

(105,667)

(4.7)

2013

2,342,270

2,337,829

88,356

(83,915)

(3.5)

2014

3,034,157

2,775,851

154,657

103,649

3.5

2015

4,040,443.1

3,779,201.5

105,552.4

155,689.2

4.0

2016

3,740,670

3,563,641.3

172,127.0

4901.7

0.1

2017

4,170,193

3,757,139

88,733.3

324,320.7

8.4

2018

5,879,042

5,778,634

184,005

(83,597)

(1.4)

121.0

134.8

–

–

Average chain 122.8 growth index, % Source Developed by the authors

4 Discussion The conduct of expanded reproduction is marked with the increase in land area, livestock, gross production, crop yields, and productivity of farm animals, optimal allocation of material and monetary costs elements (salaries of employees, fertilizers, pesticides, feed, etc.), as well as the rising cost and reduction of material and moral depreciation of fixed assets. Expanded reproduction in peasant farms can be carried out in three directions, ummarized by A.V. Chayanov: “intensification … of the farm, the possibility of using commercial earnings and, finally, the expansion of land use through renting land from other owners” [3]. To the latter, we should also add the possibility of purchasing farmland and various options for updating materials and technical means, i.e., increasing the production capacity of the P(F)E, which provides a constant increase in the gross income of the farmer. However, it is important to analyze the structure of sources providing opportunities for extended reproduction and the solvency of the peasant farm (based on the results of loan repayment over several years factoring in the liquidity of owned resources, etc.). An effective sales activity can be inferred if the company’s funds predominate in it. Recommendations for farmers on their choice of sectoral structure of economic activity are becoming particularly relevant. Our research proves that in current conditions, to ensure the reliability and stability of the P(F)E functioning, its owner must choose a model of industry specialization, which would factor in the positive impact of the maximum number of factors for the effective use of resources in specific conditions. Moreover, the model should be flexible and have maximum adaptability to the regional market and the adequate action of changing factors in the region to continually create a reliable basis for the survival of the farm and obtain the highest possible

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income. The development of agricultural raw materials and food market infrastructure and the market of technical resources and services is of particular importance for the diversification of agricultural production. Unfortunately, the current level of infrastructure development does not contribute to the development of agricultural diversification. The solution to these and many other problems of efficient farm production is associated with improved market information, since, often, the lack of it allows owners of P(F)Es to carry out activities contributing to the growth of efficiency and sustainability of their farms [2]. Research showed that the efficiency of farm production largely depends on the direction and level of state support. Moreover, nowadays, P(F)Es are experiencing significant difficulties in attracting public funds, since there is no effective infrastructure to support them. Its level is insufficient to improve the efficiency of agricultural activities.

5 Conclusion The results obtained during the research should serve as an incentive for further study of the identified difficulty causes in the development of the Russian farming sector and the development of proposals for their elimination. They can become an integral part in solving a more significant problem. We refer to the strategy for purposeful regulation of the development of small rural businesses in the regions and the country, which will ensure the growth of agricultural production and increase employment in rural areas.

References 1. Association of Peasant Farms and Agricultural Cooperatives of Russia (AKKOR) (n.d.) Official website. Retrieved from https://www.akkor.ru/ 2. Baer TA (2018) Taxation as a factor for increasing the efficiency of peasant (farm) enterprises. Econ Agri Process Enterprises 11:55–60 3. Chayanov AV (1989) Peasant farming. Ekonomika, Moscow, USSR 4. Federal State Statistics Service (2018) Results of the All-Russian agricultural census 2016, vols 1–8. IIC “Statistics of Russia.”, Moscow, Russia 5. Federal State Statistics Service (n.d.) Official website. Retrieved from https://www.gks.ru/ 6. Paptsov AG, Nechaev VI, Mikhailushkin PV (2019) Towards a single innovation space in the agrarian sector of the member states of the Eurasian economic union: a case study. Entrepreneurship Sustain Issues 7(1):637–648 7. Rumyantsev FP (2019) On the transfer of unclaimed land shares into the ownership of agricultural organizations and peasant (farm) enterprises. Econ Agri Russ 8:26–29 8. Sagiyeva R, Zhuparova A, Doszhan R, Ruzanov R, Askerov A (2018) Intellectual input of development by knowledge-based economy: problems of measuring in countries with developing markets. Entrepreneurship Sustain Issues 6(2):711–728

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9. Sandu IS, Svobodina VA, Nechaeva VI, Kosolapova MV, Fedorenko VF (eds) (2013) The efficiency of agricultural production (methodological recommendations). FSBSI “Rosinformagrotech”, Moscow, Russia 10. Skomorokhov SN (2019) Evaluation of factors influencing milk production growth in the segment of peasant farms. Econ Labor Manage Agri 9:29–35 11. Sushentsova SS, Nikitina IV, Kataev VI (2017) The profitability of peasant (farm) enterprises and the main directions of its increase. Econ Labor Manage Agri 3(32):127–136 12. Sushentsova SS, Litvina NI (2019) An organizational-economic mechanism for the effective work of peasant farms: concept, structure, and directions for improvement. In: IOP conference series: earth and environmental science, vol 274. p 012042 13. Trach D (2019) The activity of farms in the pridnestrovian Moldavian republic. APK: Econ Manage 8:92–96 14. Wegen SK (2013) Rural inequality in divided Russia. Taylor Francis Group, London, UK

Innovative Approaches in Management of Agricultural Enterprises Victor M. Volodin , Yousef D. Bahteev, and Nataliya A. Nadkina

Abstract Ensuring conditions for innovative development of enterprises is considered the primary task contributing to increasing the competitiveness of Russian enterprises and the standard and quality of life of the population. Methods of comparative and retrospective analysis were used to study past trends and compare them with the current ones. The statistics of the Federal State Statistics Service [Rosstat] were analyzed. To increase enterprises’ efficiency, comprehensive state support, introducing innovative projects for their innovative development, is crucial. The paper analyzed the social and economic situation in the Russian agricultural complex, revealed the peculiarities of the development of innovative processes inherent in this sphere, discussed the peculiarities of the development of advanced innovative enterprises in the Penza region. Currently, to ensure the prosperity of the enterprises and, as a result, improve their economic efficiency, it is necessary to provide innovative processes based on the relationship between practical activities and science, introduce advanced innovative technologies into production, develop infrastructure, form new innovative thinking by managers, entrepreneurs, and the population, and most importantly, on state support in the form of innovative projects. Keywords Innovative development · Agricultural-industrial complex · Enterprises of agro-industrial complex · Innovative enterprises in Penza region

1 Introduction Currently, there is a significant number of plans for the digitalization of the economy, which is an essential reserve for the technological development of the country. However, most of them are at the beginning of the journey, which results in low efficiency. The following factors complicate the problem: • The incompetence of business leaders in working with new technologies is often hidden behind a lack of investment; V. M. Volodin (B) · Y. D. Bahteev · N. A. Nadkina Penza State University, Penza, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_8

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• The neglect of managers is one of the main points. According to the fifth principle of E. Deming’s philosophy, “quality is laid at the design stage” based on continuous improvement of quality; • Distrust of banks to the latest innovative projects, as an extremely risky business; • The existing problems of overcoming the “threshold voltage” associated with new costs of innovation and maintaining the real pace of development of enterprises. The development of agriculture is considered a paramount task for the national economy. As a result, the innovative activity of agricultural enterprises is the primary condition for the modernization of the national economy, determining the course of many socio-economic processes. The mechanism of the innovation process of agricultural enterprises is presented in Fig. 1 [1, 2]. The term “innovation” has several definitions (Fig. 2) [3]. The transition of scientific knowledge to innovation, i.e., the innovation process, can be schematically represented as follows: “science ⇒ technique (technology) ⇒ production ⇒ consumption”. For 2018, an analysis of the socio-economic situation in the Russian AIC, supported by the state, revealed patterns on which the industry is still seriously dependent (Fig. 3) [4]. Agriculture, science, and innovation are still not very popular at the present stage of development of the Russian economy. Therefore, additional projects for the formation of a holistic infrastructure are necessary for the successful innovative transformation of the agricultural sector. Infrastructure will make it possible to carry

Fig. 1 The mechanism of the innovation process in the agricultural sector. Source Compiled by the authors based on [1, 2]

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Innovation

The use of new varieties of plants, breeds of agricultural animals, production technologies in crop production, animal husbandry and processing of agricultural products, digital technology, fertilizers, and means of plant and animal protection, means of prevention and treatment of animals, forms of organization, financing, and lending to production, training approaches, staff development

The final result of innovation in the form of an improved product sold on the market, a new/modernized technological process used in the production and processing of agricultural products

Fig. 2 Interpretation of the term “innovation.” Source Compiled by the authors based on [3]

- Weather conditions

- Slow adoption of innovative technologies

- Loss of profitability

Fig. 3 The results of the analysis of the socio-economic situation in the Russian AIC. Source Compiled by the authors based on [4]

out innovative modernization of agricultural enterprises, introduce the most modern technologies, and use them effectively [5]. In this regard, the implementation of the following projects by the Ministry of Agriculture of the Russian Federation is an excellent support for the active practical implementation of digital technologies and platform solutions in the Russian agricultural sector. Figure 4 shows these projects. Considering the enormous importance of innovation processes, the speedy implementation of the best innovative products by agricultural enterprises is exceptionally relevant. Based on this, we will consider the features of the development of innovative processes at the leading innovative enterprises of the Penza region. In this case, it is essential to determine what condition is necessary to improve enterprises’ efficiency [4].

78 Fig. 4 Projects for the implementation of digital technologies and platform solutions. Source Compiled by the authors based on [4]

V. M. Volodin et al.

Departmental project "Digital Agriculture" (20192024), which goal is to double the productivity of enterprises by 2024 The planned launch of the system "Effective hectare," for the effective use of agricultural lands and their stocktaking. The planned launch of the "SMART-contract" intellectual system for concluding contracts with subsidy recipients (2019) Large-scale implementation of domestic integrated digital agricultural solutions "Smart Farm," "Smart Field," "Smart Herd," "Smart Greenhouse," "Smart Processing," "Smart Warehouse," and "Smart Agrooffice" Restarting the Rosagroleasing program to upgrade the equipment fleet (within the framework of the state program for the development of the AIC, subsidies are provided for 8 billion rubles for the purchase of more than 50 thousand new domestic machinery and equipment, including 17.6 thousand units of agricultural machinery with state support)

2 Materials and Methods The paper used materials of summary statistics from various groups of indicators of the innovative development of Penzastat and Federal State Statistics Service [Rosstat], conferences, and collections of papers. The authors used comparative and retrospective analysis to study past trends and compare them with the present ones.

3 Results The Penza region has a reasonably extensive innovation infrastructure. In this regard, the data of Penzastat only confirm the positive dynamics of the number of innovatively active companies. By 2018, the number of innovative organizations in the Penza region amounted to 20.7% of the surveyed organizations. Of these, 18.6% carried out technological innovations, which is 1.1% higher than in 2016 [6]. In the same year, over 14 billion rubles were invested in the agricultural sector of the region. A review of the implemented and planned activities of several leading innovative enterprises in the Penza region is shown in Fig. 5 [7]. Over the past ten years, in the region, both growth and decline in the performance of enterprises are observed, ranging from 2 to 7%. This is a feature of both livestock and crop production. Therefore, the tendency of distrust (especially among conservatively minded managers) towards new innovative enterprises and their possible colossal volumes of production continued. Thus, when creating the “Rusmoloko” company, it was predicted to produce 200 tons of milk per day, which corresponds to the volume of milk production in the entire region. Nevertheless, implementing an innovative project to expand milk production proved the ability to achieve these results. According to “Rusmoloko,” the company provides 240 tons of milk per

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Fig. 5 Overview of investment projects in leading enterprises of the Penza region for 2018–2021. Source Compiled by the author based on [7]

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day. Moreover, the products are produced in the territory of only 10% of the Penza region due to a well-coordinated infrastructure, qualified personnel, and scientific base. This example indicates that innovative Russian enterprises have the potential for productivity growth to catch up with Western countries. As a similar example, we can cite the “Damate” Group of Companies implementing an innovative project to expand the industrial production of turkey meat to 155 thousand tons of finished products per year. In terms of turkey production, the “Damate” Group of Companies is first among competitors in this industry. An analysis of turkey meat producers in agricultural enterprises is presented in Fig. 6 [8]. In general, for the country, there is an increase in the real volume of products produced by innovative organizations at agricultural enterprises. Nevertheless, the innovation activity of most other enterprises is still low (Table 1) [10]. State support and intervention in the form of investment remain the necessary measures to stimulate the innovative transformation of agricultural enterprises, overcome negative factors in ensuring food security, increase the competitiveness of the Russian economy, and the level and quality of life.

Fig. 6 Top-5 producers of turkey meat from agricultural enterprises (2017) [9]

Table 1 Dynamics of cost indicators and results of innovation, 2016–2018 Agriculture The volume of innovative goods, works, and services as a percentage of the total volume of goods shipped, works and services performed Source [10]

2016

2017

2018

22.2

28.4

33.8

1.4

1.8

1.9

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81

4 Discussion One of the most profound problems is insufficient innovative support, low propaganda of innovative ideas, extremely conservative thinking of the population, and unpreparedness of agricultural workers. Without solving this problem, we cannot talk about a change in the situation in the innovative development of the Russian agricultural sector. Consequently, it is possible to counteract adverse factors slowing down the innovative development of agricultural enterprises through cooperation between the authorities and business and educational institutions. Given this, the formation of a regional mechanism for managing innovative developments in the AIC, corresponding to the modern reality of economic management, is considered necessary. It is necessary to embody the benefits of innovation in the agricultural sector. For the development of innovation in enterprises, a significant role is given to production informatization, specific recommendations on various aspects of the industry’s functioning, and forecasting methods. These recommendations and forecasting methods will optimize the use of limited resources and increase the overall efficiency of agricultural enterprises. Thanks to comprehensive state support, the Penza region is a significant producer of food products. Moreover, the Penza region fully meets its own needs and sends products for export. Products are supplied to all constituent entities of the Russian Federation and 18 countries of the near and far abroad.

5 Conclusion The government understands the need for timely investments in innovative projects. However, due to a 25% reduction in investment in the economy, it is necessary to involve private business. Nevertheless, it is the starting efforts of the government necessary for the innovation processes to continue moving along an increasing straight line.

References 1. Goncharov PV (2016) Retrospective analysis of the concept of innovation, its role in the development of agricultural enterprises. Modern Manage Technol 3(63):6302. Retrieved from https://sovman.ru/article/6302 2. Polezkin TM (2016) State regulation of the development of organic agriculture: international experience and national practice. Reg Econ Manage: Electron Sci J 4(48):4830. Retrieved from https://eee-region.ru/article/4830 3. Litvinenko IL, Kijanova LD (2017) Providing innovative development of regional AIC: problems and solutions. Reg Econ Manage: Electron Sci J 2(50):5012. Retrieved from https://eeeregion.ru/article/5012

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4. German-Russian agrarian-political dialogue (2019) Plans and prospects for the development of agriculture. Retrieved from www.agrardialog.ru 5. Kotilko VV, Vishnyakova VS (2016) State support of agricultural production in Russia in 2013–2015. Reg Econ Manage: Electron Sci J 4(48):4811. Retrieved from https://eee-region. ru/article/4811/ 6. Penza Vzglyad: Penza City Official Website. (2018) Penza trends: innovations, high technologies, and import substitution. Retrieved from https://penzavzglyad.ru 7. Krivov VD, Shkred KV, Sarkisov AG, Shtukina TA, Vladimirov DG, Vystavkina NM et al (2019) The current state and prospects of socio-economic development of the Penza region (to the Days of the Penza region in the Federation Council). Analiticheskiy Vestnik 1(715). Retrieved from https://council.gov.ru/media/files/vcOplEzypF1SJ3HX47rQGFL6DcdRDeEs. pdf 8. Agroinvestor (2018) Official website. Retrieved from www.agroinvestor.ru 9. Volodin VM, Nadkina NA, Ponukalin AV (2019) The transformation of business models of management of enterprises of industry and agriculture to the conditions of digitalization of the economy. Univ Proc. Volga Reg Soc Sci 3:200–216 10. Fridlyanova SYu (2019) Dynamics of costs and results of innovations in Russia. Retrieved from https://issek.hse.ru/news/310649880.html

Integration and Diversification in Modern Agribusiness Natalya V. Sergeeva

and Yuliya S. Vasyukova

Abstract The processes of agro-industrial integration and diversification are actively developing, take on new forms, and increase the functioning efficiency of individual agricultural enterprises and the agro-industrial complex [AIC] as a whole. The authors consider the regularities in the development of agricultural integration, the benefits of integrating agricultural production, and the processing of raw materials into finished products. Depending on the business environment, various organizational forms of integration are used with varying degrees of economic and organizational ties (from partial interaction of sub-sectors to a full-scale production chain). Currently, the basis of the national economic security of domestic agriculture is the development of high-tech production and the activation of innovative high-tech processes. Along with the introduction of new technologies and technical means, diversification is of great importance, i.e., the development of new industries related to the refinement and processing of products into ready-to-use products, along with the traditional production of agricultural raw materials. The free market establishes the volumes, nomenclature, and assortment of products. The economic significance of diversification processes in modern agribusiness is considered. The authors analyze the prerequisites and motives for diversification and its types to increase the economic viability of business. The measures for processing poultry meat into semi-finished products in a poultry farm are proposed. Keywords Agro-industrial integration · Synergistic effect · Diversification · Economic strategy · Efficiency · Diversification opportunities · Meat processing activities · Semi-finished products

N. V. Sergeeva (B) · Y. S. Vasyukova Russian State Agrarian University–Moscow Timiryazev Agricultural Academy, Moscow, Russia Y. S. Vasyukova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_9

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1 Introduction Agro-industrial integration involves the integration of agricultural production with the processing industry into a single economic entity. The transition to integrated production is explained by the development of the economy and its intersectoral relations. Agro-industrial integration is based on certain regularities in the development of the process associated primarily with the diversity of ownership of agricultural organizations, the development of the social division of labor in them, its cooperation and the need for interaction between sectors and enterprises of agricultural and industrial production, creating additional economic opportunities for organizing uniform loading of processing industries with raw materials, and maneuvering financial and labor resources. In integrated enterprises, the means of production are used more thoroughly and evenly, and a more stable financial and economic condition is ensured [1]. The integration allows us to achieve a synergistic effect, which advantages are in the intensification of agricultural production and increased efficiency. It usually leads to the satisfaction of customer needs, GDP growth, increased profits, and profitability. According to analysts, the integration of agricultural and industrial production contributes to: • improving the quality of food production, bringing it closer to international standards and requirements by introducing the achievements of scientific and technological progress into technological processes, which increases the competitiveness of domestic products [2]; • ensuring equal proportions between the volume of net income in the production of agricultural raw materials and the products of its processing; • the rapid promotion of finished products in the market and increased speed of capital turnover; • ensuring a single reproduction process throughout the production chain; • the maximum use of raw materials and waste from primary industrial processing contributes to the development of non-waste production and the production of by-products; • the efficient use of potential labor and other resources, optimizing managerial personnel, and reducing labor costs [3]; • the confrontation with monopolistic structures in pricing, creating a real economic interest of producers in the production of quality products, accelerated pace of solving social problems in rural areas and other economic difficulties; • quick marketing and ensuring food security [2]. Integrated structures in the AIC are created by organizing product processing divisions in agricultural enterprises, combining property and financial resources, concluding agreements on joint activities, participating in the ownership of other enterprises based on the purchase or transfer of shares, etc.

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According to the essence of the economic interaction of entities, integral associations come in three forms [4]: • agro-industrial associations; • agricultural holdings; • associations. Agro-industrial associations are legally independent. Their management is carried out centrally. The agro-industrial association is usually an association of agricultural, processing, procurement, repair, and maintenance, transport organizations into one enterprise. Often, these are agricultural cooperatives and several agro-industrial, processing, trading, and other enterprises.

2 Materials and Methods Under the conditions of sanctions and restrictions on importing certain types of products, forced import substitution strategies activate domestic producers even in those areas that were never successful. In particular, in the processing of agricultural products: cheeses, soy milk, semi-finished meat products, processed soy products, canned meat, and fish, concentrated animal and poultry feed, and so on. The result of integration and diversification should be an increase in the competitiveness of domestic products by stimulating technological modernization of production, increasing its efficiency, and developing new competitive types of products with relatively high added value [1]. Nowadays, the national economic security of domestic agriculture is based on the development of high-tech production and the activation of innovative high-tech processes. Indisputable importance, along with the introduction of new technologies and technical means, is given to diversification, i.e., the development of new industries related to the refinement and processing of products into ready-to-use products, along with the traditional production of agricultural raw materials [5]. Diversification processes are becoming one of the alternatives to economic growth and the development of modern agribusiness. They can stabilize company revenues, compensating for losses from one product with income from another. They contribute to the penetration of enterprises in the industry that do not have a direct production relationship or functional dependence on the main area of their activity, allowing them to develop new market segments. Diversification is associated with a variety of manufactured products. It makes the economic efficiency independent of the life cycle of a particular product, solving not so much the problem of economic survival as ensuring sustainable growth. If the products have a very narrow application, then the company is specialized. If the products find diverse applications, this is a diversified company [4]. Diversified enterprises vary depending on the classification of the range of their products in relation to the used technologies and features.

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Let us consider the results of diversification processes for a poultry enterprise, which, over the past 16 years, has been engaged in raising the production of poultry for meat and chicken eggs. The growing competition between poultry farmers and pig farmers will allow meat processing to take advantage of the situation to reduce costs as a buyer of raw materials. However, it is necessary to know and understand the classifier of technological identity well. Soon, meat processors will have to use a more flexible approach to assessing and using the best available raw materials and reviewing the assortment planning strategy to offer the optimal product line [1]. Since 2009, there was a constant upward trend in the consumption of semi-finished meat products and, in general, an increase in market capacity by 30% annually (approximately by $350 million in monetary terms). Domestic consumers started to give preference to frozen semi-finished products (75–78%), the preparation process of which is as simple as possible and requires a minimum amount of time. Small and chopped semi-finished products are also popular and have approximately the same market share. The remaining types have a significantly smaller part. As a rule, consumers (about 40%) choose a product they already know due to personal experience or an advertising campaign. Additionally, for 2014–2017, there was a tendency to reduce the consumption of weighted products and increase the consumption of packaged products due to a higher level of confidence in similar products. Moreover, frozen products are convenient for consumers. Frozen meat products have a longer shelf life (chilled meat is stored for only a few hours) and do not force the buyer to prepare and eat the product immediately after the purchase.

3 Results Many farms are forced to integrate the production of raw materials and ready-to-use food products. Therefore, a workshop for the production of semi-finished products from poultry meat can be organized directly at the poultry farm. The contaminated raw material of dubious freshness cannot be used in the preparation of this product. Therefore, the processing of raw meat should be located close to the place of poultry rearing, since transportation, repeated loading, and unloading, quality control of raw materials at each stage of the warehouse transfer are excluded [6]. For example, to organize a workshop for the production of chicken sausages at an enterprise, several organizational and economic measures can be proposed. It is necessary to build a metal-frame workshop with an area of 66 m2 , using 100 mm wall sandwich panels and 150 mm sheet roofing. To increase productivity and reduce manual labor, semi-automatic and automatic AL systems are used. The Handtmann monitor control system synchronizes the exact portioning and twisting device with a hanging device that accepts sausages. Handtmann lines with twisting and hanging functions provide cost-effective production

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of sausages in natural, collagen, or artificial casings with the highest operational flexibility. The automatic thermoforming vacuum-packing machine is designed for packaging food and non-food products. It is made of stainless steel, which provides highly efficient cleaning and high hygiene. This machine is designed for the production of packaging made from thermoformed and heat-welded roll materials. Considering the productivity of the Handtmann production line, AL-systems PVLH 246, and the available volumes of raw materials of a particular enterprise, it is planned to process 222.7 tons of poultry meat in the first year of the project, taking into account the productivity of the production line, where the productivity of 230–240 kg/h of the Spinning Top is taken as the basis for calculating the time. The net operating time of the equipment is 4 h, i.e., 928 kg per shift. The annual time fund is designed for 240 working days in a single-shift mode. With the delivery of equipment and its installation, one-time costs are approximately equal to 7.6 million rubles. The composition of sausages includes minced chicken −928 kg, and pork fat 140 kg (15% of the main chicken meat). The finished product is 1068 kg of weighted chicken sausages for frying GOST 31936-2012 [6]. Frozen and packed in plastic bags of 6 pieces, the weight of each sausage is 90 grams. It is 586 packs. The production cost of chicken sausages is determined, taking into account many costs: annual salary with deductions; depreciation for a modular workshop; expenses for maintenance and workshop maintenance; electricity costs; water costs; drainage costs; costs of raw materials and supplies. It is offered to pack finished products in a vacuum in a heat-shrink barrier film. With the planned production volume (256,320 kg or 140,640 packages weighing 540 g), in the first year of the project, the prime cost of one package of sausages will be 220.78 rubles/pcs. In the second year, it is planned to increase the volume of produced sausages by 10%. Fixed costs will remain unchanged, and the variables will increase proportionally by 10%. The total cost will be 33,680.5 thousand rubles, the number of packages will be 176.7 thousand pieces, and the cost of one package will be 190.60 rubles/pcs. The financial results of a commercial project include revenue from sales, production costs, income tax, and net profit based on the developed business plan. The company does not plan to attract borrowed funds, as, according to the balance sheet, there is reserve capital and retained earnings of previous years. Given the entry into the new products market in the first year, we will take the standard level of profitability of 20%. The selling price of one package will be 265 rubles/piece. For the second year, we can set the estimated profitability of 30%, with the selling price equal to 248 rubles/pcs. Consequently, the proceeds from the sale will be: in the first year − 265 × 140,640 = 37,269.6 thousand rubles; in the second year − 248 × 176,704 = 43,822.6 thousand rubles. Indicators of economic efficiency of the project are listed in Table 1. After the organization of a workshop for processing poultry meat into sausages for frying in the amount of 222,700 kg per year (the fourth part of the entire production),

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Table 1 Economic performance indicators Indicator

Value The first year

One-time costs, thousand rubles

The second year

7684.9

Revenue from sales, thousand rubles

37,269.6

43,822.6

The prime cost of production, thousand rubles

31,049.5

33,680.5

Gross profit, thousand rubles

6220.1

10,142.1

Profit tax, thousand rubles

1214.0

2028.4

Net profit, rubles

5006.1

8113.7

Return on current costs, %

16.1

24.0

Return on sales, %

13.5

Absolute return on investment ratio The payback period for capital investments, years

0.65

18.5 –

1.5

The annual economic effect of project activities

3469.1

6576.7

Cumulative economic effect

3469.1

10,045.8

Source Calculated by the authors

the output of sausages will equal to 256,320 kg in the first year, and 281,952 kg in the second year. In the first year, the revenue will equal to about 37.3 million rubles and the prime cost to 31 million rubles. Thus, the net profit is 5 million rubles, the return on current cost is 16%, return on sales is 13.5%. In the second year, the revenue will be about 43.8 million rubles. The prime cost to 33.6 million rubles. Thus, the net profit is 8.1 million rubles, the return on current cost is 24%, return on sales is 18.5%. It is already higher than the sales of chicken meat in carcasses or cut into categories. The coefficient of absolute efficiency of capital investment is 0.65, which is within the normal range. Their payback period is one and a half years. Therefore, investments are considered effective.

4 Conclusion Integration in the agricultural sector contributes to import substitution, increasing economic activity efficiency in any sector. It is possible only if there are appropriate free production capacities and competitive enterprises that can offer quality products at affordable prices. According to the Ministry of Industry and Trade, if a wellthought-out import substitution policy is implemented, by 2020, we can expect a decrease in import dependence in various industries from 84% to 50–60%, and even lower in some industries. The research results showed a particular example of positive economic efficiency.

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The economic effect of the planned measures, taking into account the coefficient of efficiency of capital investment, will be about 3.5 million rubles, in the first year, and more than 6.5 million rubles, in the second year. Over two years, this amount exceeds 10 million rubles. The preparatory work for the construction of the processing plant, delivery, installation, and commissioning of equipment will take about 2–5 months. The company will receive profit in the first year of operation of the processing plant, and, taking into account the profit received, one-time investments will pay off in 1.5 years. The perfect option for any agricultural company is to prevent possible failures and productivity losses, which can be obtained from various company forecasts regarding these particular indicators. The need for diversification can be identified by comparing the desired and possible levels of productivity and the level achieved as a result of the development of new activities. All the reasons for diversification are caused by the need to increase the current, short-term, and long-term efficiency of the enterprise.

References 1. Sergeeva NV (2015) The role of diversification in the process of import substitution. Int Sci J 6:44–48 2. Vorozheykina TM (2018) Threats to food security: will there be milk in Russia? Agric Econ Russ 3:43–47 3. Sergeeva NV, Ashmarina TI (2018) The stimulating role of diversification in the organization of agricultural production. Int Sci J 3–4:7–17 4. Sergeeva NV, Solovieva AD (2018) Integrated agribusiness associations. Scientific, educational, and applied aspects of the production and processing of agricultural products. Collection of materials of the International scientific and practical conference dedicated to the 20th anniversary of the first graduation of agricultural technologists. Cheboksary, Russia, pp 555–561 5. Karataeva OG, Kukushkina TS, Frolova YuS, Gribov IV (2019) Innovation in agribusiness. Proceedings from the XI international scientific and practical internet conference: scientific and informational support for the innovative development of the agro-industrial complex. Moscow, Russia, Rosinformagroteh, pp 224–231 6. Nikolaev VS (2013) Meat semi-finished products. Chilled is promising. Ptitseprom, vol 3. Retrieved from http://www.meatbranch.com/publ/view/185.html

Digitalization Assessment in Agricultural Organizations: Prospects for Implementing a New Initiative in the Oryol Region (Russia) Sergey A. Rodimtsev , Tatyana I. Gulyaeva , and Elena Yu. Kalinicheva

Abstract The paper aims to assess, on the part of managers and specialists of specialized organizations of the Oryol Region, the understanding and relevance of the digital transformation of agriculture, as well as equipping farms with new technologies. A questionnaire of a sociological survey was developed, including 25 questions on four blocks: information and organizational, technical, technological, financial, and economical. It has been established that the greatest interest in production is caused by such technologies as electronic maps of fields and gardens, crop control and management programming systems, parallel driving systems, yield mapping, and the application of differential fertilizer. A rating of the demand for innovations is proposed for the first time in the Oryol Region. The main problems include the high cost of innovation and the lack of stable cellular communications and the Internet in remote areas of production. Based on the research results, we proposed methods of stimulating developers and suppliers of digital technologies and manufacturers that actively introduce innovations in enterprises. It was also proposed to initiate a case study, in which results will identify and justify the criteria and methods for assessing the degree of effectiveness of the digital transformation of individual enterprises and the industry as a whole. Keywords Digitalization of agriculture · Sociological survey · Oryol region · Innovation

1 Introduction Among the national goals for the breakthrough scientific, technological, and socioeconomic development of the Russian Federation for the period until 2024 [1], President V. Putin set the task of transforming priority sectors of the economy and social sphere (including agriculture) through the introduction of digital technologies and platform solutions. S. A. Rodimtsev (B) · T. I. Gulyaeva · E. Yu. Kalinicheva Orel State Agrarian University named after N. V. Parakhin, Orel, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_10

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The fundamental aspect of the implementation of the digitalization of agricultural production is the attitude of stakeholders to the problem, the degree of perception by agricultural producers of these innovations [2]. The future of the integrated implementation and development of digital technologies in a particular region should be based on local conditions, the existing practice of using individual technological solutions, achieved economic indicators, preferred trends, and expected prospects [3]. There are several works [4–6] aimed at studying the problems and prospects of the digital transformation of agriculture, providing a review of analytical material based on statistical studies of data to substantiate plans for a qualitatively new development of the industry. The relevance of these studies is not in doubt since the dialectical method of scientific knowledge, a systematic and institutional approach to building an effective information base are the methodological basis for the sustainable development of the agro-industrial complex as a complex socio-economic system [7]. Therefore, in order to study the existing positions and assess the level of digitalization of agricultural organizations and the prospects for introducing new initiatives, the Oryol State Agrarian University conducted a sociological survey of managers and specialists of enterprises engaged in agriculture. The novelty of the research is in the fact that, for the first time in the Oryol Region, a study of public opinion was carried out, and new innovative agricultural technologies used in the production were analyzed. The research assesses the level of digitalization of farms and suggests the most relevant directions for the development of the digitalization of agriculture.

2 Materials and Methods The research methodology consisted of questioning respondents who agreed to take part in the survey. Questioning is one of the most common types of surveys, allowing them to achieve a quantitative measurement of the desired quality indicators. Quite often, questionnaires are used precisely to evaluate events related to the implementation of new (including information) technologies [5, 8, 9]. The respondents who participated in the survey are managers and specialists representing agricultural organizations of various forms of ownership, types of land use, and income level. The reliability of empirical information was ensured by the application of wellknown and approved methods. Thus, the calculation of the required sample size was carried out according to the formula [10], which provides for the use of the accepted level of confidence (95%) and an allowable error not exceeding 5%. The number of specialists participating in the survey was 206. This is more than the estimated sample size of 224 people, which confirms its representativeness. The methodology of the sociological survey provided for the receipt of primary information, based on filling out the questionnaire. The developed questionnaire consists of 25 questions, forming the following information and thematic blocks:

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1. 2. 3. 4.

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Information and organizational (8 questions); Technical (9 questions); Technological (4 questions); Financial and economic (4 questions).

The choice of these particular blocks of questions was justified by research tasks, which provide for a complete assessment of the potential in the digitalization of regional agricultural organizations. The questioning of specialists was carried out both in person, with a visit to the organization, and remotely by sending the questionnaire by e-mail. The processing of the results included the calculation of indicators of descriptive statistics, ranking, and graphic processing of information.

3 Results Based on the questionnaire on questions of Block 1, according to the respondents, we can state the following: – Of all respondents, 58.8% would like to receive more information about the national program “Digital Economy of the Russian Federation” and the draft industry subprogram “Digital Agriculture.” At the same time, 17.6% of respondents were not familiar with these documents; – More than 47% of the respondents do not have enough information about new technologies and their advantages. However, 35.3% of respondents try to fulfill this lack by themselves; – The problems of management and accounting, which could be solved through the introduction of new technologies, were named only by 41.2% respondents. Difficulties when answering this question were observed in 47.2% of specialists; – The need to turn to specialists for help in digitalization is not seen by 41.2% of respondents. Another 35.3% of respondents practice such cooperation successfully; – Despite that, a significant part of farms (47.2%) does not have specialists engaged in the digitalization of economic activities (mainly small enterprises). In 41.2% of the organizations surveyed, these functions are performed concurrently. Another 11.8% of households have a dedicated IT staff; – Almost 65% of respondents consider it necessary to train the specialists in new technologies. The most significant interest of farm managers and specialists is caused by such innovative areas as (1) electronic maps of fields and gardens, (2) crop control and crop management programming systems, and (3) parallel driving systems (12.8%); (4) yield mapping and (5) differential application of fertilizers (11.5%); (6) Internet of Things (10.2%); (7) agricultural drones (9.0%); (8) radio tags on animals and (9) animal keeping and registration systems (6.4%); (10) the identification of products using RFID tags (5.1%). About 13% of respondents showed interest in (11) robotics, (12) modeling using 3D printers, (13) the use of

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artificial intelligence, (14) blockchain technologies, (15) the use of virtual reality, and other innovations (Fig. 1); – The primary constraint to solving the digital transformation of agricultural organizations is the high cost of innovation (almost 50% of respondents). Among the significant problems affecting digitalization, agricultural producers also name the lack of conditions for its implementation (19.0%). Only 14.3% of respondents believe that there are no obstacles to the digitalization of production; – Assessing the level of digitalization in their households on a 10-point scale, the majority of agricultural producers (47.8%) were critical of the available results (1– 3 points). The level of digitalization of enterprises was rated between 3 and 5 points by 39.1% of respondents. Only 13.0% of managers and specialists considered the innovative level of their farms to be at the level from 5 to 7 points on a 10-point scale. The answers of the respondents to the technical block of questions allow us to establish the following: – All organizations participating in the survey have computerized jobs. The number of such places depends on the income of the organization and, according to the results of the survey, ranges from 1 to 3 for 47.1% of respondents. Another 47.1% of business entities are equipped with workstations with ten or more computers;

Fig. 1 The interest of agricultural producers in acquiring knowledge of new technologies. Source Developed by the authors

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– Bearing in mind the overwhelming number of similar answers to the question about the number of computers connected to the Internet, it can be argued that the Global Network of PCs (laptops) covers organizations; – Of all respondents, 46.2% are fully satisfied with the level and quality of Internet and mobile communications. An additional 46.2% of respondents mentioned the unstable Internet connection or its complete absence in the field. The instability of mobile communications and the complete lack of Internet was indicated by 7.6% of respondents; – The most frequent users of multimedia tools in the workplace are office workers (88.2%), agronomists (70.6%), and machine operators (52.9%). Veterinarians and breeders use multimedia tools, respectively, in 35.3% and 29.4% of cases. Another 47.1% of PC users are employees of other professions; – The PC software at workplaces is based on standard Windows programs (2.7%) and 1C Accounting software (70.6%). Specialized programs for crop production and (or) animal husbandry, as well as software products with databases explicitly developed for enterprises, are implemented in another 29.4% and 23.5% of households, respectively; – Most of the surveyed organizations (70.6%) do not have a specialized terminal for the accumulation and processing of digital information; – Despite the predominance of organizations that do not have computer terminals, 35.3% of households use information from satellite navigation systems installed on equipment used for agricultural production in administrative management. Another 23.5% of specialists stated that such information is used partially and not regularly; – The absence of any forms of interaction between households and federal and (or) regional structures in digitalization of agriculture was found in 88.2% of the responses from the number of organizations participating in the survey. Only 11.8% of respondents reported the fact of such interaction unilaterally (agricultural organizations provide information to the regional center). The results of the responses of production representatives to the technological block of questions showed: – The most widely used are such elements as (1) parameter control systems on technology (52.9%), (2) tablets for managers and specialists of households, and (3) video systems (47.1% each). (4) Automatic weighing equipment is presented at 35.3% of the enterprises (Fig. 2). Of all surveyed households, 29.4% use (5) precision farming, (6) parallel driving systems, and (7) automation systems for production processes, accounting, and statistics, data processing. From 11.8% to 17.6% of enterprises already use such innovations as (8) automatic weather stations, (9) electronic maps of the variability of fertility and soil properties, (10) unscrewed aerial vehicles, and other technologies. Currently, they have not found application in the farms participating in the survey, programming systems for monitoring and managing crops, and robotic plants; – In terms of prospects, the most significant interest among agricultural producers is caused by technologies using parallel driving systems. An urgent need for the

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Fig. 2 The use of elements of the digitalization of agriculture in specialized organizations of the Oryol Region. Source Developed by the authors

introduction of these technologies in their households was stated by 47.1% of respondents. Another 29.4% of managers and specialists confirmed the significant need for such innovations. Agricultural producers, in 41.8% of cases, are interested in using electronic maps of fields and gardens; 23.5% of them recognize the urgent need for the introduction of these technologies. The next, in terms of significance, is the production technology based on yield mapping and differentiated application of fertilizer. An extreme or significant need for the application of this element of the digital transformation of agriculture was noted by 41.2% of respondents. The importance of using systems for animal keeping and registration and the use of RFID tags was stated by 41.2% and 35.3% of specialists, respectively. 41.2% of respondents said that the Internet of Things might be useful. At the same time, another 29.4% of respondents called this technology extremely necessary or representing a significant need. Technologies based on the functioning of control and crop management programming systems arouse certain interest among farm managers and specialists. The possibility that this technology may be useful was confirmed by 35.3% of respondents. Moreover, 23.5% of the respondents consider these technologies extremely or significantly necessary. The experts were restrained about the use of drones and robotics in agricultural production. Thus, 52.9% of respondents indicated that the use of drones could be useful, with a certain probability. As for robotics, 29.4% of specialists adhere to the same opinion. At the same time, distrust in the effectiveness of these technologies in agriculture was expressed by 23.5% and 35.3% of the respondents, respectively.

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A similar attitude on the part of manufacturers was noted in applying 3D modeling in agriculture. Here, almost 29.4% of respondents classify this service as “probably useful,” and another 47.1% consider its insignificant or not required at all. There is no certainty about the urgent need to use large databases: 41.2% said that implementation could be useful, and 29.4% considered it to be slightly necessary or unnecessary. Such technologies as Artificial Intelligence (35.3% classify this technology as having little or no need); identification of products using RFID tags (41.2%); Augmented Reality (41.2%); and Virtual Reality (52.9%) are closing the demand for innovation by manufacturers of technologies. Summarizing the results of a statistical analysis of the attitude of specialists to new technologies, it should be noted that several proposals caused difficulties in understanding their essence. In particular, 23.5% of respondents found it difficult to assess the degree of significance of the use of artificial intelligence in agricultural production. However, 17.6% of respondents could not decide on the possibility of using virtual and augmented reality, as well as identification of products using RFID tags. The ranking of the demand for digital innovations in agricultural production, according to the opinion of managers and specialists participating in the survey, can be represented by a summary table. Here, the level of demand for evaluated objects is expressed in a color scheme that obeys the algorithm proposed in Table 1. The results of this study are given in Table 2. – About 60% of the surveyed experts answered the question about new forms of using digital technologies in their households over the past five years; – More than 59% of respondents agreed with the possibility of experimental introduction of advanced technologies in their farms if there would be no expenses from their farm. Another 23.3% of respondents said they were ready to support the test use of innovation, even despite the costs of the economy. It should be noted that more than 17% of farms do not consider the possibility of introducing new technologies in their farms under any circumstances. The results obtained in statistical studies on the issues of the financial and economic block are presented below: Table 1 Color coding algorithm for levels of expert assessment The number of respondents agreeing The assessment of the need for innova on with the assessment, % The great need for the implementa on

55…80

55…80

55…80

The implementa on may be useful

55…80

55…80

55…80

The need for implementa on is negligible or absent

55…80

55…80

55…80

Source Developed by the authors

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Table 2 The rating of the demand for innovation, according to the estimates of the surveyed specialists Ranking posi on

Technology

Great need

The implementa on may be useful

The need is negligible or absent

Not sure, %

Parallel driving systems

1

8.0

Electronic maps of fields and gardens

2

7.1

Yield mapping and differen al applica on of fer lizer

3

20.0

Internet of Things (sensors for monitoring and remote produc on control)

4

6.7

Crop control and management programming systems

5

14.3

Robo cs

6

7.1

Systems for animals keeping

7

14.3

RFID tags on animals

8

14.3

3D printers (crea ng plas c parts for agricultural machinery and tools)

9

7.1

Product iden fica on RFID tags

10

21.4

Ar ficial intelligence (making op mal decisions by a system based on the processing of received data)

11

28.6

Drones

12

7.1

using

Blockchains (an extensive database located on the network accessible to a huge number of users)

13 14.3

Virtual Reality (simula on of situa ons using VR-sets)

14

21.4

Augmented reality (the addi onal introduc on informa on that provides more informa on about the object to the object of percep on)

15

23.1

Source Developed by the authors

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– In most surveyed farms, the amount of funds allocated for the digital transformation of production does not exceed the limit of 10–50 thousand rubles. At the same time, 23.5% of respondents said that there was no funding for these purposes. Nevertheless, about a third of all respondents, for the last two years, spent more than 500 thousand rubles on innovation in their production; – The budget of funds allocated for the transformation of production in the field of digitalization is mainly generated by the enterprises themselves (81.4% of all respondents). Only 12.6% of households participating in the survey have the opportunity to attract the funds of the founder for these purposes. The facts of financing innovation at the expense of personal funds of the manager or employees should also be noted (5.7%); – In the overwhelming majority of cases (82.4%), managers and specialists of households want to spend from 1 to 5% of profits on the introduction of digitalization of their enterprises. About 12% of respondents stated their readiness to subsidize innovative transformations, in the amount of 5 to 10% of the profit; – When asked about the effectiveness of using digital technologies in their households, the majority of respondents found it challenging to answer due to the lack of calculated data. An equal number of respondents have opposed opinions (positive and negative answers were obtained from 17.6% of respondents).

4 Discussion A significant part of the interviewed managers and specialists have no idea about the full range of proposals, opportunities, and advantages of new technologies. At the same time, two-thirds of the respondents consider it necessary to train specialists in new technologies. This assessment indicates the need for additional targeted training for manufacturers of the Oryol Region. Such training should be based on the use of practical experience available in advanced agricultural organizations and theoretical material accumulated by scientists of higher educational institutions. The training should be based on the regional Competence Center in the field of digital agriculture. Its core is the Federal State Budget Educational Institution of Higher Education “Orel State Agrarian University,” which has a developed educational-scientific-production infrastructure, its experimental digital economy, an accredited institute of additional education, and highly qualified scientific and pedagogical staff. Agricultural producers are particularly interested in such technologies as electronic maps of fields and gardens, crop control, management programming systems, parallel driving systems, yield mapping, and differential application of fertilizers. The main problems in the digital transformation of agricultural production include the high cost of innovation and the lack of conditions for its implementation. The latter is explained by the instability of cellular communications and the Internet, or their complete absence, as stated by more than half of the respondents. A possible solution to these issues may be:

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• Partial subsidization of medium and small agricultural organizations that are actively introducing digital innovations; • The provision of tax benefits to organizations providing digitalization services at reduced rates; • Stimulation of own developments and widespread adoption of technologies and technical means for uninterrupted transmission of digital data in conditions of insufficient coverage by GSM-communication and from remote areas of fields. The Oryol Region lags in terms of (1) the availability of computer terminals, (2) the readiness to use digital data coming from existing information systems, (3) systemic interaction of digital platforms of agricultural organizations with the GIS of the regional Department of Agriculture. This makes it impossible to implement the basic principle of the digital transformation of the industry, the growth of labor productivity and lower production costs, based on a level interconnected set of tools and methods used to accumulate, store, and process information used to predict events and make informed management decisions. It was established that a greater understanding of the implementation of the tasks of digitalization of planning, economic, and other activities of enterprises is found among managers of farms with high-income, as well as farms with a successful practice in digitalizing. Nevertheless, in the region, there are no examples of explicit confirmation of the economic efficiency of innovative processes. It seems necessary, with financial support from the Administration of the Oryol Region, to initiate a special study of the transition to the digitalization of the regional agriculture, which results will make it possible to identify and justify the criteria and methods to assess the degree of effectiveness of the digital transformation of individual enterprises and the industry as a whole.

5 Conclusion The authors conducted the sociological study aimed at assessing the attitude to the issues of the digital transformation of agriculture of managers and specialists of specialized enterprises of the Oryol Region. The results of the survey revealed the interest of manufacturers in acquiring knowledge about the capabilities and advantages of new technologies. The center for competencies in the field of digital agriculture created in the region should become the basis for advanced training of specialists and the development of digitalization elements of agricultural production. The high cost of innovation and insufficient cellular coverage of remote production sites remain essential issues. Methods of stimulating developers and suppliers of digital technologies and manufacturers actively implementing digitalization in their enterprises are proposed.

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For the first time in the Oryol Region, a rating of the demand for innovations was developed according to the estimates of farm specialists who took part in a sociological survey. In order to assess the real effectiveness of the digital transformation of agriculture in the Oryol Region, it is proposed to initiate a study. The result s of this study can be used to identify and justify criteria and methods that allow us to assess the degree of effectiveness of the digital transformation of individual enterprises and the industry as a whole. Application QUESTIONNAIRE FOR INTERVIEW OF AGRICULTURAL PRODUCERS This survey is conducted as part of regional research initiated by the Federal State Budget Educational Institution of Higher Education “Oryol State Agrarian University,” with the support of the Department of Agriculture of the Oryol Region. The purpose of the survey is to assess the level of digitalization of agricultural organizations and the prospects for the introduction of new technologies in agriculture of the Oryol Region. Agro-industrial enterprises, agricultural cooperatives, peasant (farmer) farms of the region are involved in the study. We invite you to act as an expert and express your opinion on key issues. The obtained results will allow us to form a more accurate understanding of the needs of market participants and increase the efficiency of interaction between various structures and authorities. When filling out the questionnaire, we ask you to put a checkmark, a cross, or another sign in the squares, opposite the desired answer options (one or more). Try to answer the maximum number of questions. This information is critical for us. Phone for information: 8 910 267 69 64 Rodimtsev Sergey Alexandrovich [email protected] 1.

Do you have an idea about the national program “Digital Economy of the Russian Federation” and the draft of industry subprogram “Digital Agriculture”?  Yes  No  I would like to receive more information.

2.

Do you have enough information about new technologies and their advantages?  There is enough information available.  We fill in the lack of information on our own.  There is a need for more information.

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3.

What is the number of working places equipped with personal computers (laptops) in your organization?  1 to 3  3 to 5  5 to 10  over 10

4.

How many personal computers (laptops) used in your household are connected to the Internet?  1 to 3  3 to 5  5 to 10  over 10

5.

What is the level and quality of Internet access in the territory of your household (the area covered by sustainable mobile communications, in particular, 3G, 4G)?  The Internet is fully provided; communication quality is sufficient.  Mobile communications and the Internet are stable in the office; mobile communication is not stable or absent in the field.  Mobile connection is not stable, no Internet.

6.

What categories of workers or professions in your household use multimedia tools in the workplace (personal computers, mobile communications, remote positioning, etc.)?  Office staff  Agronomists  Machine operators  Breeders  Veterinarians  Workers in other professions

7.

Does your household have management and accounting problems that can be solved with the introduction of digital technology?  Yes  No  Not sure

8.

Does your household use any media software?  Not used  Only common Windows PC software is used.  The program 1C Accounting is used.  Specialized livestock and/or crop production programs are used.  We use software products with databases designed specifically for our farm.

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9.

If your farm has agricultural machinery equipped with GLONASS and/or GPS systems, is the information from these systems used in the system of administrative management?  Used  Partially and not regularly used.  Generally, not used

10.

Does your farm turn to other organizations for help with digitalization services (digitizing field boundaries, soil mapping, determining the NDVI index, installing software for monitoring and managing the farm, etc.)?  Yes (underline the name of the relevant service)  No, due to the high cost of services  No, due to lack of need

11.

Do you have specialists in your household dealing with issues of digitalization of economic activity (data collection and processing, forecasting, process monitoring, etc.)?  No  1 or more dedicated specialists There are specialists performing this work part-time:  1 specialist  from 2 to 5 specialists  more than 5 specialists

12.

Does your farm have a terminal for collecting and processing digital data from systems and sensors used in the organization?  Yes  The terminal is available but not used  No

13.

What elements of agricultural digitalization are introduced and used on your farm?  Automation systems for technological processes of production, accounting, statistics, and data processing

 Technological parameter control systems

 Uncrewed aerial vehicles

 Precision farming and parallel driving systems

 Automatic weather stations

 Robotics (milking robots, etc.)

 Automatic weighing equipment

 Video systems

 Tablets for specialists and heads of the household

Systems for animals keeping

 Digitizing field boundaries

 Electronic maps of the variability of fertility and soil properties (continued)

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S. A. Rodimtsev et al. (continued)  Automation systems for technological processes of production, accounting, statistics, and data processing

 Technological parameter control systems

 Crop control and management programming systems

 Other

14.

What is the interaction of your organization with regional and/or federal structures in the field of digitalization of agriculture?  The farm provides digital monitoring data to a server of a regional and/or federal structure, in return, receiving the required information.  The farm provides digital monitoring data to a server of a regional and/or federal structure, unilaterally.  No interaction

15.

Have new forms of using digital technologies that appeared in your household over the past 5 years?  Yes  No

16.

What is the total cost of introducing digitalization elements in your household over the past 2 years?  10–50 thousand rubles.  50–100 thousand rubles.  100–500 thousand rubles.  more than 500 thousand rubles.

17.

The budget for the digitalization elements of your farm is formed by:  Farm  Founder  Regional budget  Federal budget  Personal funds of the manager and/or employees

18.

What part of the profit are you willing to spend on the digitalization of your household?  1…5%  5…10%  10…20%  More than 20%

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19.

Are you satisfied with the results achieved in reducing costs and savings, improving product quality, with the introduction of digital technologies in your household?  Yes  No  The effect of the introduction of digital technologies on the farm was not calculated  Digital technologies on the farm are not implemented

20.

What new technologies are more attractive for implementation in your household, by priority: Technology

Significant need

May be useful

The need is insignificant

No need

Not sure

Internet of  Things (sensors for monitoring and remote production control)























Virtual reality  (simulation of situations using 3D glasses)











Augmented  Reality (introduction to the object of perception of additional information that allows one to have more information about the object)











Drones













Robotics













Artificial Intelligence (making optimal decisions by a system based on the processing of received data)

Extreme need

(continued)

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S. A. Rodimtsev et al. (continued) Technology

Significant need

May be useful

The need is insignificant

No need

Not sure

3D printers (the  creation of plastic parts for agricultural machinery and tools)











Blockchains (a  large database located on the network and accessible to a huge number of users)























Parallel driving  systems











Crop control and management programming systems













Product identification using RFID tags













Systems for animals keeping













Yield mapping  and differential application of fertilizer











RFID tags on animals













Other













Electronic maps of fields and gardens

21.

Extreme need

Is there a need for training specialists in your household to implement digitalization?  No training required  Training of specialists in the farm has already been organized  General digitalization training required Specialists need training in specific areas:

Digitalization Assessment in Agricultural Organizations …  Internet of Things

 Robotics

 Artificial Intelligence

 3D printers

 Virtual Reality

 Augmented reality

 Drones

 Blockchain

 Electronic maps of fields and gardens

 Systems for animals keeping

 Parallel driving systems

 Yield mapping and differential application of fertilizer

 Crop control and management programming systems

 RFID tags on animals

 Product identification using RFID tags

 Other

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22.

Do you agree to the experimental (test) implementation of “smart” technologies in your household?  Agree  Agree, if there are no costs to the household  Do not agree under any conditions

23.

Are there any examples of your own developments in the field of digitalization in your household?  Yes  No

24.

What is holding you back from digitalization of your farm?  High cost of innovation  Reduction in the number of jobs associated with automation of production  Distrust in the possibilities of the proposed technologies  Lack of conditions for innovation in the economy  Risks associated with the need for transformations in well-established production  Nothing

25.

How would you rate the level of digitalization of your household on a 10-point scale? 1 2 3 4 5 6 7 8 9 10          

Thank you for your responses! To confirm the fact of participation in the project, please fill in the requisite part. This information will be used only during verification. Confidentiality is guaranteed.

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Requisite part: Business name _________________________________________________________________ Company Address __________________________________________________ Contact phone ___ code (____) number __________ or mob. _______________ Your name _________________________________________ Position ________________________________ Acknowledgements The work was carried out as part of the thematic plan-assignment for the implementation of the Federal State Budget Educational Institution of Higher Education “Oryol State Agrarian University under the order of the Ministry of Agriculture of Russia” at the expense of the federal budget in 2019 (registration number R&D AAAA-A19-119041290030-8, from 04/12/2019).

References 1. Presidential Executive Office (2018) On the national goals and strategic objectives of the development of the Russian Federation for the period until 2024 (May 07, 2018 No. 204). Moscow, Russia 2. Andryushchenko SA, Derunova EA (2018) Directions and indicators of digitalization as a factor in the development of the production potential of the agri-food complex. Ostrovsky Readings 1:144–149 3. Voytyuk VA (2018) Digital technologies in plant breeding: domestic practice, prospects for development. Innovation Agric 4(29):311–320 4. Truflyak EV (2017) Use of results of work of the center forecasting and monitoring in educational process faculty of mechanization. In: Truflyak EV (ed) Practice-oriented training: experience and current trends. Collection of articles on the materials of the training conference. Kuban State Agrarian University, Krasnodar, Russia 5. Truflyak EV, Kramer AS, Kurchenko NYu (2018) Questioning results in the direction “Digital farming”. Kuban State Agrarian University, Krasnodar, Russia 6. Truflyak EV, Kurchenko NY, Kreimer AS, Daibova LA, Belaya YM (2017) Monitoring and forecasting of scientific and technological development of agriculture in the area of precision agriculture, automation, and robotization. In: Truflyak EV, Kurchenko NY, Kreimer AS, Daibova LA, Belaya YM (eds) Collection of articles on the materials of the 72nd scientific and practical conference of teachers based on the results of research for 2016, 2017. Kuban State Agrarian University, Krasnodar, Russia 7. Litvinov FI (2017) Sustainable socio-economic development of AIC in the context of Russia’s entry into the era of the digital economy. Econ Soc: Mod Dev Models 1:91–99 8. Risin IE, Treschevsky YuI, Prachenko AA, Treschevsky DYu (2019) Innovative processes in the region—prospects for digitalization. In: Risin IE, Treschevsky YuI, Prachenko AA, Treschevsky DYu (eds) Proceedings from actual problems of the development of economic entities, territories, and systems of regional and municipal management materials of the XIV international scientific and practical conference. Bryansk State Agrarian University, Bryansk, Russia

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9. Sorokina YV (2018) Development of a methodology for studying the degree of readiness of the population of the Southern Federal district to implement the principles of the digital economy (on the example of the Rostov region). In: Sorokina YV (ed) Proceedings from A collection of articles from the first forum of young scientists of the south of Russia. Volgograd, Russia, Pilot 10. Mogilchak EL (2015) The selective method in the empirical case study, 1st edn. Publishing House Ural University, Ekaterinburg, Russia

Bankruptcy Prevention with the Unified Accounting System Yuri I. Sigidov , Sergey P. Pershin , Natalya S. Vlasova , and Marina A. Korovina

Abstract Nowadays, the development of the economy is unthinkable without ensuring a proper competitive environment for many of its participants, placed in relatively equal economic circumstances. However, the involvement of subjects in business circulation is faced with problems of financial literacy, honesty, responsibility, accessibility of information, and other resources. Many of these difficulties lead to the rapid bankruptcy of an economic entity and damage to its partners in the form of unfulfilled obligations. A system of recording the facts of economic life and economical communication of its participants are called upon to help to solve such problems. Based on the study of theoretical principles, generalization, and analysis of accounting practices, the purpose of the study is to propose the organization of the accounting system in order to ensure the effective administration of a single economic space, allowing to obtain effective tools for making managerial decisions and the implementation of other administrative powers. In accordance with the goal, the prerequisites and possibilities for introducing trends in the development of the accounting system in the conditions of a single economic space were identified and studied. The issues of administering economic relations using the tools of the accounting system of a single economic space are considered in order to prevent the bankruptcy of economic entities in the digital economy; The results of the study are summarized, and a procedure for organizing accounting activities in support of stated tasks are proposed. The novelty of the study lies in the developed procedure for organizing the accounting system for ensuring the effective administration of a single economic space, which will help prevent the bankruptcy of economic entities. The contribution of the authors lies in the study of prerequisites and opportunities for implementing trends in the development of the accounting system in a single economic space, as well as in the review of the administration of economic relations using the tools of the accounting system in a digital economy for preventing the bankruptcy of economic entities. Keywords Bankruptcy · Accounting · Unified accounting system · Control · Administration · Automation Y. I. Sigidov (B) · S. P. Pershin · N. S. Vlasova · M. A. Korovina Kuban State Agrarian University named after I. T. Trubilin, Krasnodar, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_11

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1 Introduction Government bodies, following the guidelines for the development of small businesses in Russia and the involvement of a more significant number of citizens in the field of entrepreneurial activity, are developing and implementing development, incentive, support, insurance, and other programs. However, one of the key problems remains the problem of poor education and financial literacy, which also leads to the inability to think analytically, competently and reasonably plan activities, to the absence of citizens that are potentially ready for direct work in the business environment. Investments in the field of education have a peculiarity associated with a very long payback period and unobvious effect. The situation is aggravated by the existing difficulties with the interpretation and application of the provisions of several normative legal acts, facts of excessive bureaucracy, red tape in the public administration, corruption. The mentioned payback period for capital investments in the education system, as well as the upbringing of the individual, makes the efforts of public servants, not oriented towards achieving a qualitative effect from the performed work, not understanding and not feeling responsible for the interests of society, unsuccessful. A system of ensuring the work of the state mechanism and the economic community, independent of the adverse human factor, is required following a given setting, algorithm, development strategy, legal and business ethics, standards of effective economic behavior, capable of preventing the bankruptcy of economic entities. A state in which a significant part of the subjects of economic and direct social relations are representatives of a dishonest community is in a risk zone. Such a risk, in the event of fundamental changes in the economic sphere, consists in the possibility of a social explosion, an out-of-control negative sentiment that can lead to a coup d’etat. Therefore, measures for the development of economic relations, the introduction of control instruments, should be carried out in stages, smoothly following the evolution of the domestic economy of the state. However, they should be aimed at achieving the initially stated goal of honest, transparent business. For the state, it is essential to ensure efficient management and prevent the bankruptcy of an economic entity. In this regard, it has been rightly noted [1] that state regulation of bankruptcy should have an optimal set of tools to ensure equilibrium in the economy and ensure the achievement of public policy goals. Who can become an entrepreneur and start raising funds? Generally, anyone. This is the democratic principle of free enterprise. How much is such a person ready and capable of effective economic activity? Do they have the necessary resources, knowledge, and experience in implementing planned projects? The answer to this question remains the responsibility of their customers and contractors. The number of cases of unjustified bankruptcies and frauds indicates that citizens are forced to take unreasonable risks in an attempt to make a profit and satisfy their needs. Some people believe that they were forced to do so due to falsely assessed circumstances. This problem relates, in general, to the financial literacy of the population and the ability to assess life and economic circumstances correctly.

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The control system, as well as the community of economic entities, needs an effective automated system for collecting, summarizing, and presenting information no less than. It becomes an instrument of economic security, a barrier to rights abuse. This is of no less importance when implementing bankruptcy procedures when a list of creditors is formed. A system of recording the facts of economic life and economical communication of its participants are called upon to help solve such problems. The economy and the activities of its entities must be transparent, and the necessary information should be available to a wide range of stakeholders. Despite the predominance of the principles of economic freedom, the modern economy needs administration, the activities of a regulator aimed at ensuring equality of rights and freedoms of participants in business relations, and regulation of sectors of the economy. In modern conditions of development of digital technologies, this need can and should be realized using automated technologies that can ensure that all facts of economic life are taken into account in the system of a single automated economic space and provide data for objective monitoring and use by all its participants [2]. Indeed, it is precisely omissions in accounting and qualification for actions, in some cases unlawful, of individual subjects of economic relations that destroy the economy and hamper the development of relations of pure competition and the fair distribution of resources. The use of digital technologies in implementing the declared strategy of technological breakthroughs in all areas of the national economy is especially relevant for Russia. At the same time, the administration is inconceivable without the consumption of high-quality data, reflecting the state and dynamics of the economy and all individual economic development processes. The huge amounts of data available to many users, and the automated application of established algorithms, can ensure the implementation of the principle of objectivity, control independence, and minimize the influence of the human factor. At the same time, the monitoring of the activities of economic entities should and can be carried out without significant distraction from entrepreneurial activity, unnecessary interference in business, with timely implementation of a real-time monitoring system. Thus, the means of communication existing, processing, and presenting information make it possible to implement many principles regarding the independence of entities, mutual control, security, and compliance with legal norms. The key toolkit for the implementation of these issues is the accounting system, built on modern procedures for organizing data transfer and the installation of automated systems, which allows us to register, process, and present information necessary for the control and management of the economy [3]. Such a system, based on the use of modern digital technologies, will effectively increase the efficiency of functions of administrative entities since it uses the unity of the accounting and economic space, the key independence of software algorithms, the multiplicity of the participants most varied in nature, and independent control. To some extent, the works of R.A. Alborov, P.S. Bezrukikh, V.V. Braga, V.G. Getman, E.G. Dorokhina, R.S. Ibragimova, M. Yu. Medvedev, S.A. Nikolayeva, L.V. Popova, O.V. Rozhnova, and many other scholars are devoted to the development

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of the accounting system. However, they studied specific issues of accounting, the interaction of developing areas of accounting. Their works relate either to the distant future or do not sufficiently take into account the current economic situation in the country. Most of the research concerns the improvement of certain aspects of the classical form of accounting. R. Ibragimov proposed the system for electronic analysis for addressing the financial recovery of insolvent organizations [4]. However, his research was devoted to the activities of organizations functioning in the public sector. The novelty of the research lies in the proposed procedure for organizing the accounting system for ensuring effective administration of a single economic space, which allows to obtain more effective tools for making managerial decisions, implement other administrative powers, which generally helps to prevent the bankruptcy of economic entities. The contribution of the authors lies in the study of prerequisites and opportunities for implementing trends in the development of the accounting system in a single economic space, as well as in the review of the administration of economic relations using the tools of the accounting system in a digital economy for preventing the bankruptcy of economic entities.

2 Materials and Methods The purpose of the study was to propose a procedure for organizing an automated accounting system for the effective administration of a single economic space. The solution of the tasks set in the work was carried out based on the application of general scientific research methods: generalization and analysis of accounting practices. A modeling method was used when developing a system for automating credentials. The basis was the practice of audit and verification activities of the economic security and anti-corruption units of the Main Directorate of the Ministry of Internal Affairs of Russia in the Krasnodar region, the Federal Penitentiary Service of Russia in the Krasnodar region, and the Investigative Department of the Investigative Committee of Russia for the Krasnodar region.

3 Results An automated system should not be a tool subsequent to the fact of economic life and measures of administration of registration and generalization of information, but a tool for the implementation of these facts and events. The automated algorithm can and should become a means of implementing the state economic policy. Following the established sequence of actions, while receiving certain hints, the user has more useful and truthful information when implementing his plan. Thus, the product can reduce the negative impact of the human factor, both illiteracy and rights abuse.

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The proposed system can link the entered data with the data of all other participants in the transaction (operation) and receive the necessary confirmation from them. Thus, the operation (transaction, event) will be reflected in a single accounting system, which will indicate its completion. The mechanism of the system will allow, in many respects, shifting a rather significant part of accounting obligations to leading, large subjects of economic activity, since they have a significant accounting resource. In the system, counterparties can be represented, taking into account the characteristic features, including the level of reliability and financial stability. This will warn the users about possible risks in the cooperation [5]. Also, it is difficult to evaluate the top management of the company. A rating of the activities of the organization, in addition to the analysis of individual coefficients, can help to resolve this issue. Administrative bodies with subordinate institutions, which activities are also supposed to be rated, should also be registered in a single accounting system. It is necessary for the evaluation and analysis of data, and either confirms or denies the reliability of these data. The idea proposed by this study is based on existing achievements in the field of programming, construction, and administration of databases. The user is registered in the system, entering the necessary information, the authorization occurs when the authorized state body verifies the declared data and supplements it with other information at its disposal. Having, thus, obtained access to the personal account, an interface is selected, the content of the function is determined depending on the goals and content of the economic activity of the subject. The implementation of economic relations, even in the simplest operations of the exchange of goods or financial calculations, is carried out based on the choice of the corresponding function in the functional environment of a single automated system. Here, the user indicates the necessary, topical parameters of the economic life and sends the document for execution. Economic entities, users of this automated system keeping financial records in this system, for their needs, can keep only management records. The reflection of the facts of economic life in this system will be carried out in accordance with specific regulations that meet the requirements of the legislation, based on the choice of accounts and filling out forms of primary accounting documents. A body endowed with administrative functions, if necessary, at any time may request clarification regarding any fact of economic life (Fig. 1). The automated system allows the real-time formation of indicators characterizing the financial condition, business activity, solvency recovery indicators, and others necessary for monitoring the state of an economic entity [6]. When approaching the values of indicators to a critical value, it is possible to attract an expert to consider the state of affairs and formulate recommendations on changing economic policies and preventing bankruptcy risks. Only reporting indicators are analyzed, and the expert’s suggestions are advisory, which does not affect the freedom of the civil manager to exercise civil rights. At the same time, the activity of an economic entity becomes transparent in order to monitor compliance with the law; it provides the possibility

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Fig. 1 The order of interaction when requesting and receiving clarifications. Source Developed by the authors

of preventing the commission of crimes and offenses, creating a protective barrier to involving ignorant people in fraudulent activities. A modern accounting system should provide opportunities to protect the rights of economic entities in matters of bankruptcy and counteract the use of its elements in achieving the unreasonable interests of counterparties. Failure to pay obligations in most cases may be temporary. The introduction of the bankruptcy procedure on the counterparty’s application can significantly complicate matters, lead to the breakdown of business ties, and the elimination of funding sources. At the same time, an economic entity cannot rely on the possibility of shifting risks to temporary management and responsibility on an expert (external manager) involved in bankruptcy proceedings. The consequences of bankruptcy and the responsibility for illegal actions committed in this case should remain an incentive to take comprehensive measures to prevent this condition. In this regard, automated accounting opens up new opportunities for the implementation of business relations. An economic entity will be able to monitor the financial condition of the partner and the formation of sources for repayment of receivables. For example, if the partners agreed to pay for the delivered goods from the proceeds of the sale by the buyer to third parties, then the relevant accounts of the performed business operations may become the subject of monitoring by the source supplier. This makes it possible to quickly intervene in current business processes and take measures to prevent losses for an interested person. The provision of a third party with the possibility of monitoring accounts in the framework of designated business

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relations (contract) becomes a condition of contractual relations. The development of business relations is based on trust in the counterparty, confidence in its reliability, honesty, and business reputation. The system offers the user an algorithm, a model of economic behavior in the selected area of activity, and provides the informational need of all participants in business relationships. In the first case, the system helps to prevent the artificial creation of insolvency circumstances [7]; in the second, it is an instrument of business relations based on trust. Using a single automated accounting system, a set of entrepreneurship tools is implemented; these are simplified procedures for reserving funds for settlements, exchanging documents in electronic form, information, reflecting facts of economic life based on common credentials of business partners and others. Even when problems of default aggravate the economic situation, the reasons for failures can be illustrated by the data registered in the accounting system, which will serve as a justification of the defended position in court when considering bankruptcy issues and liability to creditors.

4 Discussion The proposed system of a unified automated information database of accounting and analytical support can be an effective way to prevent bankruptcy. The software package is becoming the main real tool ensuring the unity of the economic space. It erases the borders of administrative territories, and all participants in economic relations work in a single field of business relations, forming the balance sheet of a set of economic entities. Unlike other studies and similar existing systems that should be or are already formed according to the data of federal authorities (tax authorities or statistics), the authors propose the formation and filling of the system data by economic entities themselves. The developed theoretical principles and organizational and methodological recommendations serve as the basis for interpreting the vector of development of accounting activities, the globalization of economic relations, the transformation of the tools for managing the economy of the country, as a result of solving many problems of ensuring pure competition, improving the efficiency of budget funds use, accelerating cash flows, and interaction between business entities.

5 Conclusion Thus, the development of entrepreneurship, the involvement of new participants in the business environment, the creation of a platform for transparent economic relations, the prevention and resolution of bankruptcy issues in the modern world

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can be based on the use of a single automated accounting system that organizes the effective implementation and control of financial and economic activities [8]. The order of the proposed system is essential, consisting in the supporting role of the accounting system in the implementation of economic facts. Important disclosure of the formed unified system of accounting information for the needs of interested users stimulates the development of trusting relationships and improving the quality of the business environment. The novelty of the study consists of the proposed creation of an automated system for recording facts of the economic life of economic entities and their generalization. As a result, a single economic space is formed, which contributes to the adoption of more effective management decisions, the implementation of other administrative powers, and the prevention of bankruptcy of economic entities. The practical significance of the developments is that their implementation in economic and administrative practice will significantly improve the quality and efficiency of accounting, realize the potential of simplified accounting and taxation, and will provide useful, complete, and reliable information necessary for managing the financial and economic activities of economic entities, prevention of bankruptcy of economic entities. The proposed system requires direct state regulation by developing regulatory documents governing the participation of economic entities in its use, creating appropriate software, and protecting information. The formulated scientific provisions can serve as a basis for further research and evaluation of the organization of accounting and management of financial and economic activities, and also serve as the basis for the preparation of relevant regulatory documents in the field of economics and public administration.

References 1. Dorokhina E (2009) Legal regulation of management in the bankruptcy system. New Index, Moscow, Russia 2. Veselovsky M, Pogodina T, Ilyukhina R, Sigunova T, Kuzovleva N (2018) Financial and economic mechanisms of promoting innovative activity in the context of the digital economy formation. Entrepreneurship Sustain Issues 3:672–681 3. Pershin SP (2017) Real-time accounting—reality and prospects. In: Proceedings from the VI international scientific conference. Modern economy: problems, prospects, information support. Kuban State Agrarian University, Krasnodar, Russia 4. Ibragimov R (2015) On the prevention of insolvency (bankruptcy) of public sector organizations. Property Relat Russ Fed 8(167):73–88 5. Pershin S, Posokhova T (2015) Single accounting space and accounting agents as methods of accounting development. Sci J KubSAU 08(112):644–660. Retrieved from https://ej.kubagro. ru/2015/08/pdf/47.pdf 6. Nosova S, Semenova A, Redin D, Tarakanova N, Makarenko A (2018) Digital economy in the strategy of product integration in Russia. Espacios 31:35–39 7. Russian Federation (2002) Federal law “On insolvency (Bankruptcy)” (December 2, 2002 No. 127-FZ). Rossiyskaya Gazeta, Moscow, Russia

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8. Pershin S, Mozhegova V (2016) Administrative resource in the system of a single accounting space as a means of ensuring economic growth. Sci J KubSAU 04(118):563–583. Retrieved from https://ej.kubagro.ru/2016/04/pdf/31.pdf

Accounting for Reserves to Ensure Sustainable Development of an Enterprise Aigul U. Abdrakhmanova , Anargul S. Belgibayeva , Utegen K. Sartov , Elvira S. Madiyarova , and Lyazat Z. Karimova

Abstract The paper focuses on theoretical and methodological issues of recognition of reserves in accounting, types of reserves, methods of their reflection, following international financial reporting standards. The authors studied the methodology of creating reserves related to the depreciation of fixed assets and intangible assets, depreciation of reserves, reserves reflected through the capital, that is, related to the revaluation of fixed assets. The methodology for recording reserves for estimated liabilities, the criteria for their recognition. The results of the study can be used in practice by the heads of enterprises and organizations, accountants, and analysts. The paper provides various examples and situations of redundancy. The ways of reflection in the accounting of each described situation are demonstrated, and their influence on the financial statements indicators is shown. Practical issues of reserves accounting are considered according to the relevant international financial reporting standards. The methods of reflecting reserves in international accounting are analyzed. Keywords Reserves · Estimated liabilities · Contingent liabilities · Reserves for impairment of assets · Reserves for lawsuits · Reserves for decommissioning of fixed assets · Reserves for environmental restoration · Continuity · Risks

A. U. Abdrakhmanova JSC Finance Academy, Nur-Sultan, Kazakhstan A. S. Belgibayeva (B) Sh. Ualikhanov Kokshetau State University, Kokshetau, Kazakhstan U. K. Sartov JSC Kazakh University of Technology and Business, Nur-Sultan, Kazakhstan E. S. Madiyarova D. Serikbayev EAST-Kazakhstan State Technical University, Ust-Kamenogorsk, Kazakhstan L. Z. Karimova Abay Myrzakhmetov Kokshetau University, Kokshetau, Kazakhstan © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_12

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1 Introduction The application and understanding of international financial reporting standards (IFRS) are essential requirements for the preparation and presentation of financial statements of business entities. The introduction of IFRS in the financial reporting system, both in international accounting practice and in Kazakhstani practice, consisted of the need to bring accounting into a single international standard. When reporting on assets, capital, and liabilities, the issue of reserves is a significant aspect. In the absence of required disclosures about reserves, reporting will be incomplete and not reliable. As a result, “the omission of material information” may affect decisions of users [1]. In this regard, the relevance of studying the issue of accounting for reserves in current conditions is not in doubt. One of the problems of presenting high-quality and reliable financial statements with all the necessary disclosures, according to IFRS, is the incorrect interpretation of the provisions of the standards. This is the main reason for studying accounting issues and presenting disclosures about reserves for assets, capital, and liabilities. A review of the works of scientists in this field, as well as a study of practical situations [2, 3], makes it possible to conclude that accounting for reserves for assets, capital, and liabilities in the activities of business entities is of great importance in the development and the provision of true financial reporting indicators to users. According to the results of observations, it is evident that the methodology for accounting for reserves raises many questions in practice since there is a need for understanding and professional judgment based on knowledge and experience about the need to accrue reserves. Therefore, great attention should be paid to accounting for reserves related to the revaluation or depreciation of assets and reserves for liabilities of enterprises. The work aims to theoretically and methodologically substantiate the issues of accounting for reserves in the accounting of assets, capital, and liabilities, as well as the required disclosures on reserves for financial statements following IFRS. In order to successfully achieve the intended goal of the study, it is necessary to identify the tasks. They are as follows: – – – –

The study of methods for determining reserves for assets; The study of the recognition criteria for provisions for liabilities; The study of the reflection of reserves in terms of capital; The study of the features of accounting for reserves and their impact on financial statements.

The paper describes the methodology of creating reserves related to the depreciation of long-term assets, depreciation of reserves, reserves reflected through the capital, that is, related to the revaluation of fixed assets, reserves for liabilities. The results of the study can be applied in practice by managers, accountants, and analysts.

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2 Materials and Methods The main source for studying the issue of reservation in accounting is IFRS because they contain the appropriate methods and requirements for the recognition of certain reserves. Currently, in the Republic of Kazakhstan [RK], the practice of recognizing and reflecting reserves in accounting has affected both public companies and small and medium-sized businesses [4]. In this regard, Kazakhstan adopted the Decree of the Board of the National Bank of the Republic of Kazakhstan “On approval of the Rules for the creation of provisions (reserves) following IFRS and the requirements of the legislation of the Republic of Kazakhstan in accounting and financial reporting” (December 22, 2017 No. 269) [5]. Scholars and practitioners actively discuss the study of reserves accounting in the Republic of Kazakhstan in the field of accounting and audit. The works of such practitioners as [6], E. B. Kolomeytseva, E. B. Kapaev, and scholars E. Nurseytova, V. L. Nazarova, and V. P. Proskurina are of particular interest. The methodological basis of the study was such general scientific methods of cognition as observation, comparison, description, classification, generalization, and detailing, as well as methods of statistical analysis. The use of these methods allowed us to make theoretical generalizations and formulate specific recommendations for accounting for reserves.

3 Results In Kazakhstan legislation, the recognition of reserves is not sufficiently disclosed. There are no clear and precise methods for determining the reserved amounts, which also determines the relevance of assessing reserves in the financial statements. The features of tax accounting complicate the accounting for reserves. The problem is that the legislation in the field of taxes does not provide for the accounting of expenses and income as reserves arising when accounting in accordance with IFRS. In tax accounting, January 10, 2020, expenses for accrual of reserves do not deduct following paragraph 5 of Article 242 of the Tax Code of the Republic of Kazakhstan. Therefore, “expenses for tax purposes are not the expenses arising in accounting due to the change in the value of assets and (or) liabilities when applying IFRS and the legislation of the Republic of Kazakhstan on accounting and financial reporting, other than payable (paid)” [7]. Moreover, income from the restoration of reserves is not recognized as income as part of the total annual income based on subparagraph 9 of paragraph 2 of Article 225 of the Tax Code of the Republic of Kazakhstan [7]. Since there is a difference in the provisions of the Tax Code of the Republic of Kazakhstan and IFRS in terms of recognition of reserves, temporary differences arise

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Table 1 The overview of the IFRS reserves The reporting item

The name of the reserve

IFRS

Assets

Impairment reserves

IFRS (IAS) 2 Inventories

Impairment provisions for financial IFRS (IFRS) 9 Financial instruments assets

Capital

Liabilities

The provisions for impairment of fixed assets, intangible assets

IFRS (IAS) 36 The Impairment of assets

Reserves for revaluation of fixed assets

IFRS (IAS) 16 Fixed assets

Reserves for revaluation of intangible assets

IFRS (IAS) 38 Intangible assets

Reserves for revaluation of financial assets

IFRS (IFRS) 9 Financial instruments

Reserves for currency translation for foreign operations

IFRS (IAS) 21 Effect of changes in exchange rates

Warranty reserves

IFRS (IAS) 37 Estimated liabilities, contingent liabilities, and contingent assets

Legal provisions Reserves for the decommissioning of fixed assets; environmental restoration reserves Restructuring Provisions Reserves for employee vacations

IFRS (IAS) 19 Employee benefits

Source [1]

in accordance with IAS 12 “Income Taxes”; deferred taxes are recognized both in accounting and financial statements. Table 1 shows the types of reserves in accordance with IFRS, which must be reflected in accounting and financial statements. In preparing financial statements, an entity shall calculate the value of inventories at the end of the period. Using the data shown in Table 2, we can analyze the situation when a retailer made several purchases and received revenue for a certain range of goods. As of December 31, inventories amounted to 180 units. The accounting policy defines a method for estimating FIFO inventories. The costs of sales and sales account for up to 5% of the sales price. FIFO cost of sales is as follows: 84 pcs. × 607 + 72 pcs. × 604 + 24 pcs. × 600= 108, 876 tenge. Net value of sells: 180 pcs. × 624 tenge × 95% = 106, 704 tenge. The amount to be reflected in the financial statements amounts to 106,704 tenge. An impairment loss is to be charged to the impairment allowance of 2,172 tenges as follows:

Accounting for Reserves to Ensure Sustainable Development …

125

Table 2 Stock data Units of purchase, pcs

Price per unit, tg

Sold units, pcs

Retail price per unit, tg

December 05, 2019

120

600

72

636

December 20, 2019

72

604

96

636

December 30, 2019

84

607

60

624

January 06, 2020

60

611

84

624

January 10, 2020

96

614

60

624

January 15, 2020

48

618

48

624

Source Developed by the authors

De − Depreciation expense − 2,172 tenges; Ir − Impairment reserve − 2,172 tenges. This will lead to a temporary difference, from which a deferred tax asset will arise since the carrying amount of the asset is less than the tax base. In the face of increasing uncertainty in the implementation of activities, under the influence of various factors, enterprises are faced with various risk situations. In turn, this reinforces the significance of the theory of impairment of financial assets, which is considered in IFRS 9 “Financial Instruments.” This standard has developed a methodology for recognizing impairment losses in financial assets or the “model of expected rather than already incurred losses.” According to the requirements of the standard, companies must recognize the possible impairment of a financial asset as soon as it was recorded, followed by a review of its value at each reporting date until the asset is disposed of. Thus, since accounts receivable belong to the category of financial assets, it also, like other assets, should be tested for possible impairment [8]. If any impairment of property, plant, and equipment is determined, it is necessary to follow the provisions of IAS 36 “Impairment of Assets”. According to the requirements of the standard, at a certain date indicated in the accounting policy of the enterprise, it is necessary to study various sources of possible impairment both within the enterprise and from the outside. The presence of at least one feature evidence of impairment of an asset. One significant reason for possible impairment is that the carrying amount of the asset exceeds its “recoverable amount.” This discrepancy is explained by the fact that the asset, at the cost at which it is reflected in accounting, will not bring the economic benefits that the company wants to receive from it during its operation. Therefore, it is important to recognize the decrease in

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the value of the asset as an impairment loss, with the provision for impairment of the asset recognized. The methodology for recognizing the impairment of a long-term asset involves comparing the fair value with the “value in use” indicator of the asset, then the maximum value is selected from them, which is compared with the value of the asset reflected in the statement of financial position. As a rule, long-term assets at the enterprise are mainly necessary for the normal implementation of their business activities and production processes; that is, they are not always intended for sale. Therefore, their fair value can be quite low, and, when comparing it with the book value, there will always be a forced fact of recognition of an impairment loss for an asset. This reflection of the loss will give a false picture of the present value of the asset. Therefore, it is important to calculate the “value in use” of the asset along with the fair value. Thus, at a low cost of sale, an asset can be of high value for a given production, which will allow the most truthful assessment of the real accounting estimate of the asset. The “value in use” of an asset is characterized as the “present value of future cash flows” that an entity may receive over the remaining useful life of the asset [1]. For this purpose, the article considers a situation that demonstrates the procedure for testing a fixed asset for possible impairment and recognizing a loss through a provision. Thus, at the enterprise “X,” there is equipment that is used in the production processes, which is accounted for using the model at revalued amounts; as of December 31, 2019, the cost was 1700 thousand tenges. The equipment was used in the manufacture of products without analogs on the market. Due to the appearance of the applicant, who began to produce the same product, the market share of the company “X” decreased. Therefore, the company calculated the expected cash flows from the operation of this production equipment in the remaining three years of the useful life of the asset. The calculation results were as follows: 2020–840 thousand tenge, 2021–480 thousand tenge, 2022–420 thousand tenges (Table 3). Also, fair value without the costs of dismantling and transportation costs in the amount of 1125 thousand tenges was determined. The recoverable amount is the value in use for 1415 thousand tenges since it exceeds the net realizable value (1125 thousand tenges). Hence, the impairment loss will be 225 thousand tenges (1700 thousand tenge-1475 thousand tenges), which Table 3 The calculation of the value use Remaining useful life by Estimated cash flows, years thousand tenge

Discount at a rate of 10%

Present value, thousand tenge

2020

840

0.909

764

2021

480

0.826

396

2022

420

0.751

315

Total

–

–

1 475

Source Developed by the authors

Accounting for Reserves to Ensure Sustainable Development … Table 4 The reflection of the revaluation reserve of long-term assets

127

The revaluation model of fixed assets With a revaluation reserve

Without a revaluation reserve

Situation 1 Positive revaluation: De OS Iz POI/ revaluation reserve

Situation 3 Negative revaluation: De Expenses (opus) Iz OS

Situation 2 Negative revaluation: De POI/revaluation reserve Iz OS

Situation 4 Positive revaluation: De OC Expenses or POI

Source Developed by the authors

should be reflected in accounting as follows: De − Impairment costs of an asset − 225 thousand tenge. Iz − An estimated reserve for losses from the impairment of fixed assets − 225 thousand tenge. Another important issue is the recognition of reserves in equity (Table 4). This includes the revaluation of fixed assets, intangible assets, and financial assets that are carried at fair value, with the revaluation recognized as other comprehensive income. Table 4 shows that if there is a previously recognized reserve for the revaluation of fixed assets (situation 1), any subsequent change in value is reflected by adjusting the revaluation reserve in equity. When the value decreases, the reserve amount decreases as well (situation 2). If the reserve is insufficient, there is an additional expense in profit or loss (situation 3). With a subsequent increase in value, the previously recognized loss is reversed (situation 3), and the remaining amount, if possible, is reflected in equity as other income/reserve. In business accounting, the most common example is the recognition of a reserve for legal claims. Thus, for example, in connection with the discovery of defective goods in the consignment of received stocks, and as a result of losses incurred, the company “Y” filed a complaint with the company “Z” in order to bring them to justice. After consulting with lawyers, the management of the company “Z” suggested that the outcome of the court decision would not be favorable for their company, while the percentage of probability of the outflow of economic benefits by the court decision was more than 50%, the necessary amount of loss compensation would be 1000 thousand tenges. In this situation, the criteria for the recognition of estimated liabilities are met. Therefore, “Z” should recognize the reserve for legal claims in the statement of financial position and expenses for the settlement of the profit and loss claim for 1000 thousand tenges.

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In practice, enterprises often face a situation where it is necessary to decommission a constructed facility or some equipment at the end of its life cycle or restore the environment as a result of pollution from production activities. For this purpose, the paper considers an example of recognition in accounting for a reserve for dismantling or decommissioning of an object. For example, on December 31, 2019, the enterprise built an electric power generation plant worth 5 million tenges with a life cycle of 10 years. After the expiration of the latter, the company must dismantle this installation and restore the land on which it is located to its original position. With future dismantling costs for 1,500 thousand tenges and a discount rate of 7% (0.623), the discounted value of the estimated costs of dismantling and restoration of the land will be 934.5 thousand tenges (1,500 thousand tenges*0.623). This amount will be included in the value of the fixed asset, and the reserve is recognized: De − OS − 934.5 thousand tenges; Iz − Estimated liability/provision for dismantling − 934.5 thousand tenges. At the next reporting date, as of December 31, 2020, the depreciation of fixed assets will be accrued, and with a reduction in the discount period, the estimated liability will increase by the amount of interest, which will be reflected in profit and loss in the amount of 65.4 thousand tenges (934.5 thousand*7%), which will accordingly be framed by the following entry: De − Interest expense − 65.4 thousand tenges; Iz − Estimated liability/reserve − 65.4 thousand tenges.

4 Discussion Based on the review and analysis of accounting for reserves and their reflection in the financial statements, it can be said that the concept of “reserve” reveals relations to reduce risk situations. That is, the reserve acts as an insurance tool for risks arising in the financial and economic activities of enterprises and which results are reflected in accounting. Reserves recognized in accounting do not represent a material basis; we cannot take them as reserves of any monetary or non-monetary assets since they have only economic significance. Therefore, the essence of the reservation is to adjust the financial result for possible risks, which occurrence is highly possible. For example, reserves for the revaluation of fixed assets (income) or the depreciation of inventories (expense) allow us to give the most reliable accounting estimates of these assets depending on market factors [9].

Accounting for Reserves to Ensure Sustainable Development …

129

Thus, accounting reserves are created for assets, capital, and liabilities. By recognizing the reserves for assets in the current period, the accounting records the expenses that may be incurred in future periods, which allows us to refine the accounting estimate of the asset and adjust the financial result in the reporting period.

5 Conclusion In conclusion, we should note that, according to IFRS, reserves, being an essential tool in the regulation of financial results in financial statements, occupy a special place. It should be remembered that the financial statements are studied by users who, analyzing the data, make certain management decisions. Therefore, the information in the statements must be appropriate and of high quality. The recognition and disclosure of reserves facilitate this presentation of reporting indicators. It is essential for each enterprise that applies IFRS to demonstrate in its accounting policies a professional approach to reflecting reserves in accounting and presenting them in financial statements, remembering that reservation in accounting is an essential element of accounting policy. Summing up, we can say that the assessment of reserves in the accounting of enterprises is an important accounting procedure that contributes to the presentation of objective indicators of financial statements and compliance with the principle of business continuity. The application of the results of the study can serve as practical recommendations in achieving high financial results of companies, as well as their sustainable development. In the course of the study, the authors used data from primary, analytical accounting.

References 1. IFRS Foundation (2015) International financial reporting standards. Retrieved from http://www. online.zakon.kz 2. Alekseeva EV (2005) Reserves accounting. Dissertation of candidate of economics. St. Petersburg, Russia 3. Mikhaleva EV (2011) The practice of recognition and measurement of the provision for restructuring. Retrieved from http://www.online.zakon.kz/ 4. Minister of Finance of the Republic of Kazakhstan (2002) The conceptual framework for the preparation and presentation of financial statements (October 29, 2002 No. 542). Astana, Kazakhstan 5. Board of the National Bank of the Republic of Kazakhstan (2017) Resolution on approval of the rules for the creation of provisions (reserves) in accordance with IFRS and the requirements of the legislation of the Republic of Kazakhstan on accounting and financial reporting 269. Retrieved from http://www.online.zakon.kz/ 6. Kaldenberger A (2014) Reserves: reflected in accounting and tax accounting. Retrieved from http://www.online.zakon.kz/

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7. Parliament of the Republic of Kazakhstan (2017) Tax code of the republic of Kazakhstan (with changes and additions as of 01.01.2020). Retrieved from http://www.online.zakon.kz/ 8. Mukhambetkalieva L (2010) Accounts receivable. Retrieved from http://www.online.zakon.kz/ 9. Ponokova DI (2007) Accounting for reserves and regulations. Dissertation of candidate of economics. Krasnodar, Russia

Nutrition of Winter Wheat in the Central Ciscaucasia Evgeniy V. Golosnoy , Sergey A. Korostylev , Maxim S. Sigida , Elena A. Ustimenko , and Yuliya I. Grechishkina

Abstract An increase in the export potential of the Stavropol Krai is impossible without increasing the productivity of the winter wheat, which is the leading crop. Our research is aimed at optimizing the nutrition of winter wheat in order to increase productivity and quality by introducing advanced developments of the chemical company “EuroChem.” As part of the tasks, we tested nutritional schemes using biomodified forms of fertilizers, as well as innovative forms of nitrogen fertilizers that contribute to the achievement of the planned indicators. As our studies showed, the highest productivity was formed on the options using biomodified ammophos 80– 100 kg/ha for sowing and ammonium nitrate for top dressing, as well as on the option using UTEC carbamide 5.53–5.73 t/ha. The best indicators of economic efficiency among all the options were ensured by the introduction of 80 kg/ha of biomodified ammophos during sowing and ammonium nitrate twice in top dressing, at which the level of profitability was 136.3%. Keywords Biomodified fertilizers · UTEC urea · Top dressing · Productivity · Economy

1 Introduction As part of the concept of the socio-economic development of the Stavropol Krai for the period until 2035, the region is one of the leaders in terms of agricultural production in the country. A rather considerable influence is given to increasing the productivity of winter wheat, which is, perhaps, the main crop of Stavropol [1, 2]. The accuracy of the application of nitrogen fertilizers, together with the differentiation according to the need of plants in a particular form of nitrogen, in a certain period, is especially important. At the same time, the economic efficiency of the applied E. V. Golosnoy (B) · S. A. Korostylev · M. S. Sigida · E. A. Ustimenko · Y. I. Grechishkina Stavropol State Agrarian University, Stavropol, Russia M. S. Sigida e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_13

131

132

E. V. Golosnoy et al.

innovative power schemes is an important component [3]. One of the possible future difficulties for the export of winter wheat is a long-term drop in world prices on the grain market due to the rapid growth of production in importing countries, as well as increased competition from other regions of the Russian Federation. Our studies on optimizing the nutrition of winter wheat are aimed at a sustainable increase in productivity and quality of the crop, with a mandatory reduction in costs, which is supported by research, the use of biomodified forms of fertilizers, and innovative forms of nitrogen fertilizers used in the top dressing.

2 Materials and Methods In the course of the study, we used winter wheat of the grade “Alekseich.” It is recommended for use in the North Caucasus. Recommended sowing dates are October 10– 11, embedment depth is 5–6 cm. The tested fertilizers are Ammophos, AmmophosBio, urea, urea UTEC CAS-32 Agrinos (Crenel) 1, Agrinos (Crenel) 2, LIE NPK 18:18:18. Pre-sowing fertilizing was carried out by the Rapid 300 C/S sowing complex. Fertilizing with nitrogen was carried out in three stages using a KUHN ATLANTIQUE 3200 trailed sprayer and AMAZONE spreader. The CAS solutions in the first (March 21, 2019) and in the second top dressing (April 26, 2019) were introduced using a KUHN ATLANTIQUE 3200 trailed sprayer (deflector sprayers, without preliminary dilution with water). No burns were found on plants; in case no. 5, during the second top dressing with CAS, it was introduced together with Agrinos, and watersoluble fertilizers 18:18:18 [WSF] produced by the “EuroChem” mineral-chemical company, the solubility of the components was 100%. The area of one experimental plot is 0.92 ha, a single repetition. A non-root top dressing of winter wheat was carried out in the tillering phase; the interfacial tillering phase was the exit to the booting and heading. Plots with flat topography, homogeneous soil cover, the same predecessor, and agrochemical parameters were identified for the experimental setup [4]. On the day of laying the experiment, on each of the options, soil samples were taken to a depth of 0–20 cm, in which the Tyurin humus content was determined in the modification of TsINAO, GOST 26213-91, the number of nitrates—by the ionometric method (GOST 26951-86), ammonium nitrogen—colorimetric with Nessler’s reagent (GOST 26107-84), mobile forms of phosphorus and exchange potassium according to Machigin in the modification of TsINAO, 26205-91, mobile sulfur according to the TsINAO method (GOST 26490-85). Soil moisture was determined by the weight method, according to B. A. Armor.

Nutrition of Winter Wheat in the Central Ciscaucasia

133

3 Results Early spring top dressing of winter wheat crops with various types of nitrogen fertilizers increased the content of ammonia nitrogen in the soil during the growing season (Table 1). On average, during the growing season, the smallest values were expectedly observed in control (14.8 mg/kg (without nitrogen fertilizers)), the highest values were formed in the variants using urea (26.9 mg/kg and UTEC urea with a double and single application of 26.5–25.3 mg/kg of soil, respectively. In the spring tillering phase, the ammonium nitrogen content in the experimental variants ranged from 15.3–17.3 mg/kg. The appearance of mass development of the secondary root system in plants was noted from March 18, 2019, and this was the basis for the decision to conduct the first nitrogen fertilizing with new (UTEC urea) and long-used forms of nitrogen fertilizers on March 21, 2019. It is worth noting that the use of urea in the first nitrogen top dressing of winter wheat is not typical for zones of moderate and unstable moistening in the Stavropol Krai due to low temperatures and possible frosts. However, in March 2019, warm weather was observed with heavy rainfall. The average temperature in March was 4.0 °C, which exceeded the average annual value by 2.3 °C; the amount of precipitation was 54 mm (177.6% higher than Table 1 The dynamics of the content (mg/kg) of ammonia nitrogen in a 0–20 cm soil layer during the growing season of winter wheat under the conditions of the training and experimental farm of SSAU, 2018–2019 No

System

Selection stage Tillering

Booting

Heading

–

Control

15.9

17.2

16.5

9.5

1

N12 P52 + Naa (N102) + Nm (N10)

17.3

23.8

24.7

16.4

2

N12 P52 BIO + Naa (N102) + Nm (N10)

16.8

24.5

26.9

17.8

3

N10 P42 BIO + Naa (N102) + Nm (N10)

15.7

25.9

28.5

16.9

4

N12 P52 + CAS (N102) + Nm (N10)

15.3

30.7

34.3

18.3

5

N12 P52 + CAS (N102) + Nm (N10) + AGRINOS + WSF

15.8

30.9

34.8

19.2

6

N12 P52 + Nm (N102) + Nm (N10)

16.4

34.6

35.2

19.5

7

N12 P52 + Nm UTEC (N102) + Nm (N10)

17.3

32.5

36.4

19.7

8

N12 P52 + Nm UTEC (N102) 16.5 + Nm (N10) (Nm UTEC once)

38.7

29.7

16.3

Source Compiled by the authors

Full ripeness

134

E. V. Golosnoy et al.

normal). The first nitrogen fertilization on March 21, 2019, contributed to an increase in the content of ammonium nitrogen in the soil during the winter wheat tubing phase relative to the control by 6.6–21.5 mg/kg. The use of an innovative product of EuroChem, UTEC urea at a dose of N102, provided the highest content of ammonium nitrogen in the phase of booting (38.7 mg/kg of soil). The lowest rates were observed for variants using ammonium nitrate (24.7–28.5 mg/kg of soil). During the heading phase, the dynamics of the booting phase continued, the excess relative to the control was 8.5–19.9 mg/kg, the maximum value was noted in the variant with the double use of UTEC urea—36.4 mg/kg of soil. During the phase of complete ripeness of winter wheat, the studies revealed the lowest values of ammonium nitrogen in the soil, which is explained by natural processes in the soil, as well as a significant lack of moisture and an increased temperature regime in May (+3.8 °C) and June (4.9 °C). Summing up, it is worth noting that, on average, in the phases of development of winter wheat, the highest rates of ammonia nitrogen were observed with urea (26.4 mg/kg) and UTEC urea applied once and twice 26.5–25.3 mg/kg of soil, respectively, a slightly lower result was achieved by the double use of CAS and CAS with Agrinos and ASU (18:18:18)—24.7 − 25.2 mg/kg of soil. The use of various forms of nitrogen fertilizers in top dressing winter wheat increased the content of nitrate nitrogen during the growing season (Table 2). Table 2 The dynamics of the content (mg/kg) of nitrate-nitrogen in a 0–20 cm soil layer during the growing season of winter wheat in the conditions of the training and experimental farm of SSAU, 2018–2019 No

System

Selection stage Tillering

Booting

Heading

–

Control

8.5

12.9

13.5

9.5

1

N12 P52 + Naa (N102) + Nm (N10)

8.3

19.7

22.3

16.3

2

N12 P52 BIO + Naa (N102) + Nm (N10)

8.7

19.2

23.4

15.7

3

N10 P42 BIO + Naa (N102) + Nm (N10)

7.9

20.5

22.9

16.9

4

N12 P52 + CAS (N102) + Nm (N10)

8.6

18.7

22.6

15.6

5

N12 P52 + CAS (N102) + Nm (N10) + AGRINOS + WSF

9.1

18.5

22.3

15.2

6

N12 P52 + Nm (N102) + Nm (N10)

7.8

17.6

21.6

15.5

7

N12 P52 + Nm UTEC (N102) + Nm (N10)

8.2

17.9

22.5

16.3

8

N12 P52 + Nm UTEC (N102) 8.9 + Nm (N10) (Nm UTEC once)

18.3

20.9

15.9

Source Compiled by the authors

Full ripeness

Nutrition of Winter Wheat in the Central Ciscaucasia

135

In the spring tillering phase, the nitrate-nitrogen content in winter wheat crops varied from 7.8 to 9.1 mg/kg of soil according to the experimental variants. Fertilizing with various forms of nitrogen fertilizers contributed to an increase in the content of nitrate-nitrogen in the soil during the bore phase, according to the experimental variants, by 4.7–7.6 mg/kg. In contrast, the maximum content was noted in the variants using ammonium nitrate (20.5 mg/kg soil), the minimum for options using urea (17.6 mg/kg of soil). In the phase of the heading of winter wheat, there is almost an equalization in the content of nitrate-nitrogen in the soil, and its content varies between 20.9–23.4 mg/kg of soil. In this case, the highest indicators are formed on the options with the use of ammonium nitrate (22.3–23.4 mg/kg), CAS (22.3– 22.6 mg/kg), and two-time application of UTEC urea (22.5 mg/kg of soil). The increase in the indicator for the variants of the experiment relative to the control is 8.1–9.9 mg/kg of soil. In the phase of complete ripeness of the culture, the indices of the nitrate-nitrogen content relative to the earing phase show a significant decrease in all variants of the experiment and are in the range of 15.2–16.9 mg/kg of soil. Thus, the maximum nitrate-nitrogen indices during the growing season of winter wheat were provided by option no. 3 biomodified ammophos introduced during sowing and the double use of ammonium nitrate in fertilizing—17.1 mg/kg of soil. The use of ammonium nitrate in all three variants increased the content of nitrate nitrogen relative to the use of CAS and urea 0.7–1.5 mg/kg of soil, respectively. The use of UTEC carbamide once and twice ensured nitrate-nitrogen values almost at the level of CAS application of 16.0–16.21 mg/kg of soil, respectively. The obtained results allow us to conclude that the conditions for the winter wheat vegetation in 2018–2019 were unfavorable due to the high temperature, which average value was 10.9 °C, which exceeded the average long-term indicators by 1.8 °C, as well as due to extreme lack of moisture during critical periods of the plants development. The number of downfalls for the year amounted to 481.5 mm, which is 87.3% of the average long-term values (Table 3). Nevertheless, the research results confirm the obtaining of sufficiently high productivity in good quality of winter wheat, the use of innovative nutrition schemes ensured productivity of 5.00–5.73 t/ha, and grain of 3–4 grades. Without the use of fertilizers, the lowest winter wheat yield of 3.01 t/ha was formed, and the grain corresponded to grade 5. The highest productivity was formed on the options with the use of biomodified ammophos 80–100 kg/ha for sowing and ammonium nitrate in fertilizing 5.65– 5.73 t/ha, on the option using UTEC carbamide, two-time application formed productivity at a relatively high level of 5.53 t/ha, and a slightly lower yield result was provided by the option of using CAS in the tank mix with Agrinos 1 and 2, and WSF–5.36 t/ha. The applied top dressing had the greatest impact on such indicators as nature, the weight of 1000 grains, the amount of gluten, and the index of Gluten Strain Measurement, which led to the growth in qualitative indicators of the obtained grain. Thus, fertilized variants increased the indices of nature by 30–50 units, the weight of 1000 grains by 1.2–4.7 g, the amount of gluten by 4.1–10.0%, the gluten deformation index corresponded to the first good group.

–

–

–

3.01

5

Pre-sowing application

1st top dressing the resumption of spring vegetation

2nd top dressing booting

3rd top dressing (heading)

Productivity, t/ha

Crop quality, grade

830

790

16.1

Nature, g/l

The number of gluten, %

Source Compiled by the authors

68

24.9

32.3

3

5.37

Urea (10 kg/ha)

Ammonium nitrate in a dose of 51 kg N (150 kg/ha)

Ammonium nitrate in a dose of 51 kg N (150 kg/ha)

Mass of 1000 29.8 grains, g

Gluten Strain 79.2 Measurement [GSM]

Option 2

71.2

25.4

820

33

3

5.73

Urea (10 kg/ha)

Ammonium nitrate in a dose of 51 kg N (150 kg/ha)

Ammonium nitrate in a dose of 51 kg N (150 kg/ha)

Ammophos–N12P52 Ammophos (100 kg/ha) BIO –N12P52 (100 kg/ha)

Control Option 1

–

Indicator

78.2

25.2

820

34.5

3

5.65

Urea (10 kg/ha)

Ammonium nitrate in a dose of 51 kg N (150 kg/ha)

Ammonium nitrate in a dose of 51 kg N (150 kg/ha)

Ammophos BIO –N12P52 (80 kg/ha)

Option 3

Option 5

Option 6

Option 7

Option 8

76.9

24.8

840

31

3

5.27

Urea (10 kg/ha)

CAS in a dose of 51 kg N (122 l KAS-32)

CAS in a dose of 51 kg N (122 l CAS-32)

60.1

26.1

820

33.6

3

5.36

Urea (10 kg/ha) WSF-2 kg/ha

CAS in a dose of 51 kg N (122 l KAS-32) + Agrinos 2 (2 l/ha) + WSF-2 kg/ha

CAS in a dose of 51 kg N (122 l CAS-32) + Agrinos 1 (2 l/ha)

83

22.8

820

32.6

4

5.25

Urea (10 kg/ha)

Urea at a dose of 51 kg N (110 kg/ha)

Urea at a dose of 51 kg N (110 kg/ha)

77.9

24.4

830

34

3

5.53

Urea (10 kg/ha)

Urea at a dose of 51 kg N (110 kg/ha)

Urea at a dose of 51 kg N (110 kg/ha)

75

20.4

840

34

4

5

Urea (10 kg/ha)

–

Urea at a dose of 51 kg N (110 kg/ha)

Ammophos Ammophos–N12P52 Ammophos–N12P52 Ammophos–N12P52 Ammophos–N12P52 BIO (100 kg/ha) (100 kg/ha) (100 kg/ha) (100 kg/ha) –N12P52 (100 kg/ha)

Option 4

Table 3 The influence of innovative nutritional schemes on productivity and quality of winter wheat crop

136 E. V. Golosnoy et al.

Nutrition of Winter Wheat in the Central Ciscaucasia

137

The best quality grain of winter wheat (gluten—26.1%) was provided when using CAS in a tank mix with Agrinos 1 and 2, and WSF. The calculation of the agronomic effectiveness of fertilizing in winter wheat crops showed that the fertilizer efficiency from using 1 kg of the active substance, depending on the experimental options, was in the range of 11.3–16.1 kg. The highest efficiency of 16.1 kg. was obtained when adding 80 kg/ha of biomodified ammophos during sowing and applying ammonium nitrate twice in top dressing, the lowest efficiency is 11.3 kg with a single application of UTEC carbamide (Table 4). The use of modified ammophos and various forms of nitrogen fertilizers in the experiments of 2018–2019 contributed to an increase in economic efficiency indicators in comparison with the control version due to the obtained higher productivity and indicators of high-quality. Comparing options with respect to control, the application of fertilizers helped to reduce the cost of production by 1027–1929 rubles/ton, increase profits by 20,670–32,645 rubles, and by 55.3–97.8% increase the level of profitability. The highest economic efficiency among all the options was provided by the introduction of 80 kg/ha of biomodified ammophos during sowing and ammonium nitrate twice in top dressing, the level of profitability was 136.3%.

4 Discussion According to the strategy of social and economic development of the Stavropol Krai for the period until 2035, the Stavropol Krai is one of the leaders in agricultural production in the Russian Federation. It plays a crucial role in ensuring the food security of Russia [5]. One of the leading crops in the Stavropol Krai is winter wheat. The increase of its productivity and quality, with a mandatory reduction in production costs, is a strategically important task for farmers. Within the framework of the set tasks, studies on the use of bio modified forms of fertilizers, as well as innovative forms of nitrogen fertilizers, contributing to the achievement of the planned indicators, are of particular relevance. As our studies showed, the maximum cost-effectiveness among all the options was ensured by the introduction of 80 kg/ha of biomodified ammophos during sowing and the double introduction of ammonium nitrate in top dressing. In this case, the level of profitability was 136.3%.

5 Conclusion The applied top dressing had the greatest impact on such indicators as nature, the weight of 1000 grains, the amount of gluten, and the GSM index, which led to the increase in qualitative indicators of the obtained grain. Thus, fertilized variants increased the indices of nature by 30–50 units, the weight of 1000 grains by 1.2–4.7 g, the amount of gluten by 4.1–10.0%, the gluten deformation index corresponded to

rub./t

rub./ha

rub./t

rub./ha

%

Product price

Cash proceeds

Cost price

Profit

Profitability

Source Compiled by the authors

rub./ha

rub./ha

Class

Quality

Including mineral fertilizers

t/ha

Productivity

Production costs

Unit

Indicator

38.5

8,370

7,219.30

30,100

10,000

–

21,730

5

3.01

Control

124.3

37,205

5,571.70

67,125

12,500

7690

29,920

3

5.37

1

134

41,015

5,342.10

71,625

12,500

8380

30,610

3

5.73

2

136.3

40,735

5,290.30

70,625

12,500

7660

29,890

3

5.65

3

Table 4 The evaluation of the cost-effectiveness of innovative nutritional schemes

122.9

36,325

5,607.20

65,875

12,500

7320

29,550

3

5.27

4

109.8

35,070

5,957.10

67,000

12,500

9700

31,930

3

5.36

5

110.1

33,010

5,712.40

63,000

12,000

7760

29,990

4

5.25

6

123.3

38,165

5,598.60

69,125

12,500

8730

30,960

3

5.53

7

93.8

29,040

6,192.00

60,000

12,000

8730

30,960

4

5

8

138 E. V. Golosnoy et al.

Nutrition of Winter Wheat in the Central Ciscaucasia

139

the first good group. The best quality of winter wheat (gluten—26.1%) was provided when using CAS in a tank mix with Agrinos 1 and 2, and WSF. The use of modified ammophos and various forms of nitrogen fertilizers in the experiment of 2018–2019 contributed to an increase in the indicators of economic efficiency based on high productivity and higher indicators of product quality compared to the control (unfertilized) version. The application of fertilizers helped to reduce the cost of production by 1,027–1,929 rubles/ton, increase profits by 20,670–32,645 rubles, and by 55.3–97.8% increase the level of profitability. Acknowledgements The authors would like to express their gratitude to the mineral and chemical company EuroChem and personally to M. B. Seregin and M. M. Vizirskaya for providing the innovative products of the company for research.

References 1. Avdeeva V, Zorina E, Bezgina J, Kolosova O (2019) In: Proceedings from the 18th international scientific conference: engineering for rural development. Latvia University of life Sciences and Technologies, Jelgava, Latvia 2. Trubacheva LV, Shabaldas OG, Dorozhko GR (2019) The effect of irrigation regime on lucerne yield for hay in conditions of unstable wetting. IOP Conf Ser: Earth Environ Sci 315(2):022015 3. Perederieva V, Vlasova O, Wolters I, Shutko A (2019) Influence of pre-crops on weedy component of agrophytocenosis in cultivation of winter wheat under no-tillage technology. In: Proceedings from the 18th international scientific conference: engineering for rural development. Latvia University of Life Sciences and Technologies, Jelgava, Latvia 4. Avdeeva V, Starodubtseva G, Bezgina J, Zorina E, Lysakov A (2019) Ozone effects on toxicity of wheat grain and grain mixtures. In: Proceedings from the 18th international scientific conference: engineering for rural development. Latvia University of Life Sciences and Technologies, Jelgava, Latvia 5. Government of the Stavropol Krai (2013) The decree “On introducing amendments to the strategy of socio-economic development of the Stavropol Krai until 2020 and for the period until 2025” (June 15, 2013 229-RP). Retrieved from https://stavinvest.ru/work/sub21/sub98

Qualitative Assessment of an Industrial Business Entity: Economic Potential and Maximum Performance Victor A. Fursov , Natalia V. Lazareva , Oksana V. Takhumova , Liliy V. Semenova , and Elena N. Kushch

Abstract Currently, the main factor and a necessary condition for the stable position of the enterprise is the assessment of its economic potential. The paper analyzes the etymology of the definition of the “economic potential of the enterprise.” It was found that, despite the constant attention of economists to the problem, there is no consensus on the definition of “economic potential” and the methodology for calculating it. The authors proposed a phased methodological toolkit and a system of indicators, the use of which allows determining the level of the economic potential of an economic entity. On the example of a specific industrial enterprise, a detailed calculation and assessment of its economic potential are made. It is confirmed that an industrial complex enterprise may have high economic potential, but not use it effectively enough in practice. Keywords Economic potential · Structural components of economic potential · Industrial enterprise · Industrial complex

1 Introduction When overcoming crises and maximizing profits are of particular importance, the chances of a modern industrial complex enterprise to demonstrate its potential are increasing. Nevertheless, despite the importance of this problem, the issues of analysis and assessment of the economic potential of an industrial enterprise do not find proper attention in modern information sources. As a result, a unified methodology for analyzing and using the economic potential of an economic entity cannot be justified and recognized. The analysis of publications on the problem of assessing potential V. A. Fursov · N. V. Lazareva (B) · E. N. Kushch North-Caucasus Federal University, Stavropol, Russia O. V. Takhumova Kuban State Agrarian University named after I. T. Trubilin, Krasnodar, Russia L. V. Semenova Don State Technical University, Rostov-on-Don, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_14

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revealed a weak study of it at the level of individual industry and, especially, at the enterprise level. Some publications merely note the fact that the issues of assessing the potential of individual enterprises have remained aloof from the attention of researchers. The available methodological tools focus on the individual stages of the study of economic potential, without forming an integrated approach to assessing its use. Until now, the very definition of “economic potential” remains insufficiently studied. Based on the monitoring of literary and information sources, we concluded that the problems of studying economic potential were in the field of view of many economists. T.A. Ashinbaev, T.B. Berdnikova, O.N. Vagina, A.A. Vetrov, S. Yu. Glazyev, G.N. Gogina, A. Pshenichnikov, L.S. Sosnenko, and other scholars focused on the conceptual aspects and the structural component of the economic potential. Some questions of the analysis and evaluation of the economic potential are investigated in the works of V.A. Bogomolova, E.V. Nikolskaya, A.I. Anchishkina, I.P. Dezhkina, R.I. Evicha, R. Sh. Ziatdinova, et al. However, studies of managerial aspects of economic potential are considered controversial. All the above reflects the relevance of the study of the economic potential of a modern industrial enterprise and necessitates the development of practical recommendations for optimizing the use of the potential capabilities of an organization.

2 Materials and Methods During the study, collecting, summarizing, and critically assessing the results obtained by domestic and foreign researchers, identifying promising areas, and compiling the research program, the authors used such general scientific methods as methods of abstract thinking, systematic, comprehensive, analysis, synthesis, comparison, formalization, historical, and logical approaches. The work used regulatory acts, statistical data, reference sources, materials of monographic studies, periodicals, scientific and practical conferences, Internet resources, and accounting, financial, and management reporting of an economic entity of the industrial complex.

3 Results The potential as a kind of integral indicator that can characterize the complex of properties inherent in the object is reflected in the works of many foreign and domestic researchers. Entering the discussion, we note that, in our opinion, when studying the essence of the “potential” in relation to the analysis and evaluation of the activities of a commercial organization, one should rely on the fact that the resources and possibilities of their use represent an integral basis—the system of prerequisites for any activity. The authors propose considering the economic potential in the broad

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143

sense as a combination of living and materialized labor, natural resources, scientific and technical knowledge, and the educational level employed in the social production of workers. Another critical stage of our research is the final construction of the concept of “enterprise potential” as a general indicator of the ability of enterprise to function, taking into account the requirements of the external environment and internal motives. Many authors chose economic potential as such an indicator. Based on the foregoing, the author supplemented and refined the concept of the economic potential of the organization: “The economic potential of an industrial enterprise is a combination of the means and capabilities available to the enterprise, the rational management of which can increase its efficiency and ensure development in market conditions.” The authors agree with G.S. Merzlikin and L.S. Shakhovskaya, who proposed distinguishing three structural elements in the composition of the economic potential: market, production, and financial potential. Nevertheless, this structure is optimal, but the assessment of most of the indicator values is purely subjective. The industry is an essential part of the economy of any country. That is why the authors supplemented and refined the structure of the economic potential of a modern industrial enterprise, which is presented in Fig. 1.

Environmental potential

Innovation potential

Commercial potential

Investment and financial potential

The economic potential of an economic entity of an industrial complex

Production potential

Fig. 1 Structural elements of the economic potential of a business entity in an industrial complex. Source Compiled by the authors

Labor potential

Defined component

Undefined component

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Table 1 Tools for assessing the economic potential of an industrial enterprise Basis

Rating type

Feature

Advantages

Expert

Qualitative

The application of questionnaire and interview for structural analysis

Allow us to take into The presence of the account the influence of factor of subjectivity several factors and assess when indicators cannot be quantified

Resource

Quantitative

The determination of the amount of expanded resources Economic potential is the sum of its components

The influence of each element in the composition of the economic potential is determined

Result

Disadvantages

Qualitative changes are not taken into account

Source Compiled by the authors

Each of the components of the economic potential contains labor potential as an integral part since the human resource is the basis of the activities of any organization [1]. To assess the economic potential of the enterprise, it is necessary to develop appropriate methods to determine not only the potential itself but also the effectiveness of its use. For effective management of the economic potential of industrial enterprises, it is necessary to use measuring instruments, which are very diverse in practice [2]. An analytical study of the methods for assessing the economic potential allowed us to systematize the main areas, their advantages, and disadvantages in Table 1. The analysis of the theoretical and methodological foundations led to the conclusion that, nowadays, there is no universal methodology that takes into account the quantitative and qualitative directions. Measuring the economic potential of an industrial enterprise involves determining the magnitude of the economic potential to justify the need for techniques and methods of controlling the main areas of activity of organizations, making and critically evaluating management decisions, drawing up basic forms of budgets, monitoring their implementation, adjusting goals and indicators of financial development, taking into account the impact of the external environment. The phased algorithm in Fig. 2 allows for a more detailed and consistent approach to measuring the economic potential of an organization. At the first stage (preparatory), the information necessary for further use is accumulated. It is recommended to focus on information over a certain period. The second stage (methodological) reveals the general methodology for calculating economic potential. The proposed methodology offers a list of single indicators for calculating each structural component of the economic potential. The third stage (methodical) contains the justification of the system of private potentials and indicators of their assessment and involves the construction of a multifactor model, the optimal and critical value of which is calculated using weight coefficients.

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Stage 1 (Preparatory) The preparation of information necessary for the analysis Stage 2 (Methodological) The justification of the general methodology of the analysis Stage 3 (Methodical) The justification of the system of private potentials and indicators of their assessment, building a multifactor model. Stage 4 (Practical) Direct calculation of general indicators Stage 5 (Resulting) Measuring economic potential Stage 6 (Control and recommendatory) Direct calculation of general indicators

Fig. 2 A model for measuring the economic potential of an economic entity in the industrial sphere. Source Compiled by the authors

The fourth stage (practical) is the direct calculation of general indicators for indicator systems that most significantly affect each functional component of the economic potential. At the fifth (resulting) stage of measuring economic potential, we calculate its value using an integral indicator of the economic potential of an economic entity. The sixth stage completes the economic potential assessment and contains recommendations for updating the enterprise development strategy. When measuring the economic potential of an industrial enterprise, it is necessary to use a variety of tools, including quantitative indicators in value terms, quantitative indicators in physical terms, coefficients (ratios of indicators), expert opinions, etc.

4 Discussion As an illustrative example of calculating the economic potential of an economic entity, we used the data of “Granstroy” LLC, an enterprise operating in the oil industry. The proposed technique involves using a multifactor model, the optimal and critical value of which is determined using empirical weighting factors. The data for calculating the parameters of the economic potential of an industrial enterprise is presented in Table 2. The suggested values of weight coefficients are shown in Table 3.

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Table 2 The procedure for calculating the parameters for assessing economic potential Components of economic potential

Indicators of the object’s state

Production potential Capacity status

Investment and financial potential

Commercial potential

Multifactor model criteria

Thresholds

PP1: The rate of deterioration of production facilities

1 zone: 0–0.2 2 zone: 0.3–0.5 3 zone: 0.6–0.8 4 zone: 0.9–1.0

The degree of congestion of fixed assets

PP2: Utilization rate

Change in output

PP3: The increase in output as a result of the influence of the price factor

The margin of financial strength

PP4: The ratio of the breakeven volume of production to the actual volume of production

The complexity of production

IFP1: The ratio of production costs to the volume of production

The level of solvency of the enterprise

IFP2: The ratio of urgent 1 zone: 0–0.4 debts to the amount of 2 zone: 0.5–0.6 borrowed capital 3 zone: 0.65–0.8 4 zone: 0.9–1.0

The coefficient of financial independence

IFP3: The ratio of short-term borrowed funds to own funds of the enterprise

1 zone: 0–0.2 2 zone: 0.3–0.45 3 zone: 0.5–0.7 4 zone: 0.8–1.0

Absolute liquidity ratio

IFP4: The ratio of cash and short-term financial investments to current liabilities

1 zone: 0–0.2 2 zone: 0.3–0.5 3 zone: 0.6–0.8 4 zone: 0.9–1.0

Market share

CP1: The ratio of the volume of products sold to the total volume of goods on the market

1 zone: 0–0.2 2 zone: 0.3–0.5 3 zone: 0.6–0.8 4 zone: 0.9–1.0

1 zone: 0–0.7 2 zone: 0.8–0.9 3 zone: 0.9–0.95 4 zone: 0.96–1.0

The share of costs for the CP2: The ratio of costs promotion of goods in the for the promotion of total cost goods to the total amount of costs Product competitiveness

CP3: Integral coefficient of convergence of the volume of production with other types of goods on the market

1 zone: 0–0.4 2 zone: 0.5–0.6 3 zone: 0.7–0.8 4 zone: 0.9–1.0 (continued)

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Table 2 (continued) Components of economic potential

Innovation potential

Environmental potential

Indicators of the object’s state

Multifactor model criteria

Increased market share

CP4: The ratio of market share in the reporting year to the previous

The share of innovative products in the total volume of manufactured products

IP1: The ratio of the volume of innovative products to the total volume of manufactured products

The share of costs for the production of innovative products in the total cost

IP2: The ratio of costs for the production of innovative products to the total amount of costs

The proportion of workers involved in the development and production of innovative products

IP3: The ratio of the number of employees involved in the development and production of innovative products to the total number of employees

The coefficient of inventive activity

IP4: The share of intellectual property in non-current assets

The share of environmental protection costs in total costs

EP1: The ratio of the cost of environmental protection measures to the total cost

The share of fines in the total amount of costs

EP2: The ratio of the amount of received fines to the total cost

The share of environmentally friendly products in the total volume of production

EP3: The ratio of the volume of environmentally friendly products to the total volume of manufactured products

The growth rate of environmentally friendly products

EP4: The ratio of the volume of environmentally friendly products of the reporting year to the volume of environmentally friendly products of the previous year

Thresholds

1 zone: 0–0.2 2 zone: 0.3–0.5 3 zone: 0.6–0.8 4 zone: 0.9–1.0

1 zone: 0–0.2 2 zone: 0.3–0.5 3 zone: 0.6–0.8 4 zone: 0.9–1.0

(continued)

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Table 2 (continued) Components of economic potential

Indicators of the object’s state

Multifactor model criteria

Thresholds

Labor potential

The number of main workers in the total number of employees

LP1: The ratio of the number of main workers to the average number of employees

1 zone: 0–0.2 2 zone: 0.3–0.5 3 zone: 0.6–0.8 4 zone: 0.9–1.0

The growth rate of labor productivity

LP2: The ratio of the labor productivity in the reporting year to the previous year

The capital ratio of workers of the enterprise

LP3: The ratio of the cost of fixed assets to the number of workers

The proportion of main workers in total

LP4: The ratio of the number of main workers to the average number of workers

Source Compiled by the authors Table 3 The recommended values of the weighting coefficients Components of economic potential

Designation of a multivariate model criterion

Weight ratio

Production potential

PP1

0.3

PP2

0.2

PP3

0.2

PP4

0.3

IFP1

0.4

IFP2

0.2

IFP3

0.2

Investment and financial potential

Commercial potential

Innovation potential

IFP4

0.2

CP1

0.4

CP2

0.2

CP3

0.2

CP4

0.2

IP1

0.4

IP2

0.2

IP3

0.2

IP4

0.2 (continued)

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149

Table 3 (continued) Components of economic potential

Designation of a multivariate model criterion

Weight ratio

Environmental potential

EP1

0.25

EP2

0.25

EP3

0.25

Labor potential

EP4

0.25

LP1

0.3

LP2

0.2

LP3

0.2

LP4

0.3

Source Compiled by the authors

The calculation of each four-factor model is the sum of the products of the class (zone) and the weight coefficient of each factor:    Zonei × Weighti The boundary values for each model are presented in Table 4. The calculation of the integral indicator of economic potential was carried out according to the financial, statistical, and managerial accounting of “Grantstroy” LLC for 2018 (Table 5). Based on the calculated values of indicators and weights, we will calculate the values of the economic potential of a business entity: Ep = 2.4 + 2.0 + 2.6 + 1.0 + 1.75 + 3.5 = 9.75 The obtained value corresponds to the optimal range approaching the boundary of the normal zone.

5 Conclusion Thus, the study showed that the presented multilevel model for measuring the economic potential of an industrial enterprise allows reflecting the state of its functional components and giving an objective assessment of the economic potential as a whole.

150 Table 4 Boundary values for each model

V. A. Fursov et al. Components of economic potential

Zone designation

Minimum zone value

Production potential

Crisis

2.8

Normal

2.2

Investment and financial potential

Commercial potential

Optimal

1.3

Reference

0

Crisis

3.5

Normal

2.5

Optimal

1.5

Reference

0

Crisis

3.3

Normal

1.5

Optimal

0.5

Reference

0

Innovative potential Crisis Normal

Environmental potential

Labor potential

3.3 1.5

Optimal

0.5

Reference

0

Crisis

3.2

Normal

1.6

Optimal

1.3

Reference

0

Crisis

2.8

Normal

2.2

Optimal

1.3

Reference

0

Source Compiled by the authors

The proposed methodology allowed us to conclude that the company may have high economic potential, but not use it effectively enough in practice. The practical significance of the obtained results consists in the development of specific scientific and practical recommendations on the analysis of the efficiency of using the economic potential of industrial enterprises, which will increase the information content of decisions made on the development of the organization and its economic potential.

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Table 5 The results of calculating the economic potential of an industrial enterprise Components of economic potential

Designation of a multivariate model criterion

Calculated value

Indicator value

Coefficient weight

Value of the potential

Production potential

PP1

0.29

2

0.3

0.6

PP2

0.02

1

0.2

0.2

PP3

0.47

2

0.2

0.4

PP4

0.85

4

0.3

1.2

IFP1

0.95

3

0.4

1.2

IFP2

0.12

1

0.2

0.2

IFP3

0.45

2

0.2

0.4

IFP4

0.1

1

0.2

Total Investment and financial potential

2.4

Total Commercial potential

KP1

0.4

2

0.4

0.8

KP2

0.2

1

0.2

0.2

KP3

0.55

2

0.2

0.8

KP4

0.9

4

0.2

Total Innovation potential

IP1

0.1

1

0.4

0.4

IP2

0.1

1

0.2

0.2

IP3

0.1

1

0.2

0.2

IP4

0.2

1

0.2

0.2

EP1

0.1

1

0.25

0.25

EP2

1

4

0.25

1.0

EP3

0.3

2

0.25

0.5

EP4

1

4

0.25

1.0

1.0

Total Labor potential

0.8 2.6

Total Environmental potential

0.2 2.0

1.75

LP1

0.85

3

0.3

0.9

LP2

1

4

0.2

0.8

LP3

0.6

3

0.2

0.6

LP4

0.95

4

0.3

1.2

Total Source Compiled by the authors

3.5

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References 1. Larionova AA, Zaitseva NA, Fadeev AS, Zhenzhebir VN, Filatov VV, Pshava TS (2017) The use of organizational and technological innovations in the process of managerial and engineering personnel’s training. Eurasian J Anal Chem 12(7b):1573–1580 2. Ansoff I (1989) Strategic management. Economics, Moscow, Russia. Retrieved from www. libok.net/writer/6540/kniga/20113/ansoff_igor/strategicheskoe_upravlenie/read

Agricultural Enterprises Bankruptcy in the Altai Region, Russia Viktoria V. Vorobyova , Sergei P. Vorobyov , Daria V. Rozhkova , and Aleksandra S. Savchenko

Abstract The activities of agricultural enterprises that carry out large investment projects mainly at the expense of borrowed funds are associated with the emergence of idiosyncratic risks. Its neglect, given the existing development of economic relations and the credit policy of commercial banks in Russia, determines the instability of the functioning of the entire agro-industrial complex and generates meso- and macroeconomic shocks. The purpose of this study is to identify the main patterns that determine the financial condition of agricultural enterprises of the Altai Region, which carried out active investment activities, but were liquidated due to financial insolvency. The novelty of the research lies in the development of methodological provisions for the express analysis of the financial condition of agricultural enterprises implementing large investment projects, based on the calculation of advancing coefficients of the main financial and economic indicators in dynamics, which allows investors to receive timely signals about the state of organizations and the formation of sufficient cash flows in them. The practical significance of the study lies in the identification of the significance of the influence of idiosyncratic shocks arising in the conditions of favorable pricing in the main agricultural markets and the increased debt load on organizations carrying out large investment projects. Thus, the liquidation of financially insolvent large enterprises has significantly improved the solvency structure of the enterprises in the region. The types of activity of the analyzed enterprises (milk production, pig breeding, growing vegetables, and grain crops) did not affect the situation, and the observed patterns were identical. The determination of balanced proportions from the consolidated financial statements for 2009–2010 showed an increase in crisis situations from 2012–2013 (in different ways in each

V. V. Vorobyova Altai State University, Barnaul, Russia S. P. Vorobyov (B) · D. V. Rozhkova · A. S. Savchenko The Altai Branch of the Russian Presidential Academy of National Economy and Public Administration, Barnaul, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_15

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particular organization): quick-selling assets were not enough to pay off current payments, slow-moving assets not allowing to pay off long-term loans and payments. The shortage of funds to pay all amounts payable, short-term loans, and borrowings, in some years, reached 3.4 billion rubles, which indicated that there was a rather high risk of default on credits, loans, and investments. Keywords Agriculture · Financial condition · Investment · Bankruptcy · Monitoring · Altai region · Modeling · Integration

1 Introduction The innovative development of agriculture can significantly increase the competitiveness of producers not only in local and regional/interregional markets of agricultural products, raw materials, and food but also in world markets (sources) (Kozlov, 2016; Pavlenko, 2018; Ulesko, 2013; Sharipov, 2018). In current economic conditions for agricultural producers, there is a real opportunity to strengthen their presence in world markets by entering the Chinese market not only in traditional export positions (wheat and meslin, fish and fish products, vegetable oils, etc.), but also in products of soybean cultivation, rapeseed, and flax. According to the federal project “Export of agricultural products”, the main goal of the development of export activities in the agricultural sector is to not only to increase the export of agricultural products by 2024 but also to transform its structure by reducing the share of raw materials with a corresponding increase in the share of processed products from higher value-added (Government of the Russian Federation, 2018). Under these conditions, increasing the efficiency of investment activities of economic entities of the agro-industrial complex of Russia and its regions is a fundamental task not only of the main participants in the agricultural market but also of the state. Agriculture became an attractive investment sector since the start of the implementation of the priority national project “Development of the agro-industrial complex”. However, the share of funds allocated from the federal and regional budgets is still high in the structure of investments in fixed assets of agricultural producers. In recent years, allocated budgetary funds were mainly used to subsidize interest rates, which, in an unstable environment, only led to an increase in the borrowing of agricultural enterprises, and, if the influence of negative factors was imposed, to their bankruptcy. The assessment of the consequences of such idiosyncratic shocks on the sustainable development of the rural economy is one of the priority areas for agriculture. Both Russian (Popova, 2019) and foreign scholars (Gabaix, 2011; Ebeke & Eklou, 2017) indicated the influence of idiosyncratic shocks of individual companies on the volatility of meso and macro indicators. The novelty of the research lies in the development of methodological provisions for the express analysis of the financial condition of agricultural enterprises implementing large investment projects, based on the calculation of advancing coefficients of the leading financial and economic indicators in dynamics, which allows investors

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to receive timely signals about the state of organizations and the formation of sufficient cash flows in them. Such an assessment allows us to be timely prevent the occurrence of financial risks of business entities implementing large investment projects mainly at the expense of borrowed funds, to reduce the likelihood of generating meso- and macroeconomic shocks.

2 Materials and Methods Studies of the financial condition of agricultural enterprises in the Altai Region were carried out based on their financial statements for 2009–2018. Sources of information on the financial and economic activities of agricultural enterprises are data from the SPARK online publication (Spark-interfax, 2020) and the help system Rusprofile.ru (Rusprofile, 2020). A more in-depth analysis was carried out for “Zapadnoye” LLC (the main activity is breeding dairy cattle and raw milk production), “Altaymyasoprom” LLC (pig breeding), “Altair-agro” LLC (pig breeding), “Industrialny” JSC (growing vegetables), “Vozrozhdenie” LLC (growing grain crops), and “Charyshsky” OJSC (breeding dairy cattle and raw milk production). The factors of the financial insolvency of agricultural producers carrying out large investment projects were assessed according to the financial state of the Altai Region (financial condition was assessed according to the methodology approved by the Decree of the Government of the Russian Federation “On the implementation of the Federal Law “On financial recovery of agricultural producers” (January 30, 2003 No. 52) (Government of the Russian Federation, 2003). We compared the growth rate of revenue, and cost of sales, profits, assets based on the data of balance sheets, reports on the financial results of agricultural enterprises. The main balance proportions were calculated taking into account the elements of the property of agricultural enterprises and the sources of its formation. The first balance proportion was considered taking into account lines 1240 “Financial investments (excluding cash equivalents),” 1250 “Cash and cash equivalents,” 1520 “Accounts payable”. The second balance proportion was calculated taking into account lines 1230 “Accounts receivable,” 1260 “Other current assets,” 1510 “Borrowed funds”. The third proportion included lines 1170 “Financial investments,” 1210 “Inventories,” 1220 “Value added tax …,” 1400 “Long-term liabilities.” The fourth proportion was considered taking into account lines 1100 “Non-current assets,” 1170 “Financial investments,” 1300 “Capital and reserves,” 1530 “Deferred Income,” 1540 “Provisions,” and 1550 “Other liabilities of the balance sheet of enterprises.” During the research, we used general scientific (scientific abstraction, inductive, deductive, comparative analysis) and special approaches (comparison, monographic, balance sheet, normative, economic, and statistical (statistical sample, economic grouping, multiple regression, calculation of statistical indicators, including average, absolute and relative values)). The analysis of statistical data used Microsoft Office software package, including the “Analysis Package.”

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3 Results The Altai Region is one of the largest agricultural regions in Russia. The region is among the five leaders in terms of gross agricultural output per capita. In 2018, about 660 large and medium-sized agricultural enterprises were engaged in agricultural production (Rusprofile, 2020). For the period 2014–2018, their number decreased by 25.25%, mainly due to the exclusion from the register of organizations of those enterprises that were at various stages of liquidation. The property value of the remaining enterprises increased 1.4 times (an average increase of 4.5% per year). Moreover, if in 2012–2014, with the ratio of borrowed and own funds, the dependence of enterprises on external financing was observed, then, in 2015–2018, on the contrary, the share of land resources was lower (the ratio of borrowed and own funds was 0.85, in 2015, in 2016–0.66, in 2017–0.5, in 2018–0.52). The improvement in the financial condition of the enterprise was observed against the background of the bankruptcy of many debtor enterprises. In 2014–2018, more than 125 enterprises went through a bankruptcy, some of which were quite large and carried out large-scale investment activities. The bankruptcy of the loaned enterprises could not but affect the transformation of the structure of agricultural organizations by financial condition: for the period 2014– 2016, the number of enterprises of the 1st and 2nd classes of solvency increased; the number of enterprises of the 3rd grade with a violation of financial stability, the 4th grade with a pre-bankrupt financial condition, and the 5th grade (enterprises that practically do not carry out activities and are in the process of liquidation) decreased. In 2018, the number of enterprises belonging to the 1st solvency class slightly decreased, but remained higher than in 2014, the number of enterprises of the second and fourth classes increased, the third and fifth classes decreased. According to descriptive statistics, in terms of the “autonomy ratio” indicator, which shows the share of equity in total sources of financing the activities of agricultural enterprises in the Altai Region, it was determined that, on average, organizations are 43.5% dependent on borrowed funds, the median is 75.6%. Every twentieth enterprise (5.44%), in 2018, did not have its funds at all (uncovered loss exceeded the amount of the authorized, additional, and reserve capital) (Table 1). In order to identify the main patterns of the financial insolvency of agricultural enterprises of the Altai Region, which carried out large investment projects, we examined six of them: “Zapadnoye” LLC, “Altaymyasoprom” LLC, “Altair-agro” LLC, “Industrialny” JSC, “Vozrozhdenie” LLC, “Charyshsky” OJSC. These organizations were quite large: in 2010–2017, their share in the formation of the property of all agricultural organizations reached 9.5–19.4%, and, in the budget funds, it equaled to 29.2% (Fig. 1). V. Ya. Uzun indicated the inadmissibility of such a concentration of state support funds from individual producers (Uzun, 2017). He proposed to introduce restrictions on the amount of subsidies existing in many market economies (Weiss, 1999; Zimmermann & Heckelei, 2012) (Table 2).

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Table 1 The structure of enterprises in the Altai region by solvency classes, % Year

Solvency class 1

2

3

4

5

2010

18.6

24.8

19.8

19.8

17.0

2012

17.4

27.3

29.5

18.3

7.5

2014

22.4

24.9

19.5

17.0

16.2

2015

19.8

29.0

17.7

17.9

15.8

2016

38.4

26.6

14.1

11.1

9.9

2017

34.8

29.5

16.2

11.8

7.9

2018

36.9

30.1

13.6

11.7

7.8

Source Calculated by the authors based on the financial statements of the organizations of the Altai Region in the Spark database (Spark-interfax, 2020) and Rusprofile.ru (Rusprofile, 2020)

Fig. 1 The proportion of financially unstable agricultural enterprises in the Altai Region with high investment activity, % of the total number of enterprises. Source Calculated by the authors based on the financial statements of the organizations of the Altai Region in the Spark database (Spark-interfax, 2020) and Rusprofile.ru (Rusprofile, 2020)

Considering the dynamics of revenue and cost of “Industrialny” JSC, we can see that, until 2017, the growth rate of revenue was faster than the growth rate of production costs, which made it possible to make a profit. However, starting from 2017, the revenue growth rate assumed a negative value, while the cost price continued to grow. In this regard, the company suffered losses. In order to evaluate the results of business activity, one should check the compliance with the “golden” rule of the economy, which suggests that the growth rate of profits should exceed the growth rate of revenue and assets. This rule was observed in 2015–2016, which means that, in these years, the company used the available resources efficiently; however, starting from 2017, the growth rate of profits and revenue was negative (Table 3). Considering the dynamics of revenue and cost of “Zapadnoye” LLC for the selected period, we can see that the revenue and cost of production decreased every

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Table 2 The chain growth rate of the main financial and economic indicators of financially unsustainable agricultural enterprises with high investment activity in the Altai region Indicator Revenue

Cost of sales

Net profit

Assets

Company name

Year 2014

2015

2016

2017

2018

“Zapadnoye” LLC

−28.5

−56.2

−78.3

−100.0

x

“Altaymyasoprom” LLC

83.6

−21.4

−29.4

12.8

−72.5

“Altair-agro” LLC

3.8

−21.0

−72.6

−96.5

−95.9

“Industrialny” JSC

0.6

11.7

13.2

−9.5

−2.6

“Vozrozhdeniye” LLC

−55.5

−100.0

x

x

x

“Charyshsky” OJSC

−24.0

−0.3

27.9

−91.5

−99.7

“Zapadnoye” LLC

−0.3

−11.9

−53.7

−100.0

x

“Altaymyasoprom” LLC

23.9

−13.0

−19.4

−28.8

−57.7

“Altair-agro” LLC

3.6

−4.1

−65.4

−91.2

15.8

“Industrialny” JSC

1.6

11.4

13.2

2.4

4.9

“Vozrozhdeniye” LLC

−56.2

−94.7

−100.0

x

x

“Charyshsky” OJSC

−24.3

16.4

29.1

−92.1

−100.0

“Zapadnoye” LLC

−422.2

110.2

55.5

−83.8

267.9

“Altaymyasoprom” LLC

−69.7

271.1

−11.1

−52.8

−99.3

“Altair-agro” LLC

4.1

−376.4

−4.4

544.4

−95.8

“Industrialny” JSC

−7.3

−21.1

−42.2

−71.2

−59.8

“Vozrozhdeniye” LLC

−16.3

24,687

−96.0

−169.3

−523.3

“Charyshsky” OJSC

−90.1

88.0

−308.4

−13.1

18.1

“Zapadnoye” LLC

−6.6

−13.4

−31.1

−7.7

−26.6

“Altaymyasoprom” LLC

34.8

−3.1

−2.9

9.7

−92.3

“Altair-agro” LLC

−5.0

−6.4

−18.8

−97.8

−84.8

“Industrialny” JSC

3.9

3.7

2.4

9.3

−10.1

“Vozrozhdeniye” LLC

6.2

−77.0

−19.2

−11.9

−55.8

“Charyshsky” OJSC

−6.2

6.7

−2.5

−3.7

−4.0

Source Calculated by the authors based on the financial statements of the organizations of the Altai Region in the Spark database (Spark-interfax, 2020) and Rusprofile.ru (Rusprofile, 2020)

year and, in 2017, reached zero. In 2017, the company completely went bankrupt. The “golden” rule of the economy was not observed in any year since the growth rate was less than 100%. The dynamics of the proceeds of “Altair-agro” LLC was also negative; revenue was constantly decreasing. Costs increased only in 2015, and, in the following years, it also had a negative trend. All growth rates of indicators were negative, which indicates a decrease in revenue, profit, and assets. In this regard, it is impossible to talk about compliance with the “golden” rule of the economy and the efficient use of enterprise resources.

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Table 3 The compliance with the requirements of exceeding the growth of profit over the growth of revenue and assets of financially unstable agricultural enterprises of the Altai region with high investment activity Enterprise

Years 2009

2010

2011

2012

2013

2014

2015

2016

2017

“Zapadnoye”

No

Yes

Yes

No

No

No

No

x*

x*

“Altaymyasoprom”

x*

x*

No

No

No

No

No

No

No

“Altair-agro”

x*

Yes

Yes

No

Yes

No

No

No

No

“Industrialny”

No

No

No

da

No

No

No

No

No

“Vozrozhdeniye”

Yes

Yes

No

No

No

x*

x*

x*

x*

“Charyshsky”

No

No

No

No

No

No

No

No

No

* –in

these years, enterprises did not carry out operational activities, in recent years—due to the liquidation procedure Source Calculated by the authors based on the financial statements of the organizations of the Altai region in the Spark database (Spark-interfax, 2020) and Rusprofile.ru (Rusprofile, 2020)

In order to assess the “sufficiency” of capital, we determined 4 balance proportions for the analyzed agricultural enterprises, which comparison reflects the financial stability of enterprises and shows how assets are “lagging” compared to liabilities. For this, we consolidated the financial statements (accounting, statement of financial results) of “Zapadnoye” LLC, “Altaymyasoprom” LLC, “Altair-agro” LLC, “Industrialny” JSC, “Vozrozhdenie” LLC, and “Charyshsky” OJSC. The first balance proportion reflects the current solvency of enterprises and implies the excess of quick-selling assets of enterprises over their accounts payable (Samygin & Baryshnikov, 2017). Throughout the analyzed period, cash shortages increased. There were significant risks of bringing claims and additional withdrawals of funds by creditors and financial institutions. The second balance proportion reflects the provision of short-term loans with medium-selling assets: the amount of inventories, VAT, and receivables was slightly higher than short-term loans. However, in 2017– 2018, during the bankruptcy, assets with an average turnover rate were realized as part of the debt. The third balance sheet proportion characterizes the security of long-term loans and borrowings with slowly realized assets. During 2009–2018, there was also a deficit reaching 844.7–1016.1 million rubles. The fourth balance sheet proportion reflects the excess of equity over difficult-to-sell assets, this proportion has a surplus. Therefore, we can say that, from the sale of all the property of the enterprise at a price not lower than the balance sheet and the absence of additional obligations arising, it is possible to return a part of the invested funds after covering all costs associated with bankruptcy (Table 4). The sum of the first two balance proportions reflects the sufficiency of available funds to pay all amounts payable, short-term loans, and borrowings to provide difficult-to-sell assets with own funds. For 2009–2018, the current stock of financial strength was positive only in 2010–2011, the deficit in other years reached 3.4 billion rubles, which indicated that there was a rather high risk of default on loans, borrowings, and investments.

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Table 4 The main balance proportions of financial unsustainable agricultural enterprises in the Altai region with high investment activity (determined by the consolidated financial statements), thousand rubles Balance proportion

Years 2009–2010

2011–2012

2013–2014

2015–2016

2017–2018

First

Active

238.6

83.0

65.4

55.9

61.0

Passive

434.3

1047.6

2532.6

3686.5

3090.2

Absolute difference

−195.7

−964.5

−2467.2

−3630.6

−3029.1

Active

1247.3

5456.5

5517.9

5364.1

4088.6

Passive

1215.6

2391.5

2208.0

4776.3

6016.7

Absolute difference

31.6

3065.0

3309.9

587.8

−1928.1

Active

1555.8

3475.9

3207.1

1752.9

1581.0

Passive

2050.9

3614.8

3117.0

2597.5

2597.5

Absolute difference

−495.1

−138.9

90.1

−844.7

−1016.6

Active

5612.8

14,700.9

19,375.5

18,881.6

18,363.2

Passive

4953.6

16,662.4

20,308.3

14,994.1

12,389.3

Absolute difference

659.2

−1961.5

−932.8

3887.5

5973.9

Second

Third

Fourth

Source Calculated by the authors based on the financial statements of the organizations of the Altai region in the spark database (Spark-interfax, 2020) and Rusprofile.ru (Rusprofile, 2020)

4 Discussion In 2010–2018, the structure of Altai agricultural enterprises saw an increase in the share of organizations with normal and relatively high solvency (from 43.4 to 67.0%). However, transformation processes are determined not so much by quality processes and improving the functioning of agricultural markets, as by the bankruptcy of more than 125 agricultural enterprises, including industry-forming ones. “Zapadnoye” LLC was among the top five in terms of milk production, “Altair-agro” LLC and “Industrialny” JSC took the first place in terms of production of pig meat and vegetables in the closed ground, respectively. The enterprises carried out active investment activities; however, over the study period, their profit from sales only decreased with a parallel increase in debt to financial institutions, suppliers, and the state. There was a high risk of non-repayment of credits, loans, and investments, which ultimately led to the bankruptcy of enterprises. Thus, the increase in investment activity of agricultural enterprises in the conditions of low autonomy during the formation of assets and the instability of the external environment did not guarantee an increase in the competitiveness of economic entities and increased the risks of financial insolvency.

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5 Conclusion A dynamic assessment of the financial condition of agricultural enterprises in the Altai Region, supplemented by an analysis of the effectiveness of investment activities in organizations implementing innovative projects mainly through the attraction of credit resources, made it possible to identify opposing trends. On the one hand, the structure of the enterprises in the region in terms of solvency classes is improving, however, on the other hand, the negative processes in the economy of investment active organizations are intensifying. The resulting idiosyncratic shocks in the context of complex structural relationships between business entities have led to a decrease in agricultural production, an efficient allocation of resources, including credit and budget, and instability in the development of not only the agricultural economy as a whole but also rural areas. In order to prevent the bankruptcy of such “industry-forming” agricultural enterprises in the future, it is necessary to strengthen the scientific and informational and consulting support for large investment projects and provide access to credit resources on more favorable terms.

References 1. Ebeke MCH, Eklou KM (2017) The granular origins of macroeconomic fluctuations in Europe. International Monetary Fund, Washington, DC 2. Gabaix X (2011) The granular origins of aggregate fluctuations. Econometrica 79(3):733–772 3. Government of the Russian Federation. (2003). The resolution “On the implementation of the Federal law ‘On financial recovery of agricultural producers’” (January 30, 2003 No. 52). Moscow, Russia. 4. Government of the Russian Federation. (2018). The passport of the Federal project “Export of agricultural products” (December 14, 2018 No. 5). Moscow, Russia. 5. Kozlov VV (2016) Without technological and institutional innovations, import substitution is hardly feasible. Economics of Agricultural and Processing Enterprises 2:37–40 6. Pavlenko IV (2018) Innovative development of agribusiness infrastructure: Administrative and economic aspects. Economics of Agricultural and Processing Enterprises 1:35–38 7. Popova S (2019) The assessment of idiosyncratic shocks and their impact on the volatility of macroeconomic indicators. Bank of Russia, Moscow, Russia 8. Rusprofile.ru. (2020). Official website. Retrieved from https://www.rusprofile.ru. 9. Samygin DYu, Baryshnikov NG (2017) Diagnostics of agricultural development in the region. INFRA-M, Moscow, Russia 10. Sharipov SA, Harisov GA (2018) The directions for the formation of the institutional environment for the innovative development of agriculture. AIC: Economics. Management 1:35–43 11. Spark-interfax. (2020). Official website. Retrieved from https://www.spark-interfax.ru 12. Ulezko AV, Nechaev NG, Sokovykh IS, Klimov AV (2013) Business entities of the agrarian sector: Resource support and innovative development. Voronezh State Agrarian University, Voronezh, Russia

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13. Uzun VY (2017) Limiting the number of subsidies to one agricultural producer: Necessity, mechanisms, consequences. AIC: Economics. Management 11:12–31 14. Weiss CR (1999) Farm growth and survival: Econometric evidence for individual farms in Upper Austria. Am J Agr Econ 81:103–116 15. Zimmermann A, Heckelei T (2012) Structural change of European Dairy Farms - A crossregional analysis. J Agric Econ 63:576–603

Effectiveness of State Support Measures for Small Businesses in Russia Julia G. Chernysheva , Irina A. Polyakova , Garii I. Shepelenko , and Dmitry A. Mikhailin

Abstract The paper analyzes the state of small business in Russia, considers the dynamics, directions, and problems of development. The main reasons for the lack of effectiveness of the applied programs and support measures for small businesses in Russia have been identified, generalized, and investigated, since support programs, as a rule, do not meet the needs of interested parties. As a result, there is an insufficient level of entrepreneurship development in Russia. In order to identify the reasons for the insufficient effectiveness of support programs for small businesses, the authors use the concept of business analysis, in particular, its conceptual model. Also, approaches and techniques of business analysis were used to identify the causes of the low efficiency of these support programs. Keywords Small business · Programs and support measures for small businesses · Effectiveness of the support of small business · Conceptual model of business analysis

1 Introduction One of the problems in the Russian economy that hinders its socio-economic development is the low level of entrepreneurship development. The importance of small business in the economy of any country is extremely significant. However, its viability is much lower than that of representatives of large and even medium-sized businesses. It is known that only a small number of newly formed small enterprises will not go bankrupt in the first year, but will be successful and will be able to develop in the next five years, expanding the boundaries of its activities. An even smaller number of small enterprises will be able to move into the medium category. Why is this happening? It is necessary to investigate the reasons that do not allow small businesses to develop stably.

J. G. Chernysheva (B) · I. A. Polyakova · G. I. Shepelenko · D. A. Mikhailin Rostov State Economic University (RINH), Rostov-on-Don, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_16

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A large number of publications are devoted to the problems of the development of small businesses in the country. Scholars identify trends in the development of small businesses, the reasons for the low development of entrepreneurship, describe various barriers that impede the stable development of small businesses [1]. Various surveys of small business executives are conducted, in which they indicate the factors restraining their development [2]. The state seeks to create favorable conditions for the development of small businesses in the country, programs for business support are developed. At the same time, the results of the implementation of these programs, and the activities carried out within their framework, do not allow us to speak about the sufficient effectiveness of these programs, since there is no sustainable tendency to increase the number of small businesses, their viability, the share of the contribution of small enterprises to the GDP of the country.

2 Materials and Methods The development of the regional economy largely depends on the activities of small businesses. Small business is one of the fundamental factors of economic growth in the real sector of the economy. It contributes to increased employment. The feasibility of studying the dynamics of the number of small enterprises is necessary since it allows us to get information about the state of this segment—this is a reflection of the presence of favorable, or vice versa, adverse conditions created for their existence. Over the years, the number of small enterprises in Russia has either not increased or even decreased, and, over the past few years, this trend has become even more pronounced. According to the data of the Federal Tax Service of Russia (FTS), the analysis of the dynamics of small business was carried out. The data in Table 1 show that the growth rate of the number of small enterprises from 2016 to 2018 was insignificant, and, in 2019, there was a steady decline. Thus, from 2016 to 2018, the total number of SMEs increased by 4.4%, and the number of microenterprises—by 4.9%. In 2019, the total number of SMEs decreased by 1.8%, and the number of microenterprises—by 1.38%, which follows from the data of the Federal Tax Service. Table 1 The analysis of the dynamics of small businesses in Russia from 2016 to 2019 Indicator

10.09.2019 10.09.2018 10.09.2017 10.09.2016

1. Total of small and medium-sized enterprises,a units, including

5,813,278

5,921,287

5,695,609

5,671,909

– Microenterprises

5,570,745

5,648,488

5,409,226

5,380,768

– Small enterprises

225,556

253,780

266,148

270,540

16,977

19,019

20,235

20,601

– Medium enterprises a The

number of SMEs, including individual entrepreneurs and legal entities Source [3]

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165

10.09.2019 г. 10.09.2018 г. 10.09.2017 г. 10.09.2016 г. 0

2000000

Medium-sized enterprises

4000000

Small enterprises

6000000

Microenterprises

Total SMEs

Fig. 1 The dynamics of small and medium-sized enterprises. Source Developed by the authors based on [3]

A feature of small business in Russia is that it is mainly represented by microenterprises with up to 15 people. In this case, the bulk of microenterprises has about 3–5 workers. The share of microenterprises is extremely high. Over the four years under review, it has not significantly changed (it tends to further increase) and amounts to about 95.8% in 2019. Accordingly, small enterprises account for 3.9%, and medium-sized enterprises account for only 0.3% [4] (Fig. 1). Analyzing the data presented in Table 2, it follows that, in summer 2019, there was a sharp tendency to reduce the number of small enterprises. According to the register of the Federal Tax Service, by January 10, 2019, 6.04 million small and medium-sized businesses were registered in Russia, which is only 0.03% more than a year earlier. The temporary increase in SMEs in the amount of 0.03% was ensured by increasing the number of microenterprises with annual income not higher than 120 million rubles and that employ no more than 15 people. However, over the nine months of 2019, their number decreased by 3.5%. Table 2 The analysis of the dynamics of small business in 2019 Indicators

10.01.2019 10.03.2019 10.05.2019 10.07.2019 10.09.2019

1. Total subjects of small and medium-sized enterprises,a units, including

6,041,195

6,107,774

6,184,204

6,212,137

5,813,278

– Microenterprises

5,771,626

5,839,974

5,918,454

5,949,712

5,570,745

– Small enterprises

250,758

249,097

247,133

244,048

225,556

18,811

18,703

18,617

18,377

16,977

– Medium enterprises a The

number of SMEs including individual entrepreneurs and legal entities Source [3]

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Table 3 The dynamics of newly created microenterprises Indicators

10.09.2019

10.09.2018

10.09.2017

10.12.2016

Newly created microenterprises in total, including

801,724

851,269

787,441

1,043,349

– Individual entrepreneurs

585,121

599,630

484,927

591,871

Legal entities

216,603

251,639

302,514

451,478

Source Developed by the authors based on [3]

The number of small and medium enterprises, for nine months of 2019, decreased by 10.0% and 9.7%, respectively. Employment statistics in this sector are also unfavorable: in January 2019, 15.87 million people worked at small enterprises. Their number, over nine months of 2019, decreased by 2.8%. According to Table 3, the number of newly created microenterprises, over the past four years, had a steady downward trend. The total number of microenterprises, in 2019, compared with 2016, decreased by 23.2%. Over the same period, the number of individual entrepreneurs decreased by 1.1%, and the number of legal entities decreased by 52.0%. According to the Federal State Statistics Service, the share of small and mediumsized businesses in the Russian economy, in 2017, was 21.9% (more than 20 trillion rubles for 2017). The contribution of small and medium-sized businesses to the economy, in 2014, was 19%, in 2015–19.9%, in 2016–21.6%. Thus, the contribution of small business to the Russian economy is practically not increasing. If we compare this indicator with the same indicator in European countries, we see that it is lower than more than half. Thus, according to the Institute for Growth Economics, the share of small and medium-sized businesses in the GDP of European countries is 50–60%. For example, in the UK, it amounts to 51%, in Germany—53%, in Finland—60%, in the Netherlands—63%. According to MAGRAM Market Research, an independent full-cycle research agency [5], in the third and fourth quarters of 2018, the index of business activity of small and medium-sized enterprises (RSBI index) fell below 50 points—to 47.1 points compared to 48,5 earlier. In general, this indicator in Russia has been declining since the second half of 2018. That is, we can say that, at present, a small business in Russia is in recession. All the above indicate that, in Russia, small business has not been developing for several years, and in the last year, there has been an unfavorable tendency to reduce the number of small enterprises. At the beginning of 2019, entrepreneurs were pessimistic about their business and the economy as a whole, while business expectations were the worst over the past five years. Among the reasons for these sentiments, experts indicated the decline in income over the past five years, as a result of the economic crisis; tax burden growth; the lack of improvement in the business climate; strengthening the influence of federal networks that “take part of the market” for small enterprises.

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3 Results The main reasons for the low level of entrepreneurship development are inadequate funding, tax burden, administrative barriers, insufficient human resources, access to sales markets, production and training technologies, low business awareness of support programs, and low probability of receiving them. The measures taken over many years to support small businesses do not change the situation for the better. The measures taken over many years to support small businesses do not change the situation for the better. That is, the measures taken to support them are not effective; they do not allow to improve the condition of small business and ensure its development. In order to understand the reasons for the ineffectiveness of support measures for small businesses, we can use the conceptual model of business analysis, which reveals the relationship between several elements inherent in any problem and any changes that need to be made in order to solve it. A business analysis conceptual model represents a combination of six elements, such as stakeholders, needs, decisions, context, value, change, and the relationships between them. This model assumes that to solve the problem and successfully implement the changes, none of the above elements can be excluded (or underestimated). A schematic conceptual model of business analysis is presented as follows (Fig. 2). The lack of effectiveness of the measures taken to support small businesses (as a consequence of the problem) can be explained by the fact that they do not affect the causes of the problem or problems in the development of small businesses. The Fig. 2 The conceptual model of business analysis. Source [6]

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proposed solutions (ongoing activities) are not sufficiently substantiated since there is no in-depth analytical study of the reasons for the low efficiency of support programs. As a result, the measures taken to support small businesses are not consistent with the real needs of entrepreneurs in support; that is, the proposed measures do not satisfy these needs. The consequence of this problem, as was noted, is their low efficiency and lack of growth of small businesses, despite the ongoing activities.

4 Discussion It is possible to solve the problem effectively only if the real causes of its occurrence are identified. It is necessary to influence the causes of the problem, and the problem itself is the result. Therefore, to propose the right solution to increase the level of development of small business in Russia, to overcome its long stagnation, and to name effective measures to support small businesses is possible only after a detailed identification of the reasons for the discrepancy between the proposed activities and the needs of entrepreneurs in support (taking into account the available possibilities for implementing programs). At the same time, we can recommend areas in which further research should be carried out in the field of analysis of areas and programs for supporting small businesses, based on the conceptual model of business analysis. First of all, the following directions should be taken into account. The first direction is the identification of all stakeholders. Thus, in addition to entrepreneurs, the state, and local authorities, this problem affects banks, large enterprises (which take a significant share of the market or are suppliers for small businesses), developers of support programs. This list can be supplemented by deepening the study. The second direction, which is inextricably linked with the previous one, is the identification of the real needs of all interested parties. The identification of stakeholders and their real needs (interests) is necessary, since, otherwise, it will be a risk and the proposed activities will not bring the desired effectiveness, as stakeholders will not contribute to the implementation of decisions (support programs). For example, if entrepreneurs are interested in reducing the tax burden, especially at the stage of establishing a business, reducing lending rates, need preferential terms for renting premises, note the low professional training of young personnel, identify problems of access to sales markets, production, and training technologies, faced with the problem of finding suppliers of goods and services, etc. [5] (because they consider this to be the most significant difficulties that prevent the business from developing steadily), then, measures should satisfy these particular needs. If other measures, for example, measures to popularize entrepreneurship [7], increase the number of funds providing loans (without changing lending rates), etc. will be implemented as measures, (that is, activities that are not consistent with the needs), then, it is possible to achieve only a short-term increase in the number of newly registered small enterprises, which subsequently will not develop steadily, since the

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main reasons that hinder this have not been resolved. This trend in the practice of the existence of Russian entrepreneurship has repeatedly been repeated: their decline replaces a short-term increase in the number of small enterprises. The next direction should be an assessment of the possibilities of implementing support programs. The effectiveness of the generated support programs (measures), first of all, should be measured by the degree of satisfaction of entrepreneurs’ needs for support, and not just by any quantitative indicators of their implementation, for example, the number (or dynamics) of consultations or loans issued. That is, the more fully the need for entrepreneurs in support is covered, the more effectiveness of support measures is. Currently, the evaluation of the effectiveness of the support programs involves the calculation of certain indicators, which are mostly based and evaluate quantitative parameters (the number of measures taken, the short-term dynamics of the number of small enterprises, the cost of activities, etc.) [8, 9]. The assessment of the value (effectiveness) of ongoing support activities should be based on meeting the needs of stakeholders (primarily the needs of entrepreneurs). The value of any solution is determined primarily by how fully it can solve the existing problem. If the solution reduces the problem only partially or only for a particular time after which the problem reappears, then it cannot be considered effective. Therefore, the evaluation of the effectiveness of support measures by the number of taken measures (without further evaluating their effectiveness), by the number of funds spent on support, and by the short-term increase in the number of small businesses, most of which then cease their activities, will not objectively reflect the effectiveness of the work carried out in the field of support and development of small business.

5 Conclusion Summarizing the results of the study, we can say that, in order to ensure the sustainable development of entrepreneurship, it is necessary, first of all, to take into account the needs of the entrepreneurs themselves in the state support. The support, which is not consistent with the real needs of entrepreneurs, cannot be sufficiently effective and will not achieve the goals of popularizing small businesses, steadily increasing the number of small businesses and their sustainable development, and increasing the contribution of small businesses to the economy of the country. It should also take into account the possibilities of providing support to various stakeholders. However, support opportunities should not be seen as permanent limitations in providing this support. Opportunities can be expanded in each subsequent support program if, at a particular stage, they acted as a limitation. The value from the implementation of support measures should be evaluated, first of all, by the level of satisfaction of the needs of entrepreneurs, the support provided to them. That is, it is necessary to receive feedback from entrepreneurs regarding ongoing activities.

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The result of effective support will be a steady (rather than short-term) increase in the number of small enterprises, the number of employees working in them, an increase in the contribution of small enterprises to the economy of the country, and bringing it to the level of developed foreign countries.

References 1. Chernysheva JG, Shepelenko GI (2017) The analysis of moral-and-ethic business in Russia. Eur Res Stud J. Special Issue “Russ EU: Develop Horizons” 20(1):311–318 2. RBC (2015) Small business named four key issues. Retrieved from https://www.rbc.ru/econom ics/25/09/2015/560574bf9a7947d1198f6d29 3. Federal Tax Service of the Russian Federation (n.d.) Unified register of small and medium-sized enterprises. Retrieved from https://ofd.nalog.ru/statistics.html 4. Bogoviz AV, Bugai YA, Minenko AV (2019) Economic analysis of effectiveness of the existing tools of state support for entrepreneurship in the AIC in the digital economy. Lect Notes Netw Syst 57:789–794 5. MAGRAM Market Research (2019) Small business approached stagnation. Retrieved from https://www.magram.ru 6. International Institute of Business Analysis (n.d.) Business analysis body of knowledge (BABOK). Retrieved from https://www.iiba.org/standards-and-resources/babok/ 7. Rambler (2019) The results of the first year of the national project to support small and medium-sized businesses have been summed up. Retrieved from https://finance.rambler.ru/ other/43332594-podvedeny-itogi-pervogo-goda-realizatsii-natsproekta-po-podderzhke-mal ogo-i-srednego-biznesa/ 8. Mezentseva EV (2017) Forecasting the effectiveness of the implementation of state programs to support small businesses in the region. Scic-Methodical Electron J “Concept” 31:336–340. Retrieved from https://e-koncept.ru/2017/970082.htm 9. Popov SA (2013) Comprehensive analysis of evaluating the effectiveness of managing small business support programs. Fundamental research, 10–10. pp 2249–2252. Retrieved from https:// fundamental-research.ru/ru/article/view?id=32745

Problems and Main Mechanisms for Improving Innovative Management in Insurance Companies Elvira A. Rusetskaya , Lubov V. Agarkova , Lubov K. Ulibina , Irina A. Belozerova , and Yuri N. Belugin

Abstract This paper identifies the main reasons for the low demand for voluntary types of insurance by both individuals and legal entities. We established the relationship between the level of the population’s income, unreasonably high prices for insurance services, and the intention to purchase them from commercial insurers. Proposals for the development of mutual insurance societies [MIS] are substantiated. Their non-commercial orientation not only excludes profit from the cost of insurance but can also ensure its reduction due to the possible excess of insurance premiums overpayments and income from investment activities of the company. Several objective advantages of mutual insurance compared with other forms of organization of insurance protection in Russia are highlighted. Problems are identified, the solution of which should be primarily entrusted to the state, which needs to support the development of mutual insurance societies through improving the legislative framework and effective economic measures. It is proposed to solve the problem of information closedness of the Russian insurance market, which generates inaccuracy of the information provided for the population, by introducing a single mobile application “Insurance” with access to any information on the services of insurance companies that will join the project and provide up-to-date data for placement. This application will allow the user to save time searching for the necessary insurance products and choose precisely those insurance programs that are most fully suited to his criteria. Keywords Commercial insurance · Innovation processes · Information · Mutual insurance societies · Mobile application E. A. Rusetskaya (B) North-Caucasus Federal University, Stavropol, Russia L. V. Agarkova Stavropol State Agrarian University, Stavropol, Russia L. K. Ulibina Kuban State Agrarian University named after I. T. Trubilin, Krasnodar, Russia I. A. Belozerova · Y. N. Belugin Stavropol Institute of Cooperation (Branch) of the Belgorod University of Cooperation, Economics, and Law, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_17

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1 Introduction The insurance industry, which tasks are to ensure financial protection and economic security of the property interests of economic entities from various risks, has not yet received proper development in Russia. “Throughout its history, insurance underwent several fundamental technological innovations, in particular the introduction of actuarial calculations, which became the basis of the modern insurance business, the use of insurance agents, which laid the foundation for mass insurance; the use of computers, which simplified the implementation of many business processes in insurance, etc.” [1]. “However, the level of demand for insurance services by individuals and legal entities remains very low, and the industry needs to improve the management of innovation processes” [2]. “Innovations in the insurance sector involve not only the creation of fundamentally new types of insurance products and services but also their improvement based on improved innovations, which help to increase the value of insurance service and its usefulness for the consumer” [3–5]. “The radical change in technology, primarily in the Internet, digital, mobile, and social platforms, is causing significant changes in customer preferences, behavior, and decision-making” [6]. “It is advisable to develop insurance based on public–private partnership mechanisms, implying the interest and responsibility of regional authorities in the formation of effective insurance coverage for housing. In this case, insurance relations will be introduced in the territories through respected and trustworthy government institutions” [7]. The research purpose is to identify the problems of the insurance industry and propose mechanisms for improving the management of innovative processes in insurance.

2 Materials and Methods The use of theoretical approaches and concepts for the development of the insurance system combined with the principles of social and cause-and-effect approaches made it possible to study the role of insurance in the life of the Russian population at a reasonably deep scientific level. The work implements the methodology of systems analysis, within which a complex of general scientific methods is used (consistency, complexity, dialectics, induction, deduction, analysis, and synthesis), and logical modeling. The research subject is the directions and features of the development of the voluntary insurance system for individuals. As the research object, the authors consider the problems and tasks of the insurance market for individuals in the Russian Federation and possible ways to solve and overcome them.

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This research is based on normative legislative and legal acts regulating insurance processes, publications in specialized periodicals, statistical data, Internet sources, materials of the Central Bank of the Russian Federation, and other official sources of information.

3 Results The analysis of the data presented by the authors in Table 1 showed that, over the past five years, the number of insurance market entities decreased by more than two times (in December 2019, there were 256 entities in the insurance register). The number of mutual insurance companies has remained unchanged over the past three years. The number of concluded insurance contracts and paid insurance premiums have a positive trend in the market and the segment of voluntary types of insurance. The share of insurance premiums under contracts concluded via the Internet in the total volume of insurance premiums for the period under study increased significantly, but, as of January 1, 2019, it was only 5%. As part of this study, in September 2018, the authors conducted a sociological survey of residents of the Stavropol Krai. The survey was aimed at identifying the attitude of the population toward insurance. It covered 14 settlements with a population of more than 100 thousand people. A total of 1,256 people aged 18 years and older participated in the study (Table 2). Table 1 The dynamics of the insurance market in 2014–2018 Indicators

2014

2015

2016

2017

2018

The number of subjects in the insurance market

564

478

364

309

275

The number of mutual insurance companies

12

10

12

12

12

The number of concluded insurance contracts, total (thousand units)

160,098

130,162

167,797

193,112

202,556

The number of insurance contracts 143,867 with individuals (thousand units)

1,294,291

154,119

175,409

181,375

Insurance premiums, total, million 990,913 rubles

1,028,643

1,180,631

1,278,841

1,479,501

Insurance premiums for voluntary 811,327 insurance, million rubles

781,367

921,398

1,031,359

1,227,472

The share of insurance premiums under contracts concluded via the Internet in the total volume of insurance premiums, %

0.31

0.5

2.5

5.0

Source [8]

0.28

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Table 2 The preferences of citizens in terms of purchasing insurance services Types of insurance

The share of consumers intending to purchase insurance policies during 2019 (%)

Life insurance (except for pension insurance)

1

Voluntary pension insurance

1

Accident insurance (AI)

3

Voluntary health insurance (VHI) at own expense

2

Property insurance Total

5 12

Source Compiled by the authors

From the data of the presented table, it is evident that the population of the Stavropol Krai will not show interest in voluntary types of insurance from commercial insurers in 2019. During the survey, the respondents were asked if they consider the prices for insurance services objective. Answering this question, 38% of the respondents answered that they consider all rates speculatively high (Fig. 1) due to the activities of insurance organizations, their position in the market, the level of profits they receive, and the amount of losses that cannot be covered. At the same time, only 18% think about the advisability of drawing up insurance rates, which are formed under the influence of objective market mechanisms. The conducted research allows us to conclude that the main reasons for refusing insurance services are the lack of financial capabilities of most households, high prices for insurance, difficult insurance conditions, distrust of insurance companies, the lack of regional insurers, the lack of insurance programs that take into account regional risks, etc. Considering that the share of insurance contracts with individuals is more than 90% (in 2015, this figure was 99%), it can be assumed that the insurance market will face further stagnation. Table 3 shows data on the level of income of the population, the number of insurance contracts, the amount of insurance premiums, and insurance payments in Fig. 1 The results of a sociological study regarding the opinion of citizens about the tariff rates of insurance. Source Compiled by the authors

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Table 3 Performance indicators of commercial insurers in the segment of voluntary types of insurance of individuals in 2018 Indicator

Total by market

Life insurance (except for pension insurance)

Accident insurance

Property insurance

CFD Population—93,944,736 people, Income level—41,897 rubles The number of insurance contracts (thousand units)

113,466

3,840

34,346

28,710

Insurance premiums, million rubles

885,518

259,108

120,608

35,220

Insurance payments, million rubles

300,465

402,437

10,986

4,957

SFD Population—16,448,201 people, Income level—27,348 rubles The number of insurance contracts (thousand units)

12,153

228

3,667

2,185

Insurance premiums, million rubles

67,472

23,574

5,906

2,362

Insurance payments, million rubles

25,533

2,356

500

184

NCFD Population—9,845,114 people, Income level—23,018 rubles The number of insurance contracts (thousand units)

2,690

56

431

519

Insurance premiums, million rubles

14,788

4,315

1,217

614

Insurance payments, Million rubles

11,215

429

90

25

Sources [8, 9]

the context of three federal districts (the Central Federal District [CFD], the Southern Federal District [SFD] and the North Caucasus Federal District [NCFD] for three types of voluntary insurance of individuals. The analysis confirms the relationship between the income of the population and the demand for insurance services. In 2018, in the Russian Federation, there were 1.4 insurance contracts per capita with an average income of the population—33,178.1 rubles, in the Central Federal District—1.2 contracts with an average income of 41,897 rubles, in the Southern Federal District—0.7 contracts with an average income 27,348 rubles, and in the North Caucasus Federal District—0.3 contracts with an income of 23,018 rubles. From the data in the table it follows that in 2018 the payment ratios were as follows: for life insurance in the Russian Federation—14.6%, in the Southern Federal District and the North Caucasus Federal District this figure was less than 10%; for insurance against AI—from 7.42% in the North Caucasus Federal District to 9.67% in the whole of the Russian Federation; for the insurance of property of citizens

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in the North Caucasus Federal District—4.11% with the average for the Russian Federation—13.83%. These indicators confirm an insufficiently high level of the underwriting procedure and an unreasonably high price for insurance services.

4 Discussion The lack of financial resources of most households does not even allow them to think about voluntary insurance types from commercial insurers. In turn, insurers are in no hurry to update insurance programs taking into account the most significant risks, including regional ones [10]. Such risks include the risk of unemployment, decrease in family income, the risk of lack of financial support (family, dependents) as a result of an accident or illness, and other general financial risks of individuals not insured in Russia. To improve the insurance industry, it is necessary: • To create information bases for collecting and processing data on the main types of risks; • To develop a program of social and economic risk management, taking into account the specifics of the regions; • To intensify the development of non-commercial forms of insurance by creating mutual insurance societies in all regions of the country and introducing public– private partnership mechanisms. The conducted research confirms that in the activities of insurance companies and mutual insurance societies, a single goal is to provide reliable insurance coverage. However, the commercial component of the activities of insurance companies not only significantly increases the cost of insurance coverage, but translates the domestic insurance market into the status of an “insurer market.” In the case of a mutual form of insurance, the members of society develop the rules and conditions of insurance for themselves, thereby creating the most effective insurance protection system based on reciprocity. MIS is a non-profit organization based on voluntary membership, created by legal entities and (or) individuals who are both policyholders and insurers, in the manner and under the conditions provided for by the current Russian legislation. The non-commercial orientation of the MIS not only excludes the receipt of profit from the cost of insurance but can also ensure its reduction due to the possible excess of insurance premiums overpayments and income from the investment activities of the company [11]. In connection with the above facts, it is advisable to highlight several objective advantages and disadvantages of mutual insurance compared with other forms of insurance coverage in Russia.

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The advantages include: • Reliability, because the company is managed by policyholders whose primary goal is to create real insurance coverage; • Low cost of insurance. The price of an insurance service consists only of direct costs of insurance coverage and costs of running a business; • Compliance with the needs of policyholders. Insurance conditions and rules are developed and approved by the policyholders themselves – members of the MIS; • Preservation of reserves. MIS reserves and other funds are used exclusively in the interests of participants. The disadvantages include: • The lack of awareness of individuals and legal entities about mutual insurance, its advantages, and disadvantages; • The inability to compensate for significant and catastrophic losses due to the financial weakness of societies; • The variability of MIS members can undermine their financial sustainability. It is quite apparent that the orientation of the Russian market of mutual insurance to small and medium-sized businesses, which are often constrained in free resources, will not ensure the proper development of this segment. At the same time, there is a high mistrust level and the risk of loss of invested funds among policyholders due to various kinds of financial pyramids. Thus, the solution to these problems and contradictions should be primarily entrusted to the state, which needs to support the development of mutual insurance societies to improve the legal framework and through effective economic measures. The latter include budget subsidies, the allocation of concessional loans to replenish the insurance funds of the MIS, the encouragement of the creation of regional mutual insurance societies and their interregional associations through tax incentives and targeted loans, the promotion and informing the population about the features and benefits of this form of insurance protection. If these measures are effectively used, mutual insurance societies can take a worthy place in the Russian insurance market. The next problem that should be given special attention is the informational closeness of the Russian insurance market, which generates unreliability of the information provided for the population [12]. In the age of information technologies and great opportunities to search for information, not only individuals, but also legal entities often have no idea how to rationally find an insurance product at a more favorable price, what insurance company sets the lowest rate for concluding an insurance contract, or what company is the most loyal and responsive to the requirements of its customers. As part of solving this problem, it is necessary to ensure information accessibility for any person. To do this, it is necessary to create a single mobile application based on the Play Market or App Store with access to any information on insurance services of all insurance companies, which will provide relevant data for placement in this application.

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Thus, it is proposed to allocate a manager in each company with the definition of responsibilities for updating data on this insurance company weekly or monthly. The obtained data will be consolidated into a single database of information provision, which ultimately contributes to a fast, efficient, and affordable way of obtaining information on the regions of the country from a mobile application. The application itself will be available for free download to anyone interested, and its interface will be understandable even to those categories of citizens who are not good at information technology. In the mobile application, it will be possible to set various filters depending on the search for a specific insurance product, namely: – The filter “Region” will indicate the location of the user, since insurance products and their prices will differ for different regions; – The filter “Insurance company” will show only those insurance companies that the user selects for further study of the list of insurance services for these organizations; – The filter “insurance industry” will provide a choice of different categories of insurance (for example, life insurance in case of death, insurance against accidents or illnesses, cargo insurance, property insurance of citizens, etc.) for which it will be possible to explore all possible insurance products further; – The filters “Cost of the insurance product” and “Insurance premium” will make it possible to specify the range of the acceptable price for the insurance product by setting the minimum and maximum threshold in price; – The application will also contain such a filter as “Full packaged product,” which will allow the insured to select only those insurance products that include a particular list of risks, conditions, and insurance amounts with the amount of insurance payments already fixed in advance by the insurance company; – The filter “Risks” will allow users to select only those risks for which they want to insure an object against the fact of an insured event; – The filter “Additional services” will allow to indicate whether the potential policyholder wishes to receive additional services with the purchase of insurance. For example, often when drawing up an insurance policy for insurance of an apartment, insurance companies offer to issue a civil liability insurance policy for the owner of residential premises. Thus, by selecting and specifying all the necessary filters, the application will suggest the user exactly those insurance products that are most fully suited to the indicated criteria. At the same time, the application will indicate a brief description of this insurance product for review. If the product interests the user, the application will offer the potential policyholder to follow the link to the official website of the insurance company, precisely to the page where information on this insurance product is posted. The application will save time for the search of the necessary data. It will also allow collecting a complete and reliable amount of information from various insurance companies.

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5 Conclusion As a result of the study, it was found that the enormous potential of insurance in Russia was not realized. The main reasons for refusal from voluntary insurance of individuals include the lack of financial capacity, high prices, difficult conditions, distrust of insurance companies, and the lack of regional insurers. Many socially significant risks and some regional risks are not insured at all. In this situation, the creation of regional MIS and the introduction of public–private partnership mechanisms will increase the availability and quality of insurance services. As part of solving the problem of information accessibility for any user, the authors proposed creating a single mobile application with access to any information on insurance services of all insurance companies, which will provide up-to-date data for placement in this application.

References 1. Tsyganov AA, Bryzgalov DV (2018) Digitalization of the insurance market: tasks, problems, and prospects. Econ Taxes Right 2(11):111–120 2. Rusetskiy MG, Agarkova LV, Ulybina LK, Okorokova OA, Aigumov TG (2018) The role of insurance in ensuring the economic security of business entities. Espacios 39(27):10 3. Sarkisov SE (2014) Innovation-oriented development of insurance activities. Reg Probl Econ Transform 8(46):166–173 4. Khoruzhy LI, Bautin VM, Katkov YuN, Stepanenko EI, Lukyanov BV (2018) Adaptive internal controls system for the accounting and analytics in the agrarian organizations. Espacios 47(39):19 5. Kulish, N.V., Sytnik, O.E., Tunin, S.A., Frolov, A.V., Germanova, V.S. Approaches to the valuation of biological assets at fair value. Res J Pharm Biol Chem Sci 9(3):746–750 6. Shcherbakova NV, Ilinykh YuM (2019) Insurance in the digital and internet era. Econ Prof Bus 1:83–86 7. Tsyganov AA, Yazykov AD (2019) The analysis and assessment of insurance penetration in the north-western and central caucasus of Russia. Insur Bus 10:54–61 8. Central Bank of the Russian Federation.: (n.d.). Statistical indicators and information on individual subjects of the insurance business. Retrieved from https://www.cbr.ru/statistics/ 9. Federal State Statistics Service.: (n.d.). Official website. Retrieved from https://eng.gks.ru 10. Frolov AV (2007) The organization of budgeting in the sheep breeding industry as an element of effective management. Econ. Agric. Process. Enterprises 4:38–39 11. Trukhachev VI, Sklyarov IY, Sklyarova YM, Mazloev VZ, Volkogonova AV (2018) Features of investment activity in agriculture in the south of Russia and ways of its activation. Montenegrin J Econ 14(1):171–184 12. Titova OV, Kostyukova EI, Boboshko NM, Drachena IP (2019) New types of taxes and forms of taxation in the conditions of information economy: perspectives of optimization. Stud Syst Deci Control 182:229–235

Information Support for Evaluating Personnel Security in a Company Natalia N. Karzaeva

Abstract The study focuses on a system of personnel safety indicators based on the targeted approach to the compliance with threats. The methodological basis of the study was the fundamental principles of the theory of economic systems and economic security. When constructing systems of threats to personnel security and the corresponding models of indicators, methods of economic and mathematical modeling and logical analysis of research results in the field of personnel security of business entities were applied. As a result of the study, we identified the following causes of the imperfection of indicators in the personnel safety: the lack of systematicity and the connection with threats, the inability to quantify individual indicators. The paper presents a system of threats to the personnel security of the company built by the author based on the sources of their occurrence, reflecting adverse events or processes that are within the competence of the company’s management. A system of personnel safety indicators was built based on the proposed principles for the formation of a system of indicators, including goal matching, objectivity, measurability, complexity, permissible multicollinearity, differentiation, validity, and simplicity. Keywords Company · HR security · Level · Assessment · Threat · Indicator

1 Introduction For the first time, economic security was the subject of discussion and control at the state level during the Great Depression of the 1930s in the USA. However, only in the last quarter of the twentieth century (1985), the UN General Assembly adopted the resolution “International Economic Security.” A few years later (1992), the Federal Law “On Security” was adopted in Russia. At the company level, in Russia, activities to ensure its economic security started at the beginning of the last decade of the 20th. Research in this area actively began, and the results were published since the beginning of the twenty-first century. N. N. Karzaeva (B) Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_18

181

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The structural complexity of economic security is determined by the multiplicity of elements of the economic system of an economic entity and includes its various types: financial, property, information, etc. A special place in this structure is occupied by personnel security, which is due to role of the labor in the functioning of economic system. Human influence on the results of activities of any organization has been taken into account at all times. Therefore, the tools for controlling the selection of people hired for the respective posts or the performance of specific work and functions were developed and applied even in ancient civilizations. We can say that personnel security in its initial non-systemic form arose and existed earlier than the economic security system. However, it should be noted that the issues of the theory of personnel security and economic security are still at the level of their development. Scholars and specialists are currently applying two approaches to the disclosure of the content of personnel safety: functional and substantive. Both approaches have a right to exist, but the application of each of them will lead to different results. It is necessary to distinguish them based on the purpose of the study or activity. According to a meaningful approach, by personnel security, we propose to understand the state of the internal environment of the company, in which there are no threats to its labor potential, or the state of social and labor relations in it, which allows realizing the vital interests of both the business entity and its employees. This definition determines the need for identification and assessment of threats to the employees and the company itself. I. I. Tsvetkova emphasizes that attention should be focused on threats and risks, and not on the characteristics of the subjects of relations [1], which is of fundamental importance for the study. The identification and monitoring of threats to personnel security will help determine the composition of tools and mechanisms for their prevention and ultimately create an effective personnel security system. Based on our analysis of the published results of personnel security studies, a general conclusion was drawn about the absence of a systematic study, since the authors did not pursue a solution to the problem of creating a list of threats to personnel security. The lists vary significantly and are individual, due to the specifics of the company. However, the relevance of these studies is determined not only by the practical needs of the business but also by the legislative acts. Thus, in the Strategy for Economic Security of the Russian Federation for the period until 2030, one of the tasks of ensuring security is defined as “identifying and assessing existing and potential challenges and threats to economic security” [2]. Many scholars have noted the role of indicators in assessing the level of personnel security: “the quality of the entire personnel security assessment system depends on how competently the indicators are selected. The system of indicators should reflect the main processes that form the strategy and impact the state of personnel security of the enterprise” [3]. However, research and areas of indicative assessment of the level of personnel security are also non-systemic in nature, due to the above non-systematic approach to the formation of a list of threats. Therefore, the main goal of this work is to build a system of indicators of personnel safety for the company based on the targeted approach to their compliance with threats.

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The main tasks were identified in accordance with the purpose of the study: • The formation and systematization of a generalized universal list of threats to personnel security of the company; • The development of a system of indicators of the personnel safety corresponding to possible threats in the company.

2 Materials and Methods The construction of a unified list of threats to the personnel security of the company and the corresponding system of indicators was carried out based on the published results of research by scholars and specialists in this field and the materials of 10 enterprises located in Moscow and the Moscow region. The study used researches of I. Bogatyreva, N. V. Borovsky, R. S. Esikova, L. Ilyukhina, O. A. Klindukhova, A. Ya. Kibanov, E. A., Kippervar, K. V. Lysak, A. O. Lysenko, I. N. Makhmudov, A. M. Morozova, E. I. Mustafieva, I. I. Salnikov, L. T. Snitko, T. O. Solomandina, V. G. Solomandin, T. F. Tarasova, Redman, T., Wilkinson, A. Kontemporary, F. M Roka, Z. Guan, S. Uroševi´c, B. Pejˇci´c, and other scholars in the field of the theory of personnel security of companies [4, 5]. The work of such experts as N. V. Agramakova, Yu. V. Baramykina, N. V. Borovskikh, M. V. Varlamova, D. Sh. Gaidarbekova, A. V. Glushchenko, A. V. Dadalko, A. V. Ivashkina, D. V. Klimov, E. N. Kuznetsova, N. V. Kuznetsova, U. P. Lebedeva, E. A. Kipperper, E. P. Kucherova, N. V. Poddubnoy, A. I. Pisarevskaya, A. V. Semenchenko, T. O., Solomandina, V. G. Solomandin, Yu. Sui, A. Yu. Timofeeva and others had a significant impact on the formation of the list of threats to personnel security at the level of an economic entity and systematization. When developing indicators of personnel safety, we considered the results of research by N. V. Borovskikh, M. V. Varlamova, O. K. Denisova, V. N. Druzhkova, A. V. Glushchenko, N. L. Gryaznova, I. E Ilyakova, Yu. N. Katkova, E. A. Katkova, E. A. Kivervar, N. I. Klevets, A. S. Kobenko, E. P. Kucherova, I. N. Sannikova, O. S. Sausheva, T. O. Solomandina, V. G. Solomandina, N. Yu. Tryatsina, L. I. Khoruzhiy, I. I. Tsvetkova, and others. In developing proposals for improving the methodological basis for the formation of a system of personnel safety indicators that can be extrapolated to economic security, the studies of A. V. Glushchenko, O. A. Denisova, A. S. Kobenko, E. P. Kucherova, M. V. Varlamova, and I. I. Tsvetkova.

3 Results When constructing a generalized universal list of threats to the personnel safety in the company, we adopted the following conceptual provisions. Firstly, the main goal of organizing activities to ensure human security is to create a particular system that can prevent threats and minimize risks through special tools

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and mechanisms. Based on this goal, it is necessary to determine the composition of threats to personnel security. Secondly, hazard categories, threats, and risks should be delineated. Danger refers to the negative impact of an object, phenomenon, process, which are objective and probabilistic. In other words, a person cannot influence danger, but it can establish it. The threat is a negative process that arose as a result of the realized danger. Similar to danger, the threat is probabilistic, but its difference is exposure to humans. Certain actions of a person can prevent the threat. Such an approach to distinguishing between these categories, which was previously proposed [6], will optimize security activities. Therefore, when identifying threats, we were guided by the provision of the possibility of preventing them through specific actions of the subject. Thirdly, a threat to human security is understood as a process, as a result of which damage is done to real objects and interests. Lost opportunities for using human resources are the subject of not security, but personnel management. Fourth, the specificity of personnel security threats is due to the dual nature of the company employee. On the one hand, it is a labor resource of production, and, on the other hand, it may be in conflict with its management as an active subject of labor relations [7]. The latter circumstance also determines the classification system of threats to personnel safety (Table 1). In our opinion, the basic classification criterion should be a source of threats: an employee as an individual, company management, and third parties (external sources). The proposed list of threats included threats from external sources only if the management of the company can influence them. The differences in the composition of indicators proposed by scholars and specialists are due to the lack of principles for their formation, which was established in previous works [6]. Based on the analysis of the research results [1], we formulated the basic principles for constructing their system, which include: compliance with goals, objectivity, measurability, complexity, permissible multicollinearity, differentiation, validity, and simplicity. Let us present a fragment of indicators built based on the above principles, the main of which is the correspondence to the goal of repelling threats to personnel security (Table 1).

4 Discussion The analysis of the lists of personnel safety threats recommended by scholars and specialists reflected the current contradictions in understanding such categories as threats and dangers. For example, threats include intimidation and physical abuse, abduction of employees and their families by third parties [12], and the best working conditions of competitors [15], which cannot be influenced by company management. The second debatable issue is identifying the threat in such a way that it can be assessed, i.e., an indicator of its assessment could be built. For example, threats formulated as “absence/weak control systems” [9, 16], “weak organization of the

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Table 1 The indicators of human security Threats

Indicator

Calculation formula

Source: 1. Employee 1.1. Employee qualities Addictions (gamers, drug addicts, The number of cases per 100 (1000) n × 100/N alcoholics, etc.) people Deviant behavior: aggressiveness, cruelty, irresponsibility, indiscipline, etc Mental (psychological) disorder/disease, including changes in emotional state, attention, and activity Low qualifications, professional incompetence

The compliance of professional level with established requirements

n/N

1.2. Employee actions Transfer, disclosure by the employee of the organization of confidential information to third parties, including distorted

The number of cases per 100 (1000) n × 100/N people

Violation of the order, regulations, instructions Personal malpractice Financial and property scams of managers, including the conclusion of unprofitable transactions for personal gain Distortion, damage, destruction, or theft of information Intentional damage to property, violation of its qualities and properties Violation of the labor law Theft, seizure of tangible and intangible financial assets and information Misuse of the organization’s property for personal gain Physical violence Non-compliance with safety precautions Unprofessional and dishonest performance by an employee of their official duties

The share of qualified personnel

Sq * 100/S

The proportion of personnel who did Sc * 100/S not pass the certification (continued)

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Table 1 (continued) Threats

Indicator

Calculation formula

Source: 1. Employee 1.1. Employee qualities 2. Enterprise management 2.1. Ineffective HR management Hazardous work performed by employees without a sufficient level of competence

The number of cases per 100 (1000) n × 100/N people

The presence of less than 50% of young specialists in the staff and increasing the average age of employees

Staffing level

Sf/Sn

Staff turnover

(Sd/San) * 100

The lack of personnel reserve in the organization

Staffing level

Sf/Sn

Staff turnover

(Sd/San) * 100

Work discrimination (national, gender, age, etc.)

The number of facts for a specified period (year, month)

Absolute indicator

The lack or inadequate quality of The number of cases for a specified personal and collective protective period (month, year) equipment when performing work involving their use

Absolute indicator

2.2. Working conditions

The use of technical means of labor (machinery, equipment, mechanisms, etc.) in a malfunctioning state in violation of safety requirements The operation of technical systems in violation of safety regulations The violation of work and rest

The proportion of staff without violations of labor discipline

(Sv/S) * 100

The unfavorable The dynamics of labor conflicts for a ni+1 /ni socio-psychological climate in the certain period (year, month) workforce 3. External sources Diversion of qualified and experienced staff

Staff turnover rate

(Sd/San) * 100

The inducement of employees to illegal actions and violation of obligations to the employer (transfer of confidential information, forgery, etc.)

The percentage of personnel who created a threat through destructive actions

(Sw/San) * 100

(continued)

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Table 1 (continued) Threats

Indicator

Calculation formula

Number of occupational diseases per 100 (1000) people

n × 100/N

Source: 1. Employee 1.1. Employee qualities The depletion of labor

Source Gaidarbekova [8], Gaidarbekova et al. [9], Ivashkina and Lebedeva [10], Karzaeva and Tryastsina [11], Kuznetsova [12], Schulz et al. [13] and Yesikova [14]

training system” [15] can only be assessed through expert assessments, which require the development of a uniform rating scale for all companies. The issue of threat identification is closely related to the problems of constructing a system of indicators characterizing them. The analysis of publications on an indicative assessment of human security threats showed that many indicators (over 60) could be divided into three groups: reflecting the individual characteristics of the employees (physical and psychological state, preferences, etc.), the state and dynamics of the human resources, company activities, and its results. It seems that the inappropriate approach to the composition of the personnel safety indicators of the company, which is confirmed by their structure, leads to the fact that more than a third of the indicators do not reflect the threat. However, many scholars declare the need for a clear correspondence of the indicator to the threat that it reflects [3, 9, 17]. Discussion issues directly related to the system of personnel safety include the need for a unified system of indicators and qualitative indicators in assessing threats to personnel security. Regarding the first question, I. I. Tsvetkova notes that “indicators of personnel safety are not universal for all enterprises, but are purely individual, corresponding to the style, requirements, norms, and nature of the external and internal environment of the enterprise. Therefore, the formation of a single list of indicators for various enterprises can be considered not appropriate” [1]. In our opinion, the indicator characterizing the threat should be universal. Its construction requires the formation of a universal list of threats. The composition of the indicators will be unique, since the list of threats to the company is determined by the specifics of its activities: the stage of development, location, area of activity, etc. On the second question, I. I. Tsvetkova puts the reliability of the result of the personnel safety assessment dependent on the complexity of the types of indicators used: “To obtain a reliable result, it is required that the system of indicators include both quantitative indicators, evaluated using mathematical tools, and qualitative, evaluated using opinions of authorized experts” [1]. However, it should be noted that more reliable evidence is primary, which directly reflects the event, in this particular case, a threat. Also, qualitative indicators require the use of expert subjective assessments and their corresponding formalization. Therefore, when developing indicators following the target approach, quantitative indicators are a priority.

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5 Conclusion As a result of the study, the following significant results were obtained: 1.

2. 3.

4.

5.

The need for a single universal list of threats to personnel security is substantiated. At the same time, the threat is understood as an adverse event or process that may be affected by company management; It is advisable to systematize threats to personnel safety according to their sources, which are employees, company management, and third parties; The lack of a methodological basis for the formation of indicators of personnel safety is the reason for the imperfection of their lists proposed by scholars and specialists: the lack of systematicity and communication with threats, as well as the inability to quantify individual indicators; The principles of forming a system of indicators are proposed: compliance with the goal, objectivity, measurability, complexity, permissible multicollinearity, differentiation, validity, and simplicity. At the same time, as a priority principle, it is justified that the goal of repelling the threat to personnel security is consistent; A system of indicators of personnel safety is built.

Acknowledgements The author would like to thank the leadership of the organizations of the agro-industrial complex of Moscow and the Moscow region for the provided information in the field of ensuring economic security.

References 1. Tsvetkova II (2016) Algorithm assessment of personnel security based on the indicator approach. Sci Bull Finan Banks Investments 3:159–163 2. Presidential Executive Office (2017) Presidential decree “on the strategy of economic security of the Russian Federation for the period up to 2030” (May 13, 2017 No. 208). Moscow, Russia 3. Tsvetkova II, Klevets NI (2017) Assessment of personnel security of the enterprise. Bull Sci Pract 1:163–169 4. Roka FM, Guan Z (2018) Farm labor management trends in Florida, USA—challenges, and opportunities. Int J Agric Manage 1(7):1–9 5. Uroševi´c S, Pejˇci´c B (2015) Human resource development and employment in the agroindustrial sector. J Econ Manage Inf Technol 2(4):3–10 6. Karzaeva NN (2019) Methodological aspects of building a system of indicators of personnel safety of an economic entity. Acad Herald 2:62–74 7. Redman T, Wilkinson A (2013) Contemporary human resource management, 4th edn. Pearson Education, Harlow, UK 8. Gaidarbekova DS (2019) Organizational personnel security: risks and threats. Bull Sci Educ 14–2(68):36–40 9. Glushchenko AV, Kucherova EP, Varlamova MV (2018) Assessment of the level of threats to personnel security of the internal affairs bodies of Russia based on an indicative approach. Bull Acad Knowl 4(27):87–99

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10. Ivashkina AV, Lebedeva UP (2018) Threats to personnel safety and methods for their prevention. Eurasian Union Sci 4–6(49):71–77 11. Karzaeva NN, Tryastsina NY (2016) Indicators of personnel security of an economic entity. Econ Manage Probl Solutions 8(2):178–181 12. Kuznetsova NV (2014) Organization security threats. News Irkutsk State Econ Acad 2:80–88 13. Schulz VL, Yurchenko AV, Rudchenko AD (2018) Business security. Urait, Moscow, Russia 14. Yesikova RS (2017) Personnel security, as one of the components of economic security. Socio Econ Phenom Process 6(12):65–69 15. Bgashev MV (2009) Strategy for ensuring the economic security of the enterprise: personnel aspect. Izv Saratov Univ 2(9):46–51 16. Ilyakova IE, Sausheva OS (2015) Diagnostics of the intellectual and personnel components of the corporation’s economic security: threats and neutralization conditions. Bull Eurasian Sci 7(5(30)):47 17. Denisova OK, Kobenko AS (2018) Indicators of assessment of the level of economic security of the enterprise. Tester Turan Univ 4(80):186–190

Innovative Formation of an Effective Management System for Working Assets in Organizations of the Krasnodar Krai Anna A. Khramchenko

Abstract Ensuring uninterrupted operational activities of agricultural organizations is directly related to the system of formation and efficient use of current assets that contribute to the best physiological processes of animals and plants. A deficiency in current assets, an ineffective system of their management, or the complete absence of such a system provokes the occurrence of several negative consequences, including a slowdown in asset turnover, degradation of liquidity and solvency of the organization, reduction in profit and profitability, which generally weakens the financial stability of the organization. Thus, the formation of an effective system for managing current assets and sources of financing represents a priority task for tactical financial management. The current situation in the domestic economy is marked with a rather high level of uncertainty, which is caused by the lability of the geopolitical situation, sanctions, and counter-sanctions policies of Western states and the Russian Federation. The high “addiction” of Russian industrial enterprises meeting the needs of agriculture from imported components naturally affected the increase in prices for their products. Similar circumstances arose a long time ago and required a search for solutions to these problems. Keywords Current assets · Control system · Sources of financing · Efficiency · Turnover · Financial stability · Financial equilibrium

1 Introduction Current assets are components not associated with the organization on an ongoing basis. As a result of business activity, they are in constant motion, and, passing through successive phases, take a different form. The economic benefits derived from these assets are realized in less than one year. This is one of the two main asset groups of any organization. An important property of working capital is its constant movement, which leads to its frequent change of form [1]. Current assets play an A. A. Khramchenko (B) Kuban State Agrarian University Named After I. T. Trubilin, Krasnodar, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_19

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essential role in the activities of the organizations since their management has a significant influence on financial results, business efficiency, and safety [2]. The level of current assets and their structure depends on the industry and types of activities. In organizations where the share of fixed assets in the total amount of property is generally high, low profits are explained as a result of incurred high fixed costs. The situation when current assets exceed fixed assets is much more profitable. This asset structure is favorable for the financial security of the organization. Maintaining financial liquidity is the biggest daily issue for any organization. Current assets are short-term and can be restored several times during the year. They have the most critical impact on liquidity management. Servicing current assets and, therefore, choosing the appropriate current asset management strategy is of great importance for optimizing the costs. In the composition of current assets, it is customary to distinguish the components shown in Fig. 1, which can be classified according to various criteria. This feature reflects their structural composition and, in its content, corresponds to the composition of the second section of the asset of the balance sheet of the organization. Revolving and circulation funds were the main elements of the state’s national wealth under socialism, and specific proportions were established between them in a planned manner. In our opinion, in the current realities of financial and economic development of corporations, “current assets in production” and “current assets in circulation” are more suitable categories.

Inventory and supplies Finished products in stock Rated

Costs in work in progress Future expenses Cash on hand

Current assets

Cash on accounts Accounts receivable Non-rated Cash in settlements Financial investments

Fig. 1 Components of the current assets based on planning and control. Source Compiled by the authors

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2 Materials and Methods Effective management of current assets plays a vital role for each organization, and, therefore, for those responsible for financial management. This is due primarily to the fact that the financial turnover of the organization allows it to function (Fig. 2). The objective of working capital is to reduce the risk arising from the immobilization of part of current assets (inventories, receivables) or as a result of losses associated with these assets, for example, due to difficulties with the sale. Proper management of working capital should lead to an increase in operational efficiency, which, in turn, will be the result of optimizing the size and structure of current assets, the formation of the most favorable structure of financing sources and, consequently, increasing the profitability, competitiveness, and financial stability of the organization. The availability of working capital determines the continuity and rhythm of business operations. These operations assume “servicing” many duplicate business operations—from spending money on raw materials, materials, or goods to receiving payment for manufactured products and (or) goods sold. Effective management of current assets plays an essential role for each organization, and, therefore, for those responsible for financial management. This is primarily since the financial turnover of the organization allows it to function. A conservative and moderate strategy is a strategy focused on optimizing the level of current assets. It is marked with a high level of stocks and receivables. Accounts receivable exceed inventories as a result of a weakening policy on the collection of receivables from receivers. As in the case of the conservative strategy, cash accounts for a significant share—more than 5% in the structure of current assets. This strategy has a positive effect on financial liquidity but is very expensive for servicing sources. This way of managing assets reduces profitability and quick liquidity. The aggressive strategy is very risky. Its feature is low financial liquidity. The organization tries to keep stock levels low, and it tries to use the “Just in Time” in inventory management. The level of receivables is maintained at a high level. We can say that the organization is primarily interested in attracting new customers and expanding the sale of goods. An aggressive-moderate strategy is

Fig. 2 Tasks of asset management. Source Compiled by the authors

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a modification of an aggressive strategy. This is a safer way to manage current assets than an aggressive strategy. It assumes a small stock size. Accounts receivable are at a high level but do not exceed 60%. Free money appears, from time to time, or it is not enough. Managers try to maintain a slightly higher level of current assets than current liabilities, which helps maintain low financial liquidity. An organization using this type of management can make high profits. The receivables management process begins when the seller issues a deferred payment invoice. The deferred sale is a kind of investment decision. The organization is involved in financing the activities of buyers at the expense of receivables awaiting payment in a later period.

3 Results It is impossible to analyze the state of the mobile part of the organization’s property in isolation from the state of the sources that form them. Table 1 assesses the composition and structure of sources of financing of current assets of “Russia” OJSC, “Rodnik” PJSC, and “Kropotkinskoye” PJSC. The absolute value of net working capital has a positive dynamic only in JSC “Russia,” although the share of PSCs in the formation of current assets does not reach 25%. Short-term loans and accounts payable have approximately the same share—35.6% and 39.5%, respectively. In PJSC “Rodnik,” the share of net working capital decreased by 46.2%. The share of short-term loans against this background increased from 6.8% in 2016 to 50.3% in 2018. “Kropotkinskoye” OJSC has the lowest share of accounts payable in the formation of current assets (1.6%). Moreover, there was a decrease of 3.6% over the period. In the structure of sources of financing current assets, its sources (working capital) have a dominant position. In our opinion, this is not advisable. Due to such excessive financial stability, “Kropotkinskoye” OJSC lost profits. This is due to the minimum amount of attracted short-term loans. Thus, it can be concluded that OJSC “Russia” implements an aggressive policy for managing current liabilities since short-term loans and payables prevail in the sources of financing current assets. In “Rodnik” PJSC the policy changed from conservative in 2016 to aggressive by the end of 2018. “Kropotkinskoye” OJSC adheres to a conservative policy for managing current liabilities, practically not using short-term borrowings to form current assets. The types of financing strategies for current assets differ in the amount of short-term liabilities in the formation of current assets. Their share in the composition of current assets increases in the direction of “conservative– compromise–aggressive–ideal,” and the risk of loss of liquidity varies in the opposite direction.

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Table 1 Structural-specific diversity of sources of financing current assets of base organizations Indicator

2016

2017

2018

Thousand rubles

%

Thousand rubles

%

Thousand rubles

%

1. Working capital

19,746

8.1

76,486

25.5

93,384

24.9

2. Short-term borrowed funds

116,000

47.6

119,974

39.9

133,249

35.6

3. Attracted sources, total

107,850

44.3

103,973

34.6

147,923

39.5

Including:—accounts payable

107,850

44.3

103,973

34.6

147,923

39.5

Total

243,596

100.0

300,433

100.0

374,556

100.0

1. Working capital

223,010

89.8

181,155

55.4

174,916

43.6

2. Short-term borrowed funds

16,912

6.8

134,826

41.3

202,163

50.3

3. Attracted sources, total

20,748

8.4

10,461

3.3

24,545

6.1

Including:—accounts payable

20,748

8.4

10,461

3.3

20,748

5.2

Total

248,166

100.0

326,788

100,0

401,624

100.0

1. Working capital

1,214,091

94.8

1,225,252

92.6

626,573

98.3

2. Short-term borrowed funds

0

0

0

0

618

0.1

3. Attracted sources, total

66,826

5.2

97,825

7.4

10,265

1.6

Including:—accounts payable

66,730

5.2

97,825

7.4

10,265

1.6

Total

1,280,917

100.0

1,323,077

100.0

637,456

100.0

“Russia” OJSC

“Rodnik” PJSC

“Kropotkinskoye” OJSC

Source Compiled by the authors

4 Discussion Based on the fact that it is impossible to identify the strategies for financing current assets, we consider it appropriate to make adjustments to the typing of strategies. We propose adding another strategy to the composition of the types of strategies— the optimal one. The presented matrix allows us to assess the relationship between liquidity and the level of net working capital and draw a parallel between the amount of PSCs and profitability. Of the four classic models, the most profitable is the ideal. However, it is the riskiest one. In this strategy, the meaning of the concept of financial management, “a compromise between risk and profitability,” is realized. The optimal

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strategy proposed by us should be characterized by the value of long-term liabilities at the level of non-current assets and approximately half of the constant part of current assets. In this case, the amount of working capital will equal to the sum of half of the constant part of current assets and their fully variable part. Thus, the basic balance sheet equation of the optimal strategy will be: Long − term liabilities = Non−current assets + 0.5 ∗ Variable current assets. We believe that this strategy is less risky compared to ideal, but, at the same time, allows maintaining a high level of return on assets. The financial condition of “Kropotkinskoye” OJSC is much better than that of the majority of agricultural organizations of the Russian Federation comparable in the scale of activity. The solution to the problem with the existing lost profit from non-use of short-term loans of “Kropotkinskoye” OJSC will be facilitated by the determination of the permissible value of short-term borrowings against the background of maintaining financial stability (Table 2). For other organizations, these calculations will allow them to adjust financial models. The calculations showed that “Kropotkinskoye” OJSC has significant reserves for maximizing the cost of equity by attracting loans. In order to maintain financial equilibrium, its financing ratio can be reduced to 2.91, while its actual value was 163.41. “Russia” OJSC and “Rodnik” PJSC are underfunding their current assets at the expense of their sources, since the actual value of the net working capital is lower than the minimum allowable—by 751,695 thousand rubles and 520,220 thousand rubles, respectively. This situation negatively affects their financial stability, which is characterized as a crisis with a tendency to aggravate. In “Rodnik” PJSC, it changed from normal in 2016 to insufficient in 2017–2018.

5 Conclusion Ensuring the smooth operation of agricultural organizations is directly related to the system of formation and efficient use of current assets that contribute to the best course of physiological processes of animals and plants. A deficiency in current assets, an ineffective system of their management, or the complete absence of a system as such provokes the occurrence of different negative consequences, including a slowdown in asset turnover, degradation of liquidity and solvency of the organization, the reduction in profit and profitability, which generally affects the weakening of the financial stability of the organization. Thus, the formation of an effective system for managing current assets and sources of financing represents a priority task for tactical financial management. Its solution is based on ensuring the organization’s needs with the optimal size of current assets, taking into account the reduction of delivery and storage costs, structural-specific optimization of their financing sources,

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Table 2 The calculation of the acceptable value of the coefficient of financing for basic agricultural organizations, 2018 Indicator

OJSC “Russia”

PJSC “Rodnik”

OJSC “Kropotkinskoye”

1. The value of fixed assets, thousand rubles

550,793

465,171

1,151,773

2. The cost of the least liquid part of current assets, thousand rubles

294,286

229,965

179,246

3. Total, least liquid part of assets, thousand rubles (p. 1 + p. 2)

845,079

695,136

1,331,019

4. Actual value of the coefficient of financing (total of 3rd section of the liability/total of 4th section of the liability + total of 5th section of the liability)

1.51

2.31

163.41

5. The minimum allowable amount of net working capital, thousand rubles (p. 3)

845,079

695,136

1,331,019

6. The actual amount of net working capital, thousand rubles

93,384

174,916

626,573

7. Actual value of assets, thousand rubles

925,349

866,795

1,789,229

8. Permissible amount of borrowed funds, thousand rubles (p. 7 − p. 5)

80,270

171,659

458,210

9. Allowable funding ratio

10.53

4.05

2.91

Source Compiled by the authors

as well as determining the necessary balance between them, sufficient to ensure uninterrupted operation. The current situation in the domestic economy is marked with a rather high level of uncertainty, which is due to the lability of the geopolitical situation caused by sanctions and counter-sanctions policies of Western states and Russia. The high addiction of Russian industrial enterprises that meet the needs of agriculture from imported components affected the increase in prices. This happened against the background of a decrease in domestic prices for agricultural products due to the high supply on the market caused by the reduction in agricultural imports and an increase in productivity. The difficult disparity in prices for agricultural and industrial products negatively affects the financial well-being of agricultural organizations, the deterioration of their financial stability, and, as a consequence, the provision with circulating assets. The lack of sources for financing current assets, especially its source, hinders the operational processes in the agricultural sector, which affects the slowdown in the turnover of assets of organizations, reducing their

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profitability and worsening financial stability. Similar circumstances in the industry have arisen for a long time and, therefore, require a search for solutions to these problems. The analysis of literary sources on the considered issues allowed us to conclude that scholars often use outdated terminology when dividing current assets by the method of participation in the production process—“revolving production assets” and “circulation funds [3].” Revolving and circulation funds were the main elements of the state’s national wealth under socialism, and specific proportions were established between them in a planned manner. Therefore, we consider it appropriate to use more suitable categories—“current assets in production” and “current assets in circulation.” The analysis and synthesis of scientific works allowed us to propose a systematic approach to the formation of a mechanism for implementing financial policy in the field of managing current assets of an organization, which consists in determining their optimal volume and structure, which allow us to determine the target state of current assets and sources of financing. These parameters are strategic in optimizing production and financial costs, which is reflected in the balance between liquidity and profitability. The objects of study were “Russia” OJSC of the Kanevsky district, “Rodnik” PJSC of the Tikhoretsky district, and “Kropotkinskoye” OJSC of the Tbilissky district. All basic agricultural organizations are joint-stock companies with diversified specialization. The main activity is the cultivation of grain crops. The provision with production factors for each of the basic agricultural organizations is marked with different levels. We believe that this is mainly due to the presence of a specific size of agricultural land, which is the indisputable basis for agricultural production.

References 1. Khramchenko AA, Bogdanova AI, Posledova AV, Fadeeva IA (2019) Russian exports: development and prospects. Bull Acad Knowl 6(35):291–300 2. Khramchenko AA, Ragozha IA, Smirnova AK (2019) Analysis of the study of the financial performance of Russian companies. Bull Acad Knowl 6(35):300–307 3. Takhumova OV, Khramchenko AA (2019) Development of the methods for assessing the effectiveness of the business in the region. Indo Am J Pharm Sci (IAJPS) 6(3):5625–5629

The Efficiency of Investments in Energy Saving Technologies Olga A. Pyataeva

and Elena V. Borisova

Abstract The paper provides theoretical provisions and practical examples of using the indicator of the specific efficiency of investments in energy-saving technologies. An algorithm for assessing complex, closed, and composite technologies used in various industries (housing and communal services, electricity and heat, etc.) is presented. Keywords Innovation · Energy-saving technologies · Efficiency mark · Revolving fund · Energy service company · Energy saving

1 Introduction The research relevance is determined by the fact that the problem of energy conservation is one of the tasks requiring close attention both from the state and citizens. Energy-saving innovative projects are a tool that simultaneously contributes to the achievement of three main objectives of energy policy: improving energy security, reducing harmful environmental impacts due to the use of energy resources, and increasing the competitiveness of the industry [1]. The need to eliminate “white spots” in the implementation of energy-saving measures, the introduction of indicators for the integration of environmental and other external factors into the cost components, and the access to capital require an integrated approach to solving all emerging issues. The problems of assessing the effectiveness of investments at various stages of the implementation of energy-saving projects and the formation of an optimal structure of sources and types of financing for energy-saving initiatives are particularly relevant.

O. A. Pyataeva · E. V. Borisova (B) Russian State Academy of Intellectual Property, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_20

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2 Materials and Methods In order to determine ways to improve Russian energy efficiency, it is necessary to determine the level and identify the potential for energy conservation. The authors summarized the experience and developments of analysts in the field of investment support for energy conservation, solving problems of the potential for energy conservation, and methods for assessing the effectiveness of energy-saving projects. It was found that, in Russian practice, nowadays, revolving funds and energy service companies (ESCOs) have found application as mechanisms for repayment of financial resources. Revolving funds are funds operating on the principle of reinvestment (i.e., a repayment mechanism) that minimize the financial burden on the borrower. They temporarily take responsibility for 2/3 of the financial obligations of entrepreneurs who received a state or municipal order [2]. An alternative tool for the implementation of energy-saving projects is the energy service company (ESCO). The ESCO is an enterprise that provides a full package of technical, commercial, and financial services for the implementation of energy-efficient projects and provides project identification, organization of project financing, energy, and technical audit, design, construction, installation, etc. [2]. Economic efficiency is an evaluation parameter for energy-saving projects that reflects the implementation of energy-saving measures and the change in the demand for fuel and energy resources to replace more expensive fuels with less expensive ones.

3 Results The evaluation of the effectiveness of the use of funds allocated for the implementation of energy-saving measures is based on the following system of indicators [3, 4]. • • • • •

Net present value (NPV) over 0; Internal rate of return (IRR) over E (threshold discount rate); Simple payback period (PBP) no more than five years; Dynamic payback period (DPBP) no more than eight years; Profitability Index (PI) over 1.0.

The authors draw attention to the following circumstance. Energy-saving projects can be implemented at enterprises of various types (energy producers, and then the saved resources can be attributed to increased sales, or their consumers, to reduced costs). The authors propose to consider the criteria for optimizing the necessary investment for the implementation of energy-saving measures, the main of which is the minimization of energy losses. For energy-saving technologies (due to their identified features), the criteria for specific energy savings per investment unit is

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Table 1 Calculation of savings from the introduction of energy-saving technologies Indicator

Energy-saving technology No

1

2

3

4

5

The amount of resources saved, %

0

20

20

20

20

20

The amount of resources spent, th. tons of fuel equivalent

100

80

64

51.2

40.96

32.76

The amount of resources saved, th. tons of fuel equivalent

0

20

16

12.8

10.24

8.20

Source Developed by the authors

most applicable as an evaluation criterion. With its help, all possible energy-saving technologies can be ranked by their economic effect and the optimum investment from the perspective of economic benefit. As a consequence, the energy-saving effect is found. Let us say, an enterprise implements five different energy-saving technologies that have the same effect (e.g., 20% savings on initial costs). • Introduction of deaeration technology to remove aggressive gases from water in boiler rooms (1); • The replacement of thermal insulation on pipes when transporting heat from the boiler room to consumers (2); • Replacement of boiler and apartment building equipment with equipment that eliminates scale formation in pipes (3); • The installation of heat-insulating blocks (fences) on the walls of heat consumers houses (4); • The application of heat-reflecting film coatings on the glass of houses (5). Their implementation requires the same amount of investment. Table 1 shows the calculation of the savings from the introduction of energysaving technologies for various options for their application (for the first, second, etc. implemented technologies). As can be seen from Table 1, as a result of the introduction of technologies, each subsequent one reduces the absolute values of energy resources saved. Thus, the first technology allows us to save resources in the amount of 20 thousand tons of fuel equivalent (tfe), while the fifth—8.2 tfe. Simultaneously, their relative efficiency (the share of energy losses to the initial energy consumption) is the same.

4 Discussion The authors propose using the following procedure for calculating investment efficiency for energy-saving technologies:

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• Technologies are grouped by alternative. Technologies that cannot be used together are selected; only one of them is selected. • The coefficient of the specific efficiency of the technology is calculated (the cost of the saved resources is divided by the investment volume). • In each group, one technology is selected with the maximum coefficient of specific efficiency. • A series is built, in which the technologies selected from each group are ranked in descending order (by priority) of specific efficiency coefficients. • The value of the specific investment efficiency for the first of the constructed series of technologies is determined. For this, the ratio of the volume of saved and the amount of expended resources is calculated. • The formula determines the value of the specific investment efficiency for the next of the constructed series of technologies. • The values of the specific investment efficiency for each technology are arranged sequentially in a row. The coefficients of the difference from one technology to another are determined as the quotient of dividing the specific investment efficiency in energy-saving measures for j j + 1 technology. • The resulting series is analyzed for pronounced differences. Based on the figures obtained, two lists of measures are formed. The first includes technologies up to the first drop, and investments in their implementation are optimal in terms of return on investment and its effect. Technologies in the second list give a less pronounced economic effect. • Further, all the technologies included in the first list are combined into one investment project, the implementation of which (in a first approximation) will be cost-effective. For it, the corresponding parameters Current, NPV, IRR, etc. are calculated. • Based on the calculations, a specific list of energy-saving technologies for priority implementation is determined. To illustrate this algorithm, we consider examples of technologies that were selected for implementation at one of the enterprises. Technology 1. The replacement of obsolete boiler houses (Table 2). Technology 2. The replacement of obsolete thermal insulation on the pipelines of a heat supply system (Table 3). Technology 3. Installation of radiant gas heating of industrial buildings of the enterprise (Table 4). Technology 4. Installation of a frequency-controlled drive station on draft fans of boilers (Table 5). Technology 5. The construction of a wind power installation (Table 6). Technology 6. Installation of the ASCAPC system (Automatic system for commercial accounting of power consumption) and the transition to a payment system at a differentiated tariff (Table 7). Technology 7. Replacement of obsolete boiler houses (Table 8).

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Table 2 Initial and calculated data on the technology “Replacement of obsolete boiler houses” Indicator

Equipment Old

Schedule

24/7

Operational and other expenses associated with the equipment for 12 months (thousand rubles without VAT)

2000

New 200

The consumption of natural gas over 12 months (thousand m3 )

2365

1981

Electricity consumption for 12 months (thousand kW)

830

480

Estimated gas price, thousand m3 (rub. without VAT)

2763

Estimated price kWh (rub. with VAT)

3

The volume of investments (total costs associated with replacing old equipment with new) (I) (thousand rubles without VAT)

21,000

The overall economic effect of the introduction of technology for 12 months (thousand rubles without VAT)

3911

Source Developed by the authors Table 3 Initial and calculated data on the technology “Replacing obsolete thermal insulation on pipelines of a heat supply system” Indicator The consumption of natural gas over 12 months (thousand

Equipment m3 )

Old

New

1197

916

Estimated gas price per thousand m3 (rub. without VAT)

2763

Investment volume (I) (thousand rub. without VAT)

2300

The overall economic effect of the introduction of technology for 12 months 776 (thousand rub. without VAT) Source Developed by the authors Table 4 Initial and calculated data on the technology “Installation of radiant gas heating of industrial buildings of the enterprise” Indicator

Equipment Old

The consumption of natural gas over 12 months (thousand

m3 )

Electricity consumption for 12 months (thousand kWh)

126.2

18

210.8

0

Estimated price per thousand m3 (rub. without VAT)

2763

Estimated price per kWh (rub. without VAT)

3

Operational and other expenses associated with the equipment in question (thousand rub. without VAT)

100

Investment volume (I) (thousand rub. without VAT)

4000

The overall economic effect of the introduction of technology for 12 months 1021 (thousand rub. without VAT) Source Developed by the authors

New

10

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Table 5 Initial and calculated data on the technology “Installation of a variable frequency drive station on draft boilers” Indicator

Equipment Old

New

Electricity consumption for 12 months. (thousand kW)

330

220

Estimated price per kW * h (rubles without VAT)

3

The volume of investments (I) (thousand rubles without VAT)

508

The overall economic effect of the introduction of technology for 12 months 330 (thousand rub. without VAT) Source Developed by the authors

Table 6 Initial and calculated data on the technology “Construction of a wind power installation” Indicator

Equipment Old

New

Operating and other expenses associated with the equipment in question (thousand rub. without VAT)

0

37.6

Electricity consumption for 12 months (thousand kW * h)

148.5

148.5

Estimated price kW * h (rub. without VAT)

3

0

The volume of investments (I) (thousand rub. without VAT)

388

The overall economic effect of the introduction of technology for 12 months. (thousand rub. without VAT)

407.9

Source Developed by the authors

Table 7 Initial and calculated data on the technology “Installation of ASCAPC system” Indicator

Equipment Old

Schedule

24/7

The additional effect per year (thousand rub. without VAT)

90.7

The volume of investments (I) (thousand rub. without VAT)

370

New

The overall economic effect of the introduction of technology for 12 months 90.7 (thousand rub. without VAT) Source Developed by the authors

5 Conclusion The authors propose the use of the following algorithm for working with the obtained data.

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Table 8 Initial and calculated data on the technology “Replacement of obsolete boiler houses” Indicator

Equipment Old

New

Schedule

24/7 in the heating season

Operating expenses (thousand rub. excluding VAT)

175

175

Electricity consumption for 12 months (thousand kWh)

648

1.3

Diesel consumption for 12 months (tons)

0

54

Estimated price kW * h (rub. without VAT)

3

The estimated price of a ton of diesel fuel (rub. without VAT) 15,250 The volume of investments (I) (thousand rub. without VAT)

1500

The overall economic effect of the introduction of technology 1117 for 12 months. (thousand rub. excluding VAT) Source Developed by the authors

1.

2.

3.

Technologies 1 and 7 are alternative, so we must select only one from them. All other technologies, as shown in the following table, fall into a separate group (1 and 7—group 1; 2—group 2, etc.). Let us determine the coefficients of the specific effectiveness of technologies. We divide the annual economic effect of the introduction of this technology on the amount of investment required to implement this technology. The results are presented in Table 9. For the first group, we select the technology with the highest coefficient of specific efficiency. The obtained results are presented in Table 10.

Table 9 Coefficients of technology efficiency Indicator

Energy-saving technology 1

2

3

4

5

6

Technology

1.7

2

3

4

5

6

The coefficient of technology efficiency

0.19, 0.74

0.34

0.66

0.65

1.05

0.25

Source Developed by the authors

Table 10 Technology selection by the criterion with the highest coefficient of specific efficiency Indicator

Energy-saving technology 1

2

3

4

5

6

Technology

7

2

3

4

5

6

The coefficient of technology efficiency

0.74

0.34

0.66

0.65

1.05

0.25

Source Developed by the authors

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Table 11 The assessment of technology efficiency Indicator

Priority 1

2

3

4

5

6

Group

5

1

8

4

2

6

Technology

5

9

8

4

5

6

The coefficient of technology efficiency

1.05

0.74

0.66

0.65

0.34

0.26

Source Developed by the authors

4. 5.

6.

7. 8.

9.

We sort the table obtained at the previous stage according to the degree of efficiency. The results are presented in Table 11. Next, we determine the value of the specific investment efficiency for the first of the constructed series of technologies. In our case, it is technology 7. In this case, the value of the efficiency of specific investments for the best (7th) technology will be equal to −2.23. It is necessary to determine the remaining values of specific investment efficiency. It takes into account the fact that the introduction of other technology changes the economic efficiency of technologies introduced earlier (Table 12). We calculate the differential coefficients; the calculation procedure was given above. The calculation results are presented in Table 13. The analysis of the values of differential coefficients shows that the first differential falls on the fourth coefficient. Thus, the first list includes the fifth, seventh, eighth, and fourth technologies. The second, third, and sixth technologies are included in the second list. 9 and 10. The calculation of Current, NPV, and IRR, and, if necessary, other indicators for the first project, which, in our case, includes technologies number

Table 12 Calculation of unit investment efficiency Indicator

Priority 1

2

3

4

5

6

Group

1

5

8

4

2

3

Technology

5

7

8

4

2

3

The coefficient of technology efficiency

1.05

0.65

0.55

0.51

0.24

0.22

Source Developed by the authors

Table 13 The calculation of the differential coefficients Indicator Value

Coefficient number 1

2

3

4

5

1.62

1.18

1.08

2.16

1.09

Source Developed by the authors

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five, seven, eighth, and four, as well as the second project, which, in addition to the first project, also includes technologies two, three, and six. Acknowledgements The authors would like to express their gratitude to OJSC “Orenburg Territorial Generating Company” for the data provided for calculations.

References 1. Kuznetsova IV (2017) Energy saving in heat power engineering and heat technologies. Kazan National Research Technological University, Kazan, Russia 2. Baranov AV (2017) Energy saving and energy efficiency. Tambov State Technical University, Tambov, Russia 3. Ministry of Economic Development of the Russian Federation (1999) Guidelines for the evaluation of investment projects (No. 477). Moscow, Russia 4. Ministry of Economic Development of the Russian Federation (2008) On the long-term scenarios of socio-economic development of the Russian Federation (No. 889). Moscow, Russia

Modernization and Financial Sustainability of Agricultural Enterprises Based on the Working Capital Management of the Krasnodar Krai Anna A. Khramchenko

Abstract The current situation in the domestic economy is marked with a rather high level of uncertainty, which is caused by the lability of the geopolitical situation, sanctions, and counter-sanctions policies of Western states and the Russian Federation. The high “addiction” of Russian industrial enterprises meeting the needs of agriculture from imported components naturally affected the increase in prices for their products. This happened against a decrease in domestic prices for agricultural products caused by the high supply, which is due to reduced agricultural imports and increased productivity. The difficult disparity in prices for agricultural and industrial products negatively affects the financial well-being of agricultural organizations, the deterioration of their financial stability, and, as a consequence, the provision with circulating assets. The lack of sources for financing current assets, especially their own, hinders the operational processes in the agricultural sector, which affects the slowdown in the turnover of assets of organizations, reducing their profitability and worsening financial stability. Similar circumstances arose a long time ago and required a search for solutions to these problems. Keywords Working capital · Control mechanism · Sources of financing · Financial stability · Financial equilibrium

1 Introduction The essence of the category of working capital is not simple. Therefore, two terms— gross working capital and net working capital—are used to describe it. Gross working capital refers to the current assets of the organization (also called current assets) that are involved in the daily activities of the organization. Whereas net working capital (also known as working capital) is the difference between current assets and current (short-term) liabilities. Thus, it is capital that finances a particular part of current assets, namely the one that is not covered by current liabilities and represents a A. A. Khramchenko (B) Kuban State Agrarian University Named After I. T. Trubilin, Krasnodar, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_21

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surplus of current assets over these liabilities. Based on this, the author specified the concept of the need for working capital in the following form: the need for working capital corresponds to the part of current financial needs, which relates to the formation of inventories, receivables, and other needs, and which are not covered by short-term liabilities (excluding short-term loans). The magnitude of the need for working capital in the organization can vary significantly. It depends on the duration of the operating cycle and the rotation of current assets with the allocation of liquid assets, assets frozen in stocks, and receivables. Liquid assets are used to repay current liabilities, that is, cash on hand and at the bank, as well as short-term securities that can be quickly converted into cash. The lack of funds for the current settlement of the obligations of the organization leads to overdue obligations, and, consequently, to a violation of financial liquidity.

2 Materials and Methods Effective management of working capital plays an essential role for each organization, and, therefore, for those responsible for financial management. This is primarily since the financial turnover of the organization ensures its functioning. The objective of working capital is to reduce the risk arising from the immobilization of part of current assets (inventories, receivables) or as a result of losses associated with these assets, for example, due to difficulties with the sale. Proper management of working capital should lead to an increase in operational efficiency, which, in turn, will be the result of optimizing the size and structure of current assets, the formation of the most favorable structure of financing sources, and, consequently, increasing the profitability, competitiveness, and financial stability of the organization. The availability of working capital determines the continuity and rhythm of business operations. These operations assume “servicing” many duplicate business operations—from spending money on raw materials, materials, or goods to receiving payment for manufactured products and (or) goods sold [1]. Low level of working capital increases the risk of solvency loss of the organization, and a high level can lead to unjustified costs of obtaining sources of financing for current assets. The higher the level of net working capital, the higher the liquidity and financial stability of the organization. The most important decisions in the financial management of an organization include determining the level of working capital following the volume of demand for this capital [2]. The relationship between the mechanism of managing working capital and the performance of the organization is schematically visualized in Fig. 1. Working capital is some kind of security for fulfilling obligations arising from the current money cycle. After appropriate adjustments, it determines the long-term financial potential of the organization. A significant level of constant capital in operating activities creates the long-term financial opportunities of the organization.

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Fig. 1 The relationship between the mechanism for managing working capital and the performance of the organization. Source Developed by the authors

3 Results The systematic set of instruments for managing current assets and working capital and a detailed analysis of the issues of increasing the effectiveness of financial management to improve the financial equilibrium of organizations [3] are analyzed according to the data of “Agrofirma Druzhba” CJSC in the Tbilissky District, “Niva” SC of the Beloglinsky District, and “Khutorok” CJSC KSP in the Novokubansky District. Significant transformational changes were noted in the structure of the current assets of all essential agricultural organizations (Fig. 2). Since all the objects of this research are under a special tax regime and pay a single agricultural tax, VAT on acquired values is not reflected in the inventory and costs. Table 1 provides a cause and effect assessment of the impact on basic financial and economic conditions of the organizations.

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Fig. 2 The modification of the structure of current assets, %. Source Developed by the authors Table 1 The assessment of the influence of factors on the financial and economic condition of basic organizations Factor

Equity/cash property

“Agrofirma Druzhba” CJSC

“Niva” SC

“Khutorok” CJSC KSP

Reporting Base period, 2018 period, 2017

Reporting period, 2018

Base period, 2017

Reporting period 2018

Base period, 2017

2.30

2.87

34.44

16.22

11.58

21.60

Cash property/amount 2.91 of capital raised

2.09

0.02

0.04

6.75

4.68

Amount of capital 0.13 raised/company assets

0.14

0.58

0.61

0.01

0,01

Equity/non-monetary property

1.40

1.22

0.42

0.40

1.08

1.04

Non-monetary property/company assets

0.62

0.70

0.99

0.98

0.91

0.95

Cumulative effect of factors

0.87

0.86

0.42

0.39

0.99

0.99

Source Developed by the authors

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The combined influence of factors is a financial independence coefficient characterizing the share of the assets of organization provided by its financing sources. The results show that the lowest share of assets is financed from its sources in SC “Niva”; the actual value is less than the normative (0.5–0.6). At “Agrofirma Druzhba” CJSC and “Khutorok” CJSC KSP, financial independence is excessive since the combined influence of factors significantly exceeds the recommended one, which confirms our conclusions.

4 Discussion Among the factors affecting the financial sustainability of the organization, we identified the factors of positive and negative influence (Table 2). Some of the above factors characterize the polar sides of one process, and some are not directly related to each other. The factors of both positive and negative impact on the financial stability are dominated by those directly related to the current system of working capital management. It is proposed to modify the management system of circulating assets in order to increase its effectiveness. For this, it is necessary to calculate the allowable funding indicator associated with the determination of the allowable amount of net working capital (for financing the least liquid part of assets) and the allowable amount of borrowed funds. Table 3 shows such a calculation for basic organizations. Table 2 Grouping of factors influencing financial stability by the nature of the impact Factors of influence by the nature of the impact Positive

Negative

No overdue debt on monetary obligations

Overdue receivables

High working capital turnover

The slowdown of working capital turnover

Acceleration of the period of receivables collection

The adverse relationship between receivables and payables

Net cash flow from current operations

Unit cost increase

Growth of Sales Profitability

Sales reduction

Positive dynamics of sales profit

High growth rates of money supply diversion into the formation of non-current assets in the absence of permanent and (or) long-term sources (own and (or) borrowed funds)

A high proportion of own sources of asset formation

Low equity

Adequacy of equity to finance non-current assets and less liquid part of current assets

Low solvency due to a decrease in the share of highly liquid current assets

Source Developed by the authors

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Table 3 Calculation of the acceptable value of the financing ratio for basic agricultural organizations, 2018 Indicator

“Agrofirma Druzhba” CJSC

“Niva” SC

“Khutorok” CJSC KSP

1. The value of fixed assets, 118,017 thousand rubles (total of 1 asset section)

1,342,009

924,728

2. The cost of the least liquid 88,348 part of current assets, thousand rubles (stocks, animals for growing and fattening, work in progress)

303,525

833,259

3. The total least liquid part of assets, thousand rubles (p. 1 + p. 2)

1,645,534

1,757,987

4. Actual value of the 6.7 coefficient of financing (total of the third section of the liability/total of the fourth section of the liability + total of the fifth section of the liability)

0,7

78.1

5. The minimum allowable amount of net working capital, thousand rubles (p. 3)

1,645,534

1,757,987

6. The actual amount of net 354,207 working capital, thousand rubles

360,428

1,393,256

7. Actual value of assets, 542,701 thousand rubles (total of 1 section of an asset + total of 2 sections of an asset)

1,781,526

2,347,632

8. Permissible amount of 336,336 borrowed funds, thousand rubles (p. 7 − p. 5)

135,992

589,645

9. Allowable funding ratio (p. 5/p. 8)

12.1

3.0

206,365

206,365

0.6

Source Developed by the authors

The calculations showed that “Agrofirma Druzhba” CJSC and “Khutorok” CJSC KSP have reserves for maximizing the cost of equity by attracting loans. Moreover, this reserve is huge at “Khutorok” CJSC KSP, since the organization does not use borrowed sources of financing, which means it has lost profits. To maintain financial equilibrium, its financing ratio can be reduced to 3.0, while its actual value was 78.1. SC “Niva” underfunds its current assets from its sources since the FER’s actual value

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is lower than the minimum allowable by 1,285,106 rubles. Therefore, the only way to achieve a healthy financial equilibrium is to increase profits and bring the financing ratio to 12.1. In the author’s opinion, the management of “Niva” SC should pay close attention to the management of non-current assets, since the ratio between them and current assets is the most unfavorable among the basic organizations.

5 Conclusion The head of any organization should have reliable and comprehensive information about the effectiveness of existing business processes, which is the key to making a competent and effective management decision. At the same time, special attention should be paid to issues of strengthening the financial stability of the organization, which depends on approaches to the management of working capital and affects the effectiveness of existing business processes and relationships. Effective strategic development is characteristic primarily for organizations in which there are taken targeted measures to manage net working capital. The lack of sources for financing current assets, especially their own, hinders the operational processes in the agricultural sector, which affects the slowdown in the turnover of organizations’ assets, reducing their profitability and worsening financial stability. Similar circumstances in the industry have arisen for a long time and, therefore, require a search for solutions to these problems. The analysis allowed us to conclude that a literal understanding of the term “sustainability” contradicts the existing financial terminology. “Sustainability” is understood as constancy; the situation is not amenable, not subject to changes and fluctuations. The author also noted several factors changing financial stability. All basic agricultural organizations are non-public joint-stock companies with diversified specialization. The main activity is the cultivation of grain crops. Provision with production factors for each of the basic agricultural organizations is characterized by different levels, mainly due to the presence of a specific size of agricultural land, which is the indisputable basis for agricultural production. Based on the studies, we can make the following proposals to improve the financial stability of agricultural organizations based on the management of working capital: • It is appropriate to use the concept of “financial equilibrium” instead of the concept of “financial stability,” which should be understood as the achieved financial condition of the organization, in which the increase in the main volume of assets from own sources is balanced with the possibilities of attracting borrowed sources and allows to observe a compromise between the efficient use of financial resources and financial risks; • Applying the refined concept of the policy for managing working capital is advisable. We propose to understand it as a set of actions that implement forms and methods of working capital management related to improving the

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A. A. Khramchenko

values of individual financial indicators and achieving higher results from current operations; • The management of “Agrofirma Druzhba” CJSC should revise the policy of forming stocks at the expense of short-term borrowed funds, as the marked increase in loans does not correspond to the current trend of reduction in inventories; • For “Niva” SC it is advisable to take measures to bring the net working capital to the minimum recommended value and to achieve a value of 12.1 for the financing ratio; • The management of “Khutorok” CJSC KSP should modify the capital structure by starting to attract borrowed funds to finance current assets, reducing the value of the financing ratio from 78.1 to 3.0, which will help to maintain financial equilibrium and increase the return on equity.

References 1. Khramchenko AA, Bogdanova AI, Posledova AV, Fadeeva IA (2019) Russian exports: development and prospects. Bull Acad Knowl 6(35):291–300 2. Khramchenko AA, Ragozha IA, Smirnova AK (2019) Analysis of the study of the financial performance of Russian companies. Bull Acad Knowl 6(35):300–307 3. Takhumova OV, Khramchenko AA (2019) Development of the methods for assessing the effectiveness of the business in the region. Indo Am J Pharm Sci (IAJPS) 6(3):5625–5629

On the Issue of Insurance Premiums for Agricultural Producers Nadezhda N. Shelemekh , Vera V. Mizyureva , Margarita A. Shadrina , Anastasiia O. Satina , and Aleksandr Yu Ilyin

Abstract The paper presents the results of research on insurance premiums of agricultural producers. The authors analyze the changes in insurance premium rates for ten years. During this period, tariffs decreased and rose, which affected the formation of financial resources to ensure social guarantees. The paper considers the burden on the payroll of insurance premiums under different tax regimes. In the discussion of insurance premiums, which are set out in scientific community publications, important trends have been identified. A balance between insurance premiums and the burden on the payroll can be found in improving the taxation of agricultural producers based on the peculiarities of their functioning. Keywords Agricultural producers · Insurance premiums · Social insurance · Social guarantees

1 Introduction Currently, the farmers shall pay the mandatory social insurance premiums for mandatory pension insurance [MPI], mandatory social insurance [MSI], and mandatory health insurance [MHI] in the context of institutional change. Insurance premiums are used to pay state pensions, temporary disability benefits, medical care within the insurance package, and some other social guarantees. The amount of mandatory social guarantees depends directly on the amount of insurance premiums received by extra-budgetary funds. If there is a change in tariffs and the procedure for calculating premiums, then the volume of sources of social guarantees and the burden on the payer’s payroll will change accordingly. Since the emergence of social insurance premiums in the early 1990s, the legal regulation of these payments fundamentally changed four times, almost every decade. When social insurance premiums were introduced, they were regulated by insurance law, then by tax law, then by insurance N. N. Shelemekh (B) · V. V. Mizyureva · M. A. Shadrina · A. O. Satina · A. Y. Ilyin Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_22

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law again, and since 2017 by tax law ([9]). For agricultural producers, the urgency of the issue is compounded by the specifics of taxation, which creates unequal financial consequences of paying insurance premiums.

2 Materials and Methods The issues of insurance premiums should be considered together in two inseparable directions: as a source of financial support for social guarantees and as a burden on the payroll of different taxpayers. The authors developed special tables and calculation formulas for the analysis. The research purpose is to determine the relationship between insurance premium rates and the volume of sources of financial resources for providing social guarantees and the remuneration fund for agricultural producers. The study analyzes changes in the rates of insurance premiums of agricultural producers over ten years, the burden of insurance premiums on the payroll under seven tax regimes.

3 Results The applied rates of insurance premiums for employers for ten years (2010–2020), are summarized, with the allocation of tariffs for agricultural producers and employers (Table 1). Table 1 showed that the established 26% insurance premium rate for employers was applied only in 2010. From 2011, the tariff for MPI is applied at the rate of 22%. The rates of premiums to the MSI (2.9%) and the MHI (5.1%) did not change from 2010 to 2020. In 2010–2014, agricultural employers paid premiums for all types of insurance at reduced rates and only within the established limit of the insurance premium base. We analyzed the dynamics of insurance premium rates for agricultural producers and employers from 2010 to 2020 is analyzed (Table 2). Table 2 shows that the growth of tariffs for agricultural producers and employers for all types of insurance occurred every two years. The largest growth occurred in 2013–2014, totaling to 34.2%. In 2011 and 2012, the growth equaled to 1%. In 2015–2020, the figure is 10.7%. In these periods, the largest increase in rates for insurance types was for the MHI—60.9% and 37.8%, respectively, with no growth to 2010, while the rates for the MHI are 1.3, 31.3, and 4.8 grew in a smaller amount, respectively. For the MSI, tariff grew by 26.3 and 20.8% without growth to 2010. The rate of premiums for agricultural producers and employers annually approached the general rate. As follows from Table 1, their share relative to the total tariff increased for all premiums from 58.8 to 90.3%, and by 2015 equaled to 100%.

26

2.9

5.1

34

MPI

MSI

MHI

Total

Source Developed by the authors

Above the established limit value

Tariff until 01.01.2019, (%)

Fund

34

5.1

2.9

26

10

30

5.1

2.9

22

–

20

2.3

1.9

15.8

–

20.2

2.3

1.9

16

2011 2012

2010

2010

2011 2020

For agricultural producers

Common

Applicable tariffs in 2010–2020 (%)

Table 1 Rates of employers’ insurance premiums

–

27.1

3.7

2.4

21

2013 2014

10

30

5.1

2.9

22

2015 2020

58.8

45.1

65.5

60.77

2010

91.8

45.1

65.5

72.7

2011 2012

90.3

72.5

82.8

95.5

2013 2014

The share of the tariffs of agricultural producers relative to the total

On the Issue of Insurance Premiums for Agricultural Producers 219

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Table 2 Dynamics of insurance premium rates for agricultural producers and employers from 2010–2020 (%) Values

2011 and 2012 to 2010

2013 and 2014 to 2011 and 2012

2015–2020 2013, 2014

MPI

101.3

131.3

104.8

MSI

0

126.3

120.8

MHI

0

160.9

137.8

Total

101

134.2

110.7

Source Developed by the authors

Reduced contribution rates for agricultural producers and employers compared with the rates of other preferential categories of payers were not at the lowest rate. When the contribution rate for agricultural producers and employers to all funds was 90.3% of the total tariff, for other preferential categories, this number could be 46.7 or 66.7%, or the rate could not be set at all, for example, for payments to the crews of ships that are registered in the Russian international register of ships. In 2015–2020, no special tariffs are set for agricultural employers; contribution rates are applied, just as for any other employers (MPI—22%, MSI—2.9%, MHI— 5.1%) without benefits for paying insurance premiums. Reduced tariffs were maintained for certain preferential territories, such as the free economic zone, territories of advanced socio-economic development, Skolkovo, and some other territories. If agricultural producers and employers are participants and residents of these preferential territories, they will also be entitled to a reduced contribution rate provided for the corresponding preferential territory. From 2011, the 26% tariff on MPI has been frozen until 2027. From 2019, the 26% tariff for MPI premiums was canceled. The application of lower tariffs should have been compensated in 2011–2027 from the Federal budget to each off-budget fund in the amount of difference of fees, if they were calculated at the established rate (MPI—26%, MSI—2.9%, and MHI—5.1%) and effectively applied (MPI—22%, MSI% and 2.9%, MHI—5.1%) following the legislation, given the further lowering of tariffs for separate categories of payers (farmers vs. applied). Thus, if the loss of income is compensated to non-budgetary funds when setting reduced rates for calculating insurance premiums, including by agricultural producers and employers, there is no reduction in the sources of funds for providing social guarantees. The cancellation of the 26% tariff for MPI from 2019 leads to the fact that the 22% tariff for MPI is considered not reduced but the main one. Under the MPI, the compensation for the shortfall in income was provided from the 26% tariff. In the conditions of the MPI’s cancellation and transfer of insurance premiums to the Tax code, there remains a question of how the loss of income from non-budgetary funds will be compensated. The analysis of the burden of insurance premiums on the payroll budget [PB] was made for payers who apply different tax regimes, taking into account personal income tax rates, insurance premium rates, savings on corporate income tax under

On the Issue of Insurance Premiums for Agricultural Producers

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the general tax system [GTS], single agricultural tax [SAT], tax under the simplified system of taxation [SST]. A load of insurance premiums on labor remuneration is calculated for payers applying GTS (Table 3). • GTS for organizations without concessions on tariffs of insurance premiums applying the 30% rate; • GTS for agricultural producers applying a reduced insurance rate of 27.1%; A load of insurance premiums on the PB of payers applying the following special tax regimes was calculated (Table 4). • SAT for agricultural producers applying a reduced insurance rate of 27.1%; • SST for payers with the “income” tax base and an insurance rate of 30%. • SST for payers with the “income” tax base and an insurance rate of 27.1%. Table 3 The calculation of the load on the PB of insurance premium payers applying GTS No Indicators and calculation formula

GTS

1

2

3

4

1

Net remuneration (NR), thousand rubles

100

100

2

Accrued NR, thousand rubles Line 2 = line 1/(100–13) %

114.9

114.9

3

The rate of income tax (%)

13

13

4

Income tax, % Line 4 = line 2 * line 3

14.9

14.9

5

The rate of insurance premiums, 30 %

27.1

6

Insurance premiums with a NR, thousand rubles Line 6 = line 2 * line 5

34.47

31.14

7

Corporate income tax rate, %

20

0

8

Savings on corporate income tax, thousand rubles Line 8 = line 7 * (line 2 + line 6)

29.87

No savings

9

Load on the PB (–), thousand −19.5 rubles Line 9 = line 8 − line 4 − line 6

−46.04

−19.5

−46.04

10 Load on the PB (–), % Line 10 = line 9/line 1 * 100%

An organization without benefits Agricultural producer

11 Load in % of the load on the 100 GTS Line 11 = line 9 of column 4/line 9 of column 1 * 100 Source Developed by the authors

236.1

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Table 4 Calculation of the load on the PB of insurance premium payers applying special tax regimes No

Indicators and calculation SAT formula

SST Tax rate (%) 6

15

The rate of insurance premiums, % 30

27.1

30

27.1

1

2

3

4

5

6

7

1

Net remuneration (NR), thousand rubles

100

100

100

100

100

2

Accrued NR, thousand rubles Line 2 = line 1/(100 − 13) %

114.9

114.9

114.9

114.9

114.9

3

The rate of income tax, % 13

13

13

13

13

4

Income tax, % Line 4 = line 2 * line 3

14.9

14.9

14.9

14.9

14.9

5

The rate of insurance premiums, %

27.1

30

27.1

30

27.1

6

Insurance premiums with 31.14 a NR, thousand rubles Line 6 = line 2 * line 5

34.47

31.14

34.47

31.14

7

The tax rate for SST and SAT, %

6

6

6

15

15

8

Savings on tax on the SST and the SAT, thousand RUB Line 8 = line 7 * (line 2 + line 6)

8.76

34.47

31.14

22.41

21.91

9

Load on the PB (–), thousand rubles Line 9 = line 8 − line 4 − line 6

−37.28

−14.9

−14.9

−26.96

−24.13

10

Load on the PB (–), % −37.28 Line 10 = line 9 /line 1 * 100%

−14.9

−14.9

−26.96

−24.13

11

Load in % of the load on the GTS Line 11 = line 9 of column 3 to 7/line 9 of column 1 Table 3 * 100

76.4

76.4

138.2

123.74

Source Developed by the authors

191.2

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• SST for payers with the tax base “income minus expenses” and an insurance rate of 30%. • SST for payers with the tax base “income minus expenses” and an insurance rate of 27.1%. In all seven cases considered, for an employee to receive a net income of 100 thousand rubles, the employer must add a salary of 114.9 thousand rubles. With a PB of 100 thousand rubles, insurance premiums will amount to 34.47 thousand rubles at a rate of 30% and 31.14 thousand rubles at a rate of 27.1%. Under different tax regimes, labor costs and insurance premiums reduce the taxes payable. In calculating taxes, the corresponding savings are generated by reducing the tax base for labor expenses and insurance premiums for corporate income tax under the GTS, tax when applying the SAT and SST for the object “income minus expenses,” and by reducing the amount of insurance premiums for the tax under the SST for the object “income” (line 8 of Tables 3 and 4). Taking into account the resulting savings, the burden of insurance premiums on labor under various tax regimes is defined in lines 9 and 10 of Tables 3 and 4. For SST payers with the “income” base, tax savings can be formed in the amount of no more than 50% of the calculated tax. Insurance premiums of 34.47 thousand rubles, at the rate of 30%, and 31.14 thousand rubles, at the rate of 27.1% can be accepted in full to reduce the tax on the SST if the tax at the rate of 6% will be at least 68.94 thousand rubles, and 62.28 thousand rubles with the income of 1149 thousand rubles and 1038 thousand rubles, respectively. In this case, the load on the PB will be −14.9% and will only include personal income tax. The analysis revealed that the load on PB (−46.04%) for agricultural producers using GTS is more than 2.4 times higher than this indicator (−19.5%) for organizations that use GTS and do not have benefits under insurance tariffs. When applying the SAT, the same indicator is −37.28%, which is 1.9 times more than for organizations that use GTS and do not have benefits under insurance rates. The lowest burden of insurance premiums on the PB for agricultural producers is observed when applying the SST to agricultural producers with the tax base “income.” For payers who apply SST with the base “income” and insurance premium rates of both 30 and 27.1%, the load on the PB is less than for organizations that apply GTS and the insurance premium rate of 30 and is 76.4% of it. The analysis of the load on the PB showed that the application of a reduced rate of insurance premiums does not equalize the financial conditions of agricultural producers with enterprises that apply an insurance tariff without benefits. Agricultural producers who pay insurance premiums even at a preferential insurance rate bear a higher burden on the PB compared to organizations that apply the tariff without benefits. This is due to the lack of tax savings or its insignificant size due to the establishment of reduced tax rates for agricultural producers in the amount of 0% for the GTS and 6% for the application of the SAT, while for organizations in other areas of activity, the profit tax rate is 20%.

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4 Discussion To date, economics has not developed a unified position on the legal nature of mandatory social insurance premiums paid to non-budgetary funds. Problems arise due to the presence of both insurance and tax nature in these payments. This leads to inconsistent legislative policies regarding these payments. The problems of turbulence in the legislation on insurance premiums were discussed in different operational periods of these payments [1–3, 17]. The issues of filling the funds of extra-budgetary funds in relation to the procedure for paying insurance premiums and their tariffs were considered both during the operation of these payments in the form of tax and insurance [4, 10, 11]. The abolition of the maximum base for deductions to the Social Insurance Fund of the Russian Federation was proposed as a measure to increase revenues [5]. It is noted that an increase in insurance rates will lead to an increase in cost and a decrease in profitability [10]. There is an alarming trend of increasing pension burden on employed people in the economy, which may create the need to increase insurance premiums, which will increase the burden on employers and may lead to the trend of illegal salaries [8]. Many scholars see the possibility of ensuring a stable flow of funds to non-budgetary funds in increasing responsibility for paying insurance premiums [7, 19]. Changing the insurance model by excluding financial intermediaries (insurance organizations) from the MHI system is considered as one of the ways to avoid a deficit in the MHI budget [18]. It is believed that in the implementation of the import substitution strategy, the provision of tax incentives and preferences to agricultural producers will affect the level of their taxation and significantly impact the volume of their financial resources [16]. Thus, the current scientific discussion confirms the relevance of the research presented in the paper.

5 Conclusion The results of the research allow us to draw several conclusions regarding insurance premiums of agricultural producers: • Systematic changes in the tariff policy for agricultural producers do not allow creating a full-fledged scientific base for the study of insurance payments in order to ensure a balance between the size of the insurance tariff and the volume of receipts to extra-budgetary funds. • The application of reduced rates of insurance premiums of farmers requires compensation for lost income, extra-budgetary funds, but does not provide the perceived financial relief, as it does not reduce the load on the fund of insurance payments of the payer against organizations that do not have a reduced rate.

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• The development of taxation of agricultural producers with insurance premiums should take place in the context of the specifics of their functioning and taxation with the corporate income tax, the SAT, and taxes under the SST. The information obtained in the course of research on insurance premiums can be useful for finding the optimal taxation of agricultural producers with insurance premiums, which allows forming a source of financial support for ensuring social guarantees of workers at the level of generally established with an optimal load of insurance premiums on the payroll.

References 1. Abramova MS (2013) Priority directions of the state policy concerning insurance premiums (Dissertation of Candidate of Economics). Moscow City University of Management of the Government of Moscow, Moscow, Russia. Actual Probl Russ Law 10:63–69 2. Belikov EG (2016) Regulation of state social off-budget funds under financial law provisions: issues of differentiation within the framework of the branch of law 3. Budko SA (2017) The system of compulsory pension insurance based on the cumulative target funding (Dissertation of Candidate of Economics). Novosibirsk State University of Economics and management, Novosibirsk, Russia 4. German YA (2015) The problem of the fiscal burden of obligatory pension insurance and the influence thereof on the development of the real sector of the economy. Soc Pension Law 2:29–34 5. Gorbunova IA (2017) The effect of cancellation of a limit value base for calculating insurance premiums to the social insurance Fund. Sci Without Borders 7(12):13–16. Retrieved from https://www.elibrary.ru/item.asp?id=29770133 6. Government of the Russian Federation (2008) Order “On the concept of long-term socioeconomic development of the Russian Federation for the period until 2020” (Nov 17, 2008 No. 1662-r). Moscow, Russia 7. Kasnitskaya IY (2017) On improvement of liability for damage from payment of insurance premiums. Bull Ural Inst Econ Manage Law 3(40):35–39. Retrieved from https://www.elibrary. ru/item.asp?id=30715497 8. Kurlova LM (2017) The state of the Russian pension system and insurance premiums in a new way. Res Notes Inst Manage Bus Law 5:280–287. Retrieved from https://www.elibrary. ru/item.asp?id=30587574 9. Mizyureva VV, Shelemekh NN (2017) Tax control of compulsory insurance premiums. In Karzayeva NN, Katkova YN (eds) Proceedings from international scientific and practical conference information support for economic security: problems and directions of development. “Scientific Consultant” LLC, Moscow, Russia, pp 270–274 10. Nikiforova ON (2012) Development of pension provision in the system of social protection of the population (Dissertation of Candidate of Economics). International Institute of Management LINK, Moscow, Russia 11. Pahomov EV (2013) Development of a model for forecasting insurance premiums to extrabudgetary funds (Dissertation of Candidate of Economics). Financial University under the Government of the Russian Federation, Moscow, Russia 12. Rodionova OA, Kopytin OT (2011) Taxation and its impact on the results of the financial and economic activities of agricultural organizations. Econ Labor Manage Agric 2(7):5–8. Retrieved from https://www.elibrary.ru/item.asp?id=1652393 13. Russian Federation (1998) Federal law “Tax code of the Russian Federation (Part One)” (July 07, 1998 No. 146-FZ). Moscow, Russia

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14. Russian Federation (2000) Federal law “Tax code of the Russian Federation (Part Two)” (Aug 5, 2000 No. 117- FZ). Moscow, Russia 15. Russian Federation (2009) Federal law On insurance premiums to the pension fund of the Russian Federation, social insurance fund of the Russian Federation, federal fund for mandatory medical insurance (July 24, 2009 No. 212-FZ). Moscow, Russia 16. Semenova NN, Morozova GV (2017) Tax stimulation of agribusiness development in the context of the import substitution strategy implementation. Taxes 3:23–27 17. Shelemekh NN (2018) Prerequisites for the emergence of social insurance in agriculture. In: Kostina RV (ed) Development trends and actual issues of assessment, management, and legal support of the russian financial system. Uchitel Limited Liability Company (Kursk), Moscow, Russia, pp 67–71 18. Sokolov AA (2018) Modernization of the financial model of the compulsory health insurance system (Dissertation of Candidate of Economics). Rostov-on-Don, Russia: Higher school of business “Southern Federal University” 19. Yeltsin AA (2018) Development of financial control in the Russian Federation’s social insurance system (Dissertation of Candidate of Economics). Plekhanov Russian University of Economics, Moscow, Russia

Improving the Methodology for Analyzing Organizational Creditworthiness Based on the Time Factor Lubov V. Agarkova , Elvira A. Rusetskaya , Marina K. Chistyakova , Angelika B. Dudareva , and Natalya V. Alentieva Abstract Borrowed funds attracted by the company play an essential role in ensuring its effective functioning. However, excessive debt can significantly reduce its financial stability. Therefore, the company should have information about the degree of creditworthiness and liquidity of the balance sheet. The purpose of the research is to substantiate recommendations for improving the current methodology of credit analysis and to find measures for improving the financial stability and creditworthiness of the organization. During the study, analytical, comparative, descriptive, theoretical, and prognostic methods were used. Specific problems of the current analysis methodology were identified. The retrospective nature of the methods and models of analysis is one of the keys since a more accurate assessment of the creditworthiness of an economic entity involves the prediction of its financial condition, which becomes especially crucial for long-term lending, since, over time, the level of creditworthiness can change. Particular attention is paid to calculating forecast indicators of the borrower’s creditworthiness in investment lending, which is characterized by a long-term circulation period. This technique will increase the accuracy of the analysis and assessment of the creditworthiness of an organization and can be used by commercial banks. Keywords Analysis methodology · Organization creditworthiness · Balance sheet structure · Assets liquidity · Financial stability · Financial condition

L. V. Agarkova (B) Stavropol State Agrarian University, Stavropol, Russia E. A. Rusetskaya North-Caucasus Federal University, Stavropol, Russia M. K. Chistyakova · A. B. Dudareva · N. V. Alentieva Oryol State Agrarian University named after N.V. Parakhina, Oryol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_23

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1 Introduction Borrowed funds attracted by the enterprise play an essential role in ensuring its effective functioning because they can ensure the growth of production capacity, increase the profitability of the organization’s capital, and maximize revenue and net profit. Excessive debt can significantly reduce the financial stability of the company. In this regard, the organization should have information on the degree of its creditworthiness and liquidity of the balance sheet, which allows us to determine how rationally the organization combines the use of own and borrowed funds, whether the financing sources are correctly managed, and understand the nature of the relationship of the company with its creditors, partners, budget, and shareholders. This actualizes the task of improving the methodology of analyzing the creditworthiness of the organization, taking into account the time factor. The purpose of the study is to develop recommendations for improving the current methodology of the analysis of creditworthiness, as well as to justify measures to increase the financial stability and creditworthiness of the organization.

2 Materials and Methods The theoretical and methodological aspects of the study were the provisions of modern economic theories, fundamental concepts, applied developments of domestic and foreign scholars on the issues of financial analysis methodology. In the research process, analytical, comparative, descriptive, theoretical, and prognostic methods were used. The subject of the study is the methodology of analysis of an organization’s financial condition and creditworthiness. The object of the study was potential organizations that can be consumers of credit resources. The informational and methodological basis of the research was made up of teaching materials, normative legal acts, scientific works on the studied issues, the accounting (financial) statements of the organization, information resources of the global Internet, and the author’s calculations.

3 Results During the study, we identified the following main problems of the current methodology: 1.

The lack of a single approach to the set of indicators for analyzing the creditworthiness of the organization is due to the variety of quantitative and qualitative factors that directly affect the creditworthiness.

Improving the Methodology for Analyzing Organizational …

2.

3.

4.

229

The lack of clear normative values for the indicators of creditworthiness, taking into account the industry and territorial affiliation of the company, negatively affects the accuracy of the interpretation of the analysis results since it does not consider its specific features and the internal and external environment that form them [1]. The high sensitivity of methods and models of analysis to the incompleteness and inaccuracy of the information base lies in the fact that the financial statement of a company, which is the primary source of information, is characterized by several shortcomings that can distort the reliability of the assessment. The lack of uniform guidelines for forming a methodology for analyzing creditworthiness by commercial banks leads to the state when each bank independently develops its own and unique analysis methodology. The parameters of each methodology are determined by the credit policy and the specific experience of the financial institution. In this regard, the existing rating models for assessing the creditworthiness of a borrower used by Russian commercial banks are marked with certain disadvantages, including: • The arbitrariness of the bank’s choice of the composition of financial indicators and their significance factors; • The complexity of the objective justification of threshold coefficients for the subsequent determination of the creditworthiness class due to insufficient information on the real level of these indicators” in modern economic conditions [4]; • Insufficiency of the methodological base for assessing the qualitative characteristics and their low level of influence on determining the credit rating of the organization.

5.

The retrospective nature of the methods and models of analysis is one of the key problems since a more accurate assessment of the creditworthiness of an organization involves predicting its financial condition. In contrast, the primary methods and models of analysis of creditworthiness are based on retro data reflecting the financial situation in the past.

When counting on long-term lending to an economic entity, special attention should be paid to assessing such indicators as financial stability and profitability. The set of financial stability and profitability indicators, widely used in the framework of credit analysis, is quite limited because it does not sufficiently evaluate the potential borrower for the availability of long-term borrowed resources. Therefore, it does not quite objectively reflect the degree of financial risk [2]. The preceding necessitates the introduction of additional accounting indicators to attract a long-term bank loan. Among these indicators, it is necessary to attribute coefficients illustrating changes in the structure of long-term investments, the stability

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of effective operations, and the profitability of permanent capital. It should be clarified that part of fixed assets and other non-current assets financed by long-term investments (1) are taken for the share of long-term investments: Csli =

LC NA

(1)

where Csli —the share of long-term investments; LC—long-term commitments. NA—other non-current assets. In this case, the share of long-term investments shows the degree of the dependence on long-term sources and fixes the maximum possible amount of additional attraction of resources, while maintaining solvency for a considerable period. The standard level of the indicator is 0.5. The low coefficient is a positive point. It indicates that a significant share of the non-current assets of the company is formed at the expense of its funds. A high value of the indicator shows either the ability of the organization to provide reliable collateral or financial guarantees or a high degree of dependence on outside investors. “The effectiveness of permanent capital shows the degree of use of equity and borrowed capital invested in the activities of the company for a long period” (2) [2]: Rpc =

PE AE + LC

× 100,

(2)

where. Rpc —the efficiency of permanent capital, %; AE + LC—the average annual amount of equity and long-term borrowed capital, thousand rubles. Thus, the profitability of permanent capital reflects the amount of additional increment in the net profit of the company due to the use of long-term borrowed funds. Accordingly, it allows us to judge the quality of their management. The calculation of the above indicators is presented in Table 1. Table 1 The dynamics of indicators of the structure of long-term investments and the effectiveness of the permanent capital of the organization Indicators

2016

2017

2018

Share of long-term investments

0.32

0.32

0.40

The profitability of the permanent part of capital, %

4.98

2.47

1.94

Source (Company reporting data)

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231

Therefore, there are low values of the structure’s coefficient or the share of longterm investments, indicating that most of the non-current assets of the company are formed at the expense of their own funds. The negative dynamics in the profitability of permanent capital indicates a decrease in the efficiency of the use of long-term borrowed funds. The stability coefficient of the effective activity will expand the analysis of creditworthiness and strengthen control over the dynamics of the financial condition. The calculation of the indicator is carried out according to formula (3): C SA =

 n

PGR1 × PGR2 × PGR3 × . . . × PGRi ,

(3)

where. CSA —the coefficient of stability of effective activity; PGR —the profit growth rate, %; n—the number of years. Accordingly, the stability coefficient of effective activity should exceed 100%. CSA =

√ 5 108.03 × 82.93 × 74.04 × 50.04 × 81.96 = 77.08

Thus, the value of the stability coefficient of effective activity (77.08) characterizes a decrease in the efficiency of the company over the past five years, which may adversely affect the long-term creditworthiness of the company. The long-term nature of lending is associated with increased risks caused by the uncertainty of the impact of external and internal factors on the creditworthiness of the borrower, which necessitates monitoring the financial condition of the company. As a rule, borrowing enterprises consider long-term bank loans as the most popular and priority way of financing capital investments. Therefore, measures to improve the methodology of the analysis of creditworthiness will be proposed considering the peculiarities of long-term lending to invest in business projects. Investment lending requires a thorough study of the feasibility study of the project with a payment calendar to confirm the full and timely provision of the loan by the borrower. The forecast of the financial statements of the company allows determining the change in the financial condition of the company and calculate its creditworthiness. The forecast parameters are calculated using the extrapolation method, taking into account the scenario conditions of the implemented investment project, credit conditions, and inflation expectations. We can distinguish the following cash flows affecting the level of creditworthiness of the company during lending on a long-term basis can be distinguished: • LtLt —the amount of long-term bank loan, where t—time; • LtLnt —the repayment amount of a long-term bank loan calculated following the repayment calendar; • ILtLt —the amount of accrual and payment of interest on the loan following the payment calendar;

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• APt —the amount of additional profit received during the implementation of the investment project due to using a long-term bank loan; • ALtLt —the areas of using long-term borrowed funds [2], • GRi —the growth rate of the balance sheet item, where i—the balance sheet item; • Ci —indexing coefficient (4): Ci =

(I − 10) , 100

(4)

where. I—the inflation rate projected for the entire lending period; Ai —the revaluation of non-current and other low liquid assets after indexation. For designated cash flows, it is proposed to apply a methodological approach to forecasting the leading indicators of the creditworthiness, taking into account the impact of additional financial flows [2]. The current liquidity ratio from the issuance of a loan is calculated by the formula (5): Ct.l. =

CA , CL + ILtLt

(5)

where. CA—current assets, thousand rubles; CL—current liabilities, thousand rubles. The calculation of current liquidity ratio on a long-term basis for the use of credit is carried out according to formula (6): Ct.l. =

CA × CRTA , CL × CRCL + ILtLt

(6)

where. GRCA and CRCL —accordingly, the growth rate of current assets and liabilities, %. The ratio of borrowed funds to equity at the moment the loan is issued is calculated according to the following formula (7): Cdter = where. Cdter —the debt-to-equity ratio.

BC + ILtLt + LtLt , AE

(7)

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The calculation of the ratio of borrowed and equity during the period of use of the loan is carried out according to formula (8): Cdter =

BC × GRBC + ILtLt + (LtLt − LtLnt ) , (AE × GRAE ) × APt

(8)

where GRBC and GRAE —accordingly, the growth rate of borrowed funds and equity, %. “The coefficient of maneuverability of equity since the issuance of a loan is calculated according to formula (9): Cman. =

AE − (NA + ALtLt ) AE

(9)

The use of the maneuverability indicator of equity in subsequent periods of loan use is carried out according to the following formula” [2]: Cman =

((AE × GRAE + Ai ) + APt ) − (NA × GRNA × Ci + ALtLt ) , (AE × GRAE + Ai ) + APt

(10)

where GRNA —the growth rate of non-current assets, %. The return on assets at the moment a loan is issued is calculated by the formula (11): RA =

P A + ALtLt

,

(11)

where P—the net profit, thousand rubles. The calculation of the effectiveness of assets in subsequent periods of loan use is carried out according to formula (12): (12)

where PGr —company profit growth rate, %; NA and CA—the average annual value of non-current and current assets, thousand rubles.

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4 Discussion The adjusted methodology for the analysis and assessment of the creditworthiness makes it possible to assess the financial position of the company comprehensively and allows: • To monitor the level of credit risk, take into account changes in the creditworthiness of the company, and track the creditworthiness of the company itself and determine the category of credit operation for long-term lending; • To outline the path of allowable reserves to cover possible losses based on changes in credit operations, as well as make management decisions on collateral, taking into account changes in the level of the creditworthiness of the organization. The analysis of creditworthiness and liquidity of the company’s balance sheet for 2016–2018 showed that it is not a first-class borrower, because it is marked with a deterioration in financial condition, as evidenced by the mismatch with the regulatory level and the negative dynamics of several indicators. The financial condition of the organization is directly dependent on the structure of the balance sheet. In this regard, to improve the financial stability of the organization and its creditworthiness, it is proposed to optimize the structure of the balance sheet [3]. Based on the available information about the balance sheet state, we define scenarios for its optimization (Table 2). It can be seen that, given the current state of the company’s balance sheet for 2018, it is advisable to optimize its structure following the second scenario. Since the object of our study is the provision of communication services, the asset structure observed in 2018, in which non-current assets account for 88.2% of all assets, and non-current assets account for 11.8%, is typical for the industry and is associated with the specifics of functioning, one of which is the capital intensity and investment focus. Therefore, when optimizing the structure of the balance sheet, we will maintain the current ratio of non-current and current assets in the structure of company assets. We introduce the variable X, which is the size of the decrease or increase in funds in the corresponding section of the balance sheet. The aggregated balance sheet of the enterprise for 2018 for optimization purposes is presented in Table 3. Table 2 Scenarios for optimizing the structure of the balance sheet in the organization Scenario 1

Scenario 2

Scenario 3

The optimization of the balance sheet involves an increase in non-current assets, repayment of short-term payables, and an increase in equity

The optimization of the balance sheet involves an increase in working capital and equity, as well as a decrease in non-current assets and a reduction in short-term debt

The organization is marked with financial stability. Other things being equal, optimization of the balance sheet is not required

Source Developed by the authors

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Table 3 Aggregated balance sheet of the company for optimization purposes, thousand rubles Assets

Liabilities

Fixed assets

512,886,052 − X

Equity

272,879,797 + X

Current assets, including

68,638,518 + X

Borrowed capital, including:

308,644,773 − X

Short-term financial investments

7,989,069 + X

Long term duties

204,345,159

Short-term liabilities

104,299,614 − X

Total balance

581,524,570

Total balance

581,524,570

Source (Company reporting data)

This option allows us to restore the optimal structure of the company’s balance sheet. Let us write a system of restrictions to restructure the balance sheet based on the available source data and recommended values of financial ratios (13):

(13)

In determining the range of changes, it is necessary to rely on the possibility of achieving optimal values of indicators. The limits of changes permissible to maintain the company’s optimal functioning (about 30%) are allocated to the share of working capital, about 40% to equity, and about 40% to short-term debt: ⎧ ⎪ X ≥ 17, 830, 548; ⎪ ⎪ ⎪ ⎪ X ⎨ ≥ 10, 725, 711.5; X ≥ 17, 882, 488; ⎪ ⎪ ⎪ X > 17, 882, 488; ⎪ ⎪ ⎩ X ≥ −70, 157, 757 Consequently, to achieve the company’s financial stability according to key indicators, it is necessary to adjust balance sheet items of more than 17,882,488 thousand rubles. The original and adjusted indicators of the balance sheet of the company are presented in Table. 4. As a result of balance optimization, there was an increase in current assets by 26.05%, short-term financial investments (excluding cash equivalents), and cash and cash equivalents in current assets—by 134.25%, and equity by 6.55%. At the same time, we see that non-current assets and borrowed capital decreased by 3.49 and

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Table 4 Initial and adjusted indicators of the company’s balance sheet for 2018, thousand rubles Indicators

Real

With optimization

Deviation (+, − )

Fixed assets

512,886,052

495,003,052

− 17,883,000

Current assets, including:

68,638,518

86,521,518

17,883,000

126.05

Short-term financial investments

7,989,069

18,714,781

10,725,712

234.25

Total balance

581,524,570

581,524,570

–

100.00

Equity

272,879,797

290,762,797

17,883,000

106.55

Borrowed capital, including:

308,644,773

290,761,773

− 17,883,000

Long term duties

204,345,159

204,345,159

–

Short-term liabilities 104,299,614

86,416,614

− 17,883,000

Total balance

581,524,570

–

581,524,570

Growth rate, % 96.51

94.21 100.00 82.85 100.00

Source (Company reporting data)

5.79%. As a result of optimizing the organization’s balance sheet structure, shortterm liabilities decreased by 17.15%. Let us develop recommendations, the implementation of which will contribute to the formation of the optimal structure of the balance sheet and, accordingly, the improvement of the financial situation in the enterprise. To reduce the non-current assets of the company, it is proposed to implement the sale or lease of unused equipment, premises, and machines. These measures will ensure the flow of funds and, accordingly, increase the most liquid assets. To increase the current assets of the enterprise, it is proposed to increase the efficiency of the management of the company’s accounts receivable by providing a system of discounts and factoring, which will help release the cash of the company, increase current assets and liquidity. To increase the financial stability, it is recommended to increase the share of equity in financing sources: • Through the rational distribution of net profit in reserve funds; • Due to the accumulation of retained earnings for core activities with a significant restriction of its use for purposes not related to the implementation of core activities; • By attracting investors through the issue of shares. The predicted indicators of creditworthiness and liquidity of the company’s balance sheet after implementing the above measures will contribute to the formation of an optimal balance structure (Table 5). According to Table 5, the optimal structure of the balance sheet, which is formed by taking into account the above recommendations, can provide a sufficient level of creditworthiness and liquidity of the company’s balance sheet, as evidenced by the compliance with the normative values of several indicators.

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Table 5 Forecast indicators of creditworthiness and liquidity of the company’s balance sheet Indicator

Theoretically sufficient level

2018

2019 (forecast)

Current ratio

1–2

0.77

1.00

Absolute liquidity ratio

≥ 0.2

0.09

0.22

Coefficient of financial independence

≥ 0.5

0.47

0.50

Financing ratio

>1

0.88

1.01

Financial stability ratio

≥ 0.7

0.82

0.85

Source (Company reporting data)

5 Conclusion Our study revealed the main problems of the current methodology for assessing the creditworthiness of an organization, which necessitated the introduction of calculated coefficients reflecting the structure of long-term investments, the stability of efficient operations, and the profitability of permanent capital. The analysis of the creditworthiness and liquidity using the adjusted methodology showed that the company is not a first-class borrower since it is characterized by a deterioration in financial conditions, which is directly dependent on the structure of the balance sheet. To improve the financial stability of the organization and its creditworthiness, we optimized the structure of the balance sheet.

References 1. Belikova IP, Sahnyuk TI, Sahnyuk PA, Korshikova MV, Svistunova IG (2017) Methodological provisions of active management of economic risk in agrarian business. Euro Res Stud XIX 114–124 2. Dremova UV (2015) Improving approaches to assessing the creditworthiness of borrowers in long-term lending. Financ Credit 11(635):15–23 3. Glotova II, Tomilina EP, Klishina YuE, Uglitskikh ON, Agarkova LV (2019) The current state of the state support for agriculture in the region. Res J Pharm Biol Chem Sci 9(6):1926 4. Turbina NM, Chernyshova OM (2014) Comparative analysis of the advantages and disadvantages of various methods for assessing the creditworthiness of a borrower. Socio Econ Phenom Process 11(45):242–246

Methodology for Assessing Bankruptcy Risks and Financial Sustainability Management in Regional Agricultural Organizations Irina V. Taranova , Irina M. Podkolzina , Fatima M. Uzdenova , Oksana S. Dubskaya , and Alla V. Temirkanova Abstract Ensuring financial stability in current economic conditions is the main task of agricultural organizations and the topic of scientific discussion. The crisis increases the risks of the bankruptcy of agricultural organizations. At the same time, the goal of the concept of import substitution is the production of competitive products. Therefore, the development of methods for assessing financial stability is an element of the system of stabilization and development of agricultural production. The developed methodological approaches to the formation of information support for financial stability management will allow for timely identification of risks. Keywords Sustainability of finance · Agriculture · Import substitution · Bankruptcy risk · Fair value

1 Introduction Currently, crop production is one of the main sectors of agricultural production. To carry out productive commercial activities, the organization must have significant inventory. The result of their use in the production cycle is the finished product. Production management, development of marketing strategies, the search for intraorganizational reserves to reduce the risks of financial insolvency are the key objectives of the management system to ensure the financial sustainability of the agricultural organization. The source of information for assessing financial stability is the I. V. Taranova (B) · I. M. Podkolzina Stavropol State Agrarian University, Stavropol, Russia F. M. Uzdenova North Caucasus State Academy, Cherkessk, Russia O. S. Dubskaya · A. V. Temirkanova Southern Federal University, Rostov on Don, Russia e-mail: [email protected] A. V. Temirkanova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_24

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data of financial statements. Methodological approaches to the disclosure of information on the conceptual elements of accounting have certain disadvantages. The use of standard methods for calculating the cost of agricultural products does not allow to obtain accurate information about the value of costs for objects of calculation. In agricultural production, there arise indirect costs, which should be attributed to a specific type of product. According to standard methods, they are distributed by type of production based on the selected base [9]. In this regard, there is a need for mechanisms of clarifying production costs. Obtaining timely and reliable information about the cost carriers is necessary to manage the production and assess financial stability. The value of assets is a set of time-dissimilar values. The fair value mechanism provides an opportunity to measure assets at the current time [3]. The result of agricultural production is the receipt of finished products identified as biological assets. The fair value of biological assets is the result of a production management process. Therefore, the fair value of biological assets can be used to assess bankruptcy risks. Therefore, the development of a methodology for assessing bankruptcy risks to manage the financial stability of agricultural organizations is relevant.

2 Materials and Methods The research subject is a system of economic relations arising during the management of the financial stability of agricultural organizations. The paper uses such methods of scientific research as observation, grouping, systemic, factor analysis, synthesis, generalization, and comparison. In modern scientific literature, a single approach to the methodology for determining bankruptcy risks was not yet formed. The risks of bankruptcy are reduced if the organization is profitable. Scholars distinguish external and internal factors of financial stability. The main intraorganizational factor in ensuring financial stability is the cost of production. The financial stability decreases with an increase in the cost of production. The rational consumption of resources and the presence of profit are signs of sustainable development [10]. Summarizing the positions regarding the content of financial stability, we believe that the financial stability of agricultural organizations is a condition in which uninterrupted production is ensured. Taking into account the rational consumption of resources, the economic effect of product sales is achieved, and bankruptcy risks are absent. Crises can disrupt the financial sustainability of agricultural organizations. There are crisis phenomena in the production and economic activities affecting financial stability (Table 1). The crisis phenomena shown in Table 1 increase bankruptcy risks. Management crisis is determined by an unreasonable increase in production costs [12]. Costeffectiveness is an indicator of the crisis. The clarification of the production cost will

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Table 1 The relationship of crisis phenomena and elements of financial stability Crisis phenomena

The element of economic sustainability

Identifier

Information Support

Crisis management

The increase in production and sales costs

Cost-effectiveness

Reliability and completeness of data on cost accounting objects

Economic crisis

The production of non-competitive products

Return on sales

The fair value of products sold in the current period

Financial crisis

The lack of funds for settlement of obligations

General solvency ratio

Definition of indicators of financial statements

Source Compiled by the authors

help to determine this indicator reliably. In this case, we consider it possible to use ABC-method of distributing indirect costs by type of product. This method involves the determination of drives and cost drivers. The indicator of cost-effectiveness will objectively interpret management decisions in reducing bankruptcy risks. The economic crisis is associated with the lack of economic efficiency of the organization. The scientific community gained extensive experience in improving economic efficiency. Simultaneously, the methods for generating data to identify the economic crisis are not well developed. The presence of an economic crisis determines the rate of return on sales. In this regard, a methodology for the presentation of information is required to evaluate management decisions to improve the economic efficiency of agricultural organizations. Works of modern scholars presents methods for assessing the fair value of biological assets [1]. The main disadvantage is the lack of influence of the qualitative features of agricultural products on the assessment value. This statement requires further clarification. We believe that determining the fair value of agricultural products based on qualitative features will contribute to a reliable assessment of the results of the organization. The financial crisis determines the existence of bankruptcy risks. The financial crisis is preceded by a management crisis and an economic crisis. Therefore, to prevent bankruptcy, information support aimed at stabilizing financial stability should be defined.

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3 Results The distribution of overhead costs through the ABC-method using the example of wheat production in “Stepnoye” LLC of the Orenburg region is presented in Table 2. Depending on its specifics, the organization may specialize in producing crops in the following branches of crop production (Fig. 1). The fair value of animals is calculated to determine the fair value of meat production assets (Tables 3 and 4). Next, let us determine the fair value of biological assets in grain production. The grain quality of winter wheat is standardized by GOST 9353–90. This GOST defines the class of grains. The leading indicators of quality are the content of protein and gluten. The third-class grain is considered as the reference grain since it is the most demanded and has no loss of quality. Grains of the fourth class will have lower qualitative characteristics. Respectively, the coefficient of decrease in quality can be Table 2 The definition of overhead drivers Cost accumulator Cost driver

Costs, thousand rubles

The quantitative expression of the driver Winter

Spring

ATS

The use of vehicles

2169

154

165

Conversion of equipment

The number of readjustments

4232

45

23

Product delivery

Number of deliveries

2972

67

54

Total

–

9373

–

–

Source Compiled by the authors

Cereal crops

wheat, rye, rice, barley, oats, buckwheat

Technical crops

sugar, beets, fiber, oilseeds

Forage crops

corn, potatoes, legumes, peas

Vegetable crops

tomatoes, cucumbers, eggplant, cabbage

Horticultural crops

apples, pears, peaches, plums

Gourds

watermelons, melons, pumpkin

Fig. 1 The classification of crops. Source Developed by the authors

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Table 3 Statistical analysis of the value of livestock assets of meat origin Animal number

Animal age

The coefficient of loss of consumer properties

The market value of meat, rub

Depreciation, rub

Fair value, rub

15,265

1.5

–

44,120

–

34,375

15,386

1.5

–

44,120

–

34,375

15,274

2

0.05

38,880

1944

28,683

16,554

2

0.05

38,880

2206

32,168

17,134

4

0.2

33,988

6798

19,746

16,541

3

0.13

38,410

4994

24,952

Total

174,299

Source Compiled by the authors

Table 4 The calculation of the fair value of biological assets of grain production Grain class

Grain mass, t

Market value, rub

The coefficient of grain quality reduction

The cost of losses from reducing the quality of the grain, rub

The fair value of grain, rub

3

40

344,000

–

–

280,000

4

54

410,400

0.1

41,040

282,960

5

23

156,400

0.2

31,280

83,720

Source Compiled by the authors

defined as 0.1. The coefficient of decrease in the quality of grain of class 5 can be defined as 0.2. These losses increase the risks of the management crisis and should reduce the fair value of the grain. Thus, grain prices for the crop of 2019–2020 reached the following indicators: 3 class—8600 rubles, 4 class—7600 rubles, 5 class—6800 rubles. The methodology for determining the fair value of biological assets of grain production using the cost-effective method: (1)

(2) (3) (4)

The replacement cost of a biological asset is determined. The prime cost of 1 ton of grain as of January 1, 2019, is as follows: 3 class—7000 rubles, 4 class—6000 rubles, 5 class—5000 rubles; The coefficient of quality reduction is calculated based on the class of grain; The cost of reducing the quality of grain is determined; Fair value is established.

These calculation methods contribute to the formation of information support for managing the economic sustainability of agricultural organizations.

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4 Discussion The problems of reducing bankruptcy risks and managing the financial stability of agricultural organizations are the subject of scientific discussion [2–6]. The financial stability of agricultural organizations is the ability to maintain the stability of financial and economic activities under the influence of internal and external risks by improving the management methods used in the company [8]. Financial stability involves calculating financial and economic activity indicators, based on which positive changes are identified over a certain period [7]. To determine the risks of bankruptcy, modern economic literature proposes to assess the resource supply, effectiveness, and efficiency of agricultural organizations. The information base for the calculations is the data of financial statements formed according to the principles of the domestic accounting system. The indicators of bankruptcy risks under the influence of crisis processes may tend to increase over a certain period, which will determine the correctness of management decisions [11]. The rationale and development of the methodology for the presentation of financial statements of agricultural organizations to manage the financial stability of agricultural organizations will be the goal of further research.

5 Conclusion The application of innovative approaches to costing in accounting helps generate updated information about manufacturing a particular type of product. The indicator of cost-effectiveness will reflect the real state of the production and diagnose the presence of crisis phenomena. Based on the determination of the fair value of biological assets, it is possible to calculate the profitability of sales at fair value, the ratio of the fair value of biological assets, and sales proceeds. These indicators are calculated for each specific transaction and determine the risks of sustainable development. Thus, the developed methodological approaches to collecting information for assessing bankruptcy risks will increase the reliability of the data necessary for making management decisions.

References 1. Druzhilovskaya ES (2014) Problems of applying fair value in Russian and international accounting. Int Account 16:2–12 2. Frolov AV, Frolova AA (2015) The analysis of the effectiveness of the functioning of agricultural producers in the Stavropol Krai. Agric Econ Russia 4:72–79 3. Getman VG (2013) Urgent issues of improving the accounting of fixed assets. Int Account 14:2–13

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4. Kostyukova EI, Skripnichenko YuS, Skripnichenko VYu (2018) The typology of the business structures of the Stavropol Krai, according to the development of the production of open-ground vegetables using multivariate comparison methods. MAIC Econ Manage 8:88–95 5. Kostyukova EI, Yakovenko VS, Germanova VS, Frolov AV, Grishanova SV (2017) The evaluation of the company’s financial condition from the position of different groups of stakeholders. Espacios 38(33):11 6. Kuchugueva MN (2014) The analysis of external and internal factors of bankruptcy on the example of Russian companies. Bull Samara State Univ 2:25–36 7. Prokofieva EV (2018) Improving the methodology for diagnosing potential bankruptcy and shaping the organization’s financial recovery policy. Manag Acc 3:80–89 8. Sergienko OV (2015) The threat of bankruptcy: forecasts of the financial future of a commercial organization. Bull Saratov State Socio Econ Univ 2:84–89 9. Shavrina YuO, Samakaeva MD (2019) The assessment of the management efficiency of agricultural organizations during the bankruptcy period based on strategic accounting data. Soc Power 2:71–81 10. Taranova IV, Podkolzina IM, Prokhorova VV, Kolomyts ON, Kobozeva EM (2018) The global financial and economic crisis in Russia: trends and prospects. Res J Pharm Biol Chem Sci 9(6):769–775 11. Trukhachev VI, Binatov YuG, Kostyukova EI (2016) Factors and conditions for increasing the competitiveness of Russian agricultural business in the context of globalization. Bull Agric Ind Stavropol S1:88–93 12. Zueva EO (2017) The impact of reducing production costs on improving production efficiency. Bull Angarsk State Tech Univ 1:142–149

Entrepreneurial Ecosystem: Strategies and Prospects Victoria V. Prokhorova , Elena M. Kobozeva , Tatyana G. Gurnovich , Alexandr A. Mokrushin , and Oksana N. Kolomyts

Abstract The most important task of priority and progressive socio-economic transformations in Russia is the development of entrepreneurship. The most urgent is precisely the transformation of the agro-industrial complex [AIC] with the development of agricultural production and agricultural producers both for Russia and for its regions. Sustainable development of this sector of the economy is impossible without the formation of entrepreneurial ecosystems, innovative forms of market actors. These systems can accumulate significant economic resources, so they can effectively use them and attract investment. This paper discusses the concept and significance of the “entrepreneurial ecosystem.” The authors pay particular attention to the analysis of small forms of entrepreneurship as the basis for the functioning of agricultural and business ecosystems. The main problems of developing small agribusiness in the region and promising directions for its improvement are highlighted. Keywords Entrepreneurial ecosystem · Small forms of managing · Ecosystem · Agro-industrial complex · Region · Agriculture · Entrepreneurship

1 Introduction Given the development of the world economy and the need to perceive its trends, it seems that one of the most priority areas for the strategic development of Russia is the formation and effective functioning of entrepreneurial ecosystems. The creation V. V. Prokhorova (B) · E. M. Kobozeva · O. N. Kolomyts Kuban State Technological University, Krasnodar, Russia T. G. Gurnovich Kuban State Agrarian University, Krasnodar, Russia e-mail: [email protected] A. A. Mokrushin Adyghe State University, Maykop, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_25

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of regional entrepreneurial ecosystems depends on the ongoing geopolitical and economic events and the stages of modernization of the domestic economy. It has a significant impact on the development of local production and strengthening the position of regional economy. It is entrepreneurial ecosystems that make full use of market mechanisms to develop entrepreneurship and accept effective state support that will contribute to the expanded reproduction of entrepreneurial processes and the development of productive entrepreneurship. The agricultural industry features, which have a high level of uncertainty and unpredictability, require agricultural enterprises to take full account of this specificity. This creates the prerequisites for cooperation and serves as a motivation for creating a systemic relationship between agribusinesses within the framework of the entrepreneurial ecosystem.

2 Materials and Methods The research subject is small forms of entrepreneurship of the agrarian economy of the Krasnodar Krai, which form the basis of the agricultural and entrepreneurial ecosystem. In the research, the authors applied abstract logical methods, methods of analogy and comparison, systematization, and argumentation. In economic science and practice, the combination of the economic term “entrepreneurship” and the ecological and biological concept of the “ecosystem” as a biological concept is used with increasing frequency. Simultaneously, an unambiguous definition of the concept of the “entrepreneurial ecosystem” was not yet given, which necessitates clarifying the essence of this concept. The founder of the theory of entrepreneurial ecosystems is the American scientist J. F. Moore, who first mentioned this concept in his scientific paper published in Harvard business review in the 1990s. He understood the term “business ecosystem” as a system that included evolving and interacting companies focusing their capabilities around certain innovations [2]. Z. J. Acs and co-authors define the entrepreneurial ecosystem as a dynamic and institutionally secured interaction between entrepreneurial attitudes, abilities, and aspirations of individuals, stimulating the distribution of resources through the creation and operation of new enterprises. A significant contribution to the development of entrepreneurial ecosystems was made by Mason and Brown [9]. Summarizing the essential features highlighted by various authors in the interpretation of this concept, it can be determined that the entrepreneurial ecosystem is a combination of participants in the entrepreneurial environment interacting with each other, and the conditions ensuring the creation of an enterprise and its development. For the efficient functioning of the entrepreneurial ecosystem, it is necessary to ensure coordination, optimization of the combination, and the integrated development of its elements (human resources, financial support, professional assistance, and state support). A variety of the entrepreneurial ecosystem is the agricultural and entrepreneurial ecosystem, which is fundamental for the strategic development of Russia, as it has significant economic resources for attracting investments. It contributes to the

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balanced development of the food market and the sustainable development of rural agricultural territories [1]. Simultaneously, the main driver of the formation and development of agricultural and entrepreneurial ecosystems is small enterprises. The inherent mobility, flexibility, reduced time of adjustment, and reconfiguration in agriculture make it possible to efficiently use the natural resource potential of the agrarian territories of the region, help to increase the level of development of local agricultural production, and maximize the use of opportunities for network business cooperation [4]. The main basic components of entrepreneurship in the agricultural sector of the region are peasant (farmer) enterprises [P(F)E] and households, which, in many respects, form agricultural production and synthesize the small business sector. The innovative development of peasant (farmer) enterprises and households determines the need to create new forms of market entities, namely, agricultural and entrepreneurial ecosystems [7]. The formation of the successful functioning of agricultural and entrepreneurial ecosystems is one of the key areas for the development of the state economy and the economy of the region, which cannot be implemented without an effective state and regional policy [3]. In this regard, the state is developing several programs and strategies for the development of entrepreneurial ecosystems. In 2016, the “Strategy for the development of small and medium-sized enterprises in the Russian Federation until 2030” was adopted. The most important direction of this strategy is the development of small and medium-sized forms of management as a fundamental criterion for the formation of the economic stability of the country, ensuring its innovative progress and stable social development, increasing the level of employment and, accordingly, the income of the population, and forming the environmental and food security of the state. The following measures are foreseen in the framework of this strategy: 1.

2.

3.

4.

5.

The combination of support functions for small and medium enterprises involves the functioning of a specialized corporation of small and medium-sized businesses; The placement and implementation of state and municipal orders primarily by small- and medium-sized businesses will increase demand, and, accordingly, the sale of small and medium-sized businesses. Increasing labor productivity in small and medium-sized enterprises in an intensive (priority over extensive) way: through the development of an infrastructure to support small innovative businesses. The optimization of state financing conditions for small and medium-sized enterprises in the framework of expanding the direction of soft loans and microfinance mechanisms. The simplification of the tax system for small and medium-sized enterprises provides for its stability over long periods, the separation of the load on the part of state oversight bodies, and reformatting of the mechanism of state control of small enterprises.

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The implementation of measures for the development of small and mediumsized enterprises in certain regions. The development of human resources in enterprises through the introduction of mentoring tools and the implementation of employee development programs.

3 Results In Russia, one of the mainstays of the food security is the Krasnodar Krai, the richest agricultural region that provides a significant contribution to the all-Russian production of certain types of agricultural products: grain (10.4%), sugar beet (19.2%), sunflower (10.2%), tea leaf (100%), raw rice (74.2%), grapes (34%), corn (28.7%), and sugar (22.3%). The agricultural segment accounts for 10.4% of the gross regional product of the Krasnodar Krai. It accumulates 7.2% of the total number of investments in fixed assets. It should be noted that the agricultural segment of the Krasnodar Krai is of great social importance, providing employment for 9.2% of the population in the region in 2018. In the region, a significant share in the structure of agricultural products is occupied by small forms of entrepreneurship [5]. In 2018, the total number of small agricultural enterprises in the Krasnodar Krai amounted to 2,399 units. The average number of employees in these enterprises is 20,697 people, which is only 5.4% of the total number of employees for all types of activities. The number of people employed in the economy of the region for the analyzed period increased by 3.6%, with a steady decrease tendency in the share of people employed in the agricultural sector by 1.3%. The entrepreneurship structure of the Krasnodar Krai consists of the following forms of households: agricultural organizations (60%), households (22%), peasant (farmer) enterprises (18%). The main specialization of the agricultural sector of the Krasnodar Krai is the production of crop production, which amounted to 71% or 254,858 million rubles in 2018. The commodity structure of agricultural products of the Krasnodar Krai is presented in Fig. 1. In 2016–2018, agricultural organizations concentrated the primary production on grain (68.2%), sugar beet (86.4%), sunflower (59.1%), and vegetables (41.3%) (Fig. 1). The households of the population are leading in the production of potatoes (71.4%), and the gross harvest of vegetables is only 1.6% lower than that of agricultural organizations. Households of the population also produce grain and sunflower in small quantities (Fig. 2). Peasant (farmer) enterprises are engaged in producing all types of crops (Fig. 3). Livestock breeding in the Krasnodar Krai specializes in the production of meat and dairy products. Livestock and poultry meat production and milk and wool production are developed (Fig. 4). Agricultural organizations in the region prefer to produce such livestock products as livestock and poultry (68.6%), milk (65.9%), and eggs (60.4%), which indicates that agricultural organizations are the leading producers in livestock production. At the same time, households produce 96.3% of honey and 68.3% of wool. The reduction

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Fig. 3 Gross harvest of crops by peasant farms (%). Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8]

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80% 100%

Fig. 4 The production of primary livestock products by farm categories in 2018. Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8]

in the number of large agricultural organizations contributed to a slowdown in the development of livestock production and decreased production of its products. The availability of sown areas in the Krasnodar Krai is a fundamental factor in the resource potential. In 2018, the total sown area of crops in the region amounted to 3,687 thousand ha, which is 38 thousand ha more than in 2016. During the reviewed period, agricultural organizations are leaders in the occupied share of sown area (more than 65% in all crops, except for vegetables and melon gourds) (Fig. 5). There is a change in the structure of the use of sown areas. The share of agricultural organizations decreased by 1.6% in 2018 compared with 2016. This,

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Fig. 5 The structure of sown areas of crops in agricultural organizations, % of the total. Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8]

in turn, is offset to a certain extent by an increase in sown areas of P(F)E by 1.6%, respectively, which indicates the growing role of small enterprises in the structure of sown areas (Figs. 6 and 7), [6]. Currently, regional authorities are trying to create the most favorable environment for agribusiness and the development of agricultural and entrepreneurial ecosystems. The feed indicators of state support for agricultural production in the region are presented in Fig. 8. In 2018, state support of 5.26 billion rubles was provided to the agricultural sector of the region, which is 1.84 billion rubles less than in 2017. The Krasnodar Krai implements various programs for the development of small agricultural enterprises and tools for their support, contributing to increasing agricultural production. In particular, the State program “Development of agriculture and regulation of agricultural products, raw materials, and food markets for 2013– 2020,” which includes the subprogram “Development of small forms of farming in the agro-industrial complex of the Krasnodar Krai,” is operating in the region. As the analysis showed, several important growth indicators were not achieved (Fig. 9). The actual livestock and poultry production for slaughter and vegetable production does not meet the program targets and is lower by 22.8 and 32.2%.

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70 2016 2017

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Fig. 6 The structure of sown areas of crops in households, % of the total. Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8] 40

2016 34.9

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Fig. 7 The structure of sown areas of crops in peasant farms, % of the total. Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8]

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5%

7%

255

5% 15%

Increasing Dairy Productivity

10% Achievement of AIC targets ("Single subsidy") Investment lending Land Reclamation Development 58% Sustainable rural development

Fig. 8 State support for agriculture in the Krasnodar Krai in 2018. Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8]

600

475.4 494

500

Planed 541

Real

367

400 300 200

152.8

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Milk production

Vegetable production

Fig. 9 The results of the program “Development of small business forms in the agro-industrial complex of the Krasnodar Krai” in 2018, thousand tons. Source Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya [8]

4 Discussion The economic development of Russia involves the development and effective functioning of small businesses since it is the sphere of small business in the AIC that acts as the core of the agribusiness ecosystem. The study made it possible to determine that small forms of entrepreneurship occupy a significant share in the structure of agricultural products in the region (40% in 2018) and, in general, there is a tendency to switch to small-scale production in the agricultural sector. The agricultural sector of the Krasnodar Krai is focused on crop production, which is explained by the relatively low costs and high returns from 1 ha of sown area, which positively affects the profitability of sales and forms competitive advantages. Unlike crop production, livestock farming is more complicated in terms of production, in the number, stages, and nature of technological processes. Therefore, it occupies 29% of the structure of agricultural production in the region. In the region, there is a negative

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dynamic in the number of peasant (farmer) enterprises. In 2018, there were 496 units, which is 235 units less than in 2016. The expansion of the sown area accompanies this tendency, that is, the enlargement of economic entities is observed. Given this situation, peasant (farmer) enterprises are forced to unite and act in cooperation to more effectively ensure competitive functioning and solve production, technical, marketing, and financial problems. Suppliers of material and technical resources restrain the multifactorial and contradictory interaction between small business forms in agriculture. Consumers of agricultural products are one of the elements of deterrence. Thus, by setting high prices on the market, suppliers make it difficult to use innovations and the latest technologies in the activities of small agricultural enterprises. The leading players in the AIC, who, to a large extent, form the market for agricultural purchases and processing of agricultural products, do not perceive small forms of entrepreneurship as business partners and do not enter into active business interaction with them. To reduce transaction costs, small agricultural enterprises introduce the contract model of business, carry out activities based on integration processes and agricultural cooperation. A significant share of large agricultural enterprises, a high level of competition, and a weak infrastructure for the sale and marketing of agricultural products significantly limit the possibilities for developing small forms of entrepreneurship in the agricultural sector of the Krasnodar Krai. However, small business makes up a rather large share (40%) in the AIC of the region. Therefore, we can conclude that it is the small agribusiness that is the main reserve for the development of agriculture in the region. Due to the existing problems of the effective development and functioning of small forms of agribusiness, the following measures are necessary: • Creating favorable conditions for the development of the entrepreneurial activity of the population; • Expanding the list of instruments of state financial support and concessional lending programs for small businesses, their reasonable combination among themselves; • The harmonization of intersectoral economic relations aimed to stimulate the growth of expanded reproduction, attract investments, and introduce innovations in agriculture; • Stimulating the use of modern technologies in local agricultural markets; • The formation and maintenance at the proper level of an effective infrastructure for the activities of small business forms in the region based on the improvement of information and consulting activities; • The development of joint activities of cooperatives and large corporations based on the contract model of business; • The optimization of logistics activities based on mathematical modeling and the use of technologies for the analysis of Big Data in the production and turnover of agricultural products, the introduction of new specialized insurance products to hedge natural and functional risks;

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• Providing conditions conducive to the development of the integration processes of cooperatives and agro-industrial clusters. All the above activities necessitate the formation of local agricultural and entrepreneurial ecosystems, which will be based on the principles of cooperation, taking into account local specifics.

5 Conclusion Entrepreneurial agrarian ecosystems that apply the principles of agricultural cooperation, systematic accounting, and coordination of relationships can concentrate significant economic resources, economic potential, and the ability to use them and attract investment effectively. Due to its inherent mobility and flexibility, which allows for full use of the emergence effect, small business is the center of concentration of efforts to form agricultural and entrepreneurial ecosystems. Despite the application of various strategies for the development of small forms of agribusiness in the Krasnodar Krai, which serve the purpose of increasing the volume of agricultural products in small agribusiness, there are specific problems in this area that require a systematic, balanced, and integrated approach to resolving. One of the most promising areas of strategic development of the Russian economy is the creation of agricultural and entrepreneurial ecosystems in the regions since the “self-adjustment” effect arising in them will actively contribute to the balanced activity of the food market as a whole and the sustainable development of rural agricultural territories. Acknowledgements The study was carried out with the financial support of the Russian Federal Property Fund and the Krasnodar Krai in the framework of the scientific project No. 19-410-230041.

References 1. Kobozeva EM, Belyaev EV (2019) Agribusiness ecosystems as a factor in the stability of the functioning of the agro-industrial complex. In: Proceedings from the 8th international scientific and practical conference: social and economic development of Russia, pp 119–124 2. Kobozeva EM, Knyshova SA (2019) Entrepreneurial ecosystem: definition of content and principles of functioning. In: Proceedings from the 9th international scientific and practical conference: management of socio-economic development of regions: problems and solutions, pp 295–298 3. Kolomyts ON, Stepanets LYu (2019) Ecosystem approaches to the development of entrepreneurship in the regional agribusiness as a factor in the sustainable development of rural areas. Azimuth Sci Res Econ Manage 4(29):347–350 4. Prokhorova VV (2018) The mechanism of formation of agricultural and entrepreneurial ecosystems in the territorial space of the Krasnodar Territory. In: Economic development of Russia: structural adjustment and diversification of the global ecosystem, pp 123–126

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5. Prokhorova VV, Kobozeva EM, Belyaeva EV (2019) The analysis of the entrepreneurial activity of small and medium-sized businesses in Russia. Sci Bull South Inst Manage 3:25–31 6. Prokhorova VV, Kolomyts ON, Kobozeva EM (2019) The analysis of factors and conditions forming the spatial-innovation-agri-entrepreneurial ecosystem of the depressed republics of the North Caucasus. Rev San Gregorio 34(Special Issue):156–165 7. Prokhorova VV, Kolomyts ON, Kobozeva EM, Gutkova AG (2017) Forecasting spatial indicators of the activities of Russian agrarian. Int J Appl Bus Econ Res 15(23):439–451 8. Rosstat regional office of the Krasnodar Krai and the Republic of Adygeya (2019) Krasnodar Krai in numbers, 2018. Krasnodar, Russia 9. Mason C, Brown R (2013, November 7) Entrepreneurial ecosystems and growth oriented entrepreneurship. Paper prepared for a workshop of the OECD LEED Programme and the Dutch Ministry of Economic Affairs. Hague, Netherlands. Retrieved from https://www.oecd.org/cfe/ leed/Entrepreneurial-ecosystems.pdf

Universalization of Organizational and Methodological Approaches to Setting Environmental Management Accounting Natalia N. Balashova , Anna S. Gorbacheva , Elena V. Tokareva , Nadezhda V. Chernovanova , and Elena V. Yagupova Abstract In the modern world and in the context of accounting reform, the environmental and economic requirements for the production activities of business entities pose serious tasks for the entire science and accounting community to develop environmental management accounting. One of the problems of sustainable development of environmental and economic processes is the lack of unity of views regarding the place of environmental accounting in the accounting system. One more problem is the lack of rules for maintaining and organizing environmental management accounting, which leads to inaccuracies in the information and analytical database of socioenvironmental reporting. The relevance of the issues of accounting and analytical support for the control of environmental safety costs defines the tasks for ensuring the adoption of timely management decisions not only in terms of environmental management but also for the structures of the financial sector. The paper proposes a fundamentally new approach to the formation of universally applicable information of socially-oriented environmental accounting reports and analyzing the environmental activities of an enterprise. The authors substantiated the proposals for the practical application of the organizational and methodological aspects of environmental management accounting, based on the modernization of synthetic and analytical accounts for recording and controlling the costs of environmental business processes. These aspects also provide for the comprehensive accounting of environmental income and expenses. The practical use of research results by managers and accountants can significantly contribute to a more reliable determination of the effectiveness and efficiency of environmental activities of organizations. Keywords Universalization · Reporting · Costs · Object · Environmental management · Methodology · Classification · Environmental activities · Environmental management accounting · Accounting · Analytical accounts

N. N. Balashova (B) · A. S. Gorbacheva · E. V. Tokareva · N. V. Chernovanova · E. V. Yagupova Volgograd State Agricultural University, Volgograd, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_26

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1 Introduction Exploring the issues of the formation of the structure and composition of social and environmental reporting for business in the works of E. M. Egorova, N. Ts. Pavlova, A. V. Frolov [4, 5], L. I. Khoruzhiy, and others, we noticed a lack of unity of views on its objects. The critical issues of forecasting environmental risks and prompt response to them, requiring the development of an integrated universal accounting approach, were not yet disclosed [2]. The lack of uniform methodological approaches and standard accounts of cost accounting for environmental activities complicates collecting information and reliable assessment of the socio-environmental responsibility of an economic entity [9]. It is necessary to develop a new integrated strategic approach [11]. The relevance of the problems, the ambiguity, and the debatability of many organizational and methodological aspects of environmental management accounting led to the choice of the research topic. These issues are of particular relevance in current conditions of the change of state economic priorities to environmental ones [3]. The research purpose is the scientific justification and development of theoretical and methodological approaches to the formation of accounting and analytical information on social and environmental reporting. To achieve the goal, we set the following tasks: • To develop a procedure for organizing synthetic and analytical cost accounting for environmental measures; • To develop an accounting methodology for determining environmental reporting indicators to ensure the environmental safety of an economic entity. The research subject is a set of theoretical, methodological, and organizationalpractical issues on environmental-oriented accounting statements. The research object was the existing practice of organizational and methodological support of environmental management accounting in domestic organizations. The scientific novelty of the study results is to justify the accounting approach to the formulation of environmental management accounting for the disclosure of information in any kind of reporting. Among the provisions of the study, we can distinguish the following scientific results: (1) (2)

Extended classification of objects of environmental management accounting and the nomenclature of articles in social and environmental reporting; The methodology for the formation of analytical management accounting of capital and current environmental costs.

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2 Materials and Methods The research is based on the fundamental works of leading domestic scholars in the field of accounting. Special accounting methods were used, particularly the primary grouping method on the account and the double-entry method. The theoretical significance of the research consists of the scientific generalization, refinement, and development of organizational and methodological foundations of environmental management accounting in the accounting system. The proposed methodology will allow us to form relevant accounting and analytical data of socio-environmental reporting through management accounting of environmental costs. It will also help determine the contribution of an economic entity in ensuring the environmental safety of the region and the country.

3 Results The study showed that the existing methods are focused on the organization of accounting for environmental costs of a capital nature. This does not allow the formation of reliable information about the current environmental costs of an enterprise, which leads to the inability of management personnel to analyze the effectiveness of environmental protection measures. Moreover, the supervisory authorities cannot assess the degree of their environmental and social responsibility and contribution to improving the environmental safety of the region and country [6]. The solution to the posed problem is possible through the formation of an environmental management accounting, which allows regulating the method of accumulating and writing off environmental expenses at the on-farm level, as well as the procedure for reflecting them in accounts. First of all, it is necessary to consider the objects of environmental management accounting. From our point of view, it is necessary to reflect not only the actual state of the costs of environmental protection measures but also to disclose information on measures aimed at eliminating the damage caused to environmental management accounting (Fig. 1). Analyzing the proposed objects of environmental management accounting, it should be noted that for the accumulation of costs for each area of environmental activities, the enterprise can choose one of the methods of cost accounting used in accounting domestic practice, depending on the specifics of the costs and the goals set for their management.

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Current expenditures and capital investments in environmental activities

Costs of eliminating the consequences of environmental damage and environmental losses of enterprises

OBJECTS OF ENVIRONMENTAL ACCOUNTING Nature protection activities of the organization

Environmental activities of the organization

Environmental revenues, expenses, and financial results from environmental activities

Environmental obligations of consumers Payments on paid nature management

Fig. 1 The proposed classification of environmental management accounting. Source [12]

4 Discussion The two most common methods for creating a work plan for management accounting are listed in Table 1 [10]. In our opinion, the integrated accounting system is optimal for the organization to manage the environmental costs of an organization, which allows not only to predict the estimated consumption of resources for the environment reasonably but also to carry out systematic control over their intended use. We suggest using a synthetic collection and distribution account 27 “Environmental Protection Costs” to formulate information and present it to various interested users on current environmental costs (Fig. 2). Table 1 Methods for creating a management accounting work plan Methods for creating a management accounting work plan Feature/number

1

Method description

Management Management and accounting are conducted accounting is carried simultaneously using two groups out simultaneously with accounting, using a single chart of accounts with advanced analytics

Account application

Grouping of expenses according to cost items, places of their occurrence, and cost carriers

Grouping of expenses Grouping expenses by according to cost cost element items, places of their occurrence, and cost carriers

Accounts used

20, 23, 25, 26, 44

20–29

Source Tokareva [10]

2

30–36

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Subaccounts to account 27 “Expenses for environmental protection.” 27.1. Investments in environmental facilities 27.2. Ongoing environmental costs 27.3. Environmental damage remediation costs and environmental losses 27.4. Environmental research and development expenditures

27.5. Costs of environmental management and planning

DT 27 Reflects operations associated with the occurrence of environmental costs, the implementation of environmental measures in the framework of ongoing environmental activities

KT 27 It is proposed to reflect business operations related to the write-off of environmental expenses for their intended purpose, reimbursement of environmental losses, and financing of current environmental protection measures as part of environmental activities

Fig. 2 The movement of accounting and information flows on environmental costs. Source Developed by the authors

Data on current environmental costs generated in the context of analytical subaccounts following nomenclature articles on environmental measures will contribute to the organization of reliable control of environmental costs (Fig. 3). Accordingly, a comparison of indicators will allow us to determine the discrepancies between the needs and the possibilities of neutralizing or disposing of the resulting harm [1]. Particular attention in the system of environmental management accounting should be given to environmental capital expenditures since their planning and management are of a strategic nature [8]. As a follow-up to the studies conducted by Ilyicheva [7] on environmental capital expenditures in fixed assets and intangible environmental assets, we propose their division into mandatory, preventive, and recovery. This will allow us to structure the hierarchy of account 08 “Investments in non-current assets,” depending on their purpose (Fig. 4). A logical continuation of the proposal is the need to highlight a separate accounting article of the same name in socially oriented accounting statements. To form the

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- investments in the maintenance of treatment plants and facilities, their reconstruction, and technical re-equipment; -investments in equipment for the collection, processing, and liquidation of industrial waste; - investments in the development of non-waste technologies; -investments in the acquisition of research instruments. 27.2. Ongoing environmental costs - the costs of maintaining or restoring soil fertility; - the costs of processing waste and by-products; - the costs for cleaning liquid and gaseous effluents; - the costs for the utilization and disposal of waste; - the costs for the overhaul of eco-facilities; - the costs for the maintenance of the sanitary protection zone; - the costs of maintaining the environmental services of enterprises. 27.3. Costs of Environmental Damage Remediation and Environmental Losses - losses incurred as a result of a decrease in sales of products with unsatisfactory consumer eco-properties; - losses from reduced production volumes due to the absenteeism of employees caused by the occurrence of environmental-dependent diseases. 27.4. Expenditures on Environmental Research and Development expenses for the development and implementation of innovative technologies aimed at: - improving the technology of production of environmentally friendly products; - improving the technology for processing waste and by-products; - improving technology for the utilization and disposal of industrial waste.

27.5. Costs of environmental management and planning - payments for the use of natural resources; - payments for emissions and discharges of pollution; - payments for waste disposal within the limits and over-established limits; - payments for eco-certification services of innovative types; - payments for the acquisition of environmental licenses; - insurance payments; - payments for the development of environmental business plans; - compensatory environmental payments.

Fig. 3 The disclosure of information in environmental reporting following the proposed nomenclature of articles. Source Compiled by the authors

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Capital investments in environmental activities (account 08 “Investments in non-current assets”)

The organization of analytical accounting in the context of construction in progress

subaccount 08/1 in the context of investment projects to protect the environment

subaccount 08/2 in the context of projects on the elimination of environmental harm subaccount 08/3 in the context of the necessary data for the organization of tax accounting

second-order subaccounts

according to subaccounts of the

The organization of analytical accounting in the context of R&D facilities

The organization of analytical accounting in the context of fixed assets

preventative recovery

obligatory

Fig. 4 The model for organizing analytical accounting of environmental capital expenditures in the context of environmental management accounting facilities. Source Compiled by the authors

total amount for each of the proposed sub-accounts, the proposed range of cost items should be applied, taking into account the specifics of environmental protection measures or the costs of eliminating damage to the environment. The composition of costs can always be expanded based on the actual conditions of activities or management tasks.

5 Conclusion Thus, the universalization of management accounting is based on the principles of integrating it into the accounting system. Based on our approach to building a working chart of accounts, we proposed an accounting model for the formation of an information base on capital and current environmental costs in the system of environmental management accounting. The comparison of indicators will allow management personnel to identify discrepancies between the needs and financial capabilities of the organization; make a timely decision on the neutralization or disposal of

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the resulting harm, predict preventive environmental measures, and state structures, assess the environmental culture of the enterprise and its social and environmental responsibilities.

References 1. Chernovanova N In, Yagupova EV (2017). Problems and prospects of development of accounting of agricultural consumer cooperatives. Proc Lower Volga Agro Divers Complex Sci High Prof Educa 1(45):300–309 2. Egorova EM, Terekhina NV (2014) Prerequisites and vector of development of a new conceptual management accounting in modern universities. Proc Lower Volga Agro Divers Complex 3(35):253–258 3. Erokhin V, Endovitsky D, Bobryshev A, Kulagina N, Ivolga A (2019) Management accounting change as a sustainable economic development strategy during pre-recession and recession periods: evidence from Russia. Sustainability 11(11):3139 4. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2019) Organization of environmental audit into international and Russian ecological-economic activities. Indo Am J Pharm Sci 6(3):5729–5734 5. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2018) The development of environmental auditing in Russia and international practice in market conditions. Res J Pharm Biol Chem Sci 9(6):1573–1579 6. Gontar AA, Lomakin NI, Gorbacheva AS, Chekrygina TA, Tokareva EV (2019) Methods of data intellectual analysis in the assessment of economic security level. Stud Comput Intell 826:455–464 7. Ilyicheva EV (2010) Environmental accounting in the conditions of implementation of the policy of ecological balance (Dissertation of Doctor of Economics). “Research Institute of Experimental Medicine” of the North-West Branch of the Russian Academy of Medical Sciences, St. Petersburg, Russia 8. Nemchenko AV, Malofeev AV (2019) Classification of technological innovations as part of the innovation management system in agro-industrial production. Bull Agrarian Sci 3(78):114–121 9. Titova OV, Kostyukova EI, Boboshko NM, Drachena IP (2019) New types of taxes and forms of taxation in the conditions of information economy: perspectives of optimization. Stud Syst Decis Control 182:229–235 10. Tokareva EV (2014) Comparative evaluation of contractual relations of the federal and commercial leasing. Proc Lower Volga Agro Divers Complex Sci High Prof Educ 4(36):269–274 11. Trukhachev VI et al (2017) The south Russia economy: problems and prospects of development, evaluation, and management tools. Stavropol, Russia 12. Vardanyan SA, Balashova NN (2015) Internal audit in the agricultural sector: condition, problems, and prospects of development. Proc Lower Volga Agro Divers Complex Sci High Prof Educ 3(39), 246–250

A Cognitive Approach to Determining the Effectiveness of Teamwork Alexandra V. Voronina , Oksana G. Sorokina , Olga V. Elchaninova , Alexander V. Okhotnikov , and Tatyana A. Kiyaschenko

Abstract The paper considers approaches to the concept of team effectiveness. The work aims to consider approaches to the concept of team effectiveness. This paper proposes to use cognitive simulation modeling as a tool for assessing personnel in teamwork. Team effectiveness is facilitated by the ability of its members to work together over an extended period. The efficiency also depends on the volume of work performed by the team, the amount of knowledge and skills that can be used in work, the compliance of the strategies for completing tasks, available resources, and the availability of suitable tools and equipment. Keywords Efficiency models · Efficiency factors · Management efficiency · Cognitive approach · Cognitive modeling

1 Introduction Many researchers bring their theoretical and cognitive understanding of the effectiveness of team management, reducing this concept, in an attempt to convey the results of their research to information consumers. This paper studies various points of view and form our vision and approach to assessing team management and team effectiveness. The study was carried out through hermeneutic analysis, various methods of cognition, interpretation, systematization, and generalization of information. To formulate adequate solutions for improving teamwork, the authors proposed to use the most modern approach of cognitive simulation modeling.

A. V. Voronina (B) · O. G. Sorokina · A. V. Okhotnikov · T. A. Kiyaschenko Rostov State Transport University, Rostov-on-Don, Russia A. V. Okhotnikov e-mail: [email protected] O. V. Elchaninova Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_27

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2 Materials and Methods 2.1 The Concept of Team Performance The effectiveness of team management is a concept that implies the feasibility and quality of management aimed at the best performance of the managed system (company), the implementation of goals and strategies, and the achievement of specific qualitative and quantitative economic results [3]. Several scientists adhere to this point of view, including I. I. Mazur, V. D. Shapiro, and N. G. Olderogge. Salas and colleagues suggested that the organizational environment and structure of a team influence teamwork, which, in turn, affects the quality of teamwork [5]. Henderson and Walkinshaw [8] defined effectiveness as achieving the desired result, goals, and key points in the implementation of tasks defined by the requirements of the situation or stakeholders. Another approach to determining effectiveness is more comprehensive. Thus, in their review of the literature on teamwork, S. Cohen and D. Bailey examined the effectiveness on three categories: • performance indicators: efficiency, productivity, responsiveness, quality, customer satisfaction, and innovativeness; • psychological conditions within the team: satisfaction, determination, and trust; • behavior, including absenteeism, staff turnover, and safety issues. G. Mathieu and M. Maynard also note such features as the accumulation and management of knowledge in a team, strategic decision-making, customer relationships, and the creativity of team members.

2.2 Models Anxx3d Team Performance Indicators Several models were created to study teamwork and their effectiveness. The most widely used model is “Input-Process-Output” (I-P-O), proposed by J. McGrath. “Input” refers to the initial factors that determine and limit how team members work together: • personal characteristics (competencies, character traits, etc.); • team factors (task structure); • organizational and situational factors (characteristics of the organizational model, ecological consistency). The initial factors together affect the “processes”—the interaction of team members to achieve the goal, converting the input to the weekend. “Output”—the results or offal of teamwork, evaluated by contractors [11].

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Subsequently, this model was modified and expanded by many researchers (R. Hackman and J. R. Oldham, P. D. Converse and R. Tannenbaum, E. Salas, W. T. Dickens, J. A. Cannon-Bowers, et al. Regulatory Model by P. D. Converse and R. Tannenbaum is based on the assumptions that for successful work, the team needs: • • • • •

a clear line of business; work situation providing the opportunity to work effectively; well-thought-out team structure; supporting organizational environment; expert coaching and assistance during the work.

The authors of the normative model argue that the environment and organizational environment can contribute to effective work and hinder it. The advantage of this model is that it emphasizes the importance of the organizational environment and resources. The disadvantage is the lack of attention to the influence of the leadership role and personal features of members on team performance [10]. The J. A. Cannon-Bowers model of team effectiveness assumes that several organizational and situational features affect a team’s functioning, performance, and effectiveness. These features determine what competencies are necessary for successful teamwork. The “Input-Process-Output” model was criticized because it does not include the temporal and recursive factors that teams face when obtaining feedback and development. Accordingly, it does not consider step-by-step and adaptive learning processes that affect team effectiveness. In this regard, it became necessary to create an alternative model that more fully reflects the functioning as a complex adaptive system existing within a wider environment. The model “Input-Mediator-Output-Input” [IMOI] displays the cyclic nature of the feedback process. At some point, the results of the team become input data for subsequent actions. Teams are considered as multi-level systems (individual, team, and organizational levels), focused on processes relevant to tasks and developing over time. Simultaneously, process and efficiency represent the results of constant and repeated interaction of team members. Input data is a set of team resources (team composition, knowledge, skills, etc.). Resources can consist of elements contributing to team effectiveness or impeding it. In this model, the organizational environment is represented through three types of systems that support teamwork: • System of human resources management (training, performance evaluation, remuneration, etc.); • An organizational model that allows teams to interact with each other and the organization, links information and coordination flows, provides resources, and eliminates obstacles; • Supportive organizational climate and organizational culture.

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Mediators consisting of several psychological mechanisms allow team members to combine available resources to perform work and overcome difficulties associated with coordination and motivation. We can distinguish several mediators: • Processes—tasks (functions that team members must perform to complete the task satisfactorily) and relationships (interactions between team members); • Cognitive, motivational, or emotional states of a team (team self-awareness, team climate, and cohesion). The results of teamwork (“Output”), in the general case, are indicators of the effectiveness of a team’s activity, measured using special indicators or expert judgment. They include results that support the team work, such as member satisfaction, team vitality, and innovativeness. According to the Hackman [7] model, team performance is measured by the provision of products or services that exceed customer expectations, the growth of team capabilities, and the satisfaction of the needs of team members. R. Hackman provides five essential conditions for team effectiveness: 1. 2. 3. 4. 5.

The team should have a goal and objective, clear boundaries, certain powers for making team decisions, and a permanent composition. The presence of the direction and clear goals focused on the end result. The structure promoting teamwork. Supportive organizational environment. An expert helping to cope with arising difficulties and improve coordination and collaboration.

An effective team can be marked with generally accepted criteria for the effectiveness of any organizational structure. However, there are specific features inherent only to the team. In the current study, the following characteristics are distinguished that reflect the effectiveness of the team: 1.

2. 3.

4.

5. 6.

Balance of team roles. Team members understand their roles and the roles of their colleagues. The team is flexible and has a willingness to help each other. Work is distributed according to personal abilities and skills [2]. Clear objectives and goals. Team members fully understand their tasks and realize how they can contribute to achieving the team goal. Openness, trust, conflict resolution. Team members trust each other and share information and feelings. The arising conflicts and disagreements are successfully resolved. Mutual cooperation, support, interpersonal communications, and relationships. Team members help and support each other, providing useful feedback aimed at improving personal and teamwork. Personal and team training and development. There are enough training and opportunities for the development and training within the team. Stable intergroup relations and communications. The relations between the team, other parts of the organization, and communication channels function

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7. 8.

9. 10. 11.

12.

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well. The team is perceived positively by other individuals, organizational departments, and external clients. Appropriate leadership and management style promote team motivation. Functioning team procedures and regular analysis. The current team processes and procedures have a positive effect on achieving goals, and they change according to changing conditions. The team regularly reviews their work. Results, productivity, quality, and responsibility—a high level of productivity in quantitative and qualitative terms, the results correspond to the desired ones. Morale is a strong team spirit, a sense of belonging within the team. People enjoy teamwork. Empowerment. Team members are provided with the resources necessary to fulfill their roles. They have the opportunity to influence decisions that span the entire team. Changes and creativity. The team is open to changes and regular improvements. New ways to improve performance are constantly sought—a high level of creativity.

All indicators can be combined into three main dimensions: • Indicators related directly to the activity (productivity, quality, costs, revenues, productivity, information exchange, tasks, etc.); • Indicators related to the attitude to work and team (satisfaction from work and team, level of trust, and commitment); • Indicators of a specific behavior (absenteeism, staff turnover, and a sense of security). The performance indicators and approaches to their measurement are presented in Table 1.

3 Results To formulate adequate solutions in enhancing staff competencies, and, consequently, increasing the efficiency of a team, it is proposed to use the most relevant cognitive modeling approach relevant to the current time. Currently, cognitive modeling of complex systems is one of the important components of the cognitive sciences—“artificial intelligence” in its practical application when creating intelligent decision support systems in various subject areas. In Russia, real scientific research on “cognitive analysis and situation management” was started in the 1990s. In this case, the use of simulation represents the implementation of a systematic approach to research. It solves the problem of forming an effective team [1]. The success of cognitive research can be realistically assessed if there is feedback from the implementation of the developed management decisions [6,9]. The great advantage of using cognitive models for working with complex systems,

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Table 1 Performance indicators, depending on the type of team Performance Approach

Team type

1 Comparison of target and actual indicators

Comparison of performance indicators of different teams

Performance indicators Activities

Attitude

Behavior

2

3

4

5

Work team

Productivity, quality, meeting deadlines, and sales

–

–

Project team

Productivity, quality, meeting deadlines

–

–

Management team

Profitability, return – on equity, sales growth, productivity

–

Work team

Productivity, quality, meeting deadlines, competencies, leadership effectiveness, customer complaints, the number of defects, technological indicators

Job satisfaction, teamwork satisfaction, commitment, level of trust

Staff turnover, absenteeism

Project team

Productivity, quality, meeting deadlines, teamwork

Job satisfaction, teamwork satisfaction, commitment, level of trust

–

Management team

Profitability, return on equity, sales growth, productivity, quality of decisions made, quality of task performance, information exchange, goal availability

Coordination of actions, job satisfaction, teamwork satisfaction, commitment, level of trust

Staff turnover

(continued)

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Table 1 (continued) Performance Approach

Team type

Comparison of actual performance indicators of a team at different periods

Comparison of contributions of various areas of work to the overall effectiveness of the team

Performance indicators Activities

Attitude

Behavior

Work team

Productivity, quality, meeting deadlines, competencies, leadership effectiveness, number of customer complaints, number of defects

Job satisfaction, teamwork satisfaction, commitment, level of trust

Staff turnover, absenteeism

Project team

Productivity, quality, meeting deadlines, teamwork

Job satisfaction, teamwork satisfaction, commitment, level of trust

–

Management team

Profitability, return on equity, sales growth, productivity, quality of decisions made, quality of task performance, information exchange, goal availability

Consistency, job satisfaction, teamwork satisfaction, commitment, level of trust

Staff turnover

Work team

Productivity, quality, meeting deadlines

Job satisfaction, Team satisfaction

Staff turnover, absenteeism

Project team

Productivity, quality, meeting deadlines

Job satisfaction, Team satisfaction

–

Management team

Productivity, quality of decisions made, quality of task performance, information exchange, goal availability

Coordination of actions, job satisfaction, teamwork satisfaction, commitment, level of trust

–

Source Compiled by the authors

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1. The development of a cognitive model of personnel efficiency in the form of a cognitive map. 2. Cognitive modeling: the analysis of the structural properties of the system, highlighting the relationships between competencies and the impact on employee performance [5]. 3. Cognitive modeling: the development and analysis of scenarios for the development of situations. 4. Making decisions, developing recommendations for enhancing competencies identified during modeling.

Fig. 1 Stages of imitation cognitive modelling. Source Developed by the authors

including analyzing team effectiveness, is that they can include quantitative or qualitative, directly immeasurable factors that can significantly affect the development of processes in the system. This is most relevant in the context of identifying competencies that affect the effectiveness of the team. Cognitive modeling is carried out in several stages. There are various ideas about the gradation of the process. Nevertheless, the key ones are the compilation of a cognitive model and, based on it, the adoption of scenarios for the development of sound management decisions [1]. The stages of cognitive modeling are presented in Fig. 1. Usually, the first step is the compilation of a cognitive model. It is the most time-consuming. The most significant difficulties appear during its formalization and automation. The first stage of the study is devoted to identifying the vertices of a cognitive map and determining the relationship between them (positive or negative in both directions or the same direction). The cognitive map reflects those causal relationships formed within the framework of a complex, weakly structured system.

4 Discussion When constructing a cognitive model, it is necessary to carry out a series of actions, from which the following should be highlighted: (1) (2) (3) (4)

To highlight key competencies influencing efficiency (tops of the cognitive map); To identify relationships between factors, i.e., identify “cause-effect” chains; To determine the direction of influence (positive “+” or negative “−”), and the level of influence (“strong” or “weak”); To build a cognitive map.

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Table 2 Tops of the cognitive competence map of staff Code

Vertex

Short title

Vertex assignment

F0

Efficiency

Effect

Target, global

F1

Functional competence

Prof

Basic

F2

Information and communication competence

ICT

Basic

F3

Social and communicational competence

Com

Basic

F4

Legal competence

Law

Basic

F5

Language competence

Lang

Basic

F6

Economic competence

Ec

Basic

F7

Research competence

Sci

Basic

F8

Educational competence

Ed

Basic

F9

Result orientation

Result

Basic

F10

Focus on continuous development

Development

Basic

Source Developed by the authors

The description of the vertices is given in Table 2. The target peak is peak F0 “Efficiency.” All other vertices are basic. The next step in imitative cognitive modeling is identifying the relationships between the vertices and establishing interaction chains.

5 Conclusion When forming relationships between factors and establishing weight, it is advisable to use theoretical information on the assessment of personnel, data from expert surveys, and statistics analysis. Thus, the following competencies have the most significant influence among them: 1.

2. 3. 4. 5. 6. 7.

Functional competence with information and communication, legal competence, economic competence, scientific competence, competences of result orientation, and development orientation. Information and communication competence with functional competence and development-oriented competence. Socio-communicative competence with language competence and competenceoriented competencies. Language competence with socio-communicative competence and development-oriented competence. Scientific competence with educational competence and development-oriented competence. Educational competence with development-oriented competence. Result-oriented competence with information and communication competence.

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Competency-oriented development competence with information and communication competence.

References 1. Badwan NL (2019) The movement of financial capital: forms, factors, and assessment tools. Vladikavkaz, Russia 2. Belbin RM (2003) Management teams. Secrets of success and reasons for failure. HIPPO, Moscow, Russia 3. Bobryshev AN, Yakovenko VS, Tunin SA, Germanova VS, Glushko AY (2015) The concept of management accounting in crisis conditions. J Adv Res Law Econ 6(3):520–527 4. Gasparyan AY, Kitas GD, Yessirkepov M, Duisenova A, Trukhachev VI, Kostyukova EI (2018) Researcher and author impact metrics: variety, value, and context. J Korean Med Sci 33(18):e139 5. Gasparyan AY, Nurmashev B, Voronov AA, Gerasimov AN, Koroleva AM, Kitas GD (2016) The pressure to publish more and the scope of predatory publishing activities. J Korean Med Sci 31(12):1874–1878 6. Germanova VS, Frolov AV, Germanova YuI (2017) Budget planning, risk assessment, and management based on the analysis of these indicators of financial reporting forms. Bull Inst Friendship Peoples Caucasus Theory Econ Manage Nat Econ 3(43):20 7. Hackman JR (2002) Leading teams: setting the stage for high performance. Harvard Business School Press, Boston, MA 8. Henderson S, Walkinshaw O (2002) Command team assessment: principles, guidance, and observations. Unpublished report. QinetiQ, Fort Halstead, UK 9. Kontsevaya SR, Khoruziy LI, Kharcheva IV, Makunina IV, Kostina RV (2015) Taking the managerial decisions at the enterprise in the age of agriculture globalization in Russian Federation. In: Proceedings of the international scientific conference: Agrarian perspectives XXIV— Global agribusiness and rural economy. Czech University of Life Sciences, Prague, Czech Republic, pp 216–223 10. Sorokina OG (2019) (eds) Human resource management: HR marketing, building a corporate culture, creating an effective team. Moscow University named after S. Yu. Witte, Moscow, Russia 11. Voronina AV, Khoshafyan OS (2019) Model of personnel management processes of Russian railways. In: Proceedings of the International scientific-practical conference: Transport: Science, education, and production (Transport-2019). Rostov State Transport University, Rostov-on-Don, Russia, pp 93–96

Implementation of an Innovative Audit Strategy in Human Resources Tatiana Y. Bezdolnaya , Alexey V. Nesterenko , Elena M. Puchkova , Olga N. Nikulina , and Svetlana V. Kutarova

Abstract The paper discusses the implementation of an innovative strategy in the personnel potential of the organization for various sectors of the economy that can be applied in their activities. Currently, the innovative development of the personnel potential of the organization became a very popular topic for the leadership of an economic entity. Its goal is to improve the work of personnel in the organization. The paper analyzes personnel audits in organizations. The approaches to conducting a personnel audit using an innovative HR strategy are proposed. Keywords Personnel audit · External audit · Internal audit · Personnel potential · Personnel · Innovations · Organizations

1 Introduction The innovative strategy for personnel management is focused on rapid changes in production, new technology, the dynamism of the external environment, and competition. Such an approach to personnel management puts human values, growth of personnel qualifications, and adaptation of personnel to changing economic conditions in priority [2]. Currently, the innovative development of the personnel potential of the organization became a very popular topic for the leadership of an economic entity. Currently, the assessment of innovative personnel potential in organizations is in demand of only 7–10%.

T. Y. Bezdolnaya (B) · A. V. Nesterenko · S. V. Kutarova Stavropol State Agrarian University, Stavropol, Russia E. M. Puchkova · O. N. Nikulina Nevinnomyssk State Humanitarian Technical Institute, Nevinnomyssk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_28

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2 Materials and Methods As technology develops and barriers to market entry are removed, organizations from various sectors of the economy begin to apply innovative approaches based on new technologies. At the same time, the heads of the organization are aware that new technologies lead to new risks. The main focus of research on human resources innovation is the workforce of companies. The efficiency of the personnel use largely determines the volume of production, the level of cost and quality of products, financial results, and the economic potential of the business entity. A personnel audit is an examination of certain documents and personnel management system. During the audit, experts evaluate the effectiveness of the personnel service and find shortcomings and risks that can negatively affect the company [1]. Complaints, lawsuits, and unscheduled inspection visits also became common. A regular audit of HR records management minimizes the risk of fines for violation of labor laws. The employer decides whether the company needs a personnel audit based on the circumstances. Let us consider the tasks of personnel potential for various organizations, which are presented in Fig. 1. A personnel audit is necessary if the CEO wants to: • minimize risks of financial or administrative penalties from state control bodies; • minimize the risk of litigation with employees due to possible violations of labor law.

Fig. 1 Tasks of human resources for various organizations. Source Developed by the authors

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Further research requires the specification of methodological approaches and personnel audit procedures. We can consider a set of personnel audit activities, including: 1.

Check the availability of personnel documentation, documentation on occupational safety and labor protections, and its compliance with labor legislation requirements, including: • Local regulations; • Personnel records and occupational safety documents; • Personnel documents on personnel.

2. 3.

Validation of procedures. Checking the storage of personnel documents.

We propose the following approach when conducting a personnel audit in organizations (Fig. 2). A personnel audit is a necessity in the activities of each large organization. It can help the leadership of the organization in many aspects, particularly in identifying and solving the main problems in the management of personnel of the organization.

Types of the personnel audit

Full HR audit

The verification of local regulatory acts; the availability and correctness of the preparation of documents for personnel records; registration of personnel orders; personal files of employees; the procedure for familiarizing employees with local re ulatory acts.

Selective HR Audit

For employees, it involves checking personnel documents for an employee selected by the customer for compliance with the requirements of the Labor Code of the Russian Federation.

For documents selected by the customer. For example employment contracts, personal cards of employees, orders, local acts, and others

Fig. 2 Types of personnel audit in organizations. Source Developed by the authors

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Fig. 3 Frequency of personnel audit in organizations. Source Compiled by the authors

5%

3%

10% 7%

25% 50%

Annually

Every 3 years

Every 5 years

To scheduled inspections

When changing a staff worker

When changing labor laws

3 Results Based on the presented statistics, we determined that the personnel audit is carried out mainly by large organizations (they account for 52%). This trend is due to control by the labor inspectorate. The frequency of its implementation is presented in Fig. 3. Figure 3 shows that companies only resort to conducting personnel audits during labor inspections because personnel audits are expensive. The management of companies understands that attracting an external auditor causes considerable financial expenses, while the risk of leakage of confidential information is increased.

4 Discussion We propose innovative programs for the development of a personnel audit. First of all, it is outstaffing of personnel. This program became especially in demand during the crisis because it was more profitable to carry out personnel and accounting administration under the conditions of specialized agencies [4]. One of the ways to minimize staff costs is outstaffing and staff leasing. This phenomenon is quite new for Russia, but thousands of employers already tested them. Personnel outstaffing is the withdrawal of the employees to avoid personnel, tax, and migration risks [10]. The outstaffer organization re-arranges the employees of the organization into its staff, signs official labor contracts with them, and provides the same employees to the previous work. Thus, employees continue to work at their workplaces, but the outstaffer organization bears all responsibility because it is an official employer. This new personnel service, legalized since 2016, will allow the enterprise to significantly save on taxes and not worry about the inspection of migration services since

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employers completely remove all risks from themselves by transferring employees to another organization. Outstaffing is a universal service for employers, including the whole range of responsibilities for maintaining an employee and personnel workflow. From the very concept of “Outstaffing,” it follows that this is the withdrawal of staff. If we consider this concept more broadly, this is the process of transferring staff from one company to another, while fully maintaining their functionality in their workplace. In other words, outstaffing is a unique form of relations between an employer and employees in which an employer officially formalizes its employees in a staff of another organization based on the outstaffing agreement. Thus, employees perform their functions on the territory of the employing organization but are employed by an outstaffing organization. Under this scheme, it is the outstaffing organization, according to the labor legislation, that assumes all the relevant functions and obligations—it maintains personnel records, engages, checks documentation and trustworthiness of applicants, calculates wages, pays the appropriate tax and social benefits, and makes all approvals and other actions with government bodies. At first glance, the savings are apparent only financially, but this is not so. It is also worth considering such an important factor as the experience of the organization in providing outstaffing services. Outstaffing has significant advantages in personnel programs. It allows to: • instruct field staff, coordinate reporting, and implement additional trade marketing activities; • carry out an operational selection of field personnel. The database of field personnel includes more than 10,000 merchandisers, consultants, and sales representatives throughout Russia; • provide staff outstaffing without territorial restrictions; • to transfer personnel from project to project. Let us consider the properties and advantages of the innovative outstaffing program, which are presented in Figs. 4 and 5. The main advantage is 100% customer confidence that [5]: • the staff will receive a salary. The staff receives money only on bank accounts following the statement provided by the client; • the staff will get paid on time; • all taxes to the budget will be paid following the legislation of the Russian Federation; • all customer requirements for document management are met.

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Recruitment and rotaon of staff

Trainings movaonal programs for staff

Accounng and personnel support

Properes of the Outstaffing Innovaon Program

Personel assessment (Grading, Assessment Center, KPIs)

The execuon of personnel in accordance with the law (contract, employment contract)

The calculaon and payment of salaries and other types of remuneraon, calculaon of vacaons, sick leave, and travel expenses

Staffmanagement

Fig. 4 The features of the outstaffing innovation program. Source Developed by the authors based on [6–9, 11] Fig. 5 Benefits of the innovative outstaffing program. Source Developed by the authors based on [3]

Full accounng support under the main contract The ability to arrange staff for a limited me at the peak of business or seasonal acvity

ADVANTAGES The possibility of hiring and registraon of personnel in any city of the Russian Federaon

Providing all personnel documentaon to comply with all legal formalies provided for by the legislaon of the Russian Federaon

The provision of the service by qualified specialists with experience in a similar service

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5 Conclusion Recently, organizations of various types are increasingly turning to outstaffing. The share of outstaffing in the HR market is approximately 20%, exceeding the share of outsourcing (transferring some business processes to a third-party organization), staff leasing (using temporary employees), and is already in serious competition with direct search services. The primary source of cost savings through outstaffing is an increase in the efficiency of the organization as a whole, the emergence of the opportunity to free up relevant organizational, financial, and human resources to develop new directions or to concentrate resources and efforts on existing ones that require increased attention. Outstaffing is used to offload the personnel department, reduce risks when attracting foreign labor, facilitate bookkeeping work, save staff costs, and minimize taxation. Currently, outstaffing is an excellent solution to facilitate business and reduce the labor costs of the company. Following the goals of the organization, the company management decides on what tools, when, and where can and should be used and what personnel changes will be necessary due to the use of human resources technologies in current activities. Carefully thought-out innovative strategies, such as personnel auditing, bring significant benefits to organizations and lay the foundation for providing a flexible and quick response to the emergence of new technologies.

References 1. Belonogova EV, Suslova YuYu, Voloshin AV (2016) Methodological approaches to assessing the effectiveness of material incentive systems for workers of trade organizations. Fundam Res 8–1:96–101 2. Denisov A (2015) The path to the agrarian: problems and prospects. Nivy Zauralya 11(133). Retrieved from https://svetich.info/publikacii/agropokolenie/put-v-agrarii-problemy-i-perspe ktivy.html. 3. Government of the Russian Federation (2012) The decree “On the state program for the development of agriculture and regulation of agricultural products, raw materials, and food markets for 2013–2020” (July 14, 2012 No. 717). Moscow, Russia 4. Muravyova M (n.d.) The crisis threatens not universities. Retrieved from https://www.ucheba. ru/vuz/5723/article/9928.html. 5. Nabou R, Tirole J (2002) Self-confidence and personal motivation. Quart J Econ 3(117):871– 915 6. Nardin DS, Nardin SA (eds) (2012) Prospects for the development of agricultural education using distance technologies. Molodoy uchenyy 12:497–499 7. Ovchinnikov VN, Malkina MYu (2019) Determinants of pay inequality in modern Russia. Terra Economicus 17(3):30–47 8. Oyer P (2006) Initial labor market conditions and long-term outcomes for economists. J Econ Perspect 20(3):143–160 9. Publishing House “Accreditation in Education” (n.d.) Personnel for agriculture. Development prospects. Retrieved from https://akvobr.ru/kadry_dla_sh_perspektivy.html

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10. Suptelo NP (2016) The formation of a flexible system of material incentives for employees in the organization. Bulletin of Moscow University named after S. Yu. Witte. Series 1: Econ Manage 3(18):90–97 11. Trukhachev V, Bobrishev A, Khokhlova E, Ivashova V, Fedisko O (2019) Personnel training for the agricultural sector in terms of the digital transformation of the economy: trends, prospects, and limitations. Int J Civ Eng Technol 10(1):2145–2155

Developmental Prospects of Management Accounting in Russia Nelly P. Agafonova , Elizabeth A. Medvedeva , Alexey A. Serdyukov , Andrew A. Kempf , and Olga G. Kalashnikova

Abstract This study aims to identify the scale of application of the management accounting system and its elements in the practical activities of economic entities that are part of a complex socio-economic system of the region and the state. The paper compares the opinions of accounting and scientific workers regarding the priority of the functioning of individual management accounting tools, aimed at ensuring sustainable development of the economy. The research purpose is formulated based on the relevance and scientific validity of continuous monitoring of the dynamics of distribution and implementation of management accounting and its components to identify promising development areas in Russia. The key research method is the questioning of respondents (accounting workers and scientists). The authors identified management accounting technologies of interest to accounting and scientific workers. They are budgeting, management reporting, forecasting, management analysis, and accounting of certain cost activities. Keywords Management accounting · Economic entity · Management accounting tools · Management accounting technologies · Budgeting · Business model · Forecasting

1 Introduction The functioning of economic agents in the era of globalization and increased competition in all spheres of activity leads to the need to search for effective tools to increase competitiveness. An increase in the volume of production or entering new markets is not always a rational solution to the current problem; in most cases, management acts based on personal motives or previous experience. Each management decision should be the result of a comprehensive analysis of the activities of an economic entity.

N. P. Agafonova (B) · E. A. Medvedeva · A. A. Serdyukov · A. A. Kempf · O. G. Kalashnikova Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_29

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The formation of an information base for conducting such an analysis is a set of labor-intensive accounting procedures that make it possible to systematize incoming financial information in accordance with the necessary parameters for analysis and interpret it in the form and with the required degree of detail for making optimal management decisions. In the classical sense, accounting, with its inherent slowness, cannot fully satisfy all information requests of management personnel due to the strict legislative regulation of documenting business transactions and a bias towards the convergence of tax and financial accounting. Consequently, managing an organization, based on increasing competitiveness, requires the use of a management accounting system, focused primarily on internal users, namely, management personnel [6]. Due to the relevance dictated by economic conditions, management accounting is currently being introduced by a significant number of economic entities. However, in most cases, the practice of its application is of a point of nature, namely, the use of specific tools and methods. In this regard, we can talk about the need to study the application of management accounting as a whole and its particular elements to identify the prospects for the scientific and practical development of the management accounting system in Russia, the harmonious relationship of which contributes to the sustainable development of economic entities that are elements of a complex socio-economic system of a region and the state.

2 Materials and Methods The research methodological base was formed taking into account the results obtained by Russian and international authors on the issues of the prevalence of management accounting. The research methodology is based on applying a complex of fundamental methods of scientific knowledge: (1) analysis, (2) synthesis, (3) dialectical unity of qualitative and quantitative assessment, (4) systemic and hierarchical approaches, (5) induction, and (6) deduction. The authors used a diverse set of tools and techniques during the research, including abstract-logical, monographic, computational-constructive, economic and statistical methods, methods of systemic and comparative analysis, analytical, graphical, balance, etc. The informational and empirical base is formed by the data of questionnaire sociological studies, scientific sources, information from periodicals, and expert assessments. The study of scientific literature and periodicals made it possible to reveal the degree of interest of the scientific community to the discussed problem. During the study, the theoretical validity of the effectiveness of using the following management accounting tools by business entities was identified: • Management analysis and break-even analysis (CVP analysis) aimed at achieving long-term and sustainable performance indicators of the organization [2],

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• Budgeting; forecasting, strategic management accounting, KPI technologies as stimulating factors and main guidelines for the development of management accounting [9], • Cost accounting by type of activity, the business model of the organization, and KPI-technologies justified the need to clarify the theoretical foundations of these management accounting tools due to a serious lag of Russian management accounting from foreign experience [10], • The adjustment of management reporting in accordance with the level of the inflationary impact of an independent business process to prevent the loss of information value of particular reporting elements [1], The authors’ opinions on the identified problem of the prospects for the scientific and practical development of the management accounting system in Russia made it possible to form an empirical basis for the subsequent stages of the study.

3 Results The key point of the study was the questioning of 60 respondents (accounting workers and scientists). These focus groups were formed in accordance with the stated goal of the study—to identify the prospects and directions for the development of management accounting in Russia in practice and the scientific field. The respondents included representatives of the scientific and pedagogical staff of higher educational institutions of the Stavropol Krai (30 people) and employees of the accounting service (accountants, deputy chief accountants, and chief accountants) of the leading organizations of the Stavropol Krai, operating for more than five years in various economic markets (30 people). The formation of these focus groups is justified by the interest of researchers in comparing the expert opinion of representatives of the practical and theoretical spheres. Questions regarding the prospects for the development of management accounting systems [MAS] are focused on the period 2020–2025. The initial task of our study was to identify the degree of prevalence of management accounting in the practical activities of economic entities of the Stavropol Krai, in connection with which the respondents of the focus group were interviewed. (Fig. 1). Following the obtained results, it should be noted that the opinions of accounting workers (respondents) and the authors of this work correspond to the predominant use of specific management accounting tools, which can be explained by the influence of several factors, including the complexity of setting up and implementing a fullfledged management accounting system with limited economic subjects in financial resources, insufficient qualifications of workers, and others. As a result of the revealed practical interest in the application of management accounting, it was expedient to determine the directions of its development in Russia, which corresponds to the scientific interest and the main goal of the study. The data of the survey of respondents

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The company plans to implement MAS

4

The company does not consider it necessary to introduce MAS

6

The company applies MAS

36

Separate elements of MAS are used

54 0

10

20

30

40

50

60

Fig. 1 The practice of using management accounting by economic entities of Russia in accordance with the opinion of accounting employees, %. Source Compiled by the authors

are grouped and interpreted in the context of the previously declared focus groups (Fig. 2). The presented results of the survey of respondents confirm the statement about the predominant use of specific management accounting tools, which is the main direction of its development until 2025, which was agreed by the majority of accounting workers and scientific workers. However, the opinions of the two focus groups regarding the improvement of employees’ qualifications (supported by the focus group, accounting workers) and the growth of the scale of activities of professional communities (supported by the focus group by scientists) are contradictory. Let us note the similarity of opinions of the respondents in the practical and scientific The сreation of specialized computer programs 15 21 The development of more efficient technologies and management accounting tools

36 34

The approval of the mandatory management accounting at the legislative level

6 7

Professional development of employees 12 34 The growth of the activity's scale of professional communities

31 2

Scientists

Accounting workers

Fig. 2 The directions of development of management accounting in Russia, %. Source Compiled by the authors

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Table 1 The significance and informational value of management accounting technologies, % Management accounting tools

Accounting workers Scientists

Strategic management accounting

6.5

4.7

Accounting for standard costs

4.8

3.7

Variable cost accounting

5.8

5.6

Quality control

6.1

3.2

Calculation of the added value of products

4.2

3.4

Cost accounting by type of activity of an economic entity

8.6

3.4

Cost accounting by responsibility center

3.5

5.1

Management analysis

7.9

9.5

KPI technologies

3.1

4.2

CVP analysis

3.8

6.2

Budgeting

9.9

15.6

Management accounting of the business model of an economic entity

2.1

3.8

9.4

6.8

Production accounting Forecasting Management reporting Just-in-time method Total

11.2

8.6

8.3

11.6

4.8

4.6

100.0

100.0

Source Compiled by the authors

spheres on the issue of the need to develop specialized computer programs and the low possibility of introducing the mandatory use of management accounting. Given the obtained results, establishing the significance of certain tools and methods of management accounting was seen as necessary to improve the efficiency of management decision-making (Table 1). The generated data demonstrate the most significant interest of scientists in such management accounting technologies as budgeting, forecasting, management reporting, and management analysis [8]. It also shows the preferences of accounting workers—budgeting, forecasting, production accounting, cost accounting by type of activity. Therefore, the interests of the scientific and practical spheres partially coincide [4]. To form the correct results of the study, the authors conducted a questionnaire survey on the practical application of certain technologies and management accounting tools by economic entities (Table 2). The obtained results correlate with the previously presented results, which indicates the interest of practitioners in the development of successfully applied management accounting technologies, even though they may not be adequately disclosed from a theoretical point of view [3, 5].

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Table 2 The use of management accounting technologies in practice Management accounting tools Strategic management accounting Accounting for standard costs

Opinions of accounting workers 5.1 12.7

Variable cost accounting

4.2

Quality control

3.9

Calculation of the added value of products Cost accounting by type of activity of an economic entity

2.7 12.6

Cost accounting by responsibility center

2.1

Management analysis

7.4

KPI technologies

1.2

CVP analysis

2.4

Budgeting Management accounting of the business model of an economic entity Production accounting Forecasting Management reporting Just-in-time method Total

13.3 2.4 6.7 13.6 8.2 1.5 100.0

Source Compiled by the authors

4 Discussion The general results of the discussion of the methodological aspects of management accounting in the scientific and expert community, the prospects and directions of its development [1, 2, 7, 9–11] confirm the authors’ opinion about the need to continue monitoring the management accounting system and highlight tools and methods that are of the highest practical value.

5 Conclusion The research allowed to obtain several significant scientific results. A significant degree of prevalence of the use of management accounting in the practical activities of economic subjects of Russia was revealed. Based on the survey results, the respondents established a predominant interest in certain management accounting tools and technologies, demonstrating the highest degree of efficiency and profitability.

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The tools and technologies of management accounting, highlighted by leading scientists as key development guidelines in the globalization of the economy and increasing the competitiveness of individual economic entities, are ranked. Following the research aim, the opinions of practical (accounting) and scientific workers were compared regarding the prospects for the development of management accounting in Russia. In particular, the budgeting and forecasting technologies were determined as points of contact between the interests of science and practice. However, in many respects, the opinions of respondents representing different focus groups diverge, which indicates the lack of balance in the development of management accounting, and forms further research prospects. The authors see the harmonization of scientific and practical thoughts in terms of the management accounting system as a key factor in improving the efficiency of both accounting services and economic entities that are part of the complex socioeconomic system of the region under study, due to the elimination of obstacles in the formation of an empirical research base scientists-economists and the approbation of the obtained scientific results. Acknowledgements The authors would like to express their gratitude to Doctor of Economic Sciences, Professor of the Department of Management Accounting of the Stavropol State Agrarian University, A. N. Bobryshev and Doctor of Economic Sciences, Professor, Head of the Department of Management Accounting of the Stavropol State Agrarian University, E. I. Kostyukova for valuable advice, peer review, and questionnaire assistance.

References 1. Bobrishev AN, Kulish NV, Tunin SA, Sytnik OE, Elchaninova OV (2016) Accounting and analytical procurement of business performance in an inflationary environment. Int J Appl Bus Econ Res 14(15):10925–10935 2. Erokhin V, Endovitsky D, Bobryshev A, Kulagina N, Ivolga A (2019) Management accounting change as a sustainable economic development strategy during pre-recession and recession periods. Evidence from Russia. Sustainability 11(11):3139 3. Frolov AV (2019) The essence, content, and stages of the formation of environmental audits in the international and Russian audit systems. Account Agric 1:67–75 4. Frolov AV, Germanova VS (2017) The methodology for the relationship between management and financial accounting in a market economy. Russ Econ Online Mag 3:50 5. Khoruzhy LI, Bautin VM, Katkov YuN, Stepanenko EI, Lukyanov BV (2018) Adaptive internal controls system for the accounting and analytics in the agrarian organizations. Espacios 47(39):19 6. Khoruzhy LI, Karzaeva NN, Katkov YuN, Tryastsina NY, Ukolova AV (2018) Identification and presentation of information on sustainable development in the accounting and analytical systems of the organization. Int J Civ Eng Technol 9(10):1575–1581 7. Kostyukova EI, Vakhrushina MA, Shirobokov VG, Feskova MV, Neshchadimova TA (2018) Improvement cost management system for management accounting. Res J Pharm Biol Chem Sci 9(2):775–779 8. Kulish NV, Sytnik OE, Tunin SA, Frolov AV, Germanova VS (2018) Approaches to the valuation of biological assets at fair value. Res J Pharm Biol Chem Sci 9(3):746–750

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9. Truhachev VI, Kostyukova EI, Bobrishev AN (2017) Development of management accounting in Russia. Espacios 38(27):7 10. Vakhrushina MA (2014) Problems and prospects of development of Russian management accounting. Int Account 33(327):12–23 11. Vakhrushina MA, Kostyukova EI, Tatarinova MN, Elchaninova OV, Grishanova SV (2018) Integrated management accounting in the financial management system. Res J Pharm Biol Chem Sci 9(3):808–813

Building an Effective System of Material Incentives for Human Resources in Trade Organizations Victor S. Yakovenko , Ruslan H. Ilyasov , Galina S. Marahovskaya , Kira A. Artamonova , and Tamara V. Skrebtsova

Abstract The paper discusses ways of solving the problem of ensuring the outstripping growth of the trading efficiency in relation to the growth of the remuneration of sales personnel. The main link in the structure of a trading enterprise, which solves the issues of increasing the sales volume, is the commercial department, which includes various specialists to promote the sale of goods. The study of the general problem of material incentives for sales personnel revealed several criteria ensuring the optimality of the material incentive system. To ensure the effectiveness of the system of material incentives, the list of indicators for evaluating the work of personnel must fully comply with the indicators of an enterprise as a whole. One of the problems is to ensure the objectivity of the system of material incentives for sales personnel when establishing the baseline values of performance indicators of managers, for exceeding which bonuses are paid. Since all the performance indicators of the sales personnel are quantitatively assessed, all the parameters of the system of material incentives for managers are summarized in an Excel table. The Excel table automatically calculates the payroll when the basic and actual values of the indicators of the performance of managers are entered. The procedure for uploading the data on the actual results of managers from an accounting computer program into a formalized system of material incentives was implemented, i.e., system reporting data are generated automatically. The developed system of material incentives for the sales personnel was introduced into the activities of regional distributors of the food market in the South of Russia. It ensured the outstripping growth in the effectiveness

V. S. Yakovenko (B) · T. V. Skrebtsova Stavropol State Agrarian University, Stavropol, Russia R. H. Ilyasov Chechen State University, Grozny, Russia G. S. Marahovskaya North-Caucasus Federal University, Stavropol, Russia K. A. Artamonova Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_30

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of trading activities of organizations compared with the growth in the remuneration of the sales personnel. Keywords System of material incentives · Indicators for evaluating the work of sales personnel · Official salary · Bonus

1 Introduction The successful activity of a trading enterprise on the market directly depends on the volume and dynamics of sales of its goods, the profitability of sales, the level of receivables from buyers, and the state and development of the customer base [10]. The main link in the structure of a trading enterprise that solves this problem is the sales department, which includes sales representatives (traveling managers), office managers, logistics managers, merchandisers, and other specialists in promoting the sale of goods. These employees must be motivated to achieve set goals for the development of trading activities. In a competitive market economy, the primary motivation for the effective work of the personnel is not administrative coercion, but economic interest—the material interest of employees in assessing their contribution to the overall performance of the organization. Therefore, the management of the trading company faces the task of developing and implementing a system of material incentives for employees that ensures the optimal ratio of remuneration for sales personnel and indicators of the trade effectiveness of the organization as a whole [1].

2 Materials and Methods Our study of the general problem of material incentives for sales personnel revealed several criteria that ensure the optimality of the material incentive system. In our opinion, this system should be: 1. 2.

3. 4.

Effective, i.e., maximally ensure the linkage of the performance of an individual manager with the remuneration and general indicators of the enterprise; Objective, i.e., indicators of assessing management activities should be freed from the subjective personal assessment of the management of a trading enterprise as much as possible; Formalized, i.e., providing grouping and processing of its indicators and their interdependencies in a mathematical model or program; Visual, i.e., if possible, simple and accessible for perception and understanding by managers.

Thus, to ensure the efficiency in the system of material incentives for a trade organization, the list of indicators for assessing the results of the work of managers must fully correspond to the indicators of the enterprise’s activity, namely:

Building an Effective System of Material Incentives …

• • • • • •

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The physical volume of product sales; Cost volume of product sales; Average selling price; Range of products sold; Level of receivables from buyers; Preservation and expansion of the client (customer) base.

It is advisable to form the entire payroll of managers from two disproportionate components [6]: 1. 2.

According to the staffing table (tariff), the official salary is within 30% of the total wages fund; Bonus fund for the fulfillment and over fulfillment of the base values of work results (bonus)—up to 70%. In turn, the premium fund is also subdivided into two components:

1. 2.

For the fulfillment of the basic performance values with an aggregate bonus of up to 100% of the official salary; For the over fulfillment of the baseline values of indicators, where the absolute amount of bonuses is not limited but is linked to the growth of performance indicators.

The application of the proposed approaches in the practical activities of a trade organization will allow forming an effective system of material incentives for sales personnel (Fig. 1) [9]. Bonus rates are specified for each indicator of the management performance [4]. Additionally, there is a system of “penalties”—deprivation of bonuses for failure to meet the basic values of the performance indicators of managers at rates corresponding to bonus rates or differ from them.

3 Results Since all performance indicators of managers are quantitatively assessed, we brought all the parameters of the system of material incentives for managers into a single table to solve the problem of formalization and visibility of the material incentive system (Table 1). Moreover, given that the success of a trading enterprise operating in the regional market depends on the coordinated actions of office managers and traveling sales representatives [2], the system of material incentives provides for linking performance of both implemented in an Excel spreadsheet [3] (Table 2). The 1C: Enterprise program is used to automate the accounting processes in the trade. The program generates various reports on all aspects of financial and economic activities of a trade organization, including in Excel format. It allows implementing the procedure for unloading data on the actual results of the work of managers from

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Fig. 1 The scheme of the formation of the salary fund of sales managers in the system of material incentives for a trade organization. Source Developed by the authors

an accounting computer program into a formalized system of material incentives. That is, system reporting data is generated automatically [5]. Thus, the formalized presentation of the system of material incentives for managers is visual and accessible for perception and understanding, i.e., the manager can independently enter the base and actual values of performance indicators into the table and see his earnings for the reporting period.

4 Discussion One of the problems is to ensure the objectivity of the proposed system of material incentives for sales personnel. Therefore, when establishing the basic values of the performance indicators of managers, the achieved and planned levels of their value can be adopted, which have pros and cons. If the managers of the trade organization take the achieved level as the “base,” then the objectivity of the assessment of the management results is ensured; the manager is effectively motivated to increase the indicators compared with the previous period.

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Table 1 Automated calculation of the wage fund of a traveling manager in the system of material incentives for a trade organization Performance indicators

Indicator values Basic

Actual

Bonus fund % of completion

For the fulfillment of basic indicators

For over fulfillment (+), not fulfilling (−)

% to salary rubles

% to salary rubles

Traveling manager V. P. Yurin Sales volume, 20.0 tons

23.0

115.0

25

3750

30.0

The average selling price of 1 kg, rubles

90.00

80.00

88.9

0

0

Sales volume, 1800 thousand rubles

1840

102.2

20

3000

Accounts receivable from buyers, %

30

34

4

0

0

New clients

3

3

100.0

20

3000

Lost clients

0

1

x

0

0

−10.0

−1500

Total fund salary, rub

15,000

19,083

127.2

65

9750

−37.8

−5667

−22.2

4.4

−40.0

0.0

4500 −3333

667

−6000

0

Source Compiled by the authors

However, in the activities of a trading enterprise in the food market, we identified a certain cyclicality (seasonality) of sales (pre-holiday trade—an increase in sales, the onset of religious fasts—a decrease, etc.). Therefore, when assessing indicators from the “achieved level,” there will be cyclicality in the remuneration [8]. It is possible to correct the cyclical nature of the dynamics of sales if we take the planned (directive) values of management performance indicators as the “base.” Nevertheless, subjectivity is not excluded when their leaders establish the planned values of performance indicators for managers [7]. It is also impossible to average the indicators for the trading team since each niche is specific and depends on the segment of the trading market, sales channels, and sales region, determining such individual parameters as the level of customer receivables, the dynamics of customer bases, etc. In our opinion, this situation requires a combined approach to the selection and establishment of baseline indicators to assess the dynamics and efficiency of sales staff.

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Table 2 Automated calculation of the payroll of an office manager in the system of material incentives for a trade organization Performance indicators

Indicator values Basic

Actual

Bonus fund % of completion

For the fulfillment of For over fulfillment basic indicators (+), not fulfilling (−) % to salary rubles

% to salary rubles

Office manager A. A. Sorokina Sales volume, tons

42.5

44.5

104.7

25

3000

9.4

1129

The average selling price of 1 kg, rubles

84.71

84.83

100.1

15

1800

0.1

18

Sales volume, thousand rubles

3,600

3,775

104,9

20

2400

9.7

1167

Accounts receivable from buyers,%

30

30

0

40

4800

0.0

0

New clients

0

1

x

0

0

−15.0

−1800

Lost clients

12,000

24,514

204.3

100

12,000

4.3

514

Source Compiled by the authors

5 Conclusion The developed system of material incentives for sales personnel was introduced into the activities of regional distributors “KavMkom” LLC and “Prod-As” LLC selling food products of the federal trade brands Mikoyan, Cherkizovo, Inmarko, etc. on the regional market of the South of Russia. More than three years of operation of regional distributors showed that the system of material incentives for managers developed and implemented in their practical activities ensured the outstripping growth of indicators of the effectiveness of trading activities of the organization compared with an increase in the level of remuneration of sales personnel. Acknowledgements The authors would like to express their gratitude for the opportunity to put into practice theoretical developments in the optimization of the system of material incentives for the personnel of a trade organization to the executive director of “Prod-As” LLC, S. M. Kalmykova.

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References 1. Allen T, Arkolakis C (2014) Trade and the topography of the spatial economy. Q J Econ 129(3):1085–1139 2. Arkhipova MYu, Sirotin VP (2019) Regional aspects of the development of information, communication, and digital technologies in Russia. Econ Region 15(3):670–683 3. Belonogova EV, Suslova YuYu, Voloshin AV (2016) Methodological approaches to assessing the effectiveness of material incentive systems for employees of trade organizations. Fundam Res 8–1:96–101 4. Chistyakov MV (2017) Improving incentives for sales personnel using key performance indicators. Bull Tver State Univ. Ser Econ Manage 4:127–134 5. Melitz MJ (2003) The impact of trade on intraindustry reallocations and aggregate industry productivity. Econometrica 71(6):1695 6. Ovchinnikov VN, Malkina MYu (2019) Determinants of pay inequality in modern Russia. Terra Economicus 17(3):30–47 7. PricewaterhouseCoopers (n.d.) Financial services technology 2020 and beyond: embracing disruption. Retrieved from https://www.pwc.ru/ru/banking/publications/_FinTech2020_Rus. pdf. 8. Rosstat regional office of North Caucasian Federal District (2019) Statistical yearbook of the Stavropol Krai. 2019. Stavropol, Russia 9. Suptelo NP (2016) The formation of a flexible system of material incentives for employees in the organization. Bulletin of the Moscow University named after S. Yu. Witte. Ser 1 Econ Manage 3(18):90–97 10. Toomsalu L, Tolmacheva S, Vlasov A, Chernova V (2019) Determinants of innovations in small and medium enterprises: a European and international experience. Terra Economicus 17(2):112–123

Innovative Aspects of Personnel Training for the Agrarian-Oriented Region: Problems and Prospects Alexey V. Nesterenko , Tatiana Y. Bezdolnaya , Elena N. Kushch , Ruslan H. Ilyasov , and Julia I. Germanova

Abstract The current state of staffing organizations of the agro-industrial complex [AIC] of Russia causes serious concern of the Ministry of Agriculture of the Russian Federation, in whose department there are agricultural educational institutions and the heads of educational agricultural organizations engaged in the training of specialists. The analysis allowed the identification of the main problems in this direction, which are social in nature due to the decrease in agro-industrial organizations in the countryside engaged in the production of agricultural products and their processing, and the demographic crisis of the 90s. It is believed that only agricultural institutions can fill the personnel gaps that appeared as a result of the economic crisis of the 2000s and revive agricultural organizations that are the locomotive of the development of the food, light, and heavy industries in the country. It is educational institutions of secondary, vocational, and higher education that currently determine innovative areas of work and develop curricula with the primary goal of motivating potential applicants in choosing an educational institution, faculty, and their future profession. The Government of the Russian Federation and departmental structures determined measures to promote the development of infrastructure and social stability for young and promising specialists in agriculture. The considered stages of stabilization of this scientific direction will ensure the sustainable development of the Russian AIC. Keywords Human resources · Agricultural educational institutions · Vocational education · Agro-industrial complex · Educational standards · Innovative aspects

A. V. Nesterenko (B) · T. Y. Bezdolnaya Stavropol State Agrarian University, Stavropol, Russia E. N. Kushch North-Caucasus Federal University, Stavropol, Russia R. H. Ilyasov Chechen State University, Grozny, Russia J. I. Germanova Stavropol State Medical University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_31

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1 Introduction The current state and development of the main innovative directions implemented by the Government of the Russian Federation is a set of strategic goals and objectives for the further development of domestic education aimed at the formation of the individual and human capital, which is the main factor in the progressive development of the entire society, state, and the economy of the country [1]. Domestic education in modern conditions is increasingly becoming the driving and leading force of economic development, increasing the efficiency and competitiveness of the entire national economy. Nowadays, agriculture is the most actively developing branch of the Russian economy. There is every reason to believe that this trend will continue for a long time. This means that agriculture is in dire need of highly qualified specialists. The forecast of the long-term socio-economic development of the Russian Federation for the period up to 2030 indicates the need to form a flexible and diversified vocational education system that meets the requirements of the labor market and the need of an innovative economy in terms of educational programs and in terms of conditions and material and technical equipment of the learning process [2].

2 Materials and Methods The theoretical and methodological basis for the study lies in the analysis of innovative approaches, research of regulatory and legal acts, works of domestic scientists and economists dealing with this issue to provide organizations of an agrarianoriented region with highly qualified personnel [3–5]. During the study, we used such methods of general scientific and social nature as analysis, comparison, collation of reported data, induction, and deduction.

3 Results The Ministry of Agriculture of the Russian Federation and the Ministry of Education of the Russian Federation should cooperate more closely to improve the quality of training of specialists in agricultural universities through state support [6]. There is a negative trend that universities are faced with during the accreditation for educational programs for the preparation of economic specialties. Additionally, industry universities are unevenly funded. Some sectoral universities do not receive additional funding in the required volumes. At the same time, it is necessary to remember about solving the national problem of securing personnel for agrarian-oriented regions of the country. Universities, together with agricultural producers, can and should influence this situation. The issue is constantly discussed with the Minister of Education

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of the Russian Federation and rectors of agricultural universities to make decisions on emerging problems. This is a social problem and the problem of each university that trains personnel for the Russian AIC. Graduates of secondary schools believe that not all programs implemented by agricultural universities are promising and important. At the same time, farm managers need these specialists. The heads and administration of universities aim to train high-class specialists and educate creative people so that they can be specialists and organizers of the labor collective. In this criterion, it is necessary to consider all aspects of the working life of a young specialist, a graduate of an agricultural university. Higher educational institutions subordinated to the Ministry of Rural Affairs of the Russian Federation are among the oldest universities in Russia, having a rich heritage in training specialists for agrarian-oriented regions of the country, primarily in the accumulated experience. Over the past two centuries, agricultural universities trained more than a million highly qualified specialists. Based on our analysis, we revealed that the necessary specialists for work in the countryside are extremely insufficient. Therefore, the government faces one of the essential tasks that require constant attention and control. This task is to provide rural areas with young and competent specialists ready to work in agriculture. Therefore, the government and universities understand the importance of high-quality education with innovative approaches in training that meet the high requirements in the production and processing of products. Educational institutions should be the main locomotive that will be able to solve all the questions and tasks. Due to the constant imposition of sanctions against Russia, there opened a new page in history, which will increase the development of the AIC in the country. It was believed that the contractual training of students plays an important role. Students must know and understand that while studying in the chosen direction of training, they will have to return to the region, district, or village of the entrance. Unfortunately, the previously existing contract training of specialists was lost [7]. Before, this process was accommodated to the Accounts Chamber, and some young graduates, who used this loophole when entering universities, both subordinate to the Ministry of Agriculture of the Russian Federation and the Minister of Education of the Russian Federation, refused to return to their settlements where they previously lived and studied. They refused to work off the funds allocated for them earlier by the region. The administration of regions and districts started to collect money from graduates through loans. Thus, over ten years of training, a significant number of graduates were graduated, and only 23% of specialists returned to the place of origin, which indicated that they were helped with housing, were able to gain a foothold, and carry out production activities in accordance with the received profession. Nowadays, training at the expense of earmarked funds for technical specialties of educational institutions is actively discussed and implemented into practice. This targeted training assumes that an employer receives a good specialist, trains, and hires him [8]. Agrarian educational institutions need to determine the criteria and approve them together with the regional Ministries of Education, according to which the most

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advanced farms of the region would be determined. Some of them would specialize in the production of crop products, others in livestock production, others in the processing of agricultural products. In the future, universities will be able to carry out close interaction with employers. This scheme would provide the agrarianoriented regions of the country with prepared, qualified specialists with innovative approaches who passed pre-diploma practice for production activities in each specific organization.

4 Discussion Recently, the Ministry of Agriculture of the Russian Federation, the main founder of agricultural universities, was actively debating who will train specialists in industrial sectors for agrarian-oriented regions of the country. Nowadays, 54 agricultural universities located in 50 constituent entities of the Russian Federation train such specialists. More than 300 thousand students and more than 60% of students studying in agricultural areas are trained there. Moreover, the rest 40% of students studying in other specialties will be in demand for the development of rural areas and infrastructures. We do not fully share the position expressed in the Department of State Policy in the Sphere of Higher Education of the Ministry of Education and Science of the Russian Federation. The government believes that the quality of education and research conducted in universities “is indivisible into industry education issues or the issues of those universities under the jurisdiction of the Ministry of Education from the transport, rural, or medical sphere.” In turn, we believe it is agricultural universities that pay great attention to innovative approaches in teaching and preparing students for the peculiarities of technical, agrotechnical, and accounting and economic activities of agricultural organizations in the countryside [9]. First of all, to improve the quality of personnel training, the Ministry of Agriculture of the Russian Federation and the Ministry of Science and Higher Education of the Russian Federation are recommended to improve access to higher educational institutions, the implementation of career guidance work in general and secondary specialized educational institutions with the participation of talented and promising youth in programs of advanced training of higher educational institutions with innovative solutions to the problems encountered in the agrarian-oriented regions of the country. Based on the data obtained from agro-industrial organizations, it was determined that the specialties in electrification and automation, veterinary medicine, agronomy, zoo technology, and agricultural mechanization would be in demand. The analysis of the conducted research allows us to determine the nature of the staffing of AIC organizations in percentage: workers in the crop production sector (90%), workers in the livestock industry (95%), workers serving agriculture (86%), and workers in the food and processing industry (87%). The staffing of agricultural

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organizations would be much lower if all organizations were to carry out their activities at full capacity, and their production would be tied to the approved plans for the production of agricultural products for processing organizations (Fig. 1). A positive trend is observed in agreement with the Ministry of Agriculture of the Russian Federation and support at the federal level for the farms accepting students for practice. Undoubtedly, these are small amounts of 10–15 million rubles, which will be allocated to agricultural organizations to provide students with a hostel and appoint a mentor or foreman. However, this sum would allow covering certain expenses (Fig. 2). It is believed that this approach is correct because these measures are aimed not to departments but to the industry. Therefore, if the university belongs to another department and trains personnel for the industry, it would be logical to extend these support measures to the relevant faculties or departments that train personnel for agricultural production and AIC. V. V. Putin, the President of the Russian Federation, plans to give such an instruction. In turn, the regional budget, at the expense of other budget support lines, should allocate funds, give a preferential loan rate, and allocate advanced agricultural equipment to the farms interested in hiring a graduate. Then most agricultural producers will be interested in close and long-term cooperation with agricultural universities. We are convinced that the management of educational institutions and organizations

Increasing the availability of quality education that meets the requirements of the innovative development of the economy, the modern needs of society, and every citizen

• Scientific and educational complexes of the world level; • Educational standards of the new generation; • Allocation of a part of the state budget for scientific research, etc. to universities Support for gifted children and talented youth; Provision of preschool education; Development of primary and secondary vocational education, etc. • The implementation of the “applied bachelor degree” system; • The creation of support systems for consumers of continuing education services and organizations that provide these services, etc. System of certification centers for professional qualifications Public and professional accreditation of vocational education programs, etc.

Fig. 1 Increasing the availability of quality education meeting the requirements of the innovative development of the economy and the modern needs of society and every citizen. Source Compiled by the authors

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The formation of vocational guidance in rural schoolchildren to work in the AIC The creation of specialized agrarian groups in universities and colleges 1. Competition for the best project; 2. Excursions for schoolchildren to the leading AIC enterprises; 3. The involvement of schoolchildren in youth organizations (Russian Union of Rural Youth, students’ teams).

1. The selection of educational institutions and students in agricultural groups; 2. The organization of a cycle of classes on the topic “Fundamentals of entrepreneurship in the AIC” (lectures, excursions, and training with representatives of agribusiness); 3. Competition of business projects.

The creation of training and production sites (TPS) 1. Competitive selection of organizations equipped and using modern equipment and technologies for organizing TPS on their basis; 2. The organization of practical training of students; 3. Reimbursement of part of the company costs for the organization of practice.

A G R O P R O F I

Fig. 2 Measures for the development of the agro-educational process. Source Compiled by the authors

that will have highly qualified specialists will benefit from this cooperation, and, most importantly, this decision will facilitate the influx of specialists into the village. It is also necessary to introduce the training of specialists from the second or third year in two specialties of training with the receipt of two diplomas of a different training profile. This training is possible in accordance with the Federal Law “On Education in the Russian Federation” (December 29, 2012 No. 273-FZ, as amended on December 27, 2019), provided that the student has passed the profile subjects of the Unified State Exam. In the Stavropol Krai, this direction has been implemented for several years by the Stavropol State Agrarian University, and it is in demand among students who understand that they will always be in demand in the labor market as specialists. Speaking at a meeting of the State Council on agricultural production and rural development, the Minister of Agriculture of the Russian Federation, D. Patrushev noted that it is necessary to consider the development of human resources. Graduates must meet the requirements of the modern labor market. At repeated meetings with rectors of universities, everyone clearly understands that the competitiveness of agricultural education should be increased due to the application of educational programs in new areas of training and specialties that meet the trends of the time.

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Additionally, from the new academic year 2020, there will appear a discipline that implies the use of digital technologies. Finally, the main thing is to expand the base of practical training. We already have successful practices of applying new approaches to teaching; for example, 26 educational centers for practical training were created at the Kuban State Agrarian University. Thus, classes are close to modern production conditions. In general, it is noted that the created material and technical base of the university are maximally integrated into the educational process. For example, in the center of innovative gardening of the Michurinsk State Agrarian University, students can practically master the elements of the technological process. Dmitry Patrushev emphasized that it is planned to strengthen the practical preparation of training.

5 Conclusion The rectors of agrarian universities determined the main directions of the development of agrarian education in Russia for the near future. Thus, the existing education system should be based on an active combination of practice and theory. First of all, agricultural colleges should be centers for the development and implementation of various methods of organizing and managing production. It is also necessary to understand that students who use innovative technologies in the educational process can become competent and demanded specialists. Local educational institutions should be the most active participants in the process of international specialization of education, increase in the export of educational services, and building balanced relations with foreign partners that would reflect the interests of Russia.

References 1. Government of the Russian Federation (2012) Resolution “On the state program for the development of agriculture and regulation of markets for agricultural products, raw materials, and food for 2013–2020” (July 14, 2012 No. 717). Moscow, Russia. 2. Belonogova EV, Suslova YuYu, Voloshin AV (2016) Methodological approaches to assessing the effectiveness of systems of material incentives for the labor of trade organizations. Fundam Res 8–1:96–101 3. Accreditation in education (n.d.) Personnel for agriculture. Development prospects. Retrieved from https://akvobr.ru/kadry_dla_sh_perspektivy.html 4. Denisov A (2015) Path in agriculture: problems and prospects. Nivy Zauralya 11(133). Retrieved from https://svetich.info/publikacii/agropokolenie/put-v-agrarii-problemy-i-perspektivy.html 5. Nabou R, Tirole J (2002) Self-confidence and personal motivation. Q J Econ 3(117):871–915 6. Muravyova M (n.d.) The crisis does not threaten universities. Retrieved from https://www.uch eba.ru/vuz/5723/article/9928.html 7. Ovchinnikov VN, Malkina MY (2019) Determinants of pay inequality in modern Russia. Terra Economicus 3(17):30–47

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8. Suptelo NP (2016) The formation of a flexible system of material incentives for employees in the organization. Bulletin of the Moscow University named after S. Yu. Witte. Ser 1 Econ Manage 3(18):90–97 9. Nardin DS, Nardina SA (eds) (2012) Prospects for the development of agrarian education using distance technologies. Molodoy Uchenyy 12:497–499

The Essence and Economic Content of Income and Expenditures in the Accounting System of an Economic Entity Lubov V. Postnikova , Sergey A. Tunin , Natalia V. Kulish , Olga E. Sytnik , and Victoria S. Germanova Abstract This paper aims to analyze the economic content of the accounting categories “income” and “expenses” in the accounting system of an organization. The relevance of our study is explained by the dominant role of income and expenses in the activities of economic entities, their reflection in the reporting to obtain a reliable idea of the scale of activities, and the financial condition of an organization. Income and expenses, as components of the organization’s financial result and parameters characterizing the scale of the activities of the organization, must certainly be reflected in financial, management, and tax accounting with varying degrees of detail. Thus, scientific novelty is in the substantiation of the significance of the categories “income” and “expense” in the accounting practice of an economic entity, linking them to specific periods. Their classification within the existing features of each of the presented types of accounting. Keywords Income · Expenses · Accounting

1 Introduction The functioning of economic entities in a highly competitive environment, expansion, and development in modern conditions necessitates a new management and control strategy [3]. This ensures the transparency and reliability of accounting information and the investment attractiveness. The transition to market conditions of management necessitates a revision of the existing approaches to economic categories, making it possible to make operational, managerial decisions necessary to increase the economic efficiency of managing an economic entity [2]. This especially applies to the revenues and expenses of the organization, which should be managed throughout the entire operation. This, in turn, requires further research regarding the L. V. Postnikova Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia S. A. Tunin (B) · N. V. Kulish · O. E. Sytnik · V. S. Germanova Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_32

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economic essence of income and expenses and the formation of precise and reliable information about their occurrence and reflection within the framework of existing types of accounting in domestic practice. The importance of income and expenses is also because they directly impact the financial result of the organization’s activities— profit or loss. The efficiency of any commercial organization is the amount of profit, which is the indicator that determines the size of the taxable base for income tax and the amount of the tax itself. It is also the basis necessary for making decisions on investing in the organization, and an indicator characterizing the level of well-being of the organization and its participants.

2 Materials and Methods The research methodological base was formed, taking into account the results obtained by Russian and foreign authors in the study of accounting issues. The research methodology uses scientific knowledge methods, including the analysis, synthesis, dialectical unity of qualitative and quantitative assessment, systemic and hierarchical approaches, induction, and deduction. We used a diverse set of tools and techniques (abstract-logical, monographic, computational-constructive, economic, and statistical methods, methods of systemic and comparative analysis, analytical, graphic, balance, etc.). The information-empirical base is formed by the data of questionnaires, sociological studies, scientific sources, information from periodicals, and expert assessments. The study of secondary scientific literature and periodicals made it possible to reveal the degree of interest of the scientific community to the voiced problem. The consideration of the degree of the research on the discussed problem and the substantiation of the role “income” and “expenses” in the framework of domestic types of accounting, allowed us to judge that the problems of improving the methodology of accounting categories were often the subject of research and the object of close attention from foreign and domestic scholars. Changes in normative and legislative acts governing financial, tax, and management accounting, and different needs of information users in terms of income and expenses of an economic entity, with varying degrees of detail, necessitate the further study of the economic essence of the categories of “income” and “expenses” in light of various types of accounting [6, 7], which determines the relevance of further research.

3 Results Currently, a single accounting space is represented by such interrelated components as accounting, tax accounting, and management accounting. According to the Federal Law No. 402-FZ (December 6, 2011) [10], financial accounting is the formation of documented and systematized information about accounting objects following

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the requirements of the specified federal law and the preparation of accounting (financial) statements on its basis. This law applies to all economic entities, and its implementation is mandatory. Within the framework of accounting, a separate component is allocated to financial accounting, the only type of financial accounting, which represents a system aimed at the formation of the indicators necessary for the preparation of accounting (financial) statements, which include assets, capital, liabilities, and facts of the economic life of economic subjects. Financial accounting metrics are used for external reporting. Tax accounting is necessary and obligatory. Its purpose is to form indicators about the existing taxable bases of an economic entity, the rules and procedures for their calculation, and the taxation system [11]. According to the Tax Code of the Russian Federation [9], tax accounting is carried out to generate complete and reliable information on the accounting for tax purposes of business transactions carried out by a taxpayer during the reporting period. It is also used to provide information to internal and external users to control the correctness of calculation, completeness, and timeliness of calculating and paying taxes to the budget. The information on tax accounting is a secret and should not become the property of third parties. Management accounting is the collection, registration, generalization, and presentation of information about the economic life of an economic entity, the purpose of which is to obtain the necessary operational information for managing the organization. The information presented as the output of management accounting is generated exclusively for managerial needs at various levels of management. During its activity, each economic entity is faced with the receipt of income, the implementation of expenses, and their accounting. Information about incomes and expenses is reflected in each type of accounting and is used for various purposes. Therefore, for financial accounting, information on income and expenses is necessary to determine the financial result for particular business transactions and the organization [8]. The presented data on income and expenses in the accounting (financial) statements of the organization allow one to analyze the financial condition of the organization and carry out further planning. The users of accounting g were external users who aimed to study the statements to assess the financial condition of the organization for the further functioning of the economic entity in the light of maintaining further economic ties. In tax accounting, information on income and expenses is necessary to determine the tax base and calculate taxes correctly. Tax accounting data are the object of close attention of the tax authorities, which check the objectivity of tax calculations submitted by the organization and the timely transfer of taxes, fees, and other payments to the budgets. In management accounting, information on income and expenses is necessary for planning and controlling expenses for the rational use of the organization’s resources, minimizing expenses, and maximizing income, making optimal and timely management decisions. Thus, within the management accounting framework, certain centers, responsible for a particular area of accounting, are formed. As a rule, the users of management reporting are internal (managers of the organization at various levels

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and other personnel of the organization). They aim to obtain operational information about income and expenses to make operational decisions to prevent negative moments, the occurrence of which may become possible due to the deployment of certain events in the life of a business entity. Thus, the conducted studies allowed us to conclude that “incomes” and “expenses” play an essential role not only in the accounting system of an economic entity as a set of all existing types of accounting, but also give reason to judge their equally important role in the management system of the organization. Therefore, based on the accounting data of varying degrees of detail, it becomes possible to analyze the obtained financial results to plan and control the financial and economic activities and make optimal management decisions on their basis (Fig. 1). As we can see, all the considered types of accounting, despite different approaches, operate with the accounting categories “income” and “expenses” as the most important accounting concepts. Thus, accounting in various planes requires further study and determination of the appropriate approach to the categories of income and expenses of the organization. During operational activities, each organization is faced with the receipt of income, the implementation of expenses, and, accordingly, with their consideration. In accordance with accounting regulation 9/99 [4], income is recognized as an increase in economic benefits during the reporting period or a decrease in accounts payable, which leads to an increase in capital other than contributions by owners. Incomes include sales revenue, service fees, interests and dividends receivable, rent, and other income (proceeds from the sale of property, plant, and equipment, unrealized gains from revaluation of marketable securities, etc.). Following the accounting regulation [5], an expense is recognized as a decrease in economic benefits during the reporting period or the occurrence of liabilities that lead to a decrease in the capital (except for changes due to withdrawals from owners).

Organization management system

Financial accounting

The determination of the financial result of a specific type of product, work, service, and organization as a whole

Tax accounting

The formation of the taxable base for calculating taxes

Management accounting

Making operational management decisions to manage departments and the organization as a whole

Fig. 1 The role of economic categories “income” and “expenses” in the management system of an economic entity. Source Developed by the authors

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Expenses include material costs, costs of products (works, services), remuneration of employees and management personnel, depreciation deductions, other costs, and losses (losses from natural disasters, sales of fixed assets, etc.). Having analyzed the norms of these provisions, we note the following: • The amount of income (expense) must be determined and calculated; • The organization has an understanding that as a result of a perfect fact of economic life, the amount of income (expense) will lead to an increase (decrease) in the economic benefits of an economic entity; • Income (expense) is carried out in accordance with a specific fact of economic life committed in the organization. Failure to meet any of the above criteria leads to the fact that only receivables (payables) can be recognized in accounting. However, often the income reflected in one reporting period (for example, accrued proceeds from the sale of finished products) is not confirmed by the receipt of funds in it, or there is no receipt at all (for example, there was a write-off of debts of insolvent debtors). A similar situation is possible for the expenses of the organization.

4 Discussion The conducted studies allowed us to judge that not all income and expenses occurring in an economic activity of the organization can definitely and fully affect the final financial result. Such incomes and expenses are income and expenses of future periods, which, although arose in the reporting period, will have an impact in the future. However, it should be noted that the distribution of these categories for the reporting and future periods is somewhat conditional, provided by the requirements of accounting policies or the professional judgment of the accountant, which somewhat distorts the value and quality of financial results. In this regard, linking and correlating the received income and expenses with the reporting period, the financial results of which they determine, becomes urgent. Thus, we consider it necessary to concretize the concept of income (expenses) of the organization, limiting their reflection within the framework of a particular reporting period. Thereby, income or expense will correspond to a certain period, regardless of the further receipt or disposal of assets in other periods. This is especially true in light of the transition to IFRS, which considers all reflected income and expenses exclusively as income and expenses of the reporting period [1].

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5 Conclusion The consideration of the issues of accounting for income and expenses from the point of view of various types of accounting for an organization makes it necessary to classify them, taking into account the specific features of each of the existing types of accounting. Thus, when classifying income and expenses within the framework of financial accounting, one should be guided by the norms of the corresponding accounting regulations. Therefore, according to the accounting regulation 9/99 “Income of the organization” [4], incomes, depending on their nature, conditions for receiving, and area of the activity are divided into: (a) (b)

Income from ordinary activities (proceeds from the sale of products and goods, receipts related to the performance of work, the provision of services); Other income (income other than income generated from the performance of ordinary activities).

According to the accounting regulation 10/99 “Expenses of the organization” [5], expenses in accordance with their nature, conditions of formation, and areas of activity are divided into: • Expenses for ordinary activities (expenses associated with the production and sale of finished goods, the purchase and sale of goods, and the performance of work or the provision of services); • Other expenses (expenses that are not related to the main expenses within a specific economic entity). When classifying income and expenses within the tax accounting framework, it is advisable to focus on the norms of the Tax Code of the Russian Federation. According to the provisions of the Tax Code of the Russian Federation [9], the income of the organization is divided into: (1) (2)

Income from the sale of goods (works, services) and property rights; Non-operating income. The costs are subdivided into:

(1) (2)

Costs associated with production and (or) sale—material costs; labor costs; the amount of accrued depreciation; other expenses; Non-operating expenses.

If, within the framework of the considered types of accounting, the classification of income and expenses is strictly defined, then for management accounting, organizations are granted broad rights. Within the framework of management accounting, income can be divided into the following areas: (1) (2)

By sources of receipt (from the sale of finished products, semi-finished products, works, and services); By the time of receipt—(income of the reporting period, deferred income);

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In connection with the activities of the organization (basic income and other); Depending on the coverage of the plan (planned and unplanned). In turn, costs can be subdivided as follows:

(1) (2) (3) (4) (5) (6) (7)

By the place of origin (by production, workshops, centers of responsibility); According to the degree of product readiness (finished products, semi-finished products, work in progress, works and services); By the time of receipt (expenses of the reporting period, expenses of future periods); By bearers of expenses (finished products, work, and service, certain redistribution); Depending on business activity (variables, constant, conditionally variable); Depending on the activities of the organization (basic expenses and other expenses); Depending on the plan (planned and unplanned).

The classification of income and expenses presented in this way reflects the features of each type of accounting in the organization. Due to the existing discrepancy in the accounting of income and expenses within the framework of financial, administrative, and financial accounting, the amount of the financial result of the activities of the organization is also different. Thus, it is possible to determine the financial result of the organization within the framework of financial accounting since it covers all types of income and expenses. In the field of taxes and accounting, information is generated on taxable income. However, the formation of information on income and expenses within the framework of the considered types of accounting would be more efficient and effective in creating an effective system that includes elements of preliminary, current, and subsequent control, which would ensure control of the information received on the income and expenses of an economic entity, as throughout the reporting period, and beyond. As a result of the study, it was substantiated that the categories “income” and “expenses” are fundamental concepts of accounting that play an essential role in the management of the organization.

References 1. Chernovanova NI, Yagupova EV (2017) Problems and prospects of development of accounting of agricultural consumer cooperatives. Bull Lower Volga Agro Univ Complex. Sci High Prof Educ 1(45):300–309 2. Egorova EM, Terekhina NV (2014) Prerequisites and vector of development of a new conceptual management accounting in modern universities. Bull Lower Volga Agro Univ Complex 3(35):253–258 3. Khoruzhy LI, Karzaeva NN, Katkov YuN, Tryastsina NY, Ukolova AV (2018) The identification and presentation of information on sustainable development in the accounting and analytical systems of the organization. Int J Civ Eng Technol 9(10):1575–1581

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4. Ministry of Finance of Russia (1999a) Accounting regulation 9/99 “Income of the organization” (May 6, 1999 No. 32n). Moscow, Russia. Retrieved from https://www.consultant. ru/cons/cgi/online.cgi?req=doc&ts=117803153305824500789035201&cacheid=51C50339C 72BB63A81C32BD491713B3B&mode=splus&base=LAW&n=179206&rnd=0.603245507 8825816#8z40nijfl4w 5. Ministry of Finance of Russia (1999b) Accounting regulation 10/99 “Organization’s expenses” (May 6, 1999 No. 33n). Moscow, Russia. Retrieved from https://www.consultant.ru/cons/cgi/ online.cgi?req=doc&ts=117803153305824500789035201&cacheid=C844305985070D6189 55DF62346B00AD&mode=splus&base=LAW&n=179199&rnd=0.6032455078825816#21u hotls4bg 6. Pavlatos O, Kostakis H (2018) Management accounting innovations in a time of economic crisis. J Econ Asymmetries 18:e00106. https://doi.org/10.1016/j.jeca.2018.e00106 7. Quesado PR, da Silva MR, Rua SC (2018) The financial accounting and the cost management in the agricultural activity. Custos E Agronegocio Line 14(4):241–258 8. Rikhardsson P, Yigitbasioglu O (2018) Business intelligence and analytics in management accounting research: status and future focus. Int J Account Inf Syst 29:37–58. https://doi.org/ 10.1016/j.accinf.2018.03.001 9. Russian Federation (2000) Tax code of the Russian Federation (Vol. 2) (August 5, 2000 No. 117-FZ. Moscow, Russia. Retrieved from https://www.consultant.ru/cons/cgi/online.cgi?req= doc&ts=117803153305824500789035201&cacheid=61A1ED072476A2494E2C2B77A7F 808F8&mode=splus&base=LAW&n=331085&rnd=0.6032455078825816#cfxxghpetns 10. Russian Federation (2011) Federal law “On accounting” (December 6, 2011 No. 402-FZ). Moscow, Russia. Retrieved from https://www.consultant.ru/cons/cgi/online.cgi?req=doc&ts= 117803153305824500789035201&cacheid=016978EDE6E7152A4DDAB98A53A81215& mode=splus&base=LAW&n=330116&rnd=0.6032455078825816#1qik5znirhm. 11. Schuh G, Kelzenberg C, Wiese J (2019) Design model for the cost calculation of productservice systems in single and small series production. Proc CIRP 84:296–301. https://doi.org/ 10.1016/j.procir.2019.04.216

Features of Professional and Psychological Training of an Accountant-Analyst for Making Management Decisions in an Economic Crisis Alexey N. Bobryshev , Genaz S.-H. Dudaev , Natalya F. Krivorotova , Maria A. Vahrushina , and Lyudmila A. Meshcheryakova Abstract In modern conditions of crisis processes in the economy and the need to make optimal management decisions associated with increased responsibility, risk, and uncertainty, the requirements for the professional training of an accountantanalyst increase to achieve sustainable development of complex socio-economic systems. The scientific novelty of the research was the development and methodological substantiation of introducing new methods of professional and psychological training of future employees of accounting specialties for making managerial decisions in an economic crisis to achieve sustainable development of economic systems. The authors developed an interdisciplinary training course “Psychology of behavior of an accountant-analyst in conditions of risk and uncertainty,” intended for students of the direction of training in “Economics.” It was created based on an effective methodology and a set of management accounting tools developed over a long period in relation to crisis processes in the economy, which are successfully used in leading enterprises of the agricultural sector of the Stavropol Krai. Additionally, proven professional psychotechnics and techniques that increase labor efficiency and stabilize mental processes from employees of accounting professions were used as the basis of the training course. The result of the implementation of the developed educational course will be the formation of a complex of professional and psychological competencies that allow the future accountant-analyst to effectively perform

A. N. Bobryshev (B) Stavropol State Agrarian University, Stavropol, Russia G. S.-H. Dudaev Chechen State University, Grozny, Russia N. F. Krivorotova North-Caucasus Federal University, Stavropol, Russia M. A. Vahrushina Financial University under the Government of the Russian Federation, Moscow, Russia L. A. Meshcheryakova Stavropol State Medical University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_33

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professional tasks and constructively make decisions in conditions of uncertainty and risk associated with crisis processes in the economy. Keywords Professional training of an accountant-analyst · Making management decisions · Psychology of behavior of an accountant-analyst · Behavior in a situation of uncertainty · Crisis processes in the economy

1 Introduction In the conditions of permanent crisis, economic entities need to develop fundamentally new information about the state of business processes, which, in the current accounting model, is not subject to monitoring and evaluation when making decisions. Failure to use this information entails the adoption of incorrect management decisions, tactical and strategic, increases financial losses, and causes the risk of loss of solvency [1]. In this situation, the role and requirements for the accountant-analyst training increase since the central figure of the modern management accounting system are precisely the professional. The stability of socio-economic systems at the micro level depends on the judgments and the effectiveness of the decisions made by accountantanalysts. The range of tasks is expanding and changing, which must be optimally and quickly solved by future specialists in conditions of risk and uncertainty. These conditions require much more skills than bookkeeping and documenting transactions based on clear structuring, constant repetition, stability, and constancy [2]. Based on our previous studies of the nature of economic crises and their effects on the accounting and reporting system and long-term experience in teaching specialists of accounting disciplines, we concluded that it is necessary to study anti-crisis management accounting in the context of the psychology of labor organization of a modern accountant-analyst. Such conclusions are because the effectiveness of professional training of accountant-analysts and their functional readiness to work in conditions of external economic instability, high inflation, imbalance in economic relations with counterparties, and temporary time pressure is determined mainly by the presence of assertive behavior and constructive behavioral strategies of self-management and communication. In this context, it seems extremely relevant to create a separate educational course focused on the professional and psychological training of specialists with the knowledge, skills, and abilities to generate information for making optimal management decisions, taking into account the psychological features of a professional activity in the context of economic crises.

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2 Materials and Methods The systemic and integrative approaches became the leading methods for studying the problem under discussion since the methodological novelty of the presented version of the training course is the integration of the subject areas of psychology and management accounting in the training system built on intensive interdisciplinary connections between psychology and specialized professional disciplines (budgeting and cost accounting, budgeting in the management accounting system, etc.). General scientific methods (secondary literature, pedagogical modeling, mathematical statistics, and psychodiagnostic) were also used during the study.

3 Results The emergence of new requirements of employers and the prevailing reality of the modern economy stimulated a constant change in the content of education through the design of new training courses focused on forming a mobile composition of the required competencies of future graduates. This process is also facilitated by the legislative increase in the variable part of the study time, which allows, while remaining in line with the standards by providing greater independence to universities, to design an individually-oriented content of the educational process. Based on this, we developed an interdisciplinary training course “Psychology of behavior of an accountant-analyst in conditions of risk and uncertainty.” The content structure of the educational product is based on the results of a survey of expert groups from various sectors and spheres of economic activity (more than 300 respondents) and diagnostic data obtained when students passed the selection for participation in the project and educational intensive “SmartAgro 2019” in the Stavropol State Agrarian University (more than 50 people in the economic direction of training). Thus, during the expert survey of respondents, they were to answer whether, in their opinion, crisis processes in the economy affect the system of accounting and analytical support for the activity of an economic entity?” As a result, 69.6% of all respondents (72.4% in the focus group of accounting workers) supported the option according to which in crisis conditions, a wider range of information is required to make effective decisions (Table 1). Therefore, this confirms the need and importance of organizing special training for accountantsanalysts to work in economic crises. We were also interested in identifying the most necessary competencies from the point of view of experts for a modern specialist in the field of management accounting in an economic crisis. As a result, the respondents noted the following competencies, which are key for maintaining management accounting in the economic crisis: (1)

The possession of accounting methods for costs and calculating the cost of production (15.9% of the total number of awarded points);

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Table 1 The results of assessing the impact of crisis processes in the economy on the system of accounting and analytical support for the activities of an economic entity (% of the number of respondents) Options

Focus group

Total

Scientists

Accounting workers

Other experts

68.8

72.4

63.6

69.6

No, the information generated 12.5 in the financial and management system does not contribute to maintaining the financial stability of a company in a crisis

10.3

18.2

12.5

Yes, but only if the external 18.8 environment is monitored additionally to traditional accounting and analysis objects

17.2

18.2

17.9

Yes, in crisis conditions, more extensive information is required to make effective decisions

Source Compiled by the authors

(2) (3)

The ability to form an effective planning (budgeting) system (14.6%); The collection and analysis of data for decision making (14.2%) (Table 2).

The obtained data indicate that the role of an accountant is currently significantly changing. The accountant is becoming an increasingly full-fledged participant in the development of a business strategy. The management accounting system is acquiring a strategic focus. Simultaneously, the functions and objects of management accounting are becoming broader, which requires further improvement of models and technologies for professional training of accountants-analysts [3, 4]. As for the analysis of the diagnostic activities of bachelor students on the University platform 20.35, it allowed us to identify generalized psychological indicators of behavioral patterns in student as a set of real behavioral tools used by them in their daily (including professional) activities (Fig. 1). The most preferred patterns of behavior among students are: adept (support and movement for the leader) and controller (actions according to instructions, avoidance of surprises, and non-standard decisions). These are the characteristics that create difficulties in making flexible and independent managerial decisions in an economic crisis. From our point of view, for the effective professional activity of future accountants-analysts, it is necessary to purposefully develop, first of all, such behavioral patterns as “visionary” (foreseeing the future), “experimenter” (the ability to act in conditions of novelty and uncertainty), “hacker” (the ability to calculate risks and make quick decisions). It was on the development of these behavioral styles that the course developed by us was later directed.

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Table 2 Distribution of opinions on the competencies of specialists in management accounting (% of the total number of points awarded) Polled parameter

Focus group

Total

Scientists

Accounting workers

Other experts

The possession of cost accounting and costing methods

14.2

16.0

19.4

15.9

Collecting and analyzing data for decision making

12.4

15.3

13.6

14.2

The development of recommendations for the development of an economic entity

12.9

12.3

11.7

12.4

The ability to effectively present the development of an economic entity (the results of managing a specific business process)

5.3

5.8

5.8

5.7

The possession of risk management tools

8.0

8.5

7.8

8.2

Identifying the most promising 10.2 areas of business development (types of activities that the firm could do in the future)

9.4

8.7

9.6

The possession of strategic accounting skills

13.3

9.7

9.7

10.8

The ability to form effective planning (budgeting) system

13.8

14.3

17.5

14.6

9.8

8.7

5.8

8.6

The generation of information that reduces the impact on the business unit of stagnant and depressive processes in the economy Source Compiled by the authors 3 2.5 2 1.5 1 0.5 0

Fig. 1 Generalized indicators of behavioral patterns of bachelor students in economic training profiles. Source Compiled by the authors

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social element, friendship, influence, competition

6 5 4 3 2 1 0

achievement, striving for leadership

work on yourself, labor

possession and accumulation

unpredictability avoidance of negativity; regularity and safety

Fig. 2 Generalized indicators of key motivators of bachelor students of economic training profiles. Source Compiled by the authors

Another psychological parameter of diagnostics, to which we paid special attention when drawing up the training course, was key motivators, as internal drives of behavior (Fig. 2). The diagnostic results showed a high level of formation of the motivators “possession and accumulation,” “social element, friendship, and influence,” and “avoidance of negativity; regularity and safety.” However, when making managerial decisions in uncertainty, for an accountant-analyst, motivators of “meaningfulness,” “overcoming difficulties,” and “unpredictability” are essential, which was also paid attention to during the development of the training course. Thus, the content structure of the simulated educational course included theoretical and practical blocks, represented by four modules: 1.

2. 3. 4.

“Conceptual and methodological foundations of management accounting [MA] in the context of crisis phenomena in the economy” devoted to modern problems of development of MA; The genesis of accounting and economic thought in the context of educational institutions; the history of world economic crises; The impact of crisis processes in the economy on the transformation of accounting systems and financial statements; The formation of the MA system in the context of crisis phenomena in the economy.

The second theoretical module, “Psychological foundations of the behavior of an accountant-analyst in conditions of risk and uncertainty,” reveals: • The features of the activity of an accountant-analyst; • Psychology of cognitive processes of employees of accounting professions in conditions of uncertainty; • Psychological patterns of decision-making in situations of risk and information ambiguity;

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• Emotional and behavioral states of an accountant’s personality in extreme conditions; • Specifics of stress and its prevention, constructive communication strategies, including negotiations and interaction with regulatory authorities; • Conflicts in the professional activity of an accountant-analyst. The third practical module, “Development of a business model as an object of an economic entity under conditions of economic instability,” includes practical tasks and works with business simulators on the following topics: • An educational institution of the reserve system of an economic entity under conditions of economic instability; • Accounting and analytical support for the activities of an economic entity in an inflationary economy; • Budgeting as a tool for management in the conditions of crisis processes in the economy; • Analytical aspects of break-even in the conditions of crisis processes in the economy; • Method of CRISIS analysis in information support of decisions of an economic entity. The fourth practical module, “Workshop on the psychological preparation of an accountant-analyst to work in conditions of uncertainty,” is associated with: • The study of individual differences in responding to stress and extreme situations; • Diagnostics of cognitive processes of an accountant-analyst in conditions of routine and extreme; • Mastering techniques that increase efficiency and productivity. The framework of the module is planned to organize a communicative strategic game for decision-making and several trainings: • Training on stress management for an accountant-analyst “Coping strategies and coping behavior”; • Training of professional-assertive behavior “Problem and crises in the activity of an accountant-analyst”; • Training on conflict management and countering manipulations in the professional communications of an accountant-analyst. The presented training course is harmoniously integrated into the educational process of the university at several levels: • At the level of the general goal and objectives of training an accountant-analyst; • At the level of meaningful relationship with other disciplines; • At the level of teaching methods and principles. Corresponding to the educational standard in the direction of training “Economics,” it is practice-oriented, due to the use of computer business simulators, communication-strategic games, and trainings.

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The result of studying this course will be a complex of interdisciplinary competencies formed in students: • The formation of standards and regulations for the MA of an economic entity operating in conditions of crises of the economy; • The formation of effective accounting models in the MA system to reflect inflationary income and expenses of an economic entity, the procedure for creating and using reserves in crisis conditions; • The application of the CVP analysis method for agricultural organizations in conditions of hyperinflation; • Inflationary corrective measures; • Making management decisions using the author’s method of CRISIS analysis; • The formation of functional readiness to optimize the work of cognitive processes in conditions of uncertainty; • The ability for self-regulation in crisis conditions of professional activity; • The formation of a culture of conflict-free constructive communications in a professional environment; • The ability to adequately perceive, critically analyze, and evaluate the information for making optimal decisions in situations of risk and information ambiguity; • Willingness to effectively organize negotiations, productively interacting with regulatory authorities; • Proficiency in the prevention of stressful conditions and emotional burnout.

4 Discussion Thus, the presented educational course is focused on the use of a fundamentally new system of training a future specialist (accountant-analyst) for sustainable and effective highly professional work in conditions of crisis processes in the economy through the study and application of the psychological laws of the functioning of the human psyche in a situation of risk and uncertainty, as well as the specifics organizing his constructive interaction in a professional environment. However, how important is the psychological component, and what place does it occupy in the activities of a modern professional accountant-analyst? What psychological phenomena have a facilitating or restraining effect on the labor efficiency of employees of accounting professions in the context of economic crisis processes? The answers to these questions are essential to us in selecting the content and preparation of the training program in the training course being developed. The importance and decisive role of the psychological component in activities of an accountant are substantiated in their research by a significant number of scientists. For example, Ozturk [5], focusing on the intensity and complexity of the work performed by certified accountants, primarily studied the level of their “psychological capital” as positive organizational behavior, including optimism, sustainability, and self-efficacy. As the most important features for auditors, other scholars highlight

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the signs of emotional intelligence (stress management, adaptability, self-motivation, self-esteem, and emotional regulation) [6]. A separate group of studies is devoted to establishing causal relationships between the level of development of certain psychological parameters and the labor efficiency of workers involved in accounting and analytical activities. According to some of them, the professional and ethical behavior of an accountant is directly related to psychological knowledge [7]. Others established a relationship between the psychological triggers of the behavior of the accountant and the number of management decision options, as well as the choice of accounting policies to maximize or minimize the income of a company [8], between the actualization of intrasubject and out-ofbody psychological resources, professional development, and career of accountants [9]. Conversely, the negative impact of certain psychological phenomena on the productivity of accountantants was experimentally proven. For example, A. Amilin considers the influence of role conflict and emotional factors as constraining the accountanting performance [10]. However, the most significant attention in scientific works is paid to the stress factor in the work of an accountant. Over the past 20 years, significant progress was made in creating a global paradigm of stress for accountants in the workplace. According to scientists, the stress of a significant number of accountants (46%) was at a high level due to the discrepancy between the requirements for work and human resource capabilities. The researchers note that this factor negatively affects the health of employees, reduces their productivity, and success [11]. During this period, several factors and consequences of stress in accountants were identified and empirically confirmed. For example, there was an established relationship between the phenomenon of procrastination and stress among professionals of the financial sector because the peculiarities of their work lie in the unequal distribution of their work objects during the working month, which is associated with the reporting stages. This leads to a decrease in personal productivity and the ability to work, which manifests itself in an acute emotional experience of personal failure and dissatisfaction with the work. Occupational stress is an essential determinant of the life satisfaction and burnout of accountants [12], and arousal from stress has three fundamental aspects: emotional exhaustion, depersonalization, and decreased personal achievement (satisfaction, performance, and current intentions) [13], stress at work is a factor in creating physical and mental problems for accountants [14]. A chain of negative consequences of stress in the work of an accountant was also established. Role ambiguity, affecting emotional tension, leads to exhaustion, which, in turn, reduces the level of satisfaction with the work of employees and leads to the search for alternative work (Chong and Monroe 2015). Thus, the study of the emotional component in the activity of an accountant and the development of methods for the prevention of stress disorders constituted the priority block in the content of the practical module of the training course presented by us.

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5 Conclusion In general, due to the introduction of the interdisciplinary training course “Psychology of behavior of an accountant-analyst in conditions of risk and uncertainty,” the university will be able to train highly qualified specialists of a qualitatively new level. They have a functional and psychological readiness to organize effective professional activities in economic crises, capable of carrying out stable and productive work of an accountant-analyst in situations of uncertainty and information deficiency. Training of specialists with such a set of skills that are in demand and are in short supply at present will provide a solution to an essential national economic problem—increasing the stability of the functioning of economic entities in conditions of macroeconomic instability.

References 1. Frolov AV, Germanova VS (2017) Methodology for the relationship between management and financial accounting in a market economy. Russ Econ Internet Mag 3:50 2. Titova OV, Kostyukova EI, Boboshko NM, Drachena IP (2019) New types of taxes and forms of taxation in the conditions of information economy: perspectives of optimization. Stud Syst Decis Control 182:229–235 3. Erokhin V, Endovitsky D, Bobryshev A, Kulagina N, Ivolga A (2019) Management accounting change as a sustainable economic development strategy during pre-recession and recession periods: evidence from Russia. Sustainability 11(11):3139 4. Yakovenko VS, Malinovskaya NV, Belenov ON, Kostyukov KI, Batchaeva FM (2018) Features of accounting in the trade organization possessing the separate units. Res J Pharm Biol Chem Sci 9(3):819–823 5. Ozturk MS (2019) Research about the organizational psychological capital levels of certified public accountants. In: Handbook of research on positive organizational behavior for improved workplace performance, pp 330–348 6. Boyle EJ, Schwarzbach HR, Cooper EA (2016) The importance of emotional intelligence traits for auditors. Int J Account Audit Perform Eval 12(2):151–166 7. Mislavskaya NA, Polenova SN, Sotnikova LV, Brovkina ND, Ermakova MN (2019) Current interpretation of professional ethical requirements to accountants and auditors. Interpretación Moderna de Exigencias Éticas Profesionales a Contadores y Auditores, 35(Special Issue 20):1204–1215 8. Bogdan V, Mes, ter IT, Matica DE (2018) Insights into some psychological triggers that affect judgements, decision-making, and accounting choices. Econ Res Ekonomska Istrazivanja 31(1):1289–1306 9. Tolochek VA, Zhuravleva NI (2015) Dynamic updates and actualization of the subject’s psychological resources throughout a professional career. Psychol J 36(1):91–107 10. Amilin A (2017) The impact of role conflict and role ambiguity on accountants’ performance: the moderating effect of emotional quotient. Euro Res Stud J 20(2):237–249 11. Kulish NV, Sytnik OE, Tunin SA, Frolov AV, Germanova VS (2018) Approaches to the valuation of biological assets at fair value. Res J Pharm, Biol Chem Sci 9(3):746–750 12. Ozkan A, Ozdevecio˘glu M (2013) The effects of occupational stress on burnout and life satisfaction: a study in accountants. Qual Quant 47(5):2785–2798

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13. Smith KJ, Emerson DJ, Everly GS (2017) Stress arousal and burnout as mediators of role stress in public accounting. Adv Acc Behav Res 20:79–116 14. Yousefi S, Nayebzadeh S, Nayebzadeh HE (2015) The effects of job stress on Accountants job satisfaction. Iran Occup Health 12(3):46–53

Foreign Economic Activity of Agricultural Organizations in Russia: Risk Assessment Lubov V. Postnikova , Lyudmila I. Khoruzhy , Daria D. Postnikova , Lyudmila V. Urazbakhtina , and Yuliya A. Myrksina

Abstract Foreign economic risks include possible adverse events that can occur and lead to losses and material damage for foreign trade participants. The authors classified risks of foreign economic activity of agricultural organizations, assessed risks of foreign economic activity, and considered methods of reducing the onset of risks. When the organizations of the AIC carry out foreign economic activities, the risks associated with it are still supplemented by the specific manifestation and impact on the results of the production of financial risks for agriculture. Keywords Foreign economic activity · Risks · Classification of foreign economic activity risks · Agricultural organizations

1 Introduction The globalization of foreign economic relations suggests that the world economy and politics have a considerable impact on the set of risks faced by organizations involved in foreign economic activities [1, 2]. Their functioning is influenced by the instability of the world economy, the cooling of trade and political relations between states, contradictions of regulatory documents in the countries of counterparties, the level of inflation, strikes, military conflicts, riots, the development of complex financial instruments, the prohibition and restrictions on foreign trade, the outbreak of mass diseases, an increase in human-made disasters, etc. Agricultural organizations are forced to carry out foreign economic activities in conditions of uncertainty and instability. Therefore, it is essential for them to timely assess the possible risks inherent in foreign economic activities.

L. V. Postnikova (B) · L. I. Khoruzhy · D. D. Postnikova · L. V. Urazbakhtina · Y. A. Myrksina Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] D. D. Postnikova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_34

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2 Materials and Methods The multivariance of the interpretation of the scientific category “risk,” the risk of foreign economic activity, the lack of a unified approach to the classification of foreign economic risks, effective Russian development in the identification and analysis of foreign economic risks do not allow to neutralize foreign economic risks thoroughly [3]. Many works by domestic and foreign authors are devoted to the study of the development of foreign economic activity and the mechanisms of its management by economic entities [4–10]. Scientists pay increased attention to the risks of foreign economic activities, which can be explained by the high degree of influence of risks on the production and economic activities of organizations and socio-economic relations in society [11, 12]. Simultaneously, the scientific and practical aspects of creating an effective risk management system that provides proper assessment and analysis are not fully understood.

3 Results Agricultural organizations have the right to independently sell agricultural products in foreign markets, purchase imported raw materials, materials, fixed assets, equipment, and services on the international market for goods and services. Food products and agricultural raw materials account for about 5.53% of total exports [13]. Most of the export falls on grain crops (over 40%), sugar, vegetable oil, and potatoes. In 2018, 54.8 million tons of grain and $8.5 billion of fish and seafood were exported [13]. With the introduction of Western sanctions and the restriction of the access of leading Russian banks and financial corporations to foreign banks, the fall in oil prices and the change in the economic situation of the country influenced the development of foreign economic activities. However, when an enterprise carries out foreign economic activities, the risks associated with agricultural production multiply and increase, since agriculture as an industry has its features that determine the specificity in the manifestation of these risks. Foreign economic risks include possible adverse events that can occur and lead to losses and material damage for foreign trade participants. Currently, there is no generally accepted classification of risks. According to various sources, there are 150 types of risks or more than 40 different criteria for classifying risks. To create a risk management system and develop preventive measures to reduce risk, it is important to determine the type of risk to which the organization is exposed and choose methods for its assessment (Table 1).

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Table 1 The classification of risks in the foreign economic activity of the agricultural organization Risk classification

Risk

By the sphere of origin

Economic Organizational Political Social Environmental

By territorial position

Foreign Bordering National

By the sphere of manifestation

Internal External

By the possibility of influencing the risk

Managed Indirectly controlled Ungovernable

By the possibility of foresight and control Entirely predictable and controlled by an enterprise participating in foreign economic activity Partially controlled Unpredictable and uncontrollable Source Developed by the authors

Considering the production risks of foreign economic activity, it is advisable to take into account the risks of agricultural organizations associated with industry features: • Technological risks arise due to insufficient provision of agricultural producers with equipment, plant protection products, mineral fertilizers, etc. As a result, the organization incurs losses, the timing of agricultural work is violated, there is a risk of loss of marketable products; • Natural and climatic risks include environmental degradation, climate change, increased solar radiation, and emissions of harmful substances into the atmosphere and water. For agriculture, these risks are the most important and little regulated. As a result, the yield of crops and the productivity of farm animals decreases, which negatively affects production costs, sales volumes of finished products, and the amount of profit and profitability of agricultural organizations; • Personnel risks arise due to the insufficient number of highly qualified labor forces in rural areas, the lack of opportunities to attract and train young specialists. Currently, there is an outflow of qualified, young, economically active part of the rural population from rural areas to cities; • Biological risks arise due to the biological nature of living organisms used in agriculture (risks of decreasing yield and productivity). Different types of risks are inherent in agricultural organizations depending on the types of foreign economic activity. Of all the variety of types of risks, we will focus on inflationary, currency, marketing, scientific, technical, political, environmental, and production risks:

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• Foreign trade activities of an agricultural organization are marked with currency, sales, political, and environmental risks; • International investment cooperation faces inflationary, foreign exchange, scientific and technical, political, environmental, and production risks; • Production and technological cooperation is marked with foreign exchange, scientific and technical, political, environmental, and production risks; • International scientific and technical cooperation faces foreign exchange, scientific and technological, political, environmental, and production risks; • Currency and financial and credit cooperation are marked with inflationary, currency, scientific and technical, and environmental risks.

4 Discussion The magnitude of the risk of various types of foreign economic activity cannot be unambiguous. Its size may vary depending on the use of various methods for assessment: peer review method, SWOT analysis, risk spiral (Rose), index/classification method, statistical charge flow distribution method, sensitivity analysis, neural network-based models, character recognition methods, methods of the experimental theory of values, analogy method, methods of intermediate statistics, modeling method, point and intermediate estimation of the statistical (coefficient) method, and others [14]. For example, the statistical method is used if the foreign trade community has a significant number of statistical issues in the middle of their attention. When using the analysis method, the assessment process is carried out in stages. In the first stage, analytical information is compiled. In the second stage, diagrams of the dependencies of the selected indicators on the initial data are drawn up, and the indicators most strongly affecting this type of foreign trade are compared and identified. In the third stage, the critical values of the key parameters are determined, the level of foreign economic activity of the agricultural organization is calculated with a minimum of export sales to cover the costs of the organization. In the fourth stage, based on the obtained key parameters, possible ways to improve the performance of the manufacturer and, therefore, the ways to reduce risks determined by one of the previous methods are analyzed. The essence of the method of using analogs is that it is necessary to use the information on the development of certain areas in the past when assessing the level of risk of a particular area of foreign economic activity. The analysis of past factors is carried out based on the data from various sources, such as the balance sheet of foreign counterparties and their integrated reporting. The method of “Decision tree” is used to analyze predictable risks. This model is a graphical representation of the sequence of decision making and environmental conditions showing the corresponding probabilities for all combinations. When building a “decision-making” system and creating alternative scenarios for the development of a situation, it is necessary to have relevant and reliable information that

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considers the likelihood and timing of their occurrence. This assessment method is useful for decisions that at the time t = n largely depend on the decisions of parties and the establishment of scenarios for further development of events [15]. After assessing the risks of foreign economic activities controlled by AIC organizations, they should take measures to reduce them: • Learning information about the counterparty and determining the degree of its reliability are the methods of preventing or reducing risks; • High-quality drafting of the contract, the introduction of protective clauses indicating the measure of responsibility for non-fulfillment of obligations by the party to the contract, the possibility of filing complaints, claims, and the period of their execution; • Using various forms and methods of settlement and credit relations, which allow avoiding the risk of non-payment of the delivered goods or non-receipt of goods for payment (collection, bills of exchange, payment for goods in advance or for delivery of goods, obtaining a bank guarantee or surety from a third party); • Insuring the transaction or transportation of goods; • Hedging financial risks will allow one to insure foreign economic operations against possible fluctuations (increase or decrease) in the cost of material and production assets during the subsequent transportation and sale of finished products (conclusion of forward, futures, or option contracts); • Forwarding companies take full responsibility; • Agreeing with an international reseller; • Analysis and forecasting of supply and demand, pricing of commodities, planning, and development of optimal measures to reduce external market risks associated with adverse market changes; • Formatting a reserve to cover the risk of financial losses from the foreign economic activity at the expense of the profit; • Recruiting of qualified specialists and others. To reduce the production risks of foreign economic activities, agricultural enterprises must use modern risk management tools, particularly, precision farming, a variety of farming methods (organic, sustainable), and chemical pest control. The assessment of the risks of foreign economic activities can lead to the abandonment of unreliable partners or risky activities in the foreign market if reliability and efficiency are doubtful. These proposals can minimize the impact of adverse probabilistic events on the activities of enterprises.

5 Conclusion Various types of risks accompany the implementation of foreign economic activities. Risk is the possibility of unforeseen circumstances or unfavorable outcomes of the production, economic, financial, or other activities of an organization that

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may be harmful. Classification and assessment of risks of foreign economic activities are essential for heads of AIC organizations for predicting certain negative events, making optimal management decisions, and minimizing material and financial losses. The choice of a method for assessing the risk of foreign economic activities of agricultural organizations depends on the size of the organization and the types of activities.

References 1. Bhogal TS, Trivedi AK (2008) International trade and inherent risks. In: International trade finance. Finance and capital markets series. Palgrave Macmillan, London, UK 2. Buikin VYu (2008) The classification of risks of foreign economic activity of a company producing industrial products. Proc Free Econ Soc Russ 98:51–55 3. Seltsovsky VL (2008) Russia’s foreign trade strategy in the modern system of world economic relations: methodological aspects of quantitative assessments. Vest, Moscow, Russia 4. Balabanov IT (2000) Foreign economic relations. Finance and statistics, Moscow, Russia 5. Spartak AN (2004) Russia in the international division of labor: choosing a competitive strategy. MAKS Press, Moscow, Russia 6. Strovsky LE (2012) The foreign economic activity of the enterprise. UNITY-DANA, Moscow, Russia 7. Korolkov AF (2006) The foreign economic activity of agricultural enterprises. KolosS, Moscow, Russia 8. Lapusta MG, Sharshukova LG (2016) Business risks. INFRA-M, Moscow, Russia 9. Trukhachev VI, Lyakshieva NI, Erokhin VL (2006) International trade. Finance and statistics, Moscow, Russia 10. Kostyukova EI, Elchaninova OV (2011) Accounting and analytical support of the foreign economic activity of agricultural organizations. Account Agric 8:36–41 11. Sinko AV (2012) Foreign economic activity and risks. Russ J Innov Econ 4:67–77 12. Terekhova EA, Petrova SO (2017) The analysis of the domestic and foreign practice of interaction between foreign economic activity participants and state bodies in the field of foreign economic activity. Modern Econ Probl Solutions 5(89):95–104 13. Russian Foreign Trade (2019) The report on Russia’s foreign trade in 2018: trade turnover, exports, imports, trade partners, structure, goods, dynamics, and Russia’s foreign trade in 2018. Retrieved from https://russian-trade.com/reports-and-reviews/2019-02/vneshnyaya-tor govlya-rossii-v-2018-godu/ 14. Vishnyakov YD, Radaev NN (2008) General risk theory. Academy, Moscow, Russia 15. Gabdinurov IV (2010) Financial risk management in the new economic environment. Russia, Moscow 16. Ritson C (1977) Agricultural economics: principles and policy. Crosby Lockwood Staples, London, UK

Digital Transformation of Accounting and Control Functions in Agricultural Holdings Svetlana M. Bychkova

and Daria O. Zabaznova

Abstract The paper focuses on the relevance of the development of digital technologies in agriculture, and in particular, in agricultural holdings. The main features of agricultural holdings are presented. The possibilities of the digital transformation of accounting and control functions in agricultural holdings are determined using the example of one of the largest agricultural holdings in the Volgograd Region— the agricultural holding “Helio-Paks.” The features of interaction in an agricultural holding were studied, taking into account territorial remoteness, economic, organizational, personnel, and financial heterogeneity, diversification of capital and assets, and the degree of motivation and responsibility. The simplification of the possibilities of digitalization due to the synergistic effect is considered. The authors described the advantages of the introduction and use of the “GeliopaxGeo” system for continuous monitoring of the state of crops in the agricultural holding. The application of the software 1C: Satellite Monitoring was studied. It is concluded that the “GeliopaxGeo” system and the 1C: Satellite Monitoring software used in the agricultural holding allow for continuous internal accounting and control, which, in turn, includes the collection and analysis of information on the current activities of the agricultural holding, and the adoption of management decisions aimed at increasing the efficiency of financial and economic activities of the agricultural holding. Keywords Digital transformation · Agricultural holdings · Accounting and control functions · Continuous monitoring system for the state of crops · Software product · Continuous inter-holding accounting and control

S. M. Bychkova (B) Saint Petersburg State Agrarian University, Saint Petersburg, Pushkin, Russia D. O. Zabaznova Volgograd State Agricultural University, Volgograd, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_35

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1 Introduction In current economic conditions, the task of the digital transformation of all sectors of the national economy was set in the Russian economy. Regarding the agricultural industry, this means the use of digital technologies to achieve a significant increase in the level of indicators characterizing the effectiveness of its functioning and its sustainability. The driver of such a growth should be radical qualitative changes of management parameters in relation to the technological and decision-making processes at each of the hierarchical levels in the structure of economic entities. It should be based on the use of current production methods and state information objects (subsystems and elements) of the management structure and the economic environment in which these entities operate. Following the departmental project of the same name, digital agriculture should be based on modern methods of agricultural production and food, involving the use of digital technologies, which, following the provision of the document, include such technologies as robotics, the Internet of Things, Big Data, Artificial Intelligence, electronic sales technologies, etc. The use of these technologies is designed to solve the problems associated with an increase in labor productivity and reduce production costs [1].

2 Materials and Methods The relevance of the development of information technology in agriculture is due to the following tasks: • To collect data on farm animals, crops, and individual plants, data on microorganisms useful in agricultural production, monitoring the condition of agricultural lands, updating soil maps, and, if necessary, compiling them based on the creation of new digital methods; • To develop digital methods for the use and updating of breeding and genetic material; • To improve the use of information resources, platforms, and technologies to develop individual agricultural production facilities and improve production efficiency in the industry through the introduction of new digital tools; • To ensure further improvement of such areas of development of the agricultural production sector as automation, robotization, and intellectualization based on the creation and implementation of new technologies and technical means; • To improve the forecasting of the state of the markets for agricultural products and food based on the development of systems associated with GIS; • To simplify processes in the areas of agricultural lending and agricultural insurance; • To provide state support in the agricultural sector and related workflow based on digital data collection technologies for business entities operating in agriculture;

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• To compensate and smooth out seasonal declines in the agricultural sector through financial and regulatory instruments; • To develop management and monitoring systems for the availability of long-term storage in agricultural warehouses based on the use of information tools; • To increase the efficiency of interaction between individual participants of the agricultural market among themselves and with government bodies of various levels based on their transition to digital format; • To integrate information services in the agricultural sector, such as electronic transaction support, distributed ledgers, electronic document management elements (such as warehouse receipts, acts of acceptance of goods for processing, etc.) based on ensuring the convenience of access to them by an unlimited number of authorized users; • To increase attractiveness of employment in agriculture through increased incomes, especially in rural areas, and specialists in the field of intelligent technologies; • To provide access for ordinary business entities in the field of agricultural production to digital platforms for macro-forecasting demand, managing agricultural machinery, means of objective control of plant vegetation and climate forecasting data, and tools for planning and managing production using elements of the “Big Data” technology; • To integrate a vast number of digital solutions in agriculture with solutions and technological platforms developed for other industries as part of a unified state approach to building a digital economy; • To provide people living in rural areas with access to high-speed communications; • To standardize formats and protocol for the exchange of data between management information systems in the agricultural sector; • To create technologies and platforms for supporting decision-making by agricultural producers. Until recently, the use of information technology in agriculture was limited to the use of PCs and software designed primarily to track business transactions and manage finances. Not so long ago, large Russian agricultural holdings and agricultural formations started to use information technology to monitor crops and various elements of the agricultural process. In the field of agro-industrial production, enterprises, as a rule, are technologically connected. For the parent organization of the holding formation, the main task is the effective management of subordinate organizations based on streamlining the processes of impact on managed objects to increase profits and reduce economic losses. Holdings are marked with special relationships based on legal independence and decentralized responsibility of business units. As a rule, the subsidiaries of the holding do not have access to the external capital market, since all the interests in the subsidiaries belong to the parent organization. Unlike a separate enterprise, within the holding, there are open markets organized according to the same rules

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as foreign ones. These domestic capital and goods markets are an additional sign of a holding company, and, as a rule, they are marked with a special movement of financial and commodity flows.

3 Results Let us consider the possibilities of the digital transformation of accounting and control functions in agricultural holdings using the example of one of the largest agricultural holdings in the Volgograd Region—the agricultural holding “Helio-Paks” specializing in the production and sale of crops. The agricultural holding consists of 11 legal entities, including six enterprises engaged in the production of agricultural products, with a total of more than 100 hectares of arable land. The holding enterprises are located in the Volgograd Region on the territory of the Alekseevsky, Mikhailovsky, Novoanninsky, and Novonikolaevsky districts, on chernozem soils of the steppe zone. The agricultural holding also includes two elevators and various organizations that provide services and logistical support. There are no intermediary organizations between the subject of control (“Helio-Pax” LLC) and the organizations controlled by it (Table 1). The Helio-Paks agricultural holding uses several digital approaches in the production of crops. The system (“GeliopaxGeo”) of continuous monitoring of the state of crops was introduced and is actively used in the agricultural holding. This is a control information digital system that provides interested users (primarily agronomists and accountants) with information about the status of crops. The “GelioPaxGeo” system includes the following units: electronic map, electronic field history book, weather data, equipment monitoring, and video. It is accessible wherever there is the Internet, Table 1 The structure of assets and financing sources in the “Helio-Paks” LLC for an average of 5 years from 2014–2018 (%) Agro-holding

Fixed assets

Current assets

Equity

Borrowed capital

Balance currency

Sales revenue

Sales profit

5 years on average Subsidiary agribusinesses

10.72

61.70

28.41

36.90

31.01

81.08

98.57

Parent organization

80.64

7.57

71.30

6.79

51.56

1.10

1.09

Other subsidiaries

8.64

30.73

0.28

56.32

17.43

17.82

0.34

Total

100.0

100.0

Source Developed by the author

100.0

100.0

100.0

100.0

100.0

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on a stationary computer, and from a mobile device since it is designed as a web application. It is stored on the server of the parent organization and can communicate with the database on other servers. The primary data stored and used in the system is the data of the agronomic service (the description of the land plot, indicating its quality features and location, cultivated crops, varieties, etc.). These satellite images allow visualizing the location of fields, tracking and controlling plant development phase, and weather data. Satellite images and meteorological data are downloaded from third-party resources. Agronomic data are generated by the responsible agronomist of each agricultural holding and entered into the system. Only registered users of the system can use the information. During authorization, the user sees the site depending on the competencies and the role set by the site administrator in advance. The information from the site is not available for an unregistered user. The users registered in the system are divided into agronomists and observers (including accountants). They can see different modules. Agronomists can enter new information into the blocks available to them on the Agro tab view and edit detailed information for each field within their competence. Observers (including accountants) can only view information without the right to edit it. However, their competence includes access to information on all agricultural enterprises of the agricultural holding and the right to use the “Video” tab, which allows controlling the quality of work performed in agricultural holdings. The decentralization of the responsibility and managerial decision-making in the agricultural holding through the application of the “GelioPaxGeo” system allows the management and accountant to timely control all costs and make timely management decisions to optimize production and use limited resources efficiently and economically. The software product “1C: Satellite Monitoring” is a specialized solution based on the “1C: Enterprise 8” platform, designed for GLONASS/GPS monitoring, accounting, and control of vehicles equipped with GLONASS/GPS terminals. It, through installed terminals in each main facility (OS) (combine harvester, tractor, sprayer, or KAMAZ), allows to determine the geographical location, direction, and speed of vehicles, visually view the “track” of each vehicle, highlight the moments of fieldwork on the track, indicate the place of unloading and stops of transport, using sensors to control the start and end time of fieldwork (harvesting, spraying, sowing). Additionally, it helps to control the average speed during fieldwork and determine the moments of exceeding the set speed, determine the distance traveled per day, the distance traveled during fieldwork, and hauls, receive information about the field on which the work was carried out, or unloading took place. It helps to receive information on the number of unloadings, their duration, and their time. The system controls the time on and off the internal combustion engine, the duration of idle time with the internal combustion engine on and determines the duration of downtime during working hours. These products allow monitoring and controling the location of equipment used in agricultural work.

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4 Discussion Characterizing agricultural holdings from the point of view of their typical features, we should highlight the following: (1) (2) (3) (4)

The territorial remoteness of the holding participants from each other; Economic, organizational, personnel, and financial heterogeneity; The diversification of capital and holding assets; A different degree of financial motivation and responsibility of various participants in the holding.

These conditions require the management of the agricultural holding to pay increased attention to the control [4]. Even when creating a holding structure, individual elements of control are introduced into its management. In particular, the logical control of the synergistic effect is already carried out at the stage of the operational merger of economic entities. At the same time, potential financial results, rights, and obligations of holding members are subject to control in the first place. Another element of control at this stage is the control of the indicator of “expected net gain,” calculated as the difference between the present value of future income and costs incurred at the stage of inclusion of the enterprise in the holding (at the acquisition price). The preliminary control of future cash flows is the most difficult task. The third control element at the merger stage is the control of earnings growth per share for the shareholders of mutually integrated organizations if the merger is based on the exchange of shares. In practice, studies of the application of this criterion give mixed results. An acquisition company acquiring shares is faced with the need to pay a premium for the shares acquired in connection with the transfer of control. Additionally, in some cases, information about the upcoming merger leads to an additional increase in the market price of shares. This leads to the fact that the satisfaction of shareholders with the acquired company is usually high, while the benefit of the shareholders carrying out the acquisition at this stage may not be evident. It is with this that there is a need to improve the financial control of the rights of owners and, accordingly, strengthen the social function of corporate financial control. Finally, the last element of control at the merger stage is the cost control of the acquisition company. Payments to the acquired shareholders may be in the form of ordinary or preferred shares, offset of debt instruments, cash, or combinations of these forms. If securities are used as a means of payment during the transaction, they will be converted into cash equivalents at market value during settlement. A similar technique is applied if the absorbing company assumes the obligations of the purchased company [2]. In the group of companies, based on the synergistic effect, the implementation of some opportunities is simplified. First of all, this refers to the construction of a holding information system, in which compliance with the principles of reliability, completeness, and timeliness of information reflection must be ensured. Equally important is ensuring compliance with the requirements for

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financial and economic operations of participants in terms of compliance with the law, expediency, timeliness, and correctness. Holding structures undertake important work to identify deviations of the actual values of indicators of economic entities from the planned ones and to characterize these deviations. Finally, head structures of holdings play an important role in organizing ongoing financial monitoring and strengthening production discipline. Moreover, in the holding system, it is advisable to single out a single center of responsibility for the achievement of its goals. In the structure of the agricultural holding, its participants get the opportunity to act in a relationship under mutual control while being interested in carrying it out, since the goal of developing corporate formation in the current business environment and competition in commodity markets, is to involve modern methods of agricultural development, high-yielding varieties in the economic turnover, new equipment and technologies, and modern digital information systems [3].

5 Conclusion The “GeliopaxGeo” system and the 1C: Satellite Monitoring system software used in the agricultural holding allow for continuous intra-holding accounting and control: within the boundaries of one agricultural holding member, between agricultural holding members, control by the parent organization of the financial and economic activities of agricultural holding members, external control of each agricultural holding member and agricultural holding on the whole, investor control over the activities of an agricultural holding. Control includes the collection and analysis of information on the current activities of the agricultural holding, the adoption of management decisions aimed at improving the efficiency of the financial and economic activities of the agricultural holding. As part of agricultural holdings, control is a specialized type of management activity and can be developed as such, involving the creation of specialized quality services, the development of appropriate methodological tools, and the introduction of professional technologies. This, as a rule, is associated with an increase in agent costs. Therefore, a more acceptable solution for agricultural holdings is to integrate the control function into the universal management function system along with accounting, analysis, planning, operational and strategic regulation of economic activities, etc. The high competition requires the “Helio-Pax” agricultural holding to improve production efficiency, including through the introduction of innovations, modernization of the technical platform, optimization of interaction processes, and an increase in the level of control and qualification of specialists. A well-coordinated integrated system of scientific and technical support for agricultural production and the development of science and technology can significantly improve the use of soil-climatic, raw materials, and labor resources and solve one of the main tasks of the day, improving the economic stability, productivity, and environmental safety of agricultural activities of the agricultural holding “Helio-Pax” in a market economy.

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References 1. Gordeev AV, Patrushev DN, Lebedev IV, Arhipov AG, Bulanov KA, Grebenkov DV et al (2019) Departmental project “Digital Agriculture.” Moscow, Russia: FGBNU “Rosinformagrotekh” 2. Khachaturian NM (2010) The potential for integration in the management of strategic investment development. Bull Volga Univ V.N Tatishchev 20:37–43 3. Popova LV, Tatarkina GA, Zabaznova DO, Chuenkova AS (2015) Organization of control and financial infrastructure of an agricultural holding. Sci Rev Ser 1 Econ Law 2:192–199 4. Tatarkina DO, Mechetina TA (2012) The financial infrastructure in an agricultural holding. Finance Credit 4(484):53–61

Optimization Decisions in Accounting Roman V. Nuzhdin , Anna N. Polozova, Irina N. Maslova , Natalia I. Ponomareva, and Lyudmila N. Sotnikova

Abstract In this study, we aim to justify and confirm the need for optimizing decision-making in the accounting of agricultural enterprises, especially regarding general taxation. The paper reveals the interconnections between the essence of sustainable development and tax sustainability, gives evidence of the sufficiency of the research methodology (deductive, inductive, systematic, and special scientific approaches), and confirms the practical usefulness of recommendations for improving accounting and the elements of taxation in business entities. As a result of this study, we developed methodological provisions for eliminating the shortcomings and contradictions in the existing accounting policies of agricultural enterprises. We provided ways of implementing these provisions in profit taxation systems, using, in contrast to existing methods, a block architecture of systematic optimization decisions. The proposed provisions, which have multi-purpose effectiveness, aim to increase the sustainability of economic activities in enterprises. Keywords Accounting · Reporting · Taxation · Accounting policy · Agricultural enterprises · Tax optimization

1 Introduction Currently, agricultural enterprises conduct their economic activities in rapidly changing socio-economic conditions. Business entities must fully meet their tax obligations within the required time frame due to the revenue service control. The responsibility of taxpayers increases due to many circumstances, including the measures to optimize the system of accounting and reporting on taxes, especially the profit ones. R. V. Nuzhdin (B) · N. I. Ponomareva Voronezh State University of Engineering Technologies, Voronezh, Russia A. N. Polozova EkoNivaTehnika-Holding LLC, Voronezh, Russia I. N. Maslova · L. N. Sotnikova Voronezh State Agrarian University named after Emperor Peter the Great, Voronezh, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_36

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The main purpose of tax optimization is achieving a balanced interrelation between the taxpaying enterprises and the revenue service based on the absence of mutual claims and minimizing tax losses. We researched the existing provisions of accounting policies in medium-sized milk-producing enterprises of the Voronezh Region and deemed their procedures calculating, accounting, and paying taxes as needing improvement. Companies that manage such enterprises mainly keep tax records traditionally. Tax planning includes only significant optimization measures. However, existing tax benefits are underutilized, tax risks are not defined during optimization, and, as a rule, there are no internal tax control services. A taxpaying enterprise, that improves its accounting policies and optimizes the reporting of income tax, can conduct its business activities more effectively and ensure the growth of government budgets without hindering its own sustainable development [4].

2 Materials and Methods The economic activities of agricultural enterprises, which are parts of agricultural holdings, have several distinctive (by type of economic activity) and specific (by taxation regime) features that must be taken into account when implementing the sustainable development of economic entities. The idea of corporate sustainability on the concept of “parties concerned” is being developed [8, 12, 15]. According to this idea, the focus of complex economic systems (including holdings) on maximizing profits is replaced by a focus on meeting the requirements of all key stakeholders. One of these stakeholders is the government since part of the enterprise profit goes to budgets and serves as one of the government revenue sources. Thus, the normative ways of sustainable development of complex socio-economic systems are ensured by and associated with financial sustainability [1, 2, 6, 9, 18]. As an element of the economic system sustainability, the financial side of sustainable development was studied in detail, especially the analytical methods for identifying its level [3, 10, 13]. At the same time, as a rule, the impact of the tax component on the assessment of tax risks is underestimated [14, 19], which we consider a significant omission. Meanwhile, tax sustainability has a special impact on the enterprise development planning tool since it denotes the ability to meet tax obligations [1] and maintains optimal relations with the revenue services based on the satisfaction of mutual interests [7, 11]. Therefore, we refer to tax sustainability as a condition that is ensured by maximizing the use of benefits and preferences and minimizing tax losses. The basic element of tax sustainability as the target of a business entity is tax optimization, which takes the form of special optimization decisions and provides tax benefits. On the other hand, taxes are integral objects of the accounting system, although tax accounting is now separated from accounting following Chap. 25 of the Tax Code of the Russian Federation.

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The financial report monitoring of medium-sized agricultural businesses in the Voronezh region, using open data [16] and the results of their own observations, allowed us to recognize some of the shortcomings that occur in accounting systems. By accounting system, we understand the entire set of interconnected accounting elements, including collecting and processing primary documents, performing accounting transactions, compiling registers, and reporting. Taxationrelated processes, including profit collection, occur (directly or indirectly) at each of these stages. Logically, we assume that it is necessary to develop and make optimization decisions to influence these processes, relying on deductive and inductive methods and cause-effect analysis. Based on the deduction method, we can build the following interconnection of phenomena that occur during the development of complex socio-economic systems (agricultural holdings): sustainable development of a complex socio-economic system → economic sustainability → financial sustainability → tax sustainability → the optimization of tax decisions, including income tax. At the same time, there is an inverse interconnection explained by the method of induction. The optimization of sufficiently justified tax decisions can contribute to sustainable development. Following the system method and the situational-comparative approach, it is possible to study possible accounting and tax accounting options, which the taxpayer entity is obliged to fix by the order “On accounting policy.” The choice of options is based on the principles of prudence and efficiency [5, 7, 17]. In this situation, the priority is to optimize decisions that provide tax benefits but have a sufficient evidence base. Thus to ensure the sustainable development of their activities, enterprises must overcome the difficulties in their interrelations with the tax services, taking into account the constant changes in their business and the tax system. To implement optimization measures, we must study the existing provisions of accounting and tax accounting policies in detail, since the accounting policy is the primary internal standard governing the adoption of tax accounting versions.

3 Results In analyzing the current tax accounting policies in the agricultural enterprises of the Voronezh Region, we revealed the absence of specific provisions necessary for their adaptation to the changes in business conditions, tax legislation, and accounting requirements. We established the following: 1.

2.

There is no information on whether the amount of current income tax corresponds to the amount of calculated income tax reflected in the income tax return; There is no information about some essential tax provisions relating to recognizing income and expenses.

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Currently, in ensuring tax sustainability, the following tax accounting policies are the most popular: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

The creation of reserves; The valuation method of commodities, materials, goods, and securities; The definition of the acquisition cost of fixed assets; The method of depreciation; The application of bonus depreciation; The definition of the depreciation on permanent improvements of the direct expenses and the order of their distribution; Distribution of continuing expenses; The reflection of income from rental and other activities; The limit of recognition of interest on loans and credits; Payment of advance payments.

To eliminate the identified shortcomings and implement some of the considered accounting policy options, we offer several block-based recommendations: Block 1—Calculation of the taxation base: 1. 2. 3.

Apply the depreciation premium for taxation purposes; Provide for the use of investment tax deduction; Carry forward losses of the reporting period to the following periods. Block 2—Accounting:

1. 2.

Supplement the enterprise work plan of accounts with sub-accounts to Account 68; In the tax accounting policy, it is necessary to provide the procedure for forming reserves for doubtful debts for the payment of annual remuneration based on the results of work during the year, upcoming expenses for the repair of fixed assets. Block 3—Reporting:

1.

Provide an additional section in the notes to the balance sheet and the financial statements that disclose information about income tax following Russian Accounting Principles [RAP] 18/02.

4 Discussion Let us consider some recommendations developed for optimizing accounting and income tax paying in the surveyed enterprises (medium-sized businesses). It is expedient to provide the accounting policy for taxation purposes, the use of depreciation premiums, and investment deductions. Implementing the first right will allow an enterprise to take into account tax expenditures on capital investments when defining the taxable base for profit. According to the All-Russian Fixed Assets Classifier [OKOF], the enterprises can account no more than 30% of the original

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cost of fixed assets in third to sixth depreciation groups; and no more than 10% for the first, second, and seventh to tenth depreciation groups. Investment deduction (second right) is valid only in those Russian regions where the regional authorities have adopted a law on its introduction (Sub-item 1, Item 6 of Article 286.1 of the Tax Code of the Russian Federation). In particular, in the Voronezh Region, this bill is under consideration by the regional Duma. To implement effective optimization, we recommend that the management of the surveyed enterprises consider applying an investment tax deduction in the future, if the bill is adopted. This fact should be reflected in the accounting policy for taxation purposes. Per this bill, entities are entitled to a decrease in the profit taxes equal to an investment deduction: the expense of the regional tax, up to 90% of expenses on purchase and modernization of fixed assets, and the federal tax is up to 10%. However, companies will not be able to cover the depreciation of the fixed assets and use the depreciation premium. At the same time, taxpayer entities will be able to reduce the profit tax (at the rate of 20%) or the advance payment on it, and not the tax base (Paragraph 1 of Article 284 of the Tax Code of the Russian Federation), which is more profitable. Following Article 4 of RAP 1/2008, simultaneously with the adoption of the accounting policy, the organization must approve the work plan of accounts, which specifies the synthetic and analytical accounts necessary for the accounting. Most of the accounting in surveyed enterprises uses the “1C: Accounting” software product. Simultaneously, the working chart of accounts specified in the appendix to the Order “On accounting policy,” as a rule, does not contain sub-accounts to Account 68 “Calculations on taxes and fees.” Our analysis of accounting registers, particularly account cards, account analysis, and others, shows that enterprises use standard sub-accounts provided by “1C: Accounting.” Thus, we consider it necessary to specify this policy for accounting purposes to Account 68. The identified shortcomings include the fragmentary use of such tools and reserves by the surveyed enterprises. In most enterprises, the possible set of such tools is limited only to reserves for vacation payments, which indicates that the opportunities provided by tax legislation are underutilized. We consider it appropriate to provide for the reserves for doubtful debts, upcoming expenses for annual worker bonuses, and upcoming expenses to maintain and repair fixed taxes. For accounting purposes, the law obliges the enterprises to form reserves for doubtful debts but do not specify their formation procedures. At the same time, Article 266 of the Tax Code of the Russian Federation establishes the right of taxpayers to form this reserve and defines the terms, procedures of creating, and directions of its use. Paragraph 1 of Article 266 of the Tax Code of the Russian Federation establishes that accounts, within the terms established by the contract, are not secured by a

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security deposit, bank guarantee, or surety. In tax accounting, a reserve is formed in the following way: • On the last day of the tax period, receivables are inventoried (issued act inventory); • The estimated amount of deductions to the reserve is defined as the revenue from sales (works, services, property rights) received in the tax period *10% without Value Added Tax (VAT); • The estimated amount of contributions (EA) are compared, and the amount of deductions (LA) is limited: if EA ≥ LA, then the amount of deductions to the reserve = LA. The most optimal way of optimizing the accounting is to fix the procedure and conditions for creating the specified reserve provided by the Tax Code of the Russian Federation. This approach will allow us to avoid temporary differences when defining the income tax base and amount deviations from accrued tax payable to the budget. The tax accounting policies in most of the surveyed enterprises provide for the formation of a reserve for upcoming vacation expenses. A similar procedure is provided in Clause 6 of Article 324.1 of the Tax Code for the reserve of upcoming expenses for the payment of annual remuneration based on enterprises’ policy and the use as an optimization tool that allows taking into account the amount of accrued expenses more evenly. The provision for repair of fixed assets is formed in tax accounting following Article 324 of the Tax Code of the Russian Federation. Following Paragraph 1 and Paragraph 2 of Article 324 of the Tax Code of the Russian Federation, enterprises define the amount of deductions to the reserve, taking into account the total cost of fixed assets. The used deduction rates must be approved in the accounting policy for tax purposes. Thus, the application of these reserves in tax accounting will allow us to comply with the principles of uniform recognition of expenses. By the latest amendments to RAP 18/02, income tax has the following indicators: expense (income) on income tax (IEI) and income tax on operations (ITO) that are not included in accounting for profit (in the previous version—permanent tax liability (PTL), permanent tax asset (PNA), changes in deferred tax assets (DTA) and liabilities (DTL), current income tax). In the financial performance statement, the amount of IEI should be reflected in the breakdown of the deferred income tax and the current income tax. A study of the financial statements of some of the surveyed organizations for 2014–2018 (the balance sheet, the statement of financial results, explanations to the balance sheet, and the statement of financial results) revealed the absence of reporting information that meets the previous requirements of RAP 18/02. Typically, most surveyed organizations lacked even blank lines in the explanations to the balance sheet and the statement of financial results, which could disclose information that meets the requirements of RAP 18/02. To meet the requirements of RAP 18/02, which entered into force on January 1, 2020, and develop accounting reporting on the formation of financial results and income tax, we recommend adding a new explanatory section to the balance sheet and the statement of financial results. This section will reflect:

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• Deferred income tax due to the occurrence (settlement) of temporary differences in the reporting period; • Changes in taxation rules, changes in applicable tax rates; • Recognition (write-off) of deferred tax assets due to changes in the probability that the entity will receive taxable profit in subsequent reporting periods; • Values explaining the relationship between an expense (income) on income tax and profit (loss) before tax (applicable tax rates, conditional expense (conditional income) for income tax; • Permanent tax expense (income); • Other information necessary for users to understand the nature of indicators related to corporate income tax).

5 Conclusion The Russian tax system is constantly undergoing changes related to tax interrelations between taxpayer entities and state authorities, which affect the methods and ways of accounting processes, including taxation. The development of economic activities of taxpaying entities is influenced by factors of the external, associated, and internal business environment. These factors are interdependent, which is reflected in the formation of both positive and negative conditions for conducting sustainable economic activities and, accordingly, the possibility of optimizing the accounting process and tax planning system. The economic activities of taxpaying agricultural entities directly and indirectly depend on the business environment. Therefore, using the process approach in the development of optimization decisions is justified. The feasibility of the process approach is substantiated by the logistic chain of information flows and the time frame of tax obligations recognition. It is expressed in the use of forms of block architecture. To raise the effectiveness of tax optimization processes, we advise adapting the accounting policy provisions to the needs for sustainable development of the enterprise. To do this, it is necessary to constantly improve the accounting policy for tax purposes, consider the selected tax accounting options, and optimize the tax bases. Among the measures that contribute to obtaining tax benefits, special emphasis should be placed on the development and justification of legitimate ways to optimize corporate income tax amounts legitimately. Fair application of tax legislation can balance the interests of tax authorities and taxpayer entities. However, one must not forget that the optimization of some obligations can lead to the growth of others. There is a need for a well-thought-out and flexible system that considers the goals of sustainable development of the enterprise. It is also essential to form and justify an optimized accounting and tax policy.

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Auditing the Settlements of Loan Liabilities in Accordance with International Standards: Methodological Approach Tamara I. Logvinova , Elena Yu. Dyachenko , Natalia A. Gorlova , Maria N. Tatarinova , and Ludmila I. Fedulova Abstract Borrowed capital is a significant part of the capital structure of commercial enterprises. Borrowed capital affects their financial stability and solvency. The high risk of material misstatement justifies the detailed testing of borrowed capital during the audit. The adaptation of Russian audit practice to the international standards actualizes the development of methodological support for loan operations audit. Based on the analysis of existing methodological developments, we identified the areas in which Russian audit practice contradicts the international one and the ways of improvement. The paper proposes an algorithm for planning audit procedures via risk assessment. We proposed the method of identifying and assessing the risk of material misstatement, the plan formation process, the settlement audit program of loan liabilities, and the list of audit procedures on the financial statements. These recommendations take into account the international standards and the experience of Russian audit practice. They can be used as an internal methodological support for planning loan settlement audit. Keywords Audit planning · Credit and loan settlement · Risk of material misstatement · Audit strategy · Audit plan

1 Introduction Different groups of financial statement users have vested interests in having reliable information about their counterparty’s loan liabilities since they allow assessing its solvency and financial stability. This increases the role of loan settlement audit in guaranteeing the reliability of reported information. With the transition to International Standards on Auditing [ISA], the approach to auditing financial statements has changed. The introduced risk-based approach T. I. Logvinova · E. Yu. Dyachenko · N. A. Gorlova · L. I. Fedulova Voronezh State Agrarian University named after Emperor Peter the Great, Voronezh, Russia M. N. Tatarinova (B) Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_37

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requires improving the methodological support of all stages of the audit from precontractual to the formation of conclusions. Particular attention should be paid to the audit planning process since it determines the justification of the choice of the composition and scope of audit procedures and, consequently, the audit reliability [1]. The issues of planning the audit of financial statements, taking into account the ISA requirements, are studied in the works of many Russian academic economists [2–7]. Methodological approaches to planning and conducting loan settlement audit are presented in the works of Bychkova and Fomina [8], Gruzinova [9], Kasyanova [10], Ostaev et al. [11], and Sotnikova [12]. Despite the abundance of scholarship on the topic, the issues of organizational and methodological support for loan settlement audit, taking into account the ISA requirements, are not sufficiently studied. There is no exact algorithm for the planning stage. There are no guidelines on how to conduct procedures for assessing the risk of material misstatement and forming an audit plan based on the reporting prerequisites. The purpose of the research is to develop methodological support for planning the loan settlement audit according to the ISA statements to improve audit effectiveness.

2 Materials and Methods The general rules for planning the audit of financial statements are established by international auditing [13]. According to the international standards, the audit planning begins at the pre-contractual stage and involves collecting information about a potential client’s activities to determine the possibility of cooperation with him and preliminary assess the audit complexity. After signing the contract, the general planning stage begins. It includes the development of a general strategy and audit plan. Simultaneously, ISA 300 “Planning an Audit of Financial Statements” [14] provides guidance and explanations about planning the audit of the whole financial statements, not particular audit objects (accounting or business cycles). The general audit strategy is a document that reflects the general direction of the audit, its scope, and timing. The form of the general strategy is not regulated. According to ISA 300, it can be presented as a memorandum describing the features and reporting the objectives of audit engagement, stating factors that determined the audit directions, results of preliminary work on the assignment, and the nature, timing of use, and the number of resources required to conduct the audit [14]. The resources play a major role in deciding the general strategy content. Several auditor enterprises created examples of the general audit strategy presentation to methodologically assist the audit entities. Examples of such documents can also be found in secondary literature [3, 5, 6]. Audit strategy is based on risk assessment and identifying the features of the activities, operating environment, and internal control system of the audited entity. It also

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assesses the risks of material misstatement in financial statements [15]. Risk assessment allows one to determine the composition of further audit procedures reasonably. General guidelines for performing risk assessment procedures are presented in ISA 315 “Identifying and Assessing the Risks of Material Misstatement through Understanding the Entity and its Environment” [16]. This approach is called risk-based auditing. The methodological aspects of this stage of audit planning were extensively studied by Russian scholars [2, 5, 6]. Risk assessment allows us to identify significant sections of the audit that require detailed testing. These may include calculations on loans if this item has a high specific weight in the structure of the organizational liabilities or is at risk of material misstatement. It is debatable whether an audit strategy should be developed for each audit object or only for the financial statements as a whole. The ISA does not explain this aspect, and the secondary literature presents conflicting views. Some scholars suggest forming a common strategy for each audit object [17]. Other researchers, us included, follow the second approach [3, 4, 7]. The general strategy is supplemented by an audit plan for financial statements, which, following ISA 300, reflects the nature, timing, and scope of planned risk assessment procedures, further audit procedures at the prerequisite level, and other planned audit procedures. ISA 300 states that an audit plan can be presented by “standard audit programs or checklists tailored to the circumstances of the engagement” [14]. The audit plan can be viewed as a combined audit program for its sections (segments, areas) [3]. Therefore, the formation of an audit plan involves segmenting the audited accounting information into sections, defining the verification tasks and the list of audit evidence for each segment, and determining the composition of audit procedures for checking certain segments [7]. In the audit plan of financial statements, calculations on loans are allocated to a separate object of verification, reflecting the list of planned audit procedures, their performers, and timing. In secondary economic literature, the methodological aspects of loan settlement audit are widely studied [8–12]. The two approaches to audit strategy are generally similar. The differences in methods are expressed in the ways of assessing the effectiveness of the internal control system and the composition of audit procedures. A testing method is usually proposed to assess the effectiveness of the internal control system. Simultaneously, the developed tests differ in the number of questions and the scale of response ratings. The recommended audit programs essentially contain different numbers of procedures associated with the degree of their details. The disadvantage of existing methodological developments is the lack of research on loan audit planning via the risk-based approach recommended by the ISA. In this research, we used the general scientific methods of analysis, synthesis, comparison, analogy, and generalization.

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3 Results Planning the loan settlement audit should begin with setting the audit goals and objectives. The purpose of the audit is to form an opinion on the reliability of financial statements that reflect debt on borrowed capital and its procurement costs. The objectives of the audit are to obtain sufficient appropriate audit evidence to verify the prerequisites for preparing financial statements on the types of transactions, account balance 66 “Calculations for short-term loans,” account balance 67 “Calculations of long-term loans,” and the related disclosure of information for the audited period and at the end of the period. An audit plan is formed based on its purpose and objectives. The plan reflects the list, timing, and scope of planned audit procedures. To reduce the complexity of the audit planning process, we recommend developing standard forms of audit plans for each audit object and adjusting to a particular audit task. With risk-based auditing, plan for settlements on borrowed capital should reflect the detailed composition of audit procedures, scope, and performers in the following sections: (1) (2) (3) (4) (5)

Conducting a risk assessment procedure; Testing the operational effectiveness of the internal control system for accounting loan settlement; Performing substantive audit procedures; Generalizing, analyzing, and assessing the sufficiency of audit evidence obtained, forming conclusions; Quality control of the work of task executors.

With the implementation of risk assessment procedures, the process of auditing the accounting of borrowed capital begins [18]. In this study, we identified a set of conditions that can cause economic risks and related risks of material misstatement of financial information on loan settlement. These conditions are: • The procurement of borrowed capital from different sources (credit, cash, bond, and promissory note loans) increases the risk of misstatement in synthetic accounting and information reporting; • Large scale loans. The dependence on borrowed sources of financing can negatively affect organizational stability and solvency. It can cause deliberate falsification of accounting data; • Large amounts of overdue loans. The client may intentionally not disclose this information in the financial statements to increase financial attractiveness; • The attraction of borrowed capital from related parties causes the risk of misstatements in the accuracy and timeliness of interest accrual compliance with tax legislation; • A rare or selective inventory of calculations under loans. The absence of reconciliation acts, especially for large amounts of debt, may conceal intentional misstatements;

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• The lack of regular control of the timing of interest accrual and payment. If there are a large number of loan agreements, there may be violations in the timely accrual and recording of interest; • The presence in the accounting policy of provisions that contradict the current regulations or incomplete disclosure of alternative methods of accounting for borrowed capital (criteria for an investment asset, the procedure for accounting for additional costs) may cause material distortion; • Low level of organization of analytical accounting of loan settlement. The absence of analytical accounting of settlements by types of borrowed capital, creditors, loan agreements, and separate accounting of the general amount of debt and interest contributes to the occurrence of misstatements in accounting data as a result of errors and fraud; • The absence of working correspondence of accounts for loan transactions may cause errors in synthetic accounting; • The absence of internal forms of reporting on borrowed capital reduces the ability to control the amount of debt quickly, increases the possibility of misstatements, and the time for their identification; • The presence of misstatements in the considered accounting section based on the results of previous checkups. This information may be relevant to the audit of the current period; misstatements may be repeated. The results of the risk assessment should be documented. Table 1 presents the possible format of an auditor’s working document.\ The assessment of the risks of material misstatement serves as a basis for determining the composition and scope of further audit procedures (tests of internal control and substantive procedures). It is used to adjust the plan for loan settlement audit. This statement was not taken into account in the Russian audit practice. Following the requirements of ISA 330 “The Auditor’s Responses to Assessed Risks,” [19] to confirm the assessments of the identified risks of material misstatement Table 1 The fragment of the form of the auditor’s working document on risk identification material misstatement (RMM) of accounting information on borrowed capital Conditions-factors determining RMM

Options

Types of borrowed capital

Only loans or loans of one kind Reducing

Control over the timing of accrual and payment of interest

Loans and cash loans

Average

Loans, money loans, commodity loans, bill loans

Increasing

Systematic

Reducing

Periodic

Average

None

Increasing

The general assessment of the level of RMM Source Compiled by the authors

The influence on the level of RMM

High/medium/Low

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1. The determination of the purpose and objectives of the audit of credit and loan settlements

2. The development of an audit plan for credit and loan settlements

3. The calculation of the materiality level for the account balance and audit procedures

4. Risk assessment and RMM significance assessment

5. The clarification of the audit plan of credit and loan settlements

5. The formation of a program of audit procedures based on assertions

Fig. 1 The algorithm of planning of loan settlement audit. Source Compiled by the authors

of information on paying for the borrowed capital, it is necessary to test the operating effectiveness of controls and their ability to prevent, eliminate, or minimize the identified risks [19]. Variants of control questions for testing controls are presented in the scientific literature [6, 8–10]. Thus, the process of planning the loan settlement audit can be represented as a sequence of stages (Fig. 1). The following recommendations should be taken into account when planning the composition of further procedures to loan settlement audit: • If the risk assessment procedures have established that the client does not have any means of control or the auditor does not intend to rely on them, one should not test them and should immediately proceed to perform substantive procedures; • It is possible to limit the testing of control means when checking particular prerequisites for reporting if their high operational efficiency is established; • If the testing of controls shows that they are not sufficient, then substantive audit procedures should be performed; • Substantive procedures are required for each material transaction, account balance, and disclosure in the financial statements (regardless of the testing procedure). A standard list of substantive audit procedures (SP) at the premise level should be prepared in advance and reflected in the internal standard (Table 2). The presented procedures aim to obtain audit evidence on all the prerequisites for the preparation of financial statements. In Table 3, the procedures are grouped by prerequisites, which will allow us to create a program for a specific audit task correctly. The scope of audit procedures for assumptions will be determined based on assessing the risks of material misstatement.

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Table 2 The list of substantive audit procedures (SP) for forming an audit program for accounting information on borrowed capital Procedure code Content of procedures SP 1

The audit of the real loan debts at the end of the reporting period

SP 1.1

The verification of statements of settlements reconciliation

SP 1.2

The verification loan agreements and payment documents

SP 1.3

Checking the timing of the debt for the expiration of the limitation period

SP 2

The audit of documentary confirmation of transactions with borrowed capital for the reporting period

SP 2.1

The examination loan agreements

SP 2.2

The audit of the completeness and timeliness of accounting for the receipt and repayment of borrowed capital (reconciliation of primary accounting and accounting registers)

SP 3

The audit of the intended use of loans

SP 4

The audit of accounting of interest on loans

SP 4.1

Checking the timeliness of payment and accounting of interest on loans

SP 4.2

Checking the correctness of determining the source of interest write-off

SP 4.3

Arithmetic control of the correctness of the calculation of interest on loans and the timeliness of their reflection in the accounting

SP 5

The audit of the correctness of accounting for additional costs

SP 6

The audit of the timeliness of the return of borrowed capital

SP 7

The audit of synthetic accounting for loan transactions

SP 8

The audit of the accuracy of the classification and loans into long-term and short-term

SP 9

The audit of the identity of data on accounts for accounting settlements for loans with indicators of financial statements

Source Compiled by the authors

4 Discussion During the research, we developed some aspects of methodological support for the planning and loan settlement audit, taking into account the international standards. In contrast to existing methodological developments, they are based on a risk-based approach to audit. Based on the systematization of requirements and explanations of ISA 300, 315, and 330, the sequence of actions at the planning stage and the main sections of the audit plan for the accounting information on borrowed capital are determined. In Russian audit practice, it was accepted to refer to the testing of control means to the planning stage, which contradicts the ISA statements, which classify it as a further audit procedure. In most research papers on the subject of research, it is also recommended to start an audit by testing the internal control system of an entity.

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Table 3 The composition of the audit substantive procedures at the prerequisites level during the loan settlement audit Preconditions for the preparation of financial statements

Audit procedures on the merits

1. The types of transactions, events, and the corresponding disclosure of information for the audited period Availability

SP 2.1; SP 2.2.; SP 4; SP 5; SP 9

Completeness

SP 2.1; SP 2.2; SP 4; SP 5; SP 6; PC 9

Accuracy

SP 3; SP 4.3; SP 5; SP 9

Timeliness of recognition

SP 4.1; SP 4.3; SP 5

Classification

SP 4.2; SP 5; SP 7; SP 8

Representation

SP 6; SP 8; SP 9

2. Account balances and disclosures at the end of the period Existence

SP 1.1; SP 1.2; SP 1.3; SP 9

Rights and obligations

SP 2.1; SP 2.2

Completeness

SP 1.1; SP 1.2; SP 1.3; SP 9

Accuracy, evaluation, and distribution

SP 1.1; SP 1.2; SP 1.3; SP 4

Classification

SP 4.2; SP 7

Representation

SP 6; SP 8; SP 9

Source Compiled by the authors

In the proposed version, the first stage of planning is implementing risk assessment procedures that correspond to the international standards. For the practical implementation of risk assessment, a list of circumstances initiating economic risks was identified, and their relationship with potentially possible misstatements of reporting information on settlements on borrowed capital was established. Similar methodological recommendations should be developed for all audit objects and fixed in internal audit standards. During the research, recommendations for planning the composition of further audit procedures are substantiated. We systematized the conditions stipulating the need to include the procedure of “controls testing” in the audit plan and the reasons for the inexpediency of its implementation, which, most often, were not taken into account in Russian methodological developments. There are cases of mandatory substantive procedures for settlements on borrowed capital, regardless of the testing results. Thus, an algorithm for planning the loan settlement audit was developed and justified based on the ISA instructions and explanations. We concluded that, along with the audit plan for settlements on borrowed capital, it is necessary to create programs for testing controls and audit procedures on the merits at the level of prerequisites for preparing financial statements, which will provide detailed instructions for obtaining audit evidence.

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To form a substantive program for loan settlement audit, we designed a list of possible audit procedures and grouped according to the prerequisites for preparing financial statements. This approach is not widely reflected in the scientific literature, although provided in the ISA.

5 Conclusion Audit planning is a key stage of an audit that requires high-quality methodological support. The methodological developments proposed in the paper are based on the requirements of the ISA and can be used by audit organizations and individual auditors when designing the content of internal standards and methodological recommendations for audit planning. The practical application of the proposed algorithm for planning the audit of settlements on borrowed capital based on a risk-based approach will increase the effectiveness and reliability of audit results due to the reasonable choice of the most effective procedures in relation to the conditions of a specific audit task.

References 1. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2019) Organization an ecological audit into international and Russian ecological-economic activities. Indo Am J Pharm Sci 6(3):5729–5734 2. Guzov YN, Strelnikova OV (2015) Planning practice in the risk-based audit. Audit Statements 1:29–41 3. Klinova EA, Sungatullina RN (2019) The formation of the overall audit strategy. Auditor 1:13–19 4. Kochinev YY, Ashraff A (2016) Requirements for the audit of financial statements by international standards. Auditor 11:49–64 5. Nagumanova RV, Erina TV (2019) Audit planning: a practical approach. “Sreda” Publishing House, Cheboksary, Russia 6. Sheremet AD, Suyts VP (2019) Audit. INFRA-M, Moscow, Russia 7. Soboleva OA, Bogdanovich IS (2018) Audit planning in accordance with international standards. Bull Pskov State Univ 8:99–105 8. Bychkova SM, Fomina TY (2007) Audit of loans and targeted financing. Audit Statements 11:21–25 9. Gruzinova NS (2018) The determination of audit risk and materiality level at the stage of preliminary planning of the loan settlement audit. Audit Financ Anal 2:148–152 10. Kasyanova SA (2008) Audit of loan receipts. Vse Dlya Bukhgaltera 9:50–55 11. Ostaev GY, Khosiev BN, Gurdzibeeva AA (2016) An internal audit of borrowed capital in commercial organizations. Account Agric 7:33–40 12. Sotnikova LV (2004) Audit of loan accounting. Unity, Moscow, Russia 13. Ministry of Finance of the Russian Federation (2019) The order “On the introduction of international auditing standards in the Russian Federation” (9 Jan 2019 No 2n). Moscow, Russia

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14. International Standard on Auditing (2009a) ISA 300 planning an audit of financial statements. Retrieved from https://www.ifac.org/system/files/downloads/a016-2010-iaasb-handbook-isa300.pdf 15. Kostyukova EI, Yakovenko VS, Germanova VS, Frolov AV, Grishanova SV (2017) The evaluation of the financial condition of a company from the position of different groups of stakeholders. Espacios 38(33):11 16. International Standard on Auditing (2009b) ISA 315 identifying and assessing the risks of material misstatement through understanding the entity and its environment. Retrieved from https://www.ifac.org/system/files/downloads/a017-2010-iaasb-handbook-isa-315.pdf 17. Stefan MA (2017) Planning an audit of estimated liabilities in accordance with international standards. Bull Financ Univ 21:202–215 18. Khoruzhy LI, Bautin VM, Katkov YN, Stepanenko EI, Lukyanov BV (2018) Adaptive internal controls system for the accounting and analytics in the agrarian organizations. Espacios 39(47):19 19. International Standard on Auditing (2009c) ISA 330 the auditor’s responses to assessed risks. Retrieved from https://www.ifac.org/system/files/downloads/a019-2010-iaasb-handbook-isa330.pdf

Methodological Tools to Account for Long-Term Investments in Agricultural Organizations Vladimir G. Shirobokov , Elena Y. Dyachenko , Marina V. Feskova , Tamara I. Logvinova , and Natalia A. Gorlova

Abstract The multifaceted nature of long-term investments and their accounting support define the relevance and novelty of this research. In this study, we aim to develop methodological tools for long-term investment accounting in agricultural enterprises. We employed the methods of analysis, synthesis, generalization, observation, description, and comparison. The paper reflects the results of the analysis of normative acts and periodicals on the accounting of capital investment. We developed methodological elements for the internal local acts of an agricultural enterprise, improved the structure of Account 08 “Investments in Non-Current Assets” and Account 01 “Fixed Assets.” Additionally, we formed working schemes of accounting records for accounting in horticultural enterprises. We also developed a model of reporting on investments into perennial plantations. The developed elements of accounting long-term investments in agricultural enterprises justify improvements to the accounting system, namely its information and control functions. Keywords Capital investments · Federal standard · Non-current assets · Long-term investments · Horticulture

1 Introduction The current international sanctions imposed on Russia have defined the need to develop the agro-industrial sector of the economy. The most import-dependent segment of agricultural production are fruits and berries. According to the Ministry of Agriculture of the Russian Federation, out of the 11 million tons of fruit annually consumed in the country, 6 million are imported. V. G. Shirobokov · E. Y. Dyachenko · T. I. Logvinova · N. A. Gorlova Voronezh State Agrarian University named after Emperor Peter the Great, Voronezh, Russia e-mail: [email protected] M. V. Feskova (B) Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_38

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Table 1 Information on perennial plantations in 2018 in Russia The subject of the Russian Federation

The number of hectares (ha)

Share in the total number of perennial plantations, %

Krasnodar Krai

2493

14.72

Kabardino-Balkarian Republic

1820

10.75

Republic of Dagestan

1220

7.20

Belgorod Region

1087

6.42

Chechen Republic

990

Total in Russia

16,939.2

5.85 100.00

Source Ref. [1]

Among the Russian enterprises specializing in the production of fruits and berries, the leading positions are occupied by Agronom-Sad, Agroholding STEPPE, “Eco-Culture” Agro-industrial holding, AFG National, Yuzhnyye Zemli, Sady Stavropolya, Sady Elbrusa, Tambovskie Sady, National Fruit Company, and many others. The subjects of the Russian Federation with the most perennial plantations in 2018 are presented in Table 1. Table 1 shows that these subjects account for 45% of all perennials planted in 2018. By 2024, at least 65 thousand hectares of perennial plantations are to be planted. Among the federal regions, the largest percentage of plantations is in the North Caucasus, Southern, and Central regions. We note that the federal and regional governments pay much attention to reviving horticulture. For example in the Voronezh Region, 6.2 bln. RUB from the federal budget and 2.3 bln. RUB from the regional budget were invested in horticultural development in 2019. At the same time, the development of horticulture entails not only increasing the plantation areas but also constructing high-tech fruit storage and processing enterprises. However, agricultural enterprises often misstate the long-term investment accounts, the posting of perennials, the formation of their inventory value based on the cost of production before the onset of operation age, etc [2]. An effective accounting system will help avoid mistakes and fraud in accounting and financial reporting [3].

2 Materials and Methods The theoretical basis of this research was formed by: (1) normative acts on the long-term investment accounting; (2) secondary literature, including scientific works and periodicals; and (3) accounting registers for capital investment accounting of agricultural enterprises in the Voronezh Region.

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The existing differences in the basic concepts, practices, and accounting methods of long-term investments necessitate developing a unified methodological basis. In this research, we used such methods as analysis, synthesis, analogy, comparison, grouping, and logical and systematic approaches. The analysis of the theoretical basis of the accounting of long-term investments allowed us to establish that the terms “capital investment,” “long-term investment,” and “investment in non-current assets” are synonymous in accounting practice. The accounting of capital investments is covered in the works of Russian (Z. N. Simonova, A. K. Ramazanova, et al.) and foreign (A. Sangster, L. Gitman, et al.) scholars. The Law “On Investment Activity in the RSFSR” in 1991 classified money, technologies, securities, licenses, machinery, equipment, rights, and intellectual value as investment objects [4]. Currently, long-term investments include the costs of purchasing, creating, and increasing the size of non-current assets that are not intended for sale and have a service life of more than one year. The exception is long-term financial investments in securities, including state and authorized capital of other enterprises [5]. According to A. K. Ramazanova, long-term investments are the resources withdrawn from economic turnover but still listed on the balance sheet [6]. Targeted use of investments implies: • The implementation of capital construction in the form of new construction, reconstruction, expansion, and technical re-equipment; • The acquisition of buildings, structures, equipment, vehicles, and other individual items (or parts thereof) of fixed assets; • The acquisition of land plots and natural objects; • The acquisition and creation of intangible assets. The largest part of long-term investment is the investments in fixed assets. In agriculture, it includes not only buildings and vehicles, but also livestock, land plots, and perennial plantations [7]. Incomplete capital investments include: (1) the costs of construction and installation works, (2) acquisition of buildings, equipment, vehicles, tools, inventory, and other material objects of long-term use, and (3) other capital works and expenses [8]. Although the terms “long-term investment” and “capital investment” are identical in the secondary literature, the legal provisions governing their accounting is different. The analysis of normative acts established that capital investment accounting is covered in international and national standards. Among the documents of the international level, it is necessary to highlight IAS (International Accounting Standards) 16 “Fixed Assets,” IAS 38 “Intangible Assets,” etc. In Russian legislation, the issues of capital investment accounting are covered in the “Regulations on Accounting of Long-Term Investments,” which is significantly outdated and practically not used in accounting practice [9]. In the framework of reforming the Russian accounting system, a public hearing of the Federal Accounting Standard (FAS) “Incomplete capital investments” was

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held in 2016. It reflects the requirements for recognizing, evaluating, and reflecting information about capital investments in accounting statements. According to this standard, the expenses for creating, improving, and restoring fixed assets to the desired condition are called incomplete capital investments [10]. Since the standard will enter into force starting in 2020, the legal framework for regulating capital investments is formed by the current “Regulations on the Accounting”, which contain rules and requirements, and a list of indicators to be disclosed in the reports. The “Regulations on Accounting of Long-Term Investments” sets the rules for capital investment accounting and defines the inventory value for the investment objects of an enterprise. Issues of forming the actual value of investment objects are regulated by the Regulation 6/2001 “Fixed Assets,” and the Regulation 14/2007 “Intangible Assets,” etc. [11]. However, “Federal Accounting Standard” applies exclusively to capital investments in material objects. Thus, the lack of a unified interpretation of the term “long-term investment,” its structure, assessment, and legal regulation can affect the reliability and integrity of financial reporting [12].

3 Results The primary function of long-term investment accounting is cost control, ensuring the correctness of documentation, and defining the inventory value of non-current assets. Therefore, developing methodological tools for accounting and analytical support of long-term investments is a priority for agricultural enterprises. After analyzing the long-term investments accounting in several horticultural enterprises, we identified the following shortcomings: • In the accounting policy of the enterprise, the methodological elements of capital investment accounting are absent, presented selectively, or focused mainly on vehicles, machinery, and equipment; • The working chart of long-term investment accounts is formed but does not model the economic activities related to its capital investments; • Accounting records of investments in perennials are formed with violation of the “Regulations on Accounting of Long-Term Investments”; • The cost of planting and growing perennials is not organized in the analytical accounting. To improve the internal local act of agricultural enterprises, we advise supplementing it with the developed methodological elements, taking into account the “Regulations on Accounting of Long-Term Investment” (Table 2).

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Table 2 Recommended elements of the accounting policy on long-term investments Accounting policy element

Recommended option

Criteria for classifying costs as long-term investments

Expenses for the acquisition, creation, and increase in the size of non-current assets with a life of more than one year, not intended for sale

The target of long-term investments

Capital construction Purchase of fixed assets and their parts Expansion, reconstruction, and technical re-equipment Acquisition and creation of intangible assets Acquisition of land plots and natural resources Research and development

The formation of the inventory value of perennial plantings

It consists of the actual costs of planting and growing, which before the onset of the operational age (5 years) fall under Account 08 “Investments in Non-Current Assets”

Investment channels

(1) Own funds—a depreciation of fixed assets, profit, compensation for insured events, etc. (2) Attracted—long-term loans and subsidies

Source Compiled by the authors

Defining the criteria for attributing costs for long-term investments, their intended use, and ways of forming the inventory value of assets will allow the enterprise to organize reliable and high-quality accounting. During the research, it was found that the costs of planting and growing perennials until they reach the operational age are counted in Account 08 “Investments in NonCurrent Assets.” As a rule, agricultural enterprises lead Subaccount 08 “Planting and growing of perennials.” For detailing accounting data on long-term investments into perennials, the Account 08 “Investments in Non-Current Assets” usually also disclose the type of plantings, their location, and area. For example: • 01 “Apple orchard No. 1—Svetly—5 ha”; • 02 “Cherry orchard No. 1—Ivanovo—3 ha.” We advise providing similar types of data in Account 01 “Fixed Assets.” The proposed second-order accounts should be included in the work plan of agricultural enterprises and used for forming the models of accounting records (Table 3). To disclose information about capital investment into perennials, we advise reporting it in the financial statements (Table 4). This report type provides detailed information on the costs of planting and growing fruit orchards and the inventory value of commissioned objects, accounting for the crop value.

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Table 3 Basic models of accounting records for accounting investments in perennials The fact of economic life

Account debit

Account credit

1. Apple tree saplings “Rootstock M-9” were purchased

Account 10 “Materials,” subaccount 08 “Seeds and planting material”

60 “Settlements with suppliers and contractors”

2. Value-added tax (VAT) was charged on the purchased apple rootstocks

Account 19 “VAT on acquired 60 “Settlements with suppliers values,” subaccount 03 “VAT and contractors” on purchased inventories”

3. Apple tree saplings were selected for creating a garden

Account 08 “Investments in Account 10 “Materials,” Non-Current Assets,” subaccount 08 “Seeds and subaccount 08 “Establishment planting material” and cultivation of perennial plantations,” analytical account 01 “Apple orchard No. 1—Svetly—5 ha”

4. The costs of laying and growing an apple orchard before the onset of operational age were reflected

Account 08 “Investments in Non-Current Assets,” subaccount 08 “Establishment and cultivation of perennial plantations,” analytical account 01 “Apple orchard No. 1—Svetly—5 ha”

70 “Remuneration to personnel,” 69 “Social insurance and security calculations,” 10 “Materials,” 23 “Auxiliary production,” etc

5. The products of a young 43 “Finished products” garden obtained before the subaccount 01 “Crop onset of the operational age production” are reflected in the accounting

Account 08 “Investments in Non-Current Assets,” subaccount 08 “Establishment and cultivation of perennial plantations,” analytical account 01 “Apple orchard No. 1—Svetly—5 ha”

6. Perennial plantations are Account 01 “Fixed Assets,” considered when they reach subaccount 05 “Perennial their operational age plantings,” analytical account 01 “Apple Orchard No. 1—Svetly—5 ha”

Account 08 “Investments in Non-Current Assets,” subaccount 08 “Establishment and cultivation of perennial plantations,” analytical account 01 “Apple orchard No. 1—Svetly—5 ha”

Source Compiled by the authors

The information presented in the document will allow various users to obtain reliable data on long-term investments in horticulture development and make informed and competent decisions regarding further capital investments, providing the organization with resources and forming trends in its development.

Svetly

Iskra

X

Apple orchard No. 1

Apple orchard No. 2

Total

X

May 2018

May 2018

Planting time

Source Compiled by the authors

Location

Type of perennial plant

2630

1250

1380

The cost of planting (2018), thou. RUB

Table 4 The report on investments into perennials

1742

760

982

Growing costs (2018), thou. RUB

1239

568

671

Growing costs (2019), thou. RUB

1094

641

453

Growing costs (2020), thou. RUB

659

333

326

Growing costs (2021), thou. RUB

769

346

423

Growing costs (2022), thou. RUB

2311

1210

1101

Cost of production before the onset of operational age, thou. RUB

5822

2688

3134

The initial cost of fixed assets, thou. RUB

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4 Discussion In our research, we concluded that long-term investments by agricultural companies represent a special cost category, linked to the growth of their assets. The development of federal accounting standards significantly changes the longterm investment accounting and necessitates updating local internal standards. The methodological elements of the accounting policy, proposed by us, allow improving the regulatory documents used by agricultural enterprises. Considering the classification of non-current tangible assets, we improved the structure of the synthetic Account 08 “Investments in Non-Current Assets” and Account 01 “Fixed Assets.” The proposed second-order accounts allowed us to create models of work plans that reflect the planting and growing of perennials. The development of financial reports was necessitated by the need to ensure the reliability and integrity of the information provided to parties concerned. These reports must include information on annual expenses for growing fruit orchards, the value of harvests received before the operational age of plants, and the specifics of forming the inventory value of objects [13].

5 Conclusion The Federal Agriculture Development Program, which includes subsidies for horticulture due to current embargoes and import substitution economy, has significantly expanded the market for produce. Targeted financing of the industry increased the investment of agricultural enterprises into long-term assets, primarily perennial plantations. The reforms in accounting and the imperfections of long-term investment accounting became the reason for this study. In this study, we developed recommendations for improving the reliability of accounting and reporting information on long-term investments of agricultural enterprises. The proposed changes contribute to the effective management and investment decisions and meeting the information needs of various groups concerned.

References 1. Government of the Voronezh Region (2019) The introduction of intensive technologies ensures the development of horticulture. Retrieved from https://www.govvrn.ru/novost/-/~/id/4506006. 2. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2019) Organization an ecological audit into international and Russian ecological-economic activities. Indo Am J Pharm Sci 6(3):5729–5734 3. Bobryshev AN, Elchaninova OV, Tatarinova MN, Frolov AV (2015) Management accounting in Russia: problems of theoretical study and practical application in the economic crisis. J Adv Res Law Econ 6(3):511–519

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4. Govdya VV, Kostyukova EI, Degaltseva ZhV, Khromova IN, Velichko KA (2019) The relationship of the effectiveness of the functioning of agrarian formations from land ownership. Indo Am J Pharm Sci 6(6):11741–11745 5. Ministry of Finance of the Russian Federation (1993) Long-term investment accounting regulations (30 Dec 1993 No. 160). Moscow, Russia 6. Ramazanova AK (2011) Accounting for long-term capital investments. Int Account 25:57–61 7. Logvinova TI, Dyachenko EY (2018) Methodological tools for the risk-based audit of accounting information on fixed assets in agriculture. Voronezh State Agrarian Univ Bull 2(57):200–207 8. Popov AY (2019) Modern approaches to the definition, recognition, and assessment of nonfinished capital investments in accounting and financial reporting. Financ Manag 1:68–78 9. Truhachev VI, Kostyukova EI, Bobrishev AN (2017) The development of management accounting in Russia. Espacios 38(27):7 10. Foundation “National Non-State Accounting Regulator ‘Accounting Methodological Center’” (2016) Federal accounting standard “Capital investments in progress.” Moscow, Russia 11. Darienko ZY, Feskova MV (2016) The features of the formation of management accounting policies. Bull North-Caucasian Inst Humanit 4(20):81–85 12. Khoruzhy LI, Gupalova TN, Katkov YN (2019) Putting in place a system of integrated reporting in organizations. Int J Innov Technol Exploring Eng (IJITEE) 8(7):748–755 13. Kostyukova EI, Yakovenko VS, Germanova VS, Frolov AV, Grishanova SV (2017) The evaluation of the company’s financial condition from the position of different groups of stakeholders. Espacios 38(33)

Analytical Procedures in the Audit of Finished Products in Agricultural Enterprises Elena E. Golova , Marina N. Gapon , and Irina V. Baranova

Abstract In this study, we justify using analytical procedures at the planning stage during the finished goods audit. These procedures allow determining the most critical areas of an inventory of finished goods, which deserve more attention in the future during the audit. The paper presents a set of simple quantitative analytical procedures, which are less labor-intensive and more applicable to agricultural enterprises. We compiled a universal algorithm for using these analytical procedures. Applying analytical procedures can improve the quality of the audit, save time by focusing on more important details, identify unusual or incorrectly reflected facts of economic activities, and determine the direction of the finished goods audit. The results of this study may be practically applied by the audit firms and internal audit services. Keywords Audit · Finished goods · Analytical procedures

1 Introduction Finished goods are almost the most critical indicator of the activities of any enterprise. At the end of 2019, the output of finished goods has grown by 2%, compared to 2018 [1]. Net profits of enterprises amounted to about 378 bln. RUB, 4% more than in 2018. The profitability of the agricultural sector of the economy has grown to 14%, which is 1.5% higher than in 2018 [2]. In the current business environment, the role of internal and external audit is increasing. This allows one to check the reliability of such financial statement indicators as income, the prime cost of production, and the sales profit. The production of E. E. Golova (B) · M. N. Gapon · I. V. Baranova Omsk State Agrarian University named after P. A. Stolypin, Omsk, Russia e-mail: [email protected] M. N. Gapon e-mail: [email protected] I. V. Baranova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_39

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finished goods largely determines the effectiveness of any enterprise, including agricultural enterprises. The accounting of finished goods is directly used in financial accounting and management accounting [3]. Finished goods audit can be implemented as an element of general program elements or an independent segment. It can include such stages of the economic cycle as procurement, manufacturing, the output of finished goods, and its sales. The peculiarity of the finished goods audit includes the specifics of its accounting and manufacturing process and the uniqueness of the agricultural industry [4]. Insufficient control of operations related to finished goods can lead to misstatements in the accounting and reporting of agricultural organizations. Such errors are commonly detected in auditing. This substantiates the need for developing control mechanisms for finished goods audit. In Russia, finished goods audit is a common topic in scholarship. It was studied by R. A. Alborov, N. P. Baryshnikov, S. M. Bychkova, E. M. Gutzeit, Yu. A. Danilevsky, M. L. Makalskaya, O. A. Mironova, M. F. Ovsiychuk, V. I. Podolsky, A. A. Savin, L. V. Sotnikova, V. P. Suits, S. A. Tabalina, A. A. Terekhov, V. I. Tkach, L. I. Khoruzhiy, A. D. Sheremet, and many others [5]. The works of S. M. Bychkova, A.V. Gazaryan, E. M. Gutzeit, Yu. A. Danilevsky, G. V. Maksimova, N. A. Remizova, V. V. Skobara, E. V. Starovoitova, V. P. Suits, A. A. Terekhova, A. A. Shaposhnikov, A. D. Sheremet, and others dwell on using analytical procedures in audit [6]. This topic is also common in the works of foreign scholars, such as R. Adams, J. Roberts, F. L. Defliz, G. R. Jenick, R. Dodge, J. K. Lobbeck, D. R. Carmichael, and others. The issues of the finished goods audit undoubtedly attract significant attention from Russian and foreign scientists [7]. However, in agricultural production, the specifics of auditing finished goods and applying analytical procedures are underdeveloped and deserve further research. This research aims to deepen the methodological and theoretical aspects of using analytical procedures in finished goods audit at agricultural enterprises. We took the agricultural enterprises of the Omsk Region as an example for this study.

2 Materials and Methods Quality control of auditing is an urgent problem in Russian practice. As a rule, quality is improved by increasing auditing efficiency and the rational use of available resources. Analytical procedures play a significant role in increasing the efficiency of the audit. The need to apply analytical procedures caused by the competitiveness of the audit service market. The heads of audit firms constantly monitor the cost of services not to lose their clients and acquire new ones [8]. Analytical procedures provide the auditor with a significant volume of necessary information and require less expenses than detailed testing. In foreign countries, the use of analytical procedures is mandatory.

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The time and the method of using analytical procedures and their effectiveness at the audit stage are the subjects of heated scholarly debates. Some scholars believe that the audit can be divided into three stages: introductory (preparatory), main (the audit itself), and final (audit result report). Analytical procedures can be used at each of these stages, but in our opinion, their use is the most appropriate at the planning stage. An audit can serve as an important testing tool, alongside the internal control system. Moreover, an audit is usually limited in time, while agricultural enterprises produce a large volume of finished goods and employ a lot of labor resources. Finished goods are often produced in several sub-divisions of agricultural enterprises. All of this significantly hinders the coverage of finished goods audit since it is a single element among other audit areas within a single task. At the planning stage, the purpose of using analytical procedures is to: 1. 2.

Confirm that the manufacturing costs are correctly reflected in the accounting, and its actual cost is correctly formed and fully documented; Assess the correctness of determining the financial result from the sale of finished goods.

The use of analytical procedures can be justified by the increase in the volume of produced finished goods and the variety of operations that their production, output, and sales entail. Within the framework of the national project “International Cooperation and Export,” the government of the Omsk Region is implementing a regional project “Export of Products of Agro-Industrial Complexes [AIC] of the Omsk Region,” aiming to increase the export of AIC goods [9]. The volume of finished goods is growing as well. By September of 2019, egg production increased by 43 mln, compared to the end of 2018 [10]. Pork production increased by 1.7 thousand tons. However, the volume of milk production decreased (by 10.3 thousand tons) due to a reduction in livestock, although the total productivity increased and reached 3945 kg. The agricultural enterprises of Bolsherechenskoye, Omsky, Cherlaksky, and Krutinsky districts became the leaders in milk production in the Omsk Region. All these factors positively impact the movement of finished goods. However, they also increase the frequency of misstatements and accounting errors in auditing.

3 Results Most scholars say that analytical procedures must be applied in a certain algorithm. Table 1 presents some opinions of scholars on this topic. In this study, we will employ the third algorithm [12] since it is the most optimal. Applying it to the finished goods audit at the planning stage will allow one to establish the mutual dependencies of financial indicators, identify the critical areas for the finished goods audit, and assess the risk level of the audit. In our own algorithm, the purpose of audit changes depending on the tasks set by the audit client.

374 Table 1 Opinions on the stages of using analytical procedures

E. E. Golova et al. A scholar

Application steps for analytical procedures

A. U. Khomidov

• Setting the audit goal • Choosing the analysis method to achieve the goal • Compilating an analysis information base • Setting criteria for decision making • Selecting testing procedures • Analyzing results • Forming conclusions

B. A. Amanzholova, A. V. Naumova

• Establishing the type of analytical procedures • Defining the information array • Implementing analytical procedures • Analyzing the results and coming to conclusions

A. I. Burykin

• Determining the procedure’s purpose • Selecting procedure method • Defining the information base of the analysis • Carrying out the procedure and analyzing the results

Source Amanzholova and Naumova [11], Burykin [12], Khomidov [13]

The second part of developing the algorithm is choosing the types of analytical procedures. They depend on the purpose of the audit, the availability of information, and the auditor’s judgment. Many scholars [5] note the following types of analytical procedures: • Non-qualitative procedures. They imply the general knowledge in the field of accounting and reporting, the specifics of the company activities, allowing the auditors to form an opinion about the legality, accuracy, and completeness of the company reports; • Simple quantitative procedures. They establish the interrelations between accounts via such methods as analysis, variational and coefficient analysis, and so on. • Complex quantitative procedures. Their essence lies in using complex economic techniques and models to identify the causes of changes in the amounts of interest to the auditor (account balance).

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We suggest using the second type of analytical procedures. The first type is subjective; its results depend mainly on the knowledge of general trends in agriculture and the results of previous audits. The third type is inconvenient and time-consuming. Our algorithm will consist only of simple quantitative procedures since they are the least labor-intensive: • A method of reading reports, the essence of which is to analyze the absolute indicators of the reporting of an economic entity and identify the enterprise’s main sources. • The comparison method is the most popular because it allows comparing absolute and relative values from previous periods with industry averages and other reference values. Sharp fluctuations of certain may speak of changes in the operating conditions of the company or misstatements in reporting (e.g., if sales of finished goods are growing and inventory balances are also growing). • The coefficient method entails calculating the interrelations between the economic indicators of the subject, which helps identify problems in the organization (e.g., assessing the rhythm of the output of finished goods, the specific weight of types of finished goods, etc.). • The balance method compares two groups of interrelated indicators and links their relation to two totals (e.g., the analysis of production costs and finished goods output). • The logical control method establishes cause-and-effect relationships between indicators, assessing the reliability of information (e.g., if the production of finished goods is growing, then material costs, salaries, and deductions to extra-budgetary funds should also grow, etc.). • The deviation assessment method is used to examine the values that are atypical for the enterprises and caused them. Figure 1 presents a detailed plan of the algorithm. However, the use of analytical procedures at the planning stage does not provide accurate information about misstatements in the reporting. Their purpose is to assess the possibility of misstatements and prevent this problem from being ignored by the parties concerned with financial statements.

4 Discussion The scholarship is divided on whether the analytical procedures should be used at the planning stage and whether they increase an auditor’s work efficiency. Analytical procedures at the planning stage of the finished goods audit allow the auditor to pay attention to the most problematic areas that deserve further study. Many scholars believe that analytical procedures can and should become an integral part of such an audit. The use of such procedures can improve the quality of the audit and save time. They allow the auditor to bypass examining each production site and finished goods

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Fig. 1 An algorithm of using analytical procedures at the planning stage of the finished goods audit in agricultural organizations. Source Compiled by the authors

type. According to the auditors, the use of analytical procedures reveals up to 27% of all misstatements. In our opinion, the use of analytical procedures will help bring Russian audit practices closer to foreign standards, where this method of obtaining audit evidence has been successfully used for a long time. The developed algorithm of analytical procedures can be adapted to other areas of accounting and audit by adding specialized indicators.

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5 Conclusion We advise using analytical procedures at the planning stage to increase the effectiveness of the finished goods audit and reduce its time frame. We formed an algorithm of using analytical procedures that the auditors can use in the future. The algorithm determines the priority areas of finished goods auditing. Our algorithm can reduce the time spent on the direct audit and allow one to determine the areas of the finished goods audit that should be examined in detail.

References 1. Agricultural production in Russia grew by 2% in 2019—Deputy Minister of Agriculture (2019). Retrieved from https://www.finanz.ru/novosti/aktsii/proizvodstvo-produkcii-apk-v-ros sii-v-2019-g-vyroslo-na-2percent-zamglavy-minselkhoza-1028743148 2. OECD. (2019). OECD-FAO Agricultural Outlook 2019-2028. Retrieved from http://www.fao. org/3/ca4076en/CA4076EN.pdf 3. Truhachev VI, Kostyukova EI, Bobrishev AN (2017) Development of management accounting in Russia. Espacios 38(27):7 4. Yakovenko VS, Malinovskaya NV, Belenov ON, Kostyukov KI, Batchaeva FM (2018) Features of accounting in the trade organization possessing the separate units. Res J Pharm Biol Chem Sci (RJPBCS) 9(3):819–823 5. Baghdasaryan DG (2012) The development of a methodology for auditing the process of release and sale of finished products in a commercial organization (Dissertation of Candidate of Economics). Rostov State University of Economics, Rostov-on-Don, Russia 6. Mecheva EY (2012) Improving analytical procedures in auditing the accounting (financial) statements of Russian organizations (Dissertation of Candidate of Economics). Moscow State University, Moscow, Russia 7. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2019) Organization an ecological audit into international and Russian ecological-economic activities. Indo Am J Pharm Sci 6(3):5729–5734 8. Popel OY (2002) Analytical procedures and their implications for auditing. Retrieved from https://www.audit-it.ru/articles/audit/a104/40719.html 9. Kuprienko E (2019) Data on export volumes from the Omsk Region in the first half of 2019 were published. Retrieved from https://bk55.ru/news/article/155965/ 10. Egg production in the Omsk Region over the past year increased by 42.5 million (2019). Retrieved from https://pticainfo.ru/news/?ELEMENT_ID=85157 11. Amanzholova BA, Naumova AV (2004) Audit planning using analytical procedures. Audit Statements 8:36–48 12. Burykin AI (2003) Analytical procedures in the audit. Audit Statements 10:15–18 13. Khomidov AU (2001) Analytical procedures in the audit practice. Audit Statements 8:72–75

Organizational and Economic Mechanisms to Develop Joint Business in the Stavropol Region of Russia Alexey N. Gerasimov , Oksana P. Grigoryeva , Stanislav A. Molchanenko , Yuri S. Skripnichenko , and Dmitriy I. Karlov Abstract The emergence of joint ventures in Russia is due to the economic transformations that have arisen with the development of forms of entrepreneurial activity, which stimulates the attraction of foreign investment in the economy. A joint venture is one of the most important subjects of the economic process. During this process, innovative technologies necessary for production and management emerge, and markets develop. The development of joint ventures can be the solution to many socio-economic problems. A joint venture is an integral part of public order, including generally recognized measures of interaction between people, the elimination of social inequality, and the formation of a rational, sectoral, and territorial structure of the economy. Based on the preceding, a joint venture is considered one of the factors for strengthening and developing an efficient business environment, providing markets with goods and services, paying taxes to regional and local budgets, reducing unemployment, strengthening the position of the middle class, increasing wages, and stimulating the growth of investment costs. Keywords Joint venture · Investment · Foreign investment · Stavropol Krai

1 Introduction A joint venture is an essential component of entrepreneurship in Russia and the Stavropol Krai. It plays a significant role in raising the economy of the region and developing the flexibility and mobility of the domestic market. The current state of joint ventures in the Stavropol Krai results from the development of objective and subjective prerequisites—economic, political, and social reforms of the 1990s, which are based on a change in property relations, privatization, and the activities of state authorities and a particular part of the population. During the reform, the joint venture was a growing industry. It ensured the efficient use of resources, absorbing A. N. Gerasimov · O. P. Grigoryeva · S. A. Molchanenko · Y. S. Skripnichenko (B) · D. I. Karlov Stavropol State Agrarian University, Stavropol, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_40

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the bulk of the population freed from other sectors of the economy, thereby removing acute social problems [1]. The basis of joint ventures is a combination of efforts, financial and material resources, and participation in profit and risk. Joint ventures occupy an important place among commercial forms of international technology transfer [2]. The Stavropol Krai is a region with a relatively high industrial and agricultural potential. Its bowels are rich in various minerals: gas, oil, rare earth metals, building materials, and mineral waters. The Stavropol and Nevinnomyssk thermal power plants in the North Caucasus are located in the Stavropol Krai. Large oil and gas pipelines run through the region. The main wealth and means of production are land. Highly productive chernozem lies on the area, which constitutes over 40% of the region [3]. Most of the indicators characterizing the socio-economic situation in the region indicate the preservation of positive trends in the development of the economy and social sphere [4]. Economic growth is possible only through strengthened trade, economic and investment cooperation, increased investment in the technical re-equipment of production, and the introduction of new technologies [5]. An important role in the development of the economy of the region is played by foreign investments attracted during the cooperation with foreign partners. One of the main forms of such cooperation is the creation in the territory of the region of enterprises and organizations with the participation of foreign capital [6]. The government of the Stavropol Krai seeks to provide all conditions necessary to improve the investment climate and attract foreign investment. Active work is carried out in the following areas: • The development of new laws and mechanisms for economic incentives for foreign investors in the Stavropol Krai; • The conclusion of investment agreements with large investors and assignment of project curators from among the members of the Government of the Stavropol Krai; • The provision of state guarantees for priority investment projects; • The creation of mechanisms for providing tax benefits to investors implementing priority projects; • Overcoming the information vacuum and informing potential investors about the possibilities of profitable investment in the Stavropol Krai [7].

2 Materials and Methods Economic efficiency is a scientific term in economic science, covering the entire economic system, its individual parts, and all areas of human activity, including the sphere of social production and joint ventures. However, the economic mechanism for evaluating the effectiveness of joint ventures has not been fully developed. As a result, the real indicators of the activity of joint ventures are usually lower than

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381

expected. The economic efficiency of joint ventures determines the final result, based on the use of labor resources and means of production, the return on total investment. To assess the economic efficiency of a joint venture on the example of the Stavropol Krai, we developed a technique consisting of seven indicators: 1. 2. 3. 4. 5. 6. 7.

The number of joint ventures operating in the Stavropol Krai; The turnover structure of joint ventures in the Stavropol Krai; The turnover structure of joint ventures with foreign capital by type of economic activity; The structure of the authorized capital of joint ventures of the Stavropol Krai by type of economic activity; The structure of investment in fixed assets of joint ventures of the Stavropol Krai by the sources of income; The structure of investments in the authorized capital of joint ventures of the Stavropol Krai, %; The share of joint ventures in the production of products (works and services) by type of economic activity in the Stavropol Krai [8].

Economic efficiency characterizes each operating and developing economic entity. In our study, we consider the joint venture as part of the economic system. The economic result of the economic system includes the final indicators expressed in value form. We attribute other types of economic results to social ones, since any economic system, during its functioning, can reproduce direct results, corresponding to the goals of its creation, and indirect ones [9]. Indicators of socio-economic efficiency are consistent, complementary, and multiplying. At the same time, they are independent from each other. Indicators of socioeconomic efficiency can be identified by multiplying elements by each other. When using the formalization method, it is necessary to verify the correct choice of indicators of the social and economic efficiency of each system, in which the final properties of the social and economic subsystems should be reflected [10]. Over time, a comprehensive assessment of the effectiveness of joint venture activities has acquired particular importance, which is understood as an assessment of the main factors that may affect the socio-economic efficiency of joint ventures [11]. The evaluation of each factor is essential for creating a comfortable environment for the functioning and development of joint ventures. Improving the legislative framework to support entrepreneurship, providing financial assistance, creating an acceptable tax system, stimulating entrepreneurial activity, and developing the material and technical base of joint ventures will allow joint ventures to be more efficient and competitive at the regional, national, and international levels. Thus, joint ventures will ensure the food security of the state and increase the export of goods and services to foreign markets. As a result, this will increase the social and economic stability of the region and the country [12].

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3 Results The Stavropol Krai has several factors making its investment climate attractive. These factors include (1) favorable climatic conditions, (2) the proximity of wide sales markets, (3) affordable energy resources ensuring profitability and efficiency of entrepreneurial activities in the production of goods and services, (4) a developed transport network and production infrastructure, (5) uninterrupted communication, (6) legislation guaranteeing the compliance with property rights to investors and providing preferential taxation mode, (7) suitable conditions for sanatorium—resort treatment, rehabilitation and recreation in the region of Caucasian Mineral Waters [CMW], (8) state support of investment activity, (9) regional support for small and medium-sized businesses, and (10) the development of the labor market and the provision of employment. The establishment and development of joint business in the subjects of the Southern Federal District goes very unevenly. The Krasnodar Krai, the Rostov Region, and the Stavropol Krai are leading in this process. Undoubtedly, the development of joint business in the region lags behind the needs of the modern economy [13]. However, the development of joint ventures in the region is mainly disproportionate. This fact is confirmed by the data on the distribution of joint ventures (Fig. 1). The accumulation of joint ventures in the city of Stavropol is caused by (1) the territorial localization of regional authorities, (2) large industrial enterprises, and (3) the availability of modern infrastructure. The concentration of joint ventures in the regions of the CMW is due to the considerable efforts of the state authorities in the region. For the International Investment Forum of the South of Russia, held in

100% 90%

14.9

16.9

15.7

16.6 3.7

2.4

3.6

80% 70%

17.7

18.7

18.8

25.8

24.6

22.4

60% 50%

The rest of the region

19.2

40%

0.7

1.6

1.9 1.4

30% 20%

1.9 15.7

Pyatigorsk 45.3

35.5

37.3

Georgievsky district

36.9

CMW Region Izobilnensky district

10%

Stavropol

0% 2015

2016

2017

2018

Fig. 1 The distribution of the number of joint ventures across the Stavropol Krai, 2015–2018. Source Developed by the authors

Organizational and Economic Mechanisms to Develop Joint …

100% 90%

6

5.1

5.8

18.6

17.9

14.8

8.9

9.9

32.6

36.7

80% 70%

6.0

24.3 7.8 7.1

60% 50%

39.2

383

The rest of the region Izobilnensky district CMW Region

29.6

Nevinnomyssk

40% 30%

Pyatigorsk 20.8

18.3

13.1

12.1

20% 10% 0%

2015

2016

15.9

16.9

16.5

16.0

2017

Stavropol

2018

Fig. 2 The dynamics of turnover of joint ventures in the Stavropol Krai. Source Developed by the authors

Pyatigorsk, the government of the Stavropol Krai developed more than 100 priority investment projects [10]. The distribution of the turnover of joint ventures across the region and the contribution of various territories during the formation of this indicator are largely heterogeneous and disproportionate (Fig. 2). The analysis of the dynamics of joint ventures’ turnover in the Stavropol Krai showed that the largest turnover is in enterprises located in the city of Nevinnomyssk and Izobilnensky district. During the study, the absolute value of the turnover of joint ventures in the city of Nevinnomyssk increased by 8957.9 million rubles. In the Izobilnensky district, this figure is 9194.7 million rubles. These territories are also leading by specific weight. In Nevinnomyssk, this indicator is 29.6%, and in Izobilnensky district—24.3% of the total. The regions where the maximum number of joint ventures are located and the largest number of personnel are employed (the city of Stavropol, Pyatigorsk, and the CMW region) reached a significantly lower turnover level than Nevinnomyssk and the Izobilnensky district. It must be emphasized that the stability of the region’s socio-economic situation, competitiveness, and investment attractiveness at the macroeconomic level depend on the level of socio-economic efficiency of joint business. Economic efficiency must be evaluated in terms of the volume of investment of joint ventures in the total investment of the region. The joint venture sector in the economy of our region is becoming increasingly important. This trend is directly related to the amount of investments in the authorized capital of economic entities of the Stavropol Krai (Table 1). The share of investment from residents, state, and municipal authorities has consistently decreased and now amounts to 82.6%. The value of net foreign and joint investments increased from 14.5 to 17.4%. The share of net foreign increased from 2.3 to 7.3%.

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Table 1 Structure of investments in fixed assets of enterprises of the Stavropol Krai by sources of income Investment structure

2013

2014

2015

2016

2017

2018

Absolute deviation 2016 from 2011 (+, –)

Investments in the main capital—total

100

100

100

100

100

100

–

Russian

85.5

85.7

84.1

83.4

80.6

82.6

– 2.9

State

22.1

20.2

21

17.1

18.8

17.5

– 4.6

Municipal

4.9

4.7

4.3

4.1

3.8

3.8

– 1.1

Private

36.7

42

41.2

46.5

44.9

49.1

12.4

Public organizations

0.1

0.1

0.1

0.1

0.1

0.1

0

Consumer cooperatives 0.1

0.1

0.1

0.1

0.1

0.1

0

Mixed Russian

21.6

18.6

17.4

15.5

12,9

12

– 9.6

Foreign

2.3

3.6

4.1

6.9

8,2

7.3

5

Joint Russian and foreign

12.2

10.7

11.8

9.7

11.2

10.1

– 2.1

Source Developed by the authors

The growth of the discussed indicator can hardly be overestimated. During a certain shortage of funds for capital investment and a significant depreciation of fixed assets at existing enterprises, new high-tech equipment and technologies available to foreign investors will significantly increase the production efficiency, thereby increasing the competitiveness of products produced in the region. The dynamics of the structure of investments in the authorized capital of enterprises is shown in Fig. 3. The above information shows the dynamic growth and development rates of production in the joint ventures compared with the situation in the whole region. 100% 80% 60% 40% 20% 0% 2013 2014 Russian investments

2015 2016 Foreign investment

2017 2018 Joint investment

Fig. 3 The dynamics of the structure of investments in the authorized capital of enterprises of the Stavropol Krai, %. Source Developed by the authors

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The role of joint ventures in regional development reflects the dynamics of the indicator of total turnover. However, to an even greater extent, it shows the importance of the share of joint ventures in the total volume of products and services produced in the region. We noted a slight decrease in the share of joint ventures as a whole in the Stavropol Krai (Figs. 4 and 5). Currently, the considered subjects have reached the level of 17.9%. This trend is due to a decrease in the share of the fuel, food, and construction industries. 35 30 25 In general, by industry 20 %

Industrial production, total 15

Agriculture

10

Transport and communication Construction

5 0

Trade 2014

2015

2016

2017

2018

Fig. 4 The dynamics of the share of joint venture enterprises in the production of products (works and services) by the main sectors of the economy in the Stavropol Krai. Source Developed by the authors 100

Power industry

90 80

fuel industry

70 chemical and petrochemical industry

%

60 50

mechanical engineering and metalworking

40 30

forestry, woodworking and pulp and paper industry

20 10 0

construction industry materials 2014

2015

2016

2017

2018

Fig. 5 The dynamics of the share of joint ventures in the industrial production of the Stavropol Krai. Source Developed by the authors

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Currently, the importance of joint ventures in the industry is significant. Their value is 32.7% in the total turnover and even reaches 57.6% in the electric power industry, which is a third more than at the beginning of the study. The study of socio-economic efficiency of joint ventures showed a significant impact of these entities on the economic stability and development of the region. The practice of conducting joint ventures demonstrates more effective and sustainable indicators of economic activity compared with traditional forms of business organization. During the analyzed period, there was a significant increase in the contribution of the subjects in question to the main socio-economic indicators of the Stavropol Krai. It is necessary to note the effective level of labor use and labor productivity indicators.

4 Discussion Over time, the role of the joint venture in the Russian economy is growing, while its contribution to the formation of socio-economic indicators of the country and regions is increasing [14]. However, the organizational and economic mechanism for managing joint ventures needs to be finalized and improved since it does not fully satisfy the needs of its subjects. The study showed that the number of joint ventures in Russia is significantly increasing. In the North Caucasus Federal District, their number has more than doubled. The total turnover of business entities amounted to 54.9 billion rubles. Funds contributed to the authorized capital amounted to 21,245 million rubles. The number of employees in joint ventures of the Stavropol Krai reached 25.6 thousand people, and their average salary amounted to 13,630 rubles, which is several times higher than the remuneration in other subjects of economic activity.

5 Conclusion The study found that a distinctive feature of a joint venture is its territorial and sectoral differentiation. The maximum share of joint ventures is concentrated in the field of trade and services (35.47%) and industrial production (20.2%). The smallest number of joint ventures falls on transport and communication organizations (10.34%), agriculture (2.5%), construction (2.3%), education (0.5%), and public administration (0.49%). Stable development of joint ventures is possible, provided that the mechanism for managing investment projects at the level of business entities is improved. In this regard, the authors proposed recommendations for developing management processes based on the formation of organizational structures of regional management systems with the involvement of executive authorities and private entrepreneurs.

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Acknowledgements The authors express deep gratitude to the rector of the Stavropol State Agrarian University, Professor V. I. Trukhachev, for the opportunity to conduct research in the innovative laboratories of the educational institution.

References 1. Bobryshev AN, Golchenko YV, Kazakov MY (2014) Directions of municipal, territorial, and economic transformation in a monopolar, highly urbanized region. Actual Probl Econ 152(2):230–238 2. Bobryshev AN, Kulish NV, Tunin SA, Sytnik OE, Elchaninova OV (2016) Accounting and analytical procurement of business performance in an inflationary environment. Int J Appl Bus Econ Res 14(14):627–637 3. Trukhachev VI, Kurennaya VV (2016) Methodological aspects of the system and hierarchal analysis of the oilseeds sub-complex of the regional agro-industrial complex: risks and production and technological specificity. Int J Appl Bus Econ Res 14(14):767–784 4. Borodin AI, Tatuev AA, Rokotyanskaya VV, Shash NN, Galazova SS (2015) Model of control of financial results of the enterprise. Mediterr J Soc Sci 6(4 S2):578–583 5. Truhachev VI, Kostyukova EI, Bobrishev AN (2017) Development of management accounting in Russia. Espacios 38(27):7 6. Korobeinikova LS, Skripnichenko YS, Grigorieva OP (2015) Methodological approach to the formation of centers of advanced socio-economic development in the agrarian sector of Stavropol Krai. Topical Probl Econ 165(3):188–195 7. Trukhachev V, Ivolga A, Lescheva M (2015) Enhancement of land-tenure relations as a factor of sustainable agricultural development: case of Stavropol Krai, Russia. Sustainability 7(1):164– 179 8. Tatuev AA, Rokotyanskaya VV, Shanin SA, Tatuev AA, Moshchenko OV (2016) Sociallyoriented operating principles of innovation policy in the regional economy. Int Bus Manag 10(16):3369–3374 9. Tatuev AA (2015) The building of the model of sustainable competitive advantages of the region. Int Bus Manag 9(7):1656–1663 10. Tatuev AA, Kiseleva NN, Gukasova NR, Tatuev AA, Rokotyanskaya VV (2015) Features of international cooperation and development of bioeconomics and natural resource economics. Res J Pharm Biol Chem Sci 6(6):1525–1533 11. Tatuev AA, Kutsuri GN, Shanin SA, Rokotyanskaya VV, Romanova SV (2017) Changing sources of investment of expanded reproduction of the Russian economy. J Eng Appl Sci 12(8):2045–2053 12. Trukhachev VI, Sklyarov IY, Sklyarova JM, Latysheva LA, Lapina HN (2016) The contemporary state of resource potential of agriculture in South Russia. Int J Econ Financ Issues 6(5):33–41 13. Tikhomirov YA, Tikhomirov AA, Tatuev AA, Rokotyanskaya VV, Budaeva VA (2016) Current situation and prospects of national environmental economics. Indian J Sci Technol 9(18):1–8. https://doi.org/10.17485/ijst/2016/v9i18/93760 14. Tatuev AA, Shash NN, Nagoev AB, Lyapuntsova EV, Rokotyanskaya VV (2015) Analysis of the reasons and consequences of economic differentiation of regions. Int Bus Manag 9(5):928– 934

Strategic Partnership of Business and Education in Management Accounting: Global and Russian Trends Elena N. Makarenko , Nikolay T. Labyntsev , Elena A. Sharovatova , and Irina A. Omelchenko

Abstract In this study, we examined the integration of applied management tools and educational standards in the training of management accountants in Russia and abroad. The paper presents the main approaches to management accounting and stresses the importance of professional communities in the strategic partnership of businesses and education. The global development of regulations in management accounting was mainly caused by commercial interest in its tools. This led to the creation of management accounting institutions (CIMA and IMA) and appropriate working standards. These institutions train management accountants according to the working standards. In this study, we analyzed the Russian job market and the skill requirements that the employers set in job listings for accountants. The analysis has shown that business and education still do not cooperate in Russia, even though companies continue to impose increasingly high requirements on accountants. We also examined Russian educational programs for accountants and concluded that they do not fully meet the market demands. This is caused by the lack of a professional standard for management accounting in Russia. This problem can be solved by introducing a national professional standard and creating professional communities that promote the integration of business and education while factoring in the relevant world practices. This will allow businesses and educational institutions to understand the development of interconnected complex socio-economic systems. Keywords Management accounting · Professional standard · Educational programs

E. N. Makarenko · N. T. Labyntsev · E. A. Sharovatova (B) · I. A. Omelchenko Rostov State University of Economics (RINH), Rostov-on-Don, Russia E. N. Makarenko e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_41

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1 Introduction The evolution of accounting created some fairly separate, autonomous subsystems of financial, tax, and management accounting. Their content and the ultimate goal is determined by the interests of the beneficiaries. Governmental fiscal authorities need the first two types of accounting the most. Management accounting, however, is different. It depends on the initiative of an enterprise’s management, which creates individual requirements for information support based not only on the technical and industry features of the business but also on the subjective factors (the level of professionalism and education of chief executives). Due to the difference in “the interests of the state and enterprises, each group of accounting information users has not only shown a common interest in the success of the enterprise but also developed its group interests and opportunities of influencing the management of financial activities” [2]. At the same time, management accounting is not limited to accounting functions since it “has long occupied a worthy place in the system of international and Russian management, being an independent branch of management with its own theoretical, methodological and organizational needs” [4]. The high-risk nature of modern business highlights the need for innovative management accounting tools, the use of which becomes a prerequisite for successful corporate governance. However, the importance of management accounting poses the problem of finding personnel that can meet the requirements of management accounting and the demands of large corporate employers. This problem must be solved by education means. Management accounting has been an important subject of foreign specialized education since the beginning of the twentieth century. The long-standing market economy allowed these countries to undergo the long process of establishing the regulations for management accounting. The Institute of Management Accountants in the USA and the Chartered Institute of Management Accountants in the UK were the first organizations involved in the standardization of management accounting [5, 6]. While the standardization of management accounting became a priority area in the US, the UK aimed to help “individuals and businesses to succeed by harnessing the full power of management accounting” [6]. The system of management accounting regulation in international and Russian practice is described in further detail in Table 1. Thus, the developed countries spent more than a hundred years to advance management accounting. Russia, unfortunately, does not possess any similar institutional entities. In Russia, the exclusive priority is given to state regulation of financial and tax accounting. The global goal of implementing a strategic partnership between business and education in management accounting focuses on the synergy of educational standards and labor requirements. This is proved by the analysis of international expertise in the formalization of management accounting at the level of applied standards adapted in business with the involvement of educational standards

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Table 1 Management accounting regulation system in international and Russian practice Subject

Regulatory authority

Regulation result

The global economy as a whole

There is no single regulatory authority, but the role and significance of professional organizations CIMA and IMA are essential to the global community

No system of regulation

USA

Institute of Management Accountants, IMA—International association of certified management accountants

Standards of management accounting (SMA), the application of which is voluntary The central office of the Association is located in the USA. The community has an extensive network of structural divisions whose activities cover all of Europe and Asia, including about 90,000 certified specialists from more than 120 countries

UK

Chartered Institute of Management Accountants, CIMA

Unification of requirements to the level of professional competence of specialists in financial management (including management accounting), their training, and certification. The Association headquarters is located in the United Kingdom. The community includes more than 200 thousand certified specialists from more than 165 countries

Russia

A number of Russian scientists of leading higher education institutions aim to create an Institute of administration of management accounting in professional activities in the Russian Federation

No system of regulation

Source Compiled by the authors

and professional institutions resources. A well-rounded approach to the cooperation of business and education is one factor for improving the efficiency of complex socio-economic systems.

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2 Materials and Methods The vertical management systems based on management accounting and controlling tools are a recent phenomenon for the Russian economy. For the last decade, corporations like Gazprom, Rosneft, Russian Railways, Rostec, etc., applied proven corporate standards in this area. At the same time, their financial resources allowed them to attract world-class experts for their development. However, medium and small businesses cannot take advantage of expensive specialist services, which is indirectly evidenced by the monitoring of Internet vacancies. The demand for management accountants in small and medium-sized businesses is growing, while there is little to no need for them in large corporations. In our opinion, this is caused by the imbalance between the objective needs of employers and the current specialization of economic universities. We used statistical and generally scientific methods, such as comparison, sample observation, grouping, analysis, and logical and systematic approaches. We paid particular attention to job listings for “Accounting, management accounting, and enterprise finance,” and to the analysis of bachelor’s and masters’s accounting programs in leading higher education institutions of Russia.

3 Results The specialists of management accounting are highly demanded in Russia, which is confirmed the data of job listing sites. We analyzed the job listings on “Accounting, management accounting, enterprise finance” on one of the most popular job listing websites—HeadHunter.ru. Out of the total number of vacancies (500,476) as of January 15, 2020, only 27,259 vacancies in Russia are connected with accounting. This amounts to 5.45% of the total number [1]. The leading regions of Russia in terms of offered vacancies in accounting and finance are Moscow and the Moscow Region (35.6% of the job market) and Saint Petersburg (9.1%). The third place is taken by the Krasnodar Krai (3.5%), while the Sverdlovsk Region and the Republic of Tatarstan account for 3.2% and 3%, respectively. The Rostov Region accounts for about 2.3% of accounting vacancies among all subjects of the Russian Federation. Further analysis shows that as of January 15, 2020, the Rostov Region (the largest commercial and industrial center of Russia) offers 626 vacancies in accounting [1]. Around 18% of them are spam or repeated listings. This leaves us with the final sample of 513 vacancies. Their further study showed that skills of planning and budgeting techniques are required in 8.1% of listings. Other requirements include techniques of financial analysis, financial control, and financial management (7.9%), economist (7.1%), and audit (5%). Some employers require skills in specific areas: cashier-collector (8%), invoices and payments accounting (9%), cost of production calculation (14%), primary documentation maintenance (11%), wage accounting (1.7%), inventory accounting (4.2%), and fixed assets accounting (2.1%). The most desirable accountants should have experience in all areas of accounting (22%) [1].

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Table 2 Specialization of the accounting services market in the Rostov Region in 2019–2020 Skill requirement in vacancies of “Accounting, management accounting, enterprise 2019 2020 finance” Accountants with experience in all areas of accounting, accounting management

26

Audit

19

22 17

Cost calculation

15

14

Primary documentation maintenance

10

11

Invoices and payments accounting

7

9

Planning and budgeting techniques

7

8.1

Cashier

7

8

Financial analysis, financial control, and financial management techniques

9

7.9

Economist

7

7.1

Inventory accounting

4

4.2

Fixed assets accounting

2

2.1

Wage accounting

2

1.7

Source HeadHunter.ru [1]

The study results show that jobs in the accounting services market differ significantly by the skill requirements. The demands of employers can generally be divided into narrowly specialized and broadly specialized functions. The larger the business, the greater the requirements for skills in accounting and analytical information support. These results are consistent with the data of our 2019 research [3]. Table 2 presents the distribution of skill requirements for accountants on the example of the Rostov Region in 2019 and 2020. Ten years ago, the situation on the market was different. The position of a chief accountant was considered to be the top of the accounting career path.Nowadasy, for large Russian businesses, management accounting and budgeting have become a daily practice. As a result, the employers continually increase the requirements for accountant jobs, emphasizing the skills of management accounting and budgeting. Further analysis shows that specialists with skills in management accounting and budgeting are offered the highest salaries. In our opinion, there are several reasons for this: (1)

(2)

The high requirements for the experience and knowledge of the employee. The modern employer already has a grasp on the array of skills and competencies, allowing the specialist to perform functions in the field of management accounting. The modern employer knows that this career path is exclusively creative and should not involve repetitive operational actions. The importance of a specialist in management accounting and budgeting within the management system. A person performing the complex set of functional responsibilities becomes one of the key figures within the management system and therefore has the right to claim a salary significantly higher than the average regional level.

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(3)

The lack of personnel whose level of professionalism meets the requirements. The law of supply and demand states that an insufficient number of high-quality professionals raises the offered wages for these jobs.

In our opinion, the third factor is one of the main current problems of the effective functioning of management accounting and budgeting in Russia.

4 Discussion It is impossible to solve the insufficiency of high-quality management accounting professionals in Russian business outside of higher education. We monitored the content of accounting programs of twenty-six leading Russian higher education institutions of Russia as of 2019. Today, there are 50 master’s and 30 bachelor’s accounting programs. The predominance of master programs is due to the very essence of twostage education, where the further specialization of a student is formed at the bachelor level. Most higher education institutions offer one bachelor accounting program, and only four institutions offer two, including the Rostov State University of Economics, which we represent. As for master programs, 11 higher education institutions of one accounting program, 10 of them offer two, and 4 of them offer three. Only the Financial University under the Government of the Russian Federation offers seven master programs of accounting. We note that only 9 out of the 26 reviewed universities have master programs that are more or less focused on management accounting. We did not find a highly specialized bachelor profile in any of the reviewed universities. Thus currently, there is no systematic approach to training specialists in management accounting in Russian education. Moreover, the requirements for skills and competence of employees in this area are not regulated by the business. To solve the problem of insufficiency of highly professional personnel in the Russian economy, the labor standards of management accounting must be established and approved by large corporate employers. This standard will become the basic foundation for the formation of educational programs. However, “there is still no institutional regulation of management accounting in Russia. An attempt to create it was made in 2002 with the formation of an expert advisory board under the Ministry of Economic Development of the Russian Federation. It aimed to develop and implement a program for the development of management accounting within Russian enterprises” [7]. Despite this, Russia has taken the first steps towards creating the professional standard. With the participation of the leading higher education institutions, a professional standard draft “Management Accounting Specialist” was developed. This draft is currently undergoing legislative examination. Its release will ensure the formation of a long-term strategic partnership between business and education in Russia. Against this background, in the conditions of increasing economic crisis, the improvement on the level of qualification of specialists in the field of management accounting on the basis of the planned professional standard will become one of

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the most important tasks of higher education, professional communities, as well as business representatives. A professional standard in the field of management accounting established within the system of higher education and business will not yet cover the demand of the labor market in accounting specialists of the highest management level possessing innovative tools for management accounting, budgeting, and control. Similarly to the international practice, it is necessary to create a professional community that can develop promising management accounting, budgeting, and control tools in Russia. This goal can be reached by establishing various forums, conferences, and overall improvement of the management personnel skills. The professional community should also focus on developing the standards of management accounting necessary for the formation of the theory of management accounting. For example, global institutions (IMA and CIMA) train accounting personnel and improve their management accounting skills according to the self-developed working standards. In this study, we analyzed the Russian job market and the skill requirements that the employers set in job listings for accountants. As proved earlier, Russian educational institutions are not yet fully ready to meet the market demands for accounting specialists of the highest management level who possess innovative tools for management accounting, budgeting, and control. Thus, the problem of integrating business and education in management accounting in Russia can be resolved through the following: • The development and legislative approval of a professional standard for management accounting specialists, including management accounting and related budgeting and control competencies, which will allow higher education institutions to focus on training of personnel with high managerial potential; • The renovation of educational programs on management accounting in higher educational institutions, including the study of promising tools for management accounting, budgeting, and control, which will provide businesses with in-demand personnel for the conditions of the market economy; • The creation of a professional management accounting community that includes representatives of large businesses, higher education professionals, and other researchers who promote the integration of business and education (while also factoring in the world practices in this field), able to jointly develop regulations on management accounting revealing the technique of applied use of its tools similarly to in force standards of world practice; • The development of methodological recommendations on management accounting by the professional community, including the most typical management accounting theory components and excluding isolated knowledge on the subject. These factors will meet the market demands for accounting specialists who possess innovative management accounting, budgeting, and control tools.

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5 Conclusion The expanded market for innovative technologies, taken against the background of economic sanctions and aggressive competition within the global economic space, requires the integration of business and education in finding a balance between the demand for innovation-oriented managers and their supply on the labor market. This integration should result in the development of accounting and management and strengthen professional competencies within the educational system. The partnership of business and education in the field of management accounting serves as the primary interest point in this area, which is confirmed by the world practice of developing its institutional foundations. The results of such practices are of particular interest to countries that do not have extensive experience in employing advanced management accounting technologies in business. In developed countries, this mission is assigned to professional communities, which can offer a set of methodological standards for the training of management accountants. As a result, conflicts within the market economy oblige us to adopt the experience of developed countries in organizing business and education partnerships in the field of management accounting. The example of the administration of management accounting knowledge in American and European practices may have implications for reconstructing the relationship between business and education in Russia. The administration of management accounting in the world practice by national professional associations (observed for more than a hundred years) has proved the feasibility of a similar administration process in Russia. This feasibility was confirmed by studying the requirements of Russian employers for the skills of accounting specialists in the job market. These requirements not only include skills of purely accounting functions but also of budgeting and financial management functions. This obliges us to improve the educational process of training specialists in management accounting, expanding the competence in educational programs of this profile. However, the monitoring of the educational program content within twentysix leading Russian higher education institutions in the field of accounting specialties as of 2019 proved that only nine of the 26 reviewed institutions offer master programs that are more or less focused on management accounting. None of the reviewed institutions have a specialized bachelor level profile for training personnel in the field of management accounting. Thus currently, there is no systematic approach to training specialists in management accounting in Russia. Moreover, the requirements for skills and competence of employees in this area are not regulated by the business. The development of a professional standard for management accounting in Russia at the legislative level and the creation of a national professional community capable of promoting advanced management accounting technologies, can give an impetus to the development of partnership between business and education in the field of management accounting. If the standard can influence the “reconstruction” of educational programs according to the requirements of the standard, then the professional community should unite representatives of business and higher education to distribute

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applied technologies among the consumers. This approach reduces the risk of business instability and increases the security of human potential. Russia has already taken the first steps in this direction. The development of the professional standard draft “Management Accounting Specialist” is currently discussed at the legislative level. The release of this standard will push the Russian educational system towards the necessary development of management accounting specialists. However, developing the methodological recommendations on management accounting, creating a professional community promoting an innovative set of management accounting tools, and eliminating the discretionary interpretation management accounting methods are advised. This approach to business and education partnerships will be crucial for business security in any country in the world.

References 1. HeadHunter.ru (n.d.) Job offers in Rostov-on-Don. Retrieved from https://rostov.hh.ru/catalog/ Buhgalterija-Upravlencheskij-uchet-Finansy-predprijatija 2. Ivashkevich VB (2019) Financial accounting as a means of communication. In: Modern trends in the development of reporting of economic entities. Rostov State University of Economics, Rostov-on-Don, Russia 3. Sharovatova EA, Nozdracheva EV (2019) Modern requirements for the competence of specialists in the field of accounting within the professional services market. Bull Rostov State Univ Econ 2(66):197–205 4. Sharovatova EA, Omelchenko IA (2018) Dualism in the development of management accounting: standardization and individualization. Bull Rostov State Univ Econ 2(62):128–136 5. The Chartered Institute of Management Accountants (CIMA) (n.d.) Official website. Retrieved from https://www.cimaglobal.com 6. The Institute of Management Accounting (IMA) (n.d.) Official website. Retrieved from https:// www.imanet.org 7. Vahrushina MA (2018) Standardization of management accounting and its institutional regulation. In: Proceedings from The International Scientific and Practical Conference “Management accounting: Challenges, priorities, and ways of development.” Sputnik, Moscow, Russia

Economic and Legal Aspects of Taxation of Small and Medium-Sized Business Entities Larisa V. Kuleshova , Natalia V. Splavskaya , Inna V. Kobeleva , Irina V. Oseledko , and Viktoriya V. Korosteleva

Abstract Currently, the taxation of small and medium-sized businesses is an object of heated debates in the media. Their development depends on the tax burden, while their tax contributions are important to federal and local budgets. The small and medium-sized business structures have several advantages. These are: (1) stability and efficiency in decision-making, (2) rapid adaptation to external influences, (2) receptiveness to innovations, (4) rapid money turnover, and (5) high level of specialization in production and labor. As a rule, the functioning of small and medium-sized enterprises in several states has unique features determined by their historical development. However, their development is influenced by the current political trends and economic environment, tax regulations in particular. Legal regulation of small and medium-sized enterprises functioning is determined by the provisions of the general legislation on the development of the entrepreneurial activity and special legislation that regulates them while factoring in their features and their performed functions. The study defines the criteria and place of small and medium-sized businesses within the Russian economy and the specifics of their taxation. The research results presented in this study can be used to improve the taxation of small and medium-sized businesses. Keywords Tax · Taxation · Small and medium business · Special tax regime

L. V. Kuleshova Stavropol State Agrarian University, Stavropol, Russia N. V. Splavskaya · I. V. Kobeleva International Innovation University, Sochi, Russia I. V. Oseledko · V. V. Korosteleva (B) The Institute of Digital Economy of Yugra State University, Khanty-Mansiysk, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_42

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1 Introduction Small and medium-sized businesses play an important role in the market environment through employment and improving the lives of the population. They provide the market with goods and replenish budgets at all levels. The development of small and medium-sized businesses and the proactivity of entrepreneurs determine the openness of the economy. Small and medium-sized enterprises help to increase the welfare level of the country’s population and the share of the middle class, all while replenishing the budget through taxation [9]. The functioning of business entities in the Russian Federation is regulated by federal regulations. The main normative legal act regulating small and medium-sized enterprises (SMEs) is the Federal law “On the development of small and mediumsized enterprises in the Russian Federation” adopted in 2007 [12]. Small and medium-sized businesses are provided with the following tax regimes [10, 11]: • General taxation system (known as OSN); • The special tax regimes—the tax system for agricultural producers (known as ESHN); • The simplified tax system (known as USN); • The single tax on imputed income (known as ENVD); • The patent taxation system (known as PSN). The special tax regimes are a specific feature of the taxation system in the Russian Federation. These regimes aim to reduce the tax burden of small business entities, which increases the collection of taxes from these categories of payers [6].

2 Materials and Methods The theoretical and methodological basis of this study is formed by the works of Russian and foreign scholars on taxation of small and medium-sized businesses, fundamental and applied research in this field, materials of scientific seminars and conferences, and thematic publications in periodicals.

3 Results Small and medium-sized businesses are business entities carrying out business activities permanently. The terms “small business” and “medium-sized” denote enterprises that follow the criteria presented in Table 1.

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Table 1 Criteria for classifying enterprises as small and medium-sized businesses Criteria

Micro-enterprise

Small enterprise

Medium enterprise

Yearly revenue (without VAT)

120 mln. RUB

800 mln. RUB

2 bln. RUB

The average number of employees

No more than 15 people

No more than 100 people

From 101 to 250 people

Share in the authorized capital – Subjects of the Russian Fedaration, municipalities, public and religious organizations, foundations

No more than 25%

– Foreign organizations

No more than 49%

Source Compiled by the authors, based on [7, 12]

As of January 10, 2019, Russian had 6.0 mln. registered SMEs. Of those, 55.1% (3.3 mln.) are individual entrepreneurs (self-employed), and 44.9% (2.7 mln.) are enterprises (Fig. 1). The majority of the SME sector is represented by individual entrepreneurs and microenterprises, while the share of medium-sized enterprises is less than 0.4% (Table 2). SMEs are an additional catalyst for the development of the social sphere since they provide employment and job opportunities. The share of SME employees within the total working population amounts to more than 20% (Fig. 2). The number of SME employed population amounted to 15.8 mln. people in 2018 (Table 3). In contrast to the dynamics of the number of small and medium-sized business structures, the number of their employees increased in 2017 and decreased in 2018, so the overall growth in the number of employees between 2016 and 2018 was very small (17.8 thousand people or 0.1%). The number of microenterprises and the

Fig. 1 Structure of SMEs, %. Source Compiled by the authors based on [2, 3]

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Table 2 Dynamics of the SMEs number in Russia, units Values

2016

2017

Units

Share, %

2018

Units

Share, %

Units

Share, %

Growth rate, %

Microenterprises including

5,576,939

95.1

5,751,885

95.2

5,771,626

95.5

103.5

Invididual enterpreneurs

3,020,000

51.5

3,193,349

52.9

3,298,065

54.6

109.2

Enterprises

2,556,939

43.6

2,558,536

42.4

2,473,561

40.9

96.7

268,488

4.6

267,033

4.4

250,758

4.2

93.4

28,584

0.5

28,003

0.5

27,423

0.5

95.9

239,904

4.1

239,030

4.0

223,335

3.7

93.1

20,353

0.3

20,298

0.3

18,811

0.3

92.4

402

0.0

354

0.0

319

0.0

79.4

19,951

0.3

19,944

0.3

18,492

0.3

92.7

5,865,780

100.0

6,039,216

100.0

6,041,195

100.0

103.0

Small businesses including Invididual enterpreneurs Juridical entities Medium-sized enterprises including Invididual enterpreneurs Juridical entities Total

Source Compiled by the authors based on [2, 3]

Fig. 2 Employment in Russia. Source Compiled by the authors based on [2, 3]

number of their employees are on the rise, while the number of small and mediumsized enterprises is decreasing, which leads to a decrease in the number of employees of these entities. Despite the general growth trend in the number of individual entrepreneurs, juridical entities employing more than 80% of all SME employees remain essential for solving employment problems (Fig. 3).

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Table 3 Dynamics of the SME employed population in Russia, people Values

2016 People

2017 Share, %

People

2018 Share, %

People

Share, %

Growth rate, %

Microenterprises including

6,463,949

40.8

7,029,955

43.6

7,522,729

47.4

116.4

Invididual enterpreneurs

1,518,773

9.6

1,576,273

9.8

1,663,163

10.5

109.5

Juridical entities

4,945,176

31.2

5,453,682

33.9

5,859,566

36.9

118.5

Small businesses including

7,432,979

46.9

7,099,040

44.1

6,538,893

41.2

88.0

857,451

5.4

782,538

4.9

735,172

4.6

85.7

Juridical entities

6,575,528

41.5

6,316,502

39.2

5,803,721

36.6

88.3

Medium-sized enterprises including

1,958,821

12.4

1,977,586

12.3

1,811,967

11.4

92.5

39,917

0.3

34,146

0.2

29,757

0.2

74.5

1,918,904

12.1

1,943,440

12.1

1,782,210

11.2

92.9

15,855,749

100.0

16,106,581

100.0

15,873,589

100.0

100.1

Invididual enterpreneurs

Invididual enterpreneurs Juridical entities Total

Source Compiled by the authors based on [2, 3]

Fig. 3 Structure of the SME employed population, %. Source Compiled by the authors based on [1]

Every registered business uses OSN and can voluntarily switch to a more suitable special taxation regime. At the beginning of 2019, about 2/3 of small and medium-sized businesses used special tax regimes. The share of taxpayers using special tax regimes in the total number of taxpayers sees annual growth. At the end of 2018, it amounted to 71%

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Fig. 4 The share of taxpayers using special tax regimes in 2018, %. Source Compiled by the authors based on [2, 3]

against 59% in 2014 (respectively, the share of taxpayers using the general tax regime decreased amounting to 29% against 41%) [3]. The simplified tax system is the most attractive taxation regime for taxpayers (Fig. 4) due to a number of its advantages: • Reduced tax rate compared to the OSN; • Ability to maintain simplified accounting; • Abolition of corporate income tax, VAT, and property tax for organizations and individuals (in respect of property without cadastral value). From 2014 to 2018, the number of taxpayers using USN increased by 29%, with the most significant increase occurring in 2017 and 2018 (6.3 and 6.1%, respectively). This explains the largest amount of revenue from this tax regime compared to other special tax regimes (Table 4). At the same time, the volume of revenues from special tax regimes of SMEs increases in proportion to other taxes. Over the period from 2014 to 2018, the highest growth rate was recorded for revenues of the patent tax system (an average annual increase of 55%), while the total share of this tax has doubled. The ENVD shows a reverse trend, with an annual decrease in revenue by an average of 2%. This trend is associated with a reduction in the types of activities falling under the single tax on imputed income as a result of the gradual abolition of this tax regime. Starting from 2021, the single tax on imputed income will cease to exist [13]. The Ministry of Finance and the Government of the Russian Federation don not plan on continuing to usie this special taxation regime since it is often used for tax evasion. This was confirmed by data on labeled products and the data of online sales registers [4, 5]. Thus, if we set aside the income from the ENVD taxation system, we can note that the growth rate of income for five years for the USN (184.1%), ESHN (289.2%), and PSN (363.2%) taxation systems exceeded the growth rate of profit tax on organizations (172.5%) (Fig. 5). The annual growth in revenue from the USN can be attributed to an increase in the number of business entities under this regime and the increasing income of these taxpayers (Fig. 6). The revenue of organizations (excluding the oil and gas sector, and

2015

2016

2017

2018

314.1

229.3

76.6

4.7

3.4

From special regimes including

USN

ENDV

ESHN

PSN

0.03

0.04

0.57

1.69

2.32

17.58

100.0

Source Compiled by the authors based on [2, 3]

2381.9

13,550.2

5.3

7.4

78.5

254.2

345.4

2607.9

13,720.4

0.04

0.05

0.57

1.85

2.52

19.01

100.0

7.6

11.4

74.3

287.1

380.4

2776.8

14,386.1

0.05

0.08

0.52

2.00

2.64

19.30

100.0

11.2

11.9

70.6

345.2

438.9

3297.3

18,284.2

0.06

0.07

0.39

1.89

2.40

18.03

100.0

12.5

13.6

64.5

422.2

512.7

4108.4

22,335.0

0.06

0.06

0.29

1.89

2.30

18.40

100.0

Bln. RUB Share, % Bln. RUB Share, % Bln. RUB Share, % Bln. RUB Share, % Bln. RUB Share, %

2014

Profit tax

Total including

Received taxes

Table 4 Dynamics of tax receipts from SMEs under special tax regimes

363.2

289.2

84.1

184.1

163.2

172.5

164.8

Growth rate, %

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Fig. 5 Return of corporate income tax (OSN) and taxes connected to the special taxation regimes (USN, ESHN, PSN). Source Compiled by the author

Fig. 6 The income rate growth of taxpayers under the USN and OSN taxation systems, %. Source [3]

the metallurgical sector) under the OSN for the period from 2014 to 2018 increased by 29% (from 180.2 trln. RUB in 2014 to 232.4 trln. RUB in 2018). At the same time, the income of small and medium-sized enterprises under the USN has seen an almost twofold increase (from 8.6 trln. to 17.0 trln. RUB) for the same period. We note that small and medium-sized businesses are more mobile and resistant to various negative economic factors. This fact is facilitated by the 2017 decrease in the income of taxpayers under the OSN by 3.3% caused by a decrease in consumer demand and other negative economic manifestations. At the same time, the income of taxpayers under the USN, on the contrary, continued its positive trend and increased by 20.7% compared to 2016 in the same year.

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4 Discussion The presented economic activity indicators of small and medium-sized businesses demonstrate their stable development and ability to adapt to changing market conditions quickly. However, there is a risk of decline for business activity in 2021 caused by the approaching abolition of the ENVD. In 2018, 2.1 mln. Small and medium-sized businesses (13% juridical entities and 87% individual entrepreneurs) used the ENVD taxation system. After the abolition of the regime in 2021, they will need to choose between the OSN, USN, and PSN. The transition to the OSN is the least attractive for business entities. That is why it is necessary to expand the applicability of the USN and PSN since, currently, these regimes are restrictive. For example, the PSN can only be used by individual entrepreneurs with a limiting list of activities. The revenue of its users must not exceed 60 mln. RUB per year, while the maximum amount of employees of the PSN entities amounts to 15. The USN requires extensive accounting, meaning that the transition to this regime will not only increase the tax burden but also increase the cost of accounting services payment. Besides, the USN has a limit on the amount of revenue amounting to 150 mln. RUB.

5 Conclusion In order to offset the consequences of the ENVD abolition for small and mediumsized businesses, the list of PSN activities should include those provided by the ENVD. The development of small businesses should be facilitated by a special tax regime known as the professional income tax (also known as NPD). As of September 9, 2019, more than 195 thousand people were registered as self-employed; the total turnover amounted to 19.3 bln. RUB, and the amount of tax paid for the first six tax periods reached 406 mln. RUB [4, 5]. However, this tax regime is limited to experimental territories, and regions do not have the opportunity for independent implementation of this tax on their territory. This opportunity could facilitate the transition of entrepreneurs from the ENVD to the NPD by 2020. According to the USN, when classifying entities as small enterprises, the threshold value of revenue should be increased to the level set by the Government of the Russian Federation (800 mln. RUB) [7]. It is also necessary to increase the limit on the residual value of fixed assets by two times or eliminate it altogether, which will expand the ability of small and medium-sized enterprises to update fixed assets. Agricultural producers should be given the right to register as VAT payers voluntarily, which will allow them to develop, increasing their profitability by reducing costs [8]. The increase in revenue from small and medium-sized enterprises should be facilitated by business development and an increase in the tax base, not by the result of the

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tax burden increase. That is why tax rates set within the existing special tax regimes should not be revised upwards. To conclude, it should be noted that small and medium-sized businesses have the potential for further development not only in terms of economic indicators (revenue, tax revenues, etc.) but also in terms of social indicators (employment growth, unemployment reduction). However, this development should not be facilitated by an increase of the tax burden, but by direct efforts towards the tax base increase.

References 1. Federal State Statistics Service (n.d.) Statistical compilations “Small and medium-sized businesses in Russia. Retrieved from https://www.gks.ru/folder/210/document/13223?print=1 2. Federal Tax Service (2019a) On the application of the single tax on imputed income (October 02. 2019 No. MMV-17-3/245). Moscow, Russia 3. Federal Tax Service (2019b) The role of small business in the economy. Retrieved from https:// analytic.nalog.ru/portal/index.ru-RU.htm 4. Federal Tax Service (n.d.) Official website. Retrieved from https://www.nalog.ru/ 5. Federal Tax Service (n.d.) The unified register of small and medium-sized businesses. Retrieved from https://rmsp.nalog.ru/index.html 6. Gasieva ZP, Kaitmazov VA (2019) Taxation of small and medium-sized businesses: current state and development prospects. Bull Moscow Univ Ministry Intern Aff Russia 4:263–267 7. Government of the Russian Federation (2016) Decree “On the maximum values of income received from business activities for each category of small and medium-sized businesses” (4 Apr 2016 No. 265). Moscow, Russia 8. Lapina EN, Sobchenko NV, Kuleshova LV, Shamrina SY (2015) Regional agriculture, food supply systems, and competitiveness of agriculture production industries in the Stavropol Krai. Asian Soc Sci 11(6):92–98 9. Nosova SS, Askerov PF, Rabadanov PF, Dubanevich LE, Voronina VN (2019) The role of digital infrastructure in the digital transformation of the modern Russian economy. Int J Innov Technol Exploring Eng 8(7):2311–2318 10. Russian Federation (1998) The tax code of the Russian Federation. Part One (31 July 1998 No. 146-FZ). Moscow, Russia 11. Russian Federation (2000) The tax code of the Russian Federation. Part Two (August 5, 2000 No. 117-FZ). Moscow, Russia 12. Russian Federation (2007) Federal law “On the development of small and medium-sized businesses in the Russian Federation” (25 July 2007 No. 209-FZ). Moscow, Russia 13. Russian Federation (2012) Federal law “On Amendments to Part One and Part Two of the Tax Code of the Russian Federation and Article 26 of the Federal law “On banks and banking activities” (29 June 2012 No. 97-FZ). Moscow, Russia

Accounting Practice and Accounting Information Disclosure on Intellectual Capital: Systematization of International Approaches Maria A. Vakhrushina

and Alina A. Vakhrushina

Abstract This paper reviews and systematizes the modern international research on the accounting of intellectual capital in organizations and its reporting disclosure. As a result of the meta-analysis of national standards, projects, and initiatives developed in the period from the late 1980s to the present, we concluded that there is no unified concept of the intellectual capital report in the global world, which reduces the quality of its analysis by interested stakeholders. The paper identified the national features of presenting this data based on the analysis of foreign secondary literature from 10 countries on intellectual capital disclosure. The paper reveals the role of management accounting in solving the problem of forming intellectual capital reports in foreign countries. Keywords Intellectual capital · Management accounting · Intellectual capital report · Intellectual capital disclosure

1 Introduction Intellectual capital deserves special attention as a new phenomenon in the accounting and reporting system of companies due to the increasing requirements of stakeholders to ensure transparency, reliability, and relevance of their published data. The growing prevalence of intellectual capital reporting in foreign countries is also marked with flexibility in the organization of accounting systems and principles of intellectual capital reporting by companies from different countries of the world [1]. The inefficient elaboration of these issues, scattered information, and lack of systematization of international approaches in the field of intellectual capital disclosure determined the relevance of the study. The paper aims to review and systematize the results of international research in the field of intellectual capital accounting and its information disclosure in the

M. A. Vakhrushina · A. A. Vakhrushina (B) Financial University under the Government of the Russian Federation, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_43

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reports of organizations to develop the relevant branch of science. It also aims to provide information support for research activities. The analysis of international practice trends [5–7, 9, 21, 23] (studied on the example of existing national standards, projects, and initiatives) allowed us to identify key stages in the development of accounting and reporting systems for intellectual capital disclosure. The systematization and generalization of international research on the topic from 2000 to 2015 allowed us to assess management accounting capabilities in ensuring high-quality identification, measurement, and management of intellectual capital.

2 Materials and Methods The study is based on the electronic databases of international periodicals: journals, collections of scientific conferences, forums, and data made publicly available on the Internet on the official websites of professional organizations publishing information on projects and initiatives in the field of intellectual capital accounting and formation of its report information. We used meta-analysis (quantitative and systematic analysis) as a key research method, combining the results of several studies to obtain a conclusion showing more significant results compared with the results of individual studies. We semantically grouped the selected international studies, established logical relationships, put forward critical comments, and formulated generalizations and conclusions.

3 Results The process of forming accounting systems and reflecting information on intellectual capital in organization reports of foreign countries has gone through several stages of its development. The first stage features scientific work from the late 1980s to the late 1990s. Scholars came to a consensus on the high value of intellectual capital in the activities of organizations and also drew attention to the need for its qualitative measurement and subsequent reflection in the accounting of companies. This stage marked the development of fundamental models in evaluating and managing intellectual capital, such as the “Skandia Navigator” [17] and “The Intangible Assets Monitor” of K. Sveiby [19]. These models pay special attention to the intangible part of the enterprise balance consisting of the competencies and skills of employees, as well as the objects of the external and internal structure of the enterprise. The second stage of developing the intellectual capital accounting knowledge system took place in the early 2000s. This period marked the development of the guidelines system for the assessment and management of intellectual capital and its disclosure.

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In 2000, the Danish Agency for Trade and Industry developed the national project DATI [8], which stated that the preparation of public reports on intellectual capital by organizations could act as a factor for the qualitative exchange of knowledge and information in the business environment, as well as improve the quality of management of this asset. The document explained how information requests and customer demands compare with the performance of the enterprise. Since 2002, the MERITUM project (2002), which focuses on identifying, evaluating, and managing intangible enterprise assets, gained traction in Europe. The project was the first one to emphasize the need to consider the interests of concerned parties in information disclosure. The next important guideline is the result of the NORDIKA project (Northern Intellectual Capital Measurement Project) initiated by the Northern Industrial Foundation in collaboration with an expert group that included professional and business associations from the Scandinavian countries (Finland, Iceland, Norway, Sweden, and Denmark). This document describes many opportunities and techniques that existed at this stage to use, manage, and report intellectual capital for regional organizations. Table 1 provides a comparative description of the guidelines, as mentioned above, developed in the early 2000s. Besides, separate attempts to regulate the identification and evaluation of intellectual capital objects were made by the German legal system in 2004. For example, the German accounting standard “GAS 12” Non-current intangible assets” recommends that businesses report their intellectual capital in management reports rather than in Table 1 Content comparison of the main projects in the field of accounting and management of intellectual capital in organizations in the early 2000s Project name

Project objective

Project methodology

The proposed form of disclosure

MERITUM

Suggest correlation points Developed by a wide between the organization’s range of researchers key resources and its main from six countries activities

Intellectual Capital Report

DATI

Act as a tool for interaction between customers, employees, and other stakeholders of the enterprise in the course of its activities

Developed in close collaboration with representatives of the business structures for which these reports are developed

Intellectual Capital Statement

NORDIKA

Recommend methods for quality management of knowledge and other intangible assets of the organization

Based on the analysis of existing experience, comparison of best practices

Intellectual Capital Report

Source Compiled by the authors based on MERITUM, DATI, and NORDIKA data [8, 11, 16]

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financial statements [13]. The standard lists the elements of an organization’s intellectual capital (human, client, and structural capital) and provides recommendations on the possible content of management reporting under the title “Intellectual capital report.” In particular, it is recommended to publish performance indicators of intellectual capital, report on the goals and strategy for the development of this asset, and provide information on the individual development of its various elements. However, this legislative initiative did not find much response from the corporate sector. Only 60 German enterprises voluntarily published intellectual capital reports to supplement the main annual reports in the German experimental program “Wissensbilanz: Made in Germany.” The third stage of developing the system of intellectual capital disclosure in the world falls on the end of the first decade of the 2000s and still continues according to experts. There is an active study of intellectual capital accounting methods at the level of individual organizations and various industries. To date, foreign scientists have conducted numerous studies on the experience of different world countries (usually developed countries) in terms of intellectual capital disclosure [15]. We analyzed key studies on the topic in the 2000–2015 period, covering 10 countries: Australia, Ireland, the United States, Great Britain, Malaysia, New Zealand, Denmark, Italy, Germany, Sri Lanka, and China (Fig. 1). Australia has developed a system for encoding intellectual capital information, which would allow analyzing the reports of major domestic companies and assessing the disclosure level [14]. There is a lack of uniform rules and principles for generating reports on intellectual capital, which leads to a low level of information disclosure published exclusively in narrative form. The practice of generating reports on intellectual capital in the UK is voluntary. There is no incentive for the companies to voluntarily report data on key drivers of growth and value. However, despite this, UK firms publish some of this information

Fig. 1 Geography of research devoted to the study of the intellectual capital disclosure by organizations for 2000–2015. Source Compiled by the authors

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[18]. The most disclosed component of company intellectual capital is the clientele capital (more than 60%). It discloses information on the distribution channels of products (provided services) and the total number of clients. Information on human capital and structural capital was provided much less frequently, amounting to 22% and 17%, respectively [20]. In China, the practice of forming information on intellectual capital in corporate reports of organizations is reasonably high. There is a high correlation between stakeholders’ expectations and the actual disclosure of information by Chinese firms (60% of the information on intellectual capital elements in the reports corresponded to the interests of stakeholders). However, disclosing information on customer satisfaction, intellectual property, data on lucrative contracts, and employee-related knowledge has certain limitations [12]. However, according to experts, it is expected that companies will eliminate these restrictions shortly [3]. It is also necessary to note the experience of developing countries concerning the studied problem. Disclosure of intellectual capital is reflected in the practices of companies in the Republic of South Africa and Sri Lanka. These countries show a growing trend in the number of published reports on intellectual capital. The most common category in the reports of South African companies is human capital, in contrast to Sri Lanka, where the most frequently disclosed component of intellectual capital is client capital [2, 22]. The analysis of the practice of voluntary intellectual capital disclosure by public companies in Malaysia shows a low level of disclosure. In general, reporting is descriptive and does not adhere to a systematic or consistent structure. Organizations are more likely to disclose information on the objects of structural capital, such as management processes (32.13%), information processes (13.42%), network information system (7.66%). In terms of disclosure of client capital, the most popular objects are distribution channels (9.84%), clients (6.19%), and business collaborations (5.51%). The three most disclosed aspects of human capital are employee education level (5.8%), work-related competence (3.79%), and basic work-related knowledge (2.9%) [24]. The intellectual capital disclosure in Kazakhstan is limited by the lack of a regulatory framework and uniform principles of management accounting, and no unified methodology for its evaluation [10].

4 Discussion The analysis of the main projects aimed at developing the system of intellectual capital accounting and reporting shows that, despite the absence of significant differences in the methods and proposed principles, these projects lack a unified concept of intellectual capital reporting. If finalized, this type of reporting could become globally comparable and uniform. The MERITUM project, in our opinion, contains the broadest and most consistent conceptual structure and a clear process for

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managing intellectual capital. The recommendations of the DATI project for intellectual capital reporting serve as practical guidelines. The various aspects of accounting and management of intellectual capital reflected in the NORDIKA guidelines are based on the best practices of Northern European companies in various sectors of the economy, also presenting practical interest. The analysis of foreign studies on intellectual capital disclosure by organizations in 2000–2015 allows us to conclude that the practice of presenting information on intellectual capital is essentially descriptive. Only some of its items are presented in numerical or monetary form, which ultimately complicates and slows down the process of understanding reporting and reduces transparency. Foreign researchers have concluded that the financial accounting system has limited tools for identifying, measuring, and reflecting information on intellectual capital in reports for more than a decade. In this regard, the problem of forming reports on the intellectual capital of foreign organizations has found its development in the management accounting system [4].

5 Conclusion Thus, the analysis of international practice trends allowed us to identify key stages in the development of accounting systems and the intellectual capital disclosure in organization reports from the late 1980s to the present. Systematization and generalization of international research devoted to the study of the intellectual capital disclosure by organizations for 2000–2015 have shown that management accounting can act as a key tool in providing qualitative identification and measurement of the intellectual capital for its inclusion in company reports. It can include both financial and non-financial methods of accounting. Undoubtedly, intellectual capital accounting requires close interaction with other economic science branches, such as human resource management, knowledge management, and information technology.

References 1. Abdolmohammadi MJ (2005) Intellectual capital disclosure and market capitalization. J Intellect Cap 6(3):397–416 2. Abeysekera I, Guthrie J (2005) An empirical investigation of annual reporting trends of intellectual capital in Sri Lanka. Crit Perspect Account 16(3):151–163 3. An Y, Davey H, Eggleton IRC, Wang Z (2015) Intellectual capital disclosure and the information gap: evidence from China. Adv Acc Incorporating Adv Int Acc 31:179–187 4. Antunes MTP (2006) A controladoria e o capital intelectual: Um estudo empírico sobre sua gestão. Rev De Contabilidade Financeira 41:21–37 5. Wissensbilanz A (2003) German guidelines “Intellectual capital statement—made in Germany.” Retrieved from https://www.akwissensbilanz.org/Infoservice/Infomaterial/Leitfa den_english.pdf

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6. Bozzolan S, Favotto F, Ricceri F (2003) Italian annual intellectual capital disclosure: an empirical analysis. J Intellect Cap 4(4):543–558 7. Brennan N (2001) Reporting intellectual capital in annual reports: evidence from Ireland. Acc Auditing Accountability J 14(4):423–436 8. DATI (2000) A guideline for intellectual capital statements: a key to knowledge management. Retrieved from https://www.juergendaum.com/articles/Danish_ICS.pdf 9. De Silva T-A, Stratford M, Clark M (2014) Intellectual capital reporting: a longitudinal study of New Zealand companies. J Intellect Cap 15(1):157–172 10. Dosmanbetova MS (2015) Approaches to drawing up a report on intellectual capital (on the example of KAZ Minerals PLC, The Republic of Kazakhstan). Bull Turan Univ 3(67):110–115 11. European Commission (2002) MERITUM project: guidelines for managing and reporting on intangibles (intellectual capital report). Madrid, Spain 12. Farooq O, Nielsen C (2014) Improving the information environment for analysts. J Intellect Cap 15(1):142–156 13. German Accounting Standards Committee (2004) GAS 12 “Non-current intangible assets.” Retrieved from https://alt.drsc.de/service/drs/standards/index_en.php?ixstds_do=show_deta ils&entry_id=18 14. Guthrie J, Petty R (2000) Intellectual capital: Australian annual reporting practices. J Intellect Cap 1(3):241–254 15. Li J, Mangena M, Pike R (2012) The effect of audit committee characteristics on intellectual capital disclosure. Br Account Rev 44(2):98–110 16. Nordic Industrial Fund (2001) Nordika project: intellectual capital. Managing and reporting, Oslo, Sweden 17. Skandia Insurance Company (2000) Visualizing intellectual capital in Skandia: supplement to Skandia annual reports 1994–2000. Stockholm, Sweden. Retrieved from https://www.skandia. com/ 18. Striukova L, Unerman J, Guthrie J (2008) Corporate reporting of intellectual capital: evidence from UK companies. Br Account Rev 40(4):297–313 19. Sveiby KE (2001) The intangible assets monitor components. Retrieved from https://www.sve iby.com/articles/CompanyMonitor.html 20. Unerman J, Guthrie J, Striukova L (2007) UK reporting of intellectual capital. Center for business performance. Retrieved from https://www.icaew.com/-/media/corporate/files/products/fin ancial-reporting/uk-reporting-of-intellectual-capital.ashx 21. Vergauwen PGMC, Alem FJC (2005) The annual report IC disclosure in The Netherlands, France, and Germany. J Intellect Cap 6(1):89–104 22. Wagiciengo MM, Belal AR (2012) Intellectual capital disclosures by South African companies: a longitudinal investigation. Adv Acc Incorporating Adv Int Acc 28:111–119 23. Whiting RH, Woodcock J (2011) Firm characteristics and intellectual capital disclosure by Australian companies. J Human Resour Costing Acc 15(2):102–126 24. Yau FS, Chun LS, Balaraman R (2009) Intellectual capital reporting and corporate characteristics of public-listed companies in Malaysia. J Financ Reporting Acc 7(1):17–35

Consulting Service as a Tool to Support Decision-Making by Rural Producers Vladimir V. Makovetskiy , Valery M. Koshelev , Larisa E. Kresova , Maria A. Sukharnikova , and Andzhelika V. Sharapova

Abstract Information and consulting organizations are one of the most effective tools for supporting the decision-making of rural producers and are an integral part of the mechanism for managing the acceleration of innovative and sustainable development of rural territories. Keywords Information and consulting services · Consulting · Services · Training

1 Introduction As independent organizations, consulting services were formed at the beginning of the nineteenth century with the spread of democratic values and enlightenment ideas in European developed countries. In Russia, a similar movement of the same period was called “Going to the People.” This movement later influenced the creation and development of a consulting service called “social agronomy.” A. Chayanov, whose work was used as a foundation for several foreign consulting services, was one of its founders. In the Soviet period, these issues were resolved by other country institutions due to the absence of a consulting service. Reconstruction of consulting services in the Russian agricultural sector became relevant in the early 1990s. The first attempts to form such consulting services were made with varying degrees of success as a part of the implementation of individual international projects in different regions of the country.

V. V. Makovetskiy · V. M. Koshelev · L. E. Kresova · M. A. Sukharnikova (B) · A. V. Sharapova Russian State Agrarian University, Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] V. V. Makovetskiy e-mail: [email protected] A. V. Sharapova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_44

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For example, in June 1994, the Ministry of Agriculture and Food Products signed a loan agreement between the Russian Federation and the International Bank for Reconstruction and Development [IBRD]. Following this agreement, the Agriculture Reform Implementation Support [ARIS] project was implemented.

2 Materials and Methods The ARIS project aimed to create conditions for the Russian agricultural sector in a market economy. The project saw the establishment of an information and consulting service [ICS] for agricultural producers, the creation of a price formation system [PFS], the development of seed production, and the implementation of individual investment projects following its target goal. The ARIS project stipulated the establishment of ICS systems for the strategically important regions of the Russian agricultural sector. It served as a guideline and significantly contributed to creating information and consulting services system for the Russian agricultural sector. The information and consulting service for the agricultural industry aim at developing its competitiveness. This goal can be reached if rural producers are assisted in the more efficient management of their farms and informed economic decision-making (Fig. 1). Currently, information and consulting services are established in more than 70 regions of the Russian Federation. The number of regional centers of the agricultural consulting system is demonstrated in Fig. 2. Information and consulting services have various organizational and legal forms (Fig. 3) [1]. supporting rural producers − in identifying and formulating their problems − in the analysis of solutions − in informed decision-making − in the exchange of information with other rural producers − in providing objective information on various aspects of housekeeping consulting − on effective planning and management of the economy − on financial and investment analysis − on the optimization of resource use, including environmental requirements − on providing feedback in order to develop effective measures of state agricultural policy integration of knowledge from various sources

Fig. 1 Functions of information and consulting services. Source Compiled by the authors

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Fig. 2 Regional centers of the agricultural consulting system, units. Source Federal Center for Agricultural Consulting in the Agro-Industrial Complex [1]

Fig. 3 Organizational and legal forms of information and consulting services. Source Federal Center for Agricultural Consulting in the Agro-Industrial Complex [1]

3 Results Regional centers of agricultural consulting make a significant contribution to the sustainable development of rural territories. Information and consulting services use various forms of activity to improve the education level of rural producers. ICS applies both individual and group forms of work. Individual forms include the

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following: farm consulting, service office consulting, phone consulting, correspondence consulting, etc. Group forms include the field day method, business games, meetings, seminars, lectures, speeches, etc. [3]. Samara Region was one of the regions where the ARIS project established ICS. Formed in 1997, the information and consulting service was named “SamaraARIS” (Samara—Agricultural Regional Information System). Later it became a state-funded institution of continuing vocational education. The types of services provided by the ICS “Samara-ARIS” include: • information and consulting services, monitoring of prices for basic types of agricultural and food products; • paperwork for participation in grant competitions for novice farmers; • organizing and conducting regional, inter-district and district seminars, field days, meetings, conferences, master classes; • organization of test demonstration sites based on advanced enterprises and farms; • organizational and informational support of regional industry unions, associations, and guilds in the regional agricultural industry; • practical consulting, etc. [6]. ICS helps rural producers make decisions on a range of issues. The service staff continually monitors the problematic aspects of regional agriculture and selects the most relevant topics for future training. The service employs qualified consultants and involves leading agricultural scientists and experts from the regional Ministry of Agriculture in conducted training seminars. As an example, we will analyze the student activity in a typical training seminar on goat breeding. The total number of students comprises managers of agricultural enterprises (48%), experts (32%), administration employees (16%), and media representatives (4%) (Fig. 4). In 2010, the regional administration and the ICS “Samara-ARIS” defined a list of promising areas of agricultural production, including the cultivation of early vegetable crops in the protected ground and the creation of farms for rabbit breeding goat breeding, and beekeeping. The combined efforts of the ICS and the Association of Peasant Farms accelerated the fusion of small and medium-sized rural producers into regional non-profit branch union guilds [6]. For example on May 10, 2011, the ICS “Samara-ARIS” organized a meeting of the leading regional goat breeders leading to the establishment of the “Samara Fig. 4 Positions and the professional activity of the participants of the ICS “Samara-ARIS” training seminar. Source Compiled by the authors

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Region Guild of Goat Breeders.” The Guild is designed to solve the main problems facing goat breeders such as Russian import of pedigree dairy and meat goats and their following breeding, breeding of domestic pedigree dairy and meat goats, expositions of dairy and meat goat breeds, etc. [2]. State Budget Educational Institution of Vocational Education “Samara-ARIS” conducts training on goat and sheep breeding, as well as a set of training events on agricultural animal feeding: • “Goat breeding in household and peasant farms. Goat breeds. Main diseases and their treatment”; • “Modern technologies of full-fledged farm animal feeding as one of the ways to increase the productivity and efficiency of the livestock industry”; • “The advanced technology of feed preparation. Binary sowings for balanced feed layout”; • “Milk quality and factors influencing its increase”; • “Workshop for farmers of Aliev peasant farm” [6]. On November 13, 2019, the regional Ministry of Agriculture signed agreements on farmer grants in the framework of the state program “Development of Agriculture and Regulation of Markets for Agricultural Products, Raw Materials, and Food of the Samara Region” for 2014—2021. Grant support was also given to rare branches of peasant farming, such as fish farming, goat farming, and beekeeping [4]. As a result of the measures mentioned above, the popularity of these branches has risen among the rural producers of the Samara Region. Currently, goat farming is relatively stable (Fig. 5) and even growing (in recent years) [5].

Fig. 5 The growth (decline) rate of sheep and goats, as a percentage to the previous year. Source Compiled by the authors based on [5]

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4 Discussion To assess the quality, effectiveness, and availability of the acquired knowledge, one of the most effective tools is the feedback given by the students to the seminar organizers. To maintain the relevance of training and consulting, and effectively support client decision-making, the ICS needs to establish regular feedback with students. We developed questionnaires based on the results of training events and repeated post-training questionnaires after a specific time. We surveyed the participants of one of the above-mentioned goat-breeding seminars using the self-developed detailed form. Figure 6 demonstrates the main indicators of the questionnaire (five-point rating system). Ninety-five percent of students rated the teaching level as “excellent,” and 89% of students gave the highest score to the material usefulness. Seventy-eight percent of producers had no complaints about the audience equipment, while only 72% of respondents gave the highest mark to the material illustrativeness. The ratings indicate high audience satisfaction. Almost all respondents believe that they will be able to implement the knowledge they have gained at work immediately after the event, while the seminar material will help avoid mistakes in their professional activities. However, this must be confirmed by a survey of students 1–3 years after training. We developed and tested several questionnaires, one of which is presented in Table 1. The processing of the survey results showed that most of the participants highly appreciated the usefulness of the knowledge obtained at the seminar. They also highly rate the seminar’s practical significance, the ability to expand the scope of their professional activities, etc.

Fig. 6 The number of students who rated the seminar as “excellent,” %. Source Compiled by the authors

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Table 1 A questionnaire survey of students after 1–3 years No

Question

3–4 points

1–2 points

1

How useful was the Extremely useful knowledge you acquired during the seminar?

5 points

Relatively useful

Barely useful

2

How much of this knowledge was used in practice?

Increased the efficiency of production

Partially used

Little to no use

3

To what extent did the new knowledge help you avoid mistakes in your activities?

Strongly helped

Moderately helped

Slightly helped

4

Have you expanded the scope of your professional activity through the acquired knowledge?

Yes

Somewhat

No

5

Do you plan to continue Certainly training in this area?

Probably

Not sure

6

Seminar shortcomings

7

Your suggestions for improving the organization of the seminar:

8

What topic would you like to study in the future?

Source Compiled by the authors

5 Conclusion The information and consulting service is an essential tool for supporting decisionmaking by rural producers. Sustainable development of rural areas is an urgent task of the regional authorities of the Russian Federation. Regional ICS makes a significant contribution to ensuring these processes. The ICS “Samara-ARIS” experience demonstrates its significant contribution to improving the efficiency of small and medium-sized businesses, for example, in the fields of goat breeding, rabbit breeding, beekeeping, etc. The information and consulting service have every opportunity to become a useful tool of the agricultural policy when studying the specifics of the activities of rural producers, their needs for appropriate services, and competent feedback.

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Reference 1. Federal Center for Agricultural Consulting in the Agro-Industrial Complex (2018) Sites of regional centers of agricultural consulting system. Retrieved from https://mcx-consult.ru/sayti_ selskohozyaystvennoe_konsultirovani/ 2. Guild of Goat Breeders of the Samara Region (n.d.) Guild news. Retrieved from https://www. sites.google.com/site/gksrsamara/novosti/ 3. Koshelev VM, Makovetsky VV, Aleksanov DS, Korolkov AF, Priemko VV, Sukharnikova MA (2018) Organization of consulting activities in the agro-industrial complex. Yurait Publishing House, Moscow, Russia 4. Ministry of Agriculture and Food of Samara Oblast (n.d.) Official website. Retrieved from https://mcx.samregion.ru/ 5. Regional Office of the Federal State Statistics Service in the Samara Region (n.d.) Official website. Retrieved from https://samarastat.gks.ru/wps/wcm/connect/rosstat_ts/samarastat/ru/sta tistics/enterprises/agriculture/ 6. State Budget Educational Institution of Vocational Education “Samara-ARIS” (n.d.) Official website. Retrieved from https://www.agro-inform.ru/

Current Financial Stability of Agricultural Producers in Southern Russia Igor Y. Sklyarov , Yulia M. Sklyarova , Fatimat A. Mambetova , Salambek Kh. Sulumov , and Movsar M. Mustaev

Abstract The paper describes the current financial stability of agricultural organizations in the region. The authors note that the assessment of the financial stability of agricultural organizations acts as a solid foundation of an economic entity. The assessment initiates the increasing independence of economic entities in implementing financial policy and provides access to international markets, which have changed the conditions for organizational activity. This change led to new challenges, one of which is to ensure stable economic development. The paper substantiates the crucial role of financial stability in the country. The development of financial stability based on financial management will ensure further functioning and development of economic entities. Therefore, it will ensure their sustainable economic development, which predetermines the relevance of the chosen research topic. The formulated scientific problem is relevant and practically significant. The paper studies the financial stability of agricultural producers and develops a set of measures to improve and increase it. Theoretical substantiations and development of organizational and methodological recommendations for improving the management of the financial stability of agricultural producers indicate the academic novelty of the study. Keywords Financial stability · Financial soundness · Economic development · Agricultural producers · Agriculture · Financial management · Financial results · Efficiency

I. Y. Sklyarov (B) · Y. M. Sklyarova Stavropol State Agrarian University, Stavropol, Russia e-mail: [email protected] F. A. Mambetova · M. M. Mustaev Kabardino-Balkar Scientific Center of the Russian Academy of Sciences, Nalchik, Russia e-mail: [email protected] S. Kh. Sulumov Chechen State University, Grozny, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_45

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1 Introduction The problem of ensuring the financial stability of agricultural organizations is currently becoming essential due to its decreasing stability, rising competition, and crises occurring in the current economic situation [10]. The external conditions in which agricultural producers operate are also changing. Therefore, it is necessary to assess the financial stability and solvency of organizations and identify ways to improve these indicators [1]. Financial stability is an essential indicator of the financial condition of organizations. It marks their ability to meet obligations at the expense of their internal and attracted funds. Moreover, financial stability ensures the development of an organization based on profit growth and maintaining solvency. It is the primary condition for the existence and dynamic activity formed under external and internal factors [2].

2 Materials and Methods In a market economy, when the development of organizations is carried out mainly at the expense of their own funds, the stable financial condition has become essential. Sustainable development is an equilibrium, a balanced state of an economic unit in the studied period. The overall impression of the financial condition can be obtained from the indicators contained in the financial results statement of an organization [3, 7]. Many businesses are experiencing crises since their inventory and costs exceed cash generation. To reduce the financial stress of an organization, it is necessary to determine the reasons for the sharp increase in the following items of working capital [4]: − Goods; − Finished production; − Unfinished production; − Production stocks. The analysis of financial results is a mandatory element. It evaluates each indicator for the analyzed period (horizontal analysis) and the structure of indicators (vertical analysis). Trend analysis established the dynamics of changes in indicators for the reporting period. It also identifies the factors and causes of changes in specific indicators and performs their quantitative assessment. Sources reducing financial instability of organizations include: − Funds raised from payable accounts over receivable accounts; − Borrowed funds; − Temporarily available funds and others [8].

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Financial management is used to improve the financial stability of organizations. It is an activity to manage finance based on various techniques and methods of increasing profitability and minimizing risks. The practice of financial management is essential in distributing and redistributing financial and economic relations arising between economic entities, the state, and the population. Financial management is employed to solve the problems of financial management. Let us consider the tools of financial management (Fig. 1). Thus, the analysis of financial performance is an essential process because it allows determining the reasons and factors for changes in particular indicators [9]. Meanwhile, the indicators of financial results of the organizations mark their economic,

Fig. 1 Financial management tools. Source Compiled by the authors

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marketing, financial, and investment efficiency. They form the basis for the economic development of organizations and strengthen financial relations with all commercial business participants.

3 Results The analysis of the financial stability of organizations allows us to determine how effectively organizations manage their internal and borrowed funds. The structure of internal and borrowed funds should meet the goals of an organization since insufficient financial stability leads to insolvency. We will analyze the solvency of agricultural producers on the example of the Stavropol Krai. Agriculture received significant state support over the past few years. Agricultural producers receive more than 30 types of state support. Let us consider the budget expenditures under the state program aimed at the development of agriculture for 2016–2020 (Fig. 2). According to Fig. 2, 7.05% of the total expenditures for implementing programs were allocated to the program “Development of Agriculture.” In absolute terms, it amounted to 6038.59 million rubles in 2016. In 2020, the government plans to allocate 6710.52 million rubles or 7.27% of the total funds to develop state programs. Let us analyze the amount of sales revenue and net financial results of agricultural producers (Fig. 3). The above data demonstrate an increase in the revenue of agricultural producers amounting to 11.14% in 2018 compared to 2016. In 2018, the sales revenue amounted 120000.00 92335.28

96717.11

100000.00 85595.25

91349.51

93606.41

Costs of the State program “Development of Agriculture”

80000.00

60000.00

40000.00

Total costs 6510.36

7755.65

20000.00

6710.52

6510.36

6038.59 0.00 2016

2017

2018

2019

2020

Fig. 2 Budget expenditures for the state program “Development of Agriculture” 2016–2020, million rubles. Source Compiled by the authors

Current Financial Stability of Agricultural Producers …

429

140000 131907 120000

125909

113286

100000 Sales revenue 80000

60000 Balanced financial result

40000 23828

25413 14361

20000

0 2016

2017

2018

Fig. 3 Revenue from product sales and net financial results, million rubles. Source Developed by the authors

to 125,909 million rubles. The net financial result of agricultural producers in 2018 compared to 2016 decreased by 39.73%, which, in absolute terms, amounted to 9467 million rubles. The core capital was received from the sales of crop products for 55.8 billion rubles (64.7%). The sales of livestock products account only for 30.4 billion rubles (35.3%). Let us analyze the proportion of unprofitable organizations in the agricultural sector to the number of reported organizations from 2016 to 2018 (Fig. 4). The data demonstrate an increase in the number of unprofitable organizations by 1.2% during the analyzed period. This increase led to a decrease in profitable organizations in 2018 compared to 2016 (by 1.2%).

4 Discussion Having analyzed the financial stability of agricultural producers in the Stavropol Krai, we can conclude that there is an uneven dynamic of the development of agricultural producers in various financial stability indicators. The development of agricultural organizations is marked with state support through the financing of state programs, the provision of subsidies, etc. To increase the financial stability of agricultural producers, it is necessary to create a scientifically based concept to increase the volume of internal funds. This

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90

84.7

84.4

80 70 60

Unprofitable organization share

50 40 Profitable organization share

30 20

14.4

15.3

15.6

10 0 2016

2017

2018

Fig. 4 The share of unprofitable and profitable organizations, %. Source Compiled by the authors

increase will contribute to the effective use of borrowed funds and help attract external financing sources through the use of financial management tools. Excessive financial stability caused by a relatively low volume of liabilities in the presence of a significant amount of assets presents a problem for the organization since the business is stagnating due to insufficient financing sources for the further development of the organization. This can also lead to a decrease in profit, facilitated by an excess of low-yielding or non-profitable liquid assets. State support for the development of the agricultural sector allows for the effective development of agricultural producers. The most frequently used state support methods for the agricultural sector include economic budget and tax policy methods. The economic method of state support uses subsidies, grants, rates, loans, taxes, and benefits [6]. The generally accepted economic, administrative, and institutional methods are used to develop the agricultural sector in the Stavropol Krai. Conventional economic methods include tax policy, budget policy, price policy, monetary policy, customs tariff policy, and currency policy. Administrative methods of state support include strategic and targeted development programs. The institutional methods involve the development of a legal system [5]. Thus, the effectiveness of agricultural producers depends on the measures taken by organizations to improve financial stability. In this regard, the above proposals will increase the financial stability of agricultural producers in the Stavropol Krai. The system of mechanisms for improving financial stability should be regularly updated according to the organization’s financial condition and ongoing changes in its internal and external environment.

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5 Conclusion External and internal reasons facilitate the irregularity of the financial stability of agricultural subjects. The most critical threats to the financial condition of agricultural producers include: − The absence of an internal monitoring system of financial stability; − The insufficient professional culture of financial management. Specific factors affecting the financial stability of agricultural organizations include: − Yield and animal productivity; − The specialization of the economy and a combination of industries; − Price of agricultural products; − Product quality; − Product policy; − Depreciation policy. Agricultural producers demonstrate uneven dynamics of the development of agricultural production in various indicators of financial stability. To ensure the competitiveness of agricultural production, it is necessary to ensure the sustainable growth of productivity. This requires deep and continuous technological upgrading and the introduction of modern and efficient technologies. It will optimize costs and increase the profitability of agricultural organizations.

References 1. Altukhov AI (2013) Problems of sustainable development of Russian agriculture for the period up to 2020. Econ Agric Process Enterp 5:1–3 2. Bondarenko LV (2018) The socio-economic mission of the Russian peasantry. In: Ushachev IG, Paptsov AG, Babkin KA, Abakumov IB, Skalnaya MM (eds) The future of rural areas. Moscow, Russia, pp 4–10 3. Kiselev SV (2016) Rural economy. Prospect, Moscow, Russia 4. Latysheva LA (2016) Financial management: textbook. Mirakl, Stavropol, Russia 5. Lysenko EG (2015) Agricultural economics. Kolos, Moscow, Russia 6. Minakov IA (2013) Methods and main directions of the agro-industrial complex state regulation. Econ Agric Process Enterp 6:22–26 7. Petraneva GA (2018) Agricultural economics. INFRA-M, Moscow, Russia 8. Shagayda NI (2017) Development trends and main challenges of the Russian agricultural sector. Anal Res Center, Moscow, Russia 9. Ushachev IG (2019) Sustainable development of rural territories. Anal Bull 5:13–17 10. Vodyannikov VT (2015) Agricultural economics. Kolos, Moscow, Russia

Smart Methods in Management Decisions-Making in the Agro-Industrial Complex Valentina E. Parfenova , Galina G. Bulgakova , Konstantin I. Kostyukov , Svetlana Yu Shamrina , and Asya Ts Ionova

Abstract The paper focuses on the use of fuzzy modeling to assess the risks of the bankruptcy of an enterprise. The authors provided a brief overview of the traditionally used international and domestic techniques. Their limited application in the conditions of increased uncertainty of the enterprise functioning environment is noted. An alternative approach to solving the problem of assessing bankruptcy risk based on a fuzzy description of uncertainty and risk is proposed. A fuzzy statement and solution of the studied problem are presented. The calculations are made based on the financial information of a specific agro-industrial enterprise. Keywords Fuzzy modeling · Assessment · Bankruptcy risk · Agro-industrial enterprise

1 Introduction The agro-industrial complex is a complex system. Like any complex system, it has a problem of uncertainty. This problem becomes more complicated under the transition of the agro-industrial complex [AIC] to an industrial-innovative path of development since innovations lead to a higher uncertainty level. The specificity of modern uncertainty is primarily manifested in the fact that it became impossible to guarantee the V. E. Parfenova (B) · G. G. Bulgakova Saint Petersburg State Agrarian University, Saint Petersburg, Russia K. I. Kostyukov Stavropol Branch of the Moscow State Pedagogical University, Stavropol, Russia e-mail: [email protected] S. Y. Shamrina Stavropol State Agrarian University, Stavropol, Russia e-mail: [email protected] A. T. Ionova Technological Institute of Service (Branch) of the Don State Technical University, Stavropol, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_46

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completeness and timeliness of the formulation and solution of many economic and managerial problems without techniques and methods for setting complex tasks. Meanwhile, the models and methods that are currently used for making managerial decisions in the AIC are developed for situations of complete certainty or statistical uncertainty. Consequently, they are not very suitable for making decisions in a high degree of uncertainty. An alternative to traditional methods is the so-called methods related to intelligent data processing or, in short, intelligent decision-making methods. As a rule, they are all based on a fuzzy approach, the apparatus of which is close to human thinking. These methods include fuzzy optimization, fuzzy regression, fuzzy time series, fuzzy logic, neural networks, genetic, and other methods [11]. The advantages of these methods are that they allow one to describe uncertainties of different types, work with quantitative and qualitative information, significantly expand the applied possibilities of formalization, build models adequate to reality, which increases the efficiency and quality of management. In our previous studies, we already considered some of the possibilities of using a fuzzy description of uncertainty when making managerial decisions in the AIC. This paper focuses on the use of a fuzzy approach in financial analysis.

2 Materials and Methods One of the urgent problems of strategic management is assessing the probability of an bankruptcy [4]. To solve this problem, several generally accepted techniques have been developed and are applied. Western economists made the greatest contribution to the development of quantitative models for assessing bankruptcy. These methods are based on factor models built based on classical models of regression and factor analysis, in which uncertainties and risks are probabilistic [1]. The Altman technique (Z-model) is the most famous and used. In general, the Z-model looks as follows [2, 3]: Z = C1 F1 + C2 F2 + . . . + Cn Fn

(1)

where F1 , F2 , . . . , Fn —selected financial ratios; C1 , C2 , . . . , Cn —indicators marking the significance F1 , F2 , . . . , Fn (the most meaningful are Z-models where n = 5 or n = 7). A high value of Z in (1) indicates a stable state of the enterprise, and a low value indicates a potential bankruptcy. However, the use of foreign models at Russian enterprises turned out to be unproductive since they do not consider the peculiarities of the Russian economy. Domestic scholars conducted many studies trying to adapt foreign models to analyze the financial condition of an enterprise to Russian conditions and propose their own analysis models [7–9]. A list of the main developments of Russian scholars

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can be found, for example, in work by Perfiliev [12]. However, it has not yet been possible to create an effective universal methodology. The search continues. The adequacy of the applied model depends on the methods for describing the uncertainties inherent in the environment of an enterprise, which has a high degree of uncertainty that does not have a probabilistic nature in current conditions. Simultaneously, in all traditional models for predicting bankruptcy, the risk is identified only with probability (i.e., with randomness). Therefore, one of the most important areas in this area is the creation of models for assessing bankruptcy based on a new approach that serves as an alternative to the probabilistic approach to describing uncertainties. This approach is a fuzzy approach to the definition and assessment of risk. Fuzzy risk can be defined as an action under conditions of uncertainty. This action can be assessed using appropriate fuzzy instruments. The method of assessing the risk of bankruptcy based on the fuzzy approach is called the fuzzy method [6]. Russian scholar A. O. Nedosekin developed a variant of this technique [10]. His methodology uses an unclear description of financial uncertainties. We applied the proposed approach with some modifications to assess the risk of bankruptcy for one of the AIC enterprises.

3 Results Let us present the definitions and tools used from the theory of fuzzy sets that underlie the solution to the problem. Fuzzy set. Let X be a universal set, X = {x}. The fuzzy set A is marked with the set {x, f A (x), M}, where f A (x) is the membership function taking value in some ordered set M = [0.1]. The membership function indicates the degree of membership of an element x to a subset A. Fuzzy and linguistic variables. The fuzzy variable is marked with a triple {α, X, A}, where α—the variable name, X—the universal set (domain α), A—the fuzzy set on X. The linguistic variable is a set {β, T, X, Q, M}, where β—the name of the linguistic variable; T —the set of its values (term-set), representing the names of fuzzy variables; X—the set that is the domain for each of the values of the variable; Q—the syntactic procedure with which one can operate with the elements of a term set and create new values; M—a semantic procedure that allows us to transform a new value of a linguistic variable formed by the procedure Q into a fuzzy variable. Factor condition. Suppose n factors describe the system under consideration, V is a set of factors V = {V1 , . . . , Vn }. Each factor is treated as a linguistic variable Vi = {vi , D(vi )}, where vi —the factor name Vi , D(vi )—the term-set of linguistic variable Vi , ai  D(vi ), ai —the verbal values of a linguistic variable, each of which is a fuzzy set with a domain of T and a membership function μai : T → [0, 1]. It is necessary to get a numerical rating for each factor. Suppose F(Vi ) = {F1 , . . . , Fk }— the set of indicators by which the V i factor is estimated, and each indicator has a

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value αi  D = {−1, 0, 1}, where (–1) corresponds to the linguistic meaning “low,” 0—to the meaning “average,” and 1—“high.” The condition of the factor |F(Vi )| = (a1 , . . . , ak ) is a vector of indicator values by which the factor ai  D is estimated. The factor state space. Let us assume that three parameters determine the factor, each of which can take values {–1, 0, 1}. Then the set of factor states are vectors: (–1,–1,–1), (–1,–1,0), (–1,0,–1),…, (0,1,1), (1,1,1). For a factor determined by k indicators, the state space is the Cartesian product Dk , forming a distributive vector lattice with a universal lower edge Smin = (−1, −1, . . . , −1) and a universal upper edge Smax = (1, 1, . . . , 1). To establish relations between states, we introduced the concept of Hamming distance. The Hamming distance between states S 1 and S 2 is determined as: d(S1 , S2 ) =

k     S1 S  ai − ai 2 

(2)

i=1

Additionally, to the absolute distance, the concept of the relative Hamming 1 ,S2 ) distance is also introduced −ρ(S1 , S2 ) = d(S2k . Different indicators may have a different effect on the factor in question. This can be found out by adding weight coefficients to formula (2): d(S1 , S2 ) =

k 

    βi aiS1 − aiS2 

(3)

i=1

where β i —weights showing the importance of the ith indicator. The distance h = d(Smin , S) is called the height of the state S. Generalized factor assessment. As a generalized estimate G(V) of factor V, we use the formula: G(V ) = 2 h(S) − 1

(4)

Furthermore, we reduce the set of values of indicators that determine the factor to the form—{−1, 0, 1}. The indicators for which the generalized assessment of the factor is obtained may have a different nature. There arises the problem of reducing the set of their values to the form {−1, 0, 1}. For this purpose, each of the indicators F1 , . . . , Fk is considered as a linguistic variable. Let F i be one of the indicators that represent the name of the corresponding variable. We will assume that a variable can take three values: a1 —“low,” a2 —“average,” and a3 —“high.” That is, its term-set is {a1 , a2 , a3 }. In this case, the quantities a1 , a2 , and a3 are fuzzy sets with a domain of definition T and membership functions f a1 , f a2 , f a3 . Let us introduce the function ϕ: T → {a1 , a2 , a3 }, subjecting it to the rule:   for any x ∈ T ϕ(x) = agr max f ai . ai =a1 ,a2 ,a3

(5)

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Suppose a1 = −1, a2 = 0, a3 = 1. Thus, we will obtain an estimate for each of the indicators that belong to the set {−1, 0, 1}. Typical membership functions. There are many typical curves for specifying membership functions. The work uses a triangular and trapezoidal membership function μ(x). A triangular function is determined by a triple of numbers (a, b, c) and the following formulas calculate its value at point x: ⎧ b−x ⎪ ⎨ 1 − b−a , a ≤ x ≤ b x−c μ(x) = 1 − c−b ,b ≤ x ≤ c ⎪ ⎩ 0, in all other cases

(6)

The trapezoidal membership function is determined by the four numbers (a, b, c, d). Its values are calculated by the formulas: ⎧ b−x ⎪ ⎪ 1− ,a ≤ x ≤ b ⎪ ⎪ b−a ⎨ μ(x) = 1, b ≤ x ≤ c c−x ⎪ ⎪ 1 − d−c ,c ≤ x ≤ d ⎪ ⎪ ⎩ 0, in all other cases

(7)

Using the above tools, let us move on to consider a specific example.

4 Discussion Suppose that it is required to give a generalized assessment of the bankruptcy risk of one of the agricultural enterprises based on its financial statements for a particular period (Table 1). Let the term set T of a given factor include three elements: T = {X 1 , X 2 , X 3 }, where X 1 —high risk, X 2 —average risk, and X 3 —low risk. Each of the values is a fuzzy set, the universal set for which is a segment E = [−1, 1] with membership functions μ(x), calculated by formulas (6) and (7). Let us denote an element of the universal set corresponding to the assessment of the factor “bankruptcy risk” by v. To calculate v, we apply the metric convolution formula using the Hamming distance. To assess the bankruptcy risk, let us single out six indicators affecting the value of bankruptcy risk [10]: Table 1 Real values of indicators F1

F2

F3

F4

F5

F6

0.516

−0.339

0.237

0.160

0.294

0.030

Source Calculated by the authors

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Table 2 Setting membership functions of indicators α

F1

F2

F3

F4

F5

F6

α1

0; 0; 0.2; 0.25

−1; −1; 0; 0.09

0; 0; 0.6; 0.7

0; 0; 0.03; 0.08

0; 0; 0.14; 0.18

−∞; −∞; 0; 0.006

α2

0.2; 0.25; 0.5; 0.6

0; 0.09; 0.35; 0.45

0.6; 0.7; 1; 1.3

0.03; 0.08; 0.35; 0.5

0,14; 0,18; 0,4; 0,5

0; 0.006; 0.1; 0.225

α3

0.5; 0.6; 1; 1

0.35; 0.45; 1; 1

1; 1.3; ∞; ∞

0.35; 0.5; ∞; ∞

0.4; 0.5; ∞; ∞

0.1; 0.225; ∞; ∞

Source Nedosekin [10]

F1 F2 F3 F4 F5 F6

solvency ratio; equity ratio; quick liquidity ratio; absolute liquidity ratio; inventory turnover ratio; return on equity.

We will assume that each of the indicators has a three-element term-set with elements {α1 = “low,” α2 = “average,” α3 = “high”}. Let us put in correspondence with the low level of the indicator the value (–1), the average—(0), and the high— (1). Let the membership functions for all indicators have a trapezoidal shape (7). Let us set them for each indicator using the four vertices’ abscissas, where the first and fourth numbers are the abscissas of the lower base, and the second and third numbers are the abscissas of the upper base (Table 2). According to the financial statements of the studied enterprise, the following numerical values of indicators were calculated F 1 – F 6 (Table 1): Furthermore, by the value of the indicator (Table 1), the given membership functions (Table 2), and the formula (7), taking into account the rule (5), we determine the value of its membership function: μ(F1 ) = α2 , μ(F2 ) = α1 , μ(F3 ) = α1 , μ(F4 ) = α2 , μ(F5 ) = α2 , μ(F6 ) = α2 . Hence, we find that the factor’s state is Sv = (0, −1, −1, 0, 0, 0). By formula (4), we find the relative height of the state, which serves as a generalized estimate of the analyzed factor. We get v = −1/3. Based on the formula (6), we determine that the “Risk of bankruptcy” is high with a membership function value of 2/3 and an average with a membership function value of 1/3.

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5 Conclusion The problem of assessing the risk of bankruptcy of domestic enterprises is of great practical importance. Simultaneously, this problem, taking into account the Russian reality marked with a high degree of uncertainty, remains insufficiently studied [5]. Traditional methods based on a statistical approach are not suitable for describing uncertainties that are not probabilistic. The use of a fuzzy approach to determining the risk of bankruptcy of an enterprise gives an adequate solution since it considers and models the types of uncertainties typical for the modern period of economic development. The fuzzy approach allows us to obtain features of the bankruptcy risk. It also indicates the quantitative value of the degree of its occurrence. Thus, in the given example, it turned out that the onset of a high risk of bankruptcy is twice the onset of the “average” risk. This approach to risk assessment can be proposed for widespread use by the financial services of domestic agricultural enterprises. Acknowledgements This work was performed within the scientific research framework carried out at the Department of Information Support and Modeling of Agroeconomic Systems of the St. Petersburg State Agrarian University.

References 1. Abbakumov VL, Lezina TA (2009) Business analysis of information. Statistical methods. Economics, Moscow, Russia 2. Altman EI (1983) Corporate financial distress. Wiley, New York, NY 3. Altman EI, Sabato G (2007) Modeling credit risk for SMEs: evidence from the U.S. Market. Abacus 3(43):332–357 4. Bellovary J, Giacomino D, Akers M (2007) A review of Bankruptcy prediction studies: 1930– present. J Financ Educ 33:1–42 5. Chava S, Jarrow RA (2004) Bankruptcy prediction with industry effects. Rev Financ 4(8):537– 569 6. Emelyanov AM, Bryukhova OO (2013) The assessment of the probability of bank bankruptcy. Financ Credit 27:47–58 7. Fedorova E, Gilenko E, Dovzhenko S (2013) Bankruptcy prediction for Russian companies: application of combined classifiers. Expert Syst Appl 40:7285–7293 8. Kovalev AI, Privalov VP (2003) Analysis of the financial condition of the enterprise. Center for Economics and Marketing, Moscow, Russia 9. Kovalev VV (2010) Financial analysis: capital management. Investment selection. Reporting. Finance and statistics, Moscow, Russia 10. Nedosekin AO (2003) Fuzzy financial management. Audit and financial analysis, Moscow, Russia

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11. Parfenova VE, Bulgakova GG, Amagaeva YG, Evdokimov KV (2019) Fuzzy modeling for tasks of management of the agricultural-industrial complex. IOP Conf Ser Mater Sci Eng 666:012067 12. Perfiliev AB (2012) Basic methods for assessing the financial condition of Russian Enterprises and potential forecasting bankruptcy based on accounting data. Yaroslavl Institute for Advanced Studies, Yaroslavl, Russia

Policies and Institutions

The Analysis of the Size and Methods of Accumulation of the Population’s Savings in Russia Tatiana V. Sabetova , Ludmila A. Zaporozhtseva , and Julia V. Narolina

Abstract Under proper management, savings of the population can become an essential resource for economic growth. Meanwhile, currently, the process of using citizens’ savings in Russia has considerable drawbacks and, in the authors’ opinion, is not developed enough for allowing complete command of the financial system over this source of liquidity. The Russian population, on average, saves up about 10% of the total money received, but this value saw a decline during the last 3– 4 years because of a significant drop in the size of real wages and other incomes. Bank deposits make up about two-thirds of the total savings, and the share of direct investment of the population in the economy accounts for less than 15%. In the authors’ opinion, the main reserve for improving the process of accumulating the savings of the population lies in the development and improvement of the diversity of forms and methods of such accumulation. Keywords Savings · Income · Band deposits · Interest rate · Wages · Direct investments

1 Introduction The course of the Russian government for innovation economic development is a requirement of the present, where the role of the Russian Federation as a world power in economic and geopolitical relations depends on its success. Therefore, the issue of ensuring the economic growth of the country and constantly increasing its pace comes forward. The solution to this problem should be based on the creation of an effective national innovation system. Under the current conditions, high economic growth rates cannot be achieved at the expense of the internal funds of economic

T. V. Sabetova (B) · L. A. Zaporozhtseva Voronezh State Agrarian University named after Emperor Peter the Great, Voronezh, Russia J. V. Narolina Voronezh State University of Engineering Technologies, Voronezh, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_47

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entities. It is necessary to create the mechanism of investment support that must involve financial institutions and the population. In all economically developed countries of the world, savings of the population are used as a resource for economic growth. In Russia, there is also a specific policy of attracting citizens for investing. However, the system of using savings of citizens in Russia has its drawbacks. Firstly, the saving process takes place under the significant influence of inflation, which negatively affects the ability of the population to create savings and forces them to look for such tools for saving that would be least subject to inflation and loss of value. Secondly, the gradual restoration of the pre-crisis level of bank deposits and an increase in the savings volume are not accompanied by an expansion of the circle of people with savings. Thirdly, a considerable part of the population’s free funds remains “at home” or is used to purchase currency. Fourthly, the primary source of funds directed to bank deposits and for the purchase of securities is the savings of low- and middle-income groups of the population. In contrast, the bulk of savings belonging to the most affluent segments of the population are transferred to foreign currencies and exported from the country to buy foreign assets and securities. Research on savings formation and their relationship with investment and consumption in the context of ensuring stable economic development was undertaken by such economists as F. Modigliani, E. Hansen, R. Harrod, F. Hayek, D. Hiks, M. Friedmen, and J. Schumpeter.

2 Materials and Methods In the Russian economic literature, the research on issues related to the formation of household savings and the ways of their use intensified due to the radical reform of the Russian economy and the increasing role of households in social and economic processes. V. Gurtov, G. Gorlanov, T. Zaslavskaya, A. Kalmykov, Yu. Kashin, Yu. Melekhin, A. Radaev, and N. Rimashevskaya considerably contributed to the work on the issue of the savings of the population. Various aspects of savings transformation into investment are studied by O. Avanesov, V. Bulatov, V. Ivanitskov, M. Makovetskiy, E. Melnikov, I. Stolyarov, et al. Savings are the difference between income and current expenditure. Thus, the analysis of the availability and dynamics of the population’s savings must begin with a study of the possibilities for their formation, that is, income and expenses. The dynamics of the average per capita nominal income of the Russian population since 2001 are presented in Fig. 1. The graph shows that the nominal average monthly income for 17 years increased by about ten times, and from 2010 to 2017—by 1.66 times. That is, the growth rate in recent years significantly slowed. It should also be emphasized that, in this case, all revenues from all sources are considered in aggregate. On the other hand, the indicator of nominal income in dynamics is not very informative. The fact is that most often, the nominal incomes of the population

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35,000.00 30,000.00 25,000.00 20,000.00 Dynamics of the average per capita income of Russian population, rubles per month

15,000.00 10,000.00 5,000.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0.00

Fig. 1 The dynamics of average per capita nominal incomes of the Russian population. Source Federal State Statistics Service [2]

rapidly grow with the simultaneous growth in the prices for consumers and other goods, which sometimes grow even faster. Thus, it is simply impossible to analyze the dynamics of income without an adjustment for their real purchasing power. Let us turn to data concerning the dynamics of the real disposable incomes of the population, presented in Fig. 2. In statistics, depending on the stage of actual income generation, the following indicators are used: – Nominal income characterizing the level of cash receipts regardless of taxation and price changes; – Disposable income, representing nominal income after taxes and other obligatory payments; – Funds used by the population for consumption and savings; 108 106 104 102 100 The dynamics of real disposable incomes ,…

98 96 94 92 90 88 2010 2011 2012 2013 2014 2015 2016 2017

Fig. 2 Real disposable incomes of the Russian population. Source Compiled by the authors

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– Real income showing the number of goods and services that can be purchased on disposable income during a specific period, adjusted for changes in prices and tariffs. To calculate real income, income indicators are converted into real terms by adjusting for the consumer price index for the respective year. The Federal State Statistics Service usually provides information, not about real incomes, but their change from year to year. Thus, the real disposable incomes of a particular period are expressed as a percentage of the same indicator of the previous period, as shown in Fig. 2. From 2010 to 2017, we can observe sharp fluctuations in real disposable incomes. In this case, even the deviation of 2–3% in both directions can be considered significant since we are talking about the average parameter for the entire population of the country. Meanwhile, we see the difference between adjacent annual intervals of up to 5%. An essential feature of the presented graph, in our opinion, is the pronounced drop in real income that began in 2014 and did not stop until 2017. If the preservation of approximately the same level of real income of the population on average (that is, the value of the indicator at the level of 100–101%) can be considered a rather positive phenomenon, especially if price stability is preserved. A sharp increase in real income (5% or more) inevitably accelerates inflation. Any decline is a negative phenomenon, primarily from a social point of view. Such indicators show that the population is getting poorer. In 2014–2017, we can calculate that, in aggregate, the real incomes of the population declined by more than 10%. The results of such processes can manifest themselves both in the social and economic spheres: – Dissatisfaction with income and living standards, and as a result, the growth of social tension; – As labor income declines faster than others, this phenomenon causes dissatisfaction with work, reduced labor motivation, search for unearned and even illegal sources of income; – The decline in the standard of living stimulates the part of the population to search for additional employment, which increases the workload on citizens, negatively affects their health, mental state, and interpersonal relations; – Citizens buy fewer goods and services, which causes decreased market demand and reduced production; – The demand may shift from more expensive and high-quality goods to cheap ones, which are significantly inferior in quality and even safety properties; as a result, the best products may turn out to be uncompetitive, and the companies lose their incentives to improve production, assortment, and introduce technological innovations; – The population is forced to spend most of their income on current consumption to ensure a habitual lifestyle, reducing savings that would otherwise become investments in the economy; – Some citizens have to withdraw the already made savings from the financial sector and spend them on current needs.

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As can be expected, not all incomes are equally seen and used by the population; that is, much depends on the sources of income. For 2010–2017, we do not see any sharp, catastrophic fluctuations in the income structure, and this situation is expected. A sharp decline in the share of wages in the income structure is most often observed during major systemic crises of the economy and rising unemployment. A decline in the share of social benefits is connected with a sharp change in the orientation of state social policy, such as a change in the political system. There were no such phenomena during the observed period in Russia. Nevertheless, there were certain fluctuations in the income structure. The share of wages in the income structure remains, perhaps, the most stable along with other incomes—65.5% and 2%, respectively. Other incomes usually include winnings, insurance claims, inheritances, gifts, etc. Earlier, this group in the national statistical accounting included the informal part of the wages, but since the beginning of 2000, this practice ceased, which led to an increase in the usefulness and correctness of statistical data. On the other hand, the share of the income from entrepreneurial activities decreased by more than 1% for the reviewed period. Considering that in sum, it already constitutes less than 10% of the entire aggregate of income, such a decline can be considered significant. From an economic point, this is a negative trend, which means a decrease in business profitability, a reduction in the share of entrepreneurs among the population, or both phenomena. If we take into account that the share of property incomes, some of which are closely associated with entrepreneurship, the negative economic phenomena in the country become evident. The increase in the share of social payments in the income of the population (about 2%) became the compensation for this dynamic. On the one hand, the state supports the least well-off and protected segments of the population and increases the volume of effective demand in the country. On the other hand, these are incomes, the receipt of which is in no way associated with the creation and growth of national wealth produced by direct labor and entrepreneurship. Therefore, if they are misused, they can generate dependency attitudes and lead to the overspending of budget and extra-budgetary funds. Hence, their use is desirable only in critical situations, one of which is the observed four-year decline in the living standards of the population. The expense structure is not as stable as the income structure discussed above. Thus, the population naturally spends most of its income on current consumption, that is, the purchase of goods and services. However, the share of this “bulk,” even for 2010–2017, varied significantly from 69.6 to 75.3%. The most significant change occurred in the savings of the population. Their share steadily declined during the entire period and eventually fell from 14.8 to only 8.1%. The year of 2015 significantly differs from the dynamic range, when the share of savings rose to 14.3%. Economists recognize such a phenomenon as typical—against the background of a decline in real income and the uncertainty of the population about the future, citizens prefer to postpone purchases or entirely abandon some of them, shifting their earnings into savings. However, taking into account that real income continued to fall, and the banks as the main attractors of the savings of the population do not provide a high return on deposits, the share of savings in 2016, fell.

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3 Results In economic theory, it is believed that the normal distribution of income received between expenses, including mandatory payments, and accumulation is 90:10. Therefore, in Russia, the share of savings dropped below the optimal level. Taking into account the presence of fluctuations in the nominal income of the population, this dynamic led to sharp fluctuations in the nominal volume of the population’s savings (Fig. 3). The spread of variation here is more than 2.3 times. Such disturbances without a pronounced trend hamper the economic use of savings, in particular, as a source of funds for portfolio investments. Attention should also be paid to the question of who (groups of the population) and how (at what expense) form the maximum share of savings. Unfortunately, there is no reliable statistical information on this subject, but one can rely on expert assessments and own observations. Although it seems logical to assume that wealthy people are more inclined to save money since they have their basic needs satisfied, the observations of Russian banking sector indicate a high saving activity among the poorer people in Russia, especially pensioners. Theoretically, the primary source of income for savings formation should be wages and income from entrepreneurial activities. However, observations suggest active use of property income (it is widespread when the interest added to the contribution is re-invested), social payments, and other incomes. Thus, we can assert that the accumulation of funds in Russia has decreased; the share of savings in the expenditure structure is lower than desirable. At the same time, citizens retain a tendency to form savings at any level of wealth, social status, and the specifics of the income sources. The investment and savings potential of public finance is revealed when financial relations arise between the population, financial organizations, intermediaries 9000 8000 7000 6000 5000 Population's savings volume, bln rubles

4000 3000 2000 1000 0 2010

2011

2012

2013

2014

2015

2016

2017

Fig. 3 The nominal volume of savings of the Russian population. Source Developed by the authors

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(when the population consumes banking, insurance, and pension services or purchase securities), and commercial organizations [4].

4 Discussion In the context of the financial and economic crisis and the sanctions imposed by Western countries against Russia, the problem of finding domestic sources of financing for the economy becomes urgent. In this regard, there arises the question of attracting free financial resources of the population, which are the most important reserve for increasing the investment volume. Households spend part of their savings on the acquisition of non-financial assets. These include the acquisition of real estate or fixed assets for business activities. The remaining part of the savings, adjusted for the number of financial liabilities (credits and loans), determines the increase (decrease) in savings in deposits and securities, on the accounts of individual entrepreneurs, cash in hand, past-due debt on loans, and the cost of acquiring foreign currency. Therefore, the economic redistribution of the savings of the population can be schematically represented in Fig. 4. The savings of the population are accumulated in three primary forms: cash savings at home, bank savings, and savings in securities. According to Glebkova and Kachanova [3], the share of cash can be up to 20% of the total savings of the population or more. Banking savings of the population in deposits make up about two-thirds of the total savings. It is now the basis of the investment potential of this part of national wealth. Hereafter, we shall consider the features of banking activities for managing them in more detail. We would like to demonstrate their scale and importance for banking activities (Table 1). As can be seen from Table 1, the share of individuals in the structure of the external funds of Russian banking system has recently fluctuated at a level approaching 60%. The physical volume of external funds is growing from year to year. However, in recent years, the growth rate slowed down dramatically. If in 2013–2016, it exceeded

Fig. 4 The variants of the redistribution of savings. Source Developed by the authors

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Table 1 External funds of the banks, as of January 1 Years

Total external funds, mln rubles

Including those from individuals, mln rubles

Personal funds as % of the total of external funds

2013

23,870,549

14,251,046

59.7

2014

27,795,850

16,957,531

61.0

2015

35,560,572

18,552,682

52.2

2016

42,237,295

23,219,077

55.0

2017

40,585,492

24,200,322

59.6

2018

43,997,939

25,987,406

59.1

Source Developed by the authors

10% per year, then, at the beginning of 2016, the volume increased by 25% compared to the same indicator of the previous year. The increase in 2017–2018 was only 4%–7%. We already noted a sharp drop in the volume of the population’s savings in 2014, then a peak of growth in 2015, and then, again, a gradual decline. The fluctuations are reflected in Table 1. At the beginning of 2015, the share of external funds from the population in the total volume of external funds of the banks dropped to a minimum of 52% and then began to grow again. The decrease in the growth of the bank deposits is likely to be due to a change in several key parameters of the condition of the national economy: the dynamics of the exchange rate, a change in the base rate, prices, and expenses. Nevertheless, despite the observed fluctuations, we can argue that the value of savings for the banking system of the country is significant. Some banks are more focused on attracting savings of the population, offering more convenient (usually flexible) deposit periods, higher interests, and guarantees, as well as marketing campaigns and gift offers, prize draws, and additional services. However, even the average indicators prove the high dependence of the banking sector on the savings of the population. Figure 5 shows some facts about the attractiveness of the individual deposit market for banks. We noticed the decline in the number of financial institutions licensed to attract deposits from the population over the past few years—since 2010, they decreased by 45%. However, this reduction occurs amid a general decrease in the number of banks and the concentration of banking capital. If we estimate the share of financial institutions attracting deposits from the total number, we see that it was 80% in 2010, the overwhelming majority. Besides, it was steadily growing during all subsequent years and reached 83.4% by 2017. This is evidence in favor of the attractiveness of this market segment for financial institutions. From the point of view of using the savings of the population as a source of investment, we put significant importance on the fact that these savings are attracted to the banking system for quite long periods. The share of “on-demand” deposits with an unpredictable period of funds withdrawal, and, therefore, relatively unfavorable

The Analysis of the Size and Methods of Accumulation …

451 84.0

900 800

83.0

700

82.0

600 500

81.0

400

80.0

300 200

79.0

100

78.0

0 2010

2011

2012

2013

2014

2015

2016

2017

2018

Number of financial organizations in possession of the license for attracting individual deposits as % of the total number of financial organizations

Fig. 5 The number of financial organizations in possession of the license for attracting individual deposits. Source Developed by the authors

as a source of investment, accounts for about 20% of the total volume of deposits. In our opinion, deposits with small terms of attraction are not well suited as sources for the formation of investments. The share of deposits for a period of up to 1 month over the past few years accounted for a very small share of the total volume of funds attracted from individuals—about 0.1–0.3%. About 2% accounted for the deposits for on to three months. The share of deposits for a period of 3–6 months has sharply increased—from 3–4 to 20.2% at the beginning of 2018. The share of deposits for a period of 6–12 months increased significantly from 14.7% in 2014 to 35.2% in 2016. This is since the leading banks began to offer the most favorable interest rates, and before the interest rate always increased with the growth of the period of fund attraction. After this period, the share began to decline, as, according to our observations, the interest rates gradually returned to normal proportions. Investment potential and value are mainly held by the deposits for a period of 1 year or longer. About 48–50% of the population’s funds were attracted for a period of 1–3 years in 2012–2016. In 2017–2018, this share dropped to only 31–35%. The share of the longest-term deposits for over three years also decreased from 9.5% in 2012 to 4% in 2018. The analysis of recent trends in terms of the duration of raising funds from the population by the banking system showed that, although they greatly varied, the investment potential of household savings in banks as a whole, lost in quality, though not reduced in volume. Within the framework of a country’s economy, the share of the transformation of savings into investments depends on the degree of favorableness of the economic and social situation of the country. In turn, the growth of investment contributes to the economic development of the country. The key factors determining the size of savings are the average per capita income, the development of the financial and credit system, social and economic conditions,

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and the country’s political situation. In general, these factors can be divided into those that determine the ability of the population to make savings, including in the form of bank deposits, and those that form the motivation for such actions (Fig. 6). We can note that banks can influence the ability of the population to save, expanding their branch network and increasing the profitability of their products and their wishes, spreading information about bank activities, increasing the level of service, and implying measures to strengthen public confidence. The main directions of financial investment of the population are savings in deposits and securities. We have already noted a significantly larger volume and value of the first of the directions. To continue operation, any commercial bank needs external funds, and we have already seen that they are formed mainly due to the savings of the population. The external funds in the majority of banks account for 75% of the bank resources and more [1], and the household funds accounts for about 60% of the total external funds, that is, at least 45% of the bank’s total financial resources. To assess the investment opportunities of banks, formed at the expense of external funds, one performs a comprehensive analysis of the quality of the external funds, for which several indicators are used: 1.

The deposit stability index, calculated as the proportion of term deposits in the total amount of funds raised. Most banks, focused on working with individuals, including attracting their savings, have a high value of this coefficient, which usually exceeds 90% or even 95%. This suggests that the overwhelming majority

Fig. 6 The factors determining the size of the population’s savings in the form of bank deposits. Source Developed by the authors

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of external resources have a specific period of attraction, which improves the predictability of their dynamics and makes their use much more profitable. The index of liability shows the degree of consistency of deposits, and the lower its value, the lower the bank’s need for liquid assets. It is calculated as the ratio of on-demand deposits to term time deposits. We have already found out that, on average, in the banking system, it is about 25%. However, in some banks, it can be significantly lower, especially for those that do not implement payroll projects, which currently make up a very significant share of on-demand deposits. The index of stability of the resource base is found as the ratio of the average annual balance on deposit accounts to the credit turnover on these accounts. The volatility of bank resources is another parameter of the stability of the resource base and is calculated by dividing the amount of on-demand deposits to the amount of external funds. The average term of a deposit is calculated by dividing the average annual balance of accounts to account for deposits and the number of days in a year (365) by the bank debit turnover (turnover of deposits). Naturally, from using the savings of the population for further investment, the bank, other things being equal, is interested in maximizing this indicator, although other factors may also influence these preferences. The level of the settling of funds in deposits makes it possible to evaluate the deposits policy results and the possibilities for pursuing certain credit and investment policies. To calculate it, it is necessary to find the balance between the balances in deposit accounts at the end and the beginning of the year, and then divide it into receipts on deposits for the same year.

These indices can be calculated at the level of a single bank and the entire banking system if the specified initial data is available. At the bank level, they demonstrate the features of managing external funds, their quality, the specifics of the implementation of the deposit policy of financial institutions, and the availability of resources for credit and investment operations. According to these ratios, at the level of the entire banking system, it is possible to draw certain conclusions not only about the prevailing trends in the deposit policy but also about the situation in the financial market. For example, an increase in the stability indices of deposits and the resource base may, among other things, indicate the inaccessibility of other sources of funds for the national banking sector, other than the savings of the population. However, the growth of the index of liabilities structure indirectly indicates the role of banks in society and the popularization of a variety of banking products, including payroll projects and debit cards.

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5 Conclusion The following factors are of particular importance to stimulate investment in deposits: interest rate, tax rate, inflation rate, deposit safety guarantees, and bank marketing. However, active and effective bank marketing is challenging to quantify, especially in the national financial system scale. Taxes and inflation are determined by the macroeconomic situation, and not always limited to the national level. The guarantee of the safety of deposits of the population is now undertaken by the state financial system itself, represented by the Deposit Insurance Agency. Thus, the interest rate remains practically the only factor in attracting the savings of the population to deposits, determined by each bank with a significant degree of independence. Interest rates on deposits depend not only on the policies pursued by a particular bank but also on several factors beyond its control: – Macroeconomic situation—when the economy is on the rise, the demand for credit resources is higher, and, therefore, the interest rates on deposits grow; – Liquidity and money supply in the country—the shortage of money (for example, large-scale government borrowing in the domestic market) leads to a rise in the cost of credit resources and, accordingly, high rates on bank deposits; – Availability of international interbank loans and other sources of liquidity; – Government regulation—The Central Bank and the state do not have a direct legislative influence on the size of interest rates on deposits. The base rate of the Central Bank of the Russian Federation on it is difficult to overestimate. In our case, the data allow us to draw several conclusions about the situation with interest rates on bank deposits in Russia for 2012–2018. 1.

2.

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The situation is quite expected when interest rates for on-demand deposits turn out to be significantly lower than rates on term deposits, while among the latter, higher interest rates are paid on longer deposits. On the other hand, the difference between the rates on deposits for a term exceeding one year and up to one year turned out to be not too large for the period under review, and, in 2015, they were practically the same. It was in this period that the share of deposits from one to three years among the total aggregate of deposits decreased, while the share of deposits from 181 to 365 days, on the contrary, increased. The peak of interest rates at the beginning of 2015 is associated with a sharp increase in inflation and the base rate of the Central Bank during this period. An equally important factor was the sanctions imposed by Western countries against the subjects of the Russian economy, including the banking sector. They made it difficult for banks to access external financial resources, and, therefore, the latter had to ensure their liquidity from domestic sources, including by attracting the savings of the population. In general, the pattern of the dynamics of interest rates for on-demand deposits and term deposits is similar. However, according to the results of the considered seven-year period, demand rates have almost doubled. The rates for deposits up to one year, on average, decreased by more than 1%, and for deposits for over

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one year—decreased slightly less than by 1%. In our opinion, this is caused by the development and improvement of the system of card accounts. Now, many banks offer high interest rates on average monthly balances, although, in essence, they are no different from standard 0n -demand deposits. The banks stimulate payments by debit cards in this way, including in the form of payroll projects, so that recipients do not withdraw the amounts received in cash, but rather spend them gradually. However, we cannot attribute this category of funds to the savings of citizens, and, therefore, do not further consider it. In Russia, nowadays, the population saves up on average about 10% of income, although, from 2015 to 2018, there was a tendency for this share to decrease. This indicator is within the regularities observed in economic theory. However, as a result of the observed low incomes of a substantial part of the population, the economy loses resources for subsequent investment. The positive dynamics of the size of real incomes could change this situation, but incomes continued to decline recently. Banking savings of the population in the form of deposits make up about twothirds of the total savings. The segment of attracting savings of the population to deposits remains very attractive for banks, the share of financial institutions engaged in such activities is growing steadily. The population stores another 20% of the savings in cash, which removes them from economic circulation. Thus, the share of direct investment of the population in the economy in the form of acquiring securities accounts for less than 15% of the total volume of savings, although there is a positive trend. In our opinion, the main reserve for improving the process of accumulating savings of the population with their subsequent reinvestment in the economy lies in the development and improvement of the diversity of forms and methods of such accumulation. Moreover, it is desirable to give preference to those forms that will provide long-term fundraising, forming a stable basis for investment. We consider it possible to include in the list of such methods the activities of unit investment trusts, non-state pension funds, and other forms of formation of pension savings, as well as funded insurance.

References 1. Alekhina AA, Makin MV, Pakhomova EV, Belousova EN (2019) Modern approaches to the management of the external resources of a commercial bank. Fin Econ 1:689–693 2. Federal State Statistics Service (n.d.) Official website. Retrieved from https://www.gks.ru 3. Glebkova IY, Kachanova NN (2016) The analysis of the population’s savings as a source of domestic investment formation. Dev Mod Sci Theor Appl Aspects 2:77–79 4. Grigorieva LV (2017) Increase the investment and savings potential of public finances to improve intermediary financial taxation for pension relations. Actual Probl Econ Law 1(37):79–88

Depreciation Policy: Objective and Subjective Approaches Elena V. Kovaleva

Abstract The paper focuses on the problems of the depreciation fund and the laws of its formation. Following the change in the quality of machines during their use, the depreciation fund is considered as a part of the problem in the circulation and turnover of material capital in the technical means of the AIC. The establishment of scientifically based depreciation rates assumes that the service life of the fixed capital elements is determined by taking into account physical and moral depreciation. The paper presents leveling accruals that objectively reflect the changing quality of machines and are offered for use when adjusting depreciation methods. It is recommended to use a two-stage depreciation method, in which the entire initial cost will be transferred to the depreciation fund while adequately reflecting the changing quality of the machine. Keywords Depreciation · Depreciation policy · Quality · Economic assessment · Technical means · Agricultural machinery · Compensating costs · Leveling accruals

1 Introduction In their entirety, fixed and working capitals form the production funds of the enterprise. The working capital has circulation funds at every moment of its activity. These are mainly finished products, some of which are located in the enterprise warehouse during batching, packaging, and shipment. The fixed capital is represented by shipped products that still did not reach the consumers or are not yet paid (before the payment is received, it stays on the balance sheet of the supplier). The circulation funds also include the funds of the company located on its bank account or in the till. The capacity of enterprises is determined by the value of their main production assets. The fixed assets turnover consists of wear and tear, depreciation, cost recovery,

E. V. Kovaleva (B) Russian State Agrarian University, Moscow Timiryazev Agricultural Academy, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_48

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and reproduction in natural form. K. Marx analyzed these phases in relation to fixed capital turnover. Several of Marx’s provisions remain valid in the modern economy. The main production assets are subject to gradual physical wear after long operation periods. This wear is caused both by the use of fixed assets and the influence of natural forces on the instruments. K. Marx showed this process in “Das Kapital.” He notes that there are two kinds of material wear of the machine. One arises from the use of the machine and is comparable to coins wearing out from circulation. The second king of material wear is caused by disuse, similar to a sword rusting in its sheath. As a result, the elements of fixed assets, to some extent, lose their application properties and become less reliable and efficient. With partial wear, the functioning of fixed assets can be maintained by repair. Still, sooner or later, the machine reaches complete deterioration, in which the repairs become either technically impossible or economically unprofitable. There is an objective need in the replacement or renovation of worn-out fixed assets. Depreciation generates funds for capital repair and restoration of fixed assets. As wearing out, fixed assets do not only lose their application properties but also their value, i.e., the past labor embodied in them. However, the initial cost of initial fixed assets does not entirely disappear and is gradually transferred to the output products. This transfer is performed through the labor of the employees. Spending labor in a specifically targeted form and creating the necessary values with the help of fixed assets, the employees thereby preserve the value of these funds, giving them a new lease of life in the output product value. The gradual transfer of the value of the fixed assets to the manufactured goods is called depreciation. The cost of each production unit, along with other elements, contains the depreciation, i.e., it includes some part of its initial cost (or, in a case of revaluation, the replacement cost) of fixed assets [6]. A certain depreciation amount is contained in the annual revenue of the enterprise. After a certain time, the value of each fixed asset element is returned in full in monetary terms, meaning that it completes its turnover. We call this the cost recovery of fixed assets, while repair and renovation represent the reproduction of fixed assets in natural form.

2 Materials and Methods Issues of depreciation, the patterns of deprecation fund formation following changes in the quality of machines during their use make up a part of the issues of capital turnover, materialized in the technical means of the AIC [5]. Depreciation, as the only tool reflecting capital depreciation, provides the formation of initial data and serves as a feedback tool in management [7]. Depreciation rates must be economically justified. Their understatement or overstatement can cause damage to the national economy. If understated, fixed assets will not have time to depreciate by the time of their entire wear. Society is not going to have sufficient funds for their reproduction. It will have to spend part of its net income on the renovation, which will slow down the expanded reproduction pace. Contrariwise,

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overstated rates would lead to unreasonably accelerated depreciation. The turnover of fixed assets by value would be separated from their depreciation in a natural form. Excessive depreciation charges would increase the cost of production and consequently reduce the share of net income. Modern monopolies achieve inflated depreciation rates of fixed capital and, under the guise of depreciation, hide their profits from taxation. The establishment of scientifically based depreciation rates assumes that the service life of the fixed capital elements is determined by physical and moral depreciation. Certain instruments of labor physically suitable for use do not justify themselves economically and need to be replaced. Scientific and technological progress is the leading cause of moral depreciation. Thus, engineering updates the range of products and supplies enterprises with more productive and economical machines. They can also be cheaper than similar previously produced instruments. Enterprises using advanced technology occupy leading positions. The individual value per unit of their product is reduced (in practice, their depreciation, wage, and overhead costs per unit are also reduced), resulting in more substantial net income. With the widespread use of new technology, the public value of goods also starts to decrease. Moreover, if market prices are dropped, enterprises using outdated instruments will suffer not only a fractional but a total loss of profit. This is especially noticeable within the new economic environment since profit acts as the source of economic stimulus funds. Moral depreciation is associated with the appearance of similar more advanced equipment and the introduction of more productive and economical technology, which usually requires fundamentally different machines. In some cases, the equipment may become obsolete due to the displacement of traditional raw materials by a cheaper substitute that requires different machines. With all the variety of reasons, the essence of moral depreciation remains the same. It occurs when the loss experienced by society and business from the early replacement of equipment is less than the loss caused by the continuing use of that equipment. Nowadays, the pace of scientific and technical progress continues to increase due to the contemporary scientific and technological revolution rapidly. Automatic equipment continues to take its place among traditional instruments of labor, while automated instrumentation and control systems are introduced into production based on electronics. Thus, the moral depreciation of machines and devices continues to increase. Products manufactured for research, design, and engineering organizations, as well as machine-building and instrument-making plants, must have a large margin of safety and reliability in a physical and economic sense. Otherwise, even the physical durability of the machine can become a detriment. The additional cost for the increase of the machine’s physical durability is a total loss for the society if its moral depreciation occurs much earlier than the physical one. Moral depreciation should be taken into account when using specific depreciation rates. They should be set at such a level that the recovery of fixed assets by cost was completed at the time of their probable moral depreciation and not physical wear. It is necessary to clarify the existing depreciation rates or propose a new method for calculating depreciation, which should reflect the physical and moral depreciation

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of funds more fully while taking the pace of product development and technological progress into account. The difference in the engineering of machines is a direct consequence of continuous technical progress. This difference gives us a reason to carry out the systematic renewal of production assets, replacing outdated machines with the latest ones. These differences in fundamental understanding provide a basis for comparing extreme limiting levels, the pace of technological progress, and the ability of the society to take technological progress into account when implementing technical policies. This information is the fundamental basis for creating the theory and methodology of the economic evaluation of new technology. Since the average cost level depends on the individual costs, we should pay attention to the following fact. The individual costs will be determined not only by machines that differ in the level of technical and economical perfection in the initial period of productive consumption but also by a difference in technical perfection caused by the loss of the initial qualitative technical and economic characteristics. The intensity of individual production costs on the average value depends on the stability of the initial parameters of machines. The oldest worn-out machine can create useful products or perform valuable services. If society cannot organize the production of this product in necessary volumes using other less worn-out machines, then the labor put into that process will be deemed socially necessary. However, since the utilization costs of such machines tend to increase, the question of their replacement with new equipment becomes a priority. The growth of depreciation funds would allow for more extensive equipment modernization, meaning it will replace certain vital elements of that equipment with more advanced ones. For example, the government of US President Reagan pursued a distinctive economic policy. This policy aimed to raise the authority of the government and improve the state of the economy. Some of its consequences were positive. The policy helped raise agricultural production (specifically meat products) due to the increased accrued depreciation. It allowed for goods to be sold abroad, while the proceeds gained from the sale were spent in two different ways. One part of the proceed covered subsidies and allowances, while the other was focused on the technological renovation. This aim of this policy was expressed in the developed economic program, and the program of depreciation of agricultural machinery and other production means. As for agricultural machinery, this policy required the depreciation charges to cover the entire original cost in the first five years of service. In practice, the machines worked for decennial periods. Equipment work effectively, even outside their depreciation period. Besides, this policy allowed to sell machines with five years of use on foreign markets at the price that was higher than the real value of the machine. This policy mainly laid the foundation for depreciation and was called Reaganomics. It was consistently implemented during 1981–1988 for depreciation purposes.

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Concerning the depreciation policy, Reaganomics allowed for faster capital turnover due to higher depreciation rates. Still, it revealed the purely subjective nature of Reaganomics since the actual terms of use of machinery and equipment were much higher than prescribed by depreciation standards. Objectively, Reaganomics pursued political and economic goals. The objective approach in scientific research allows us to see the patterns of changes in use value and the cost and quality of objects. In contrast, the subjective approach, while somewhat adhering to the same direction, pursues purely political and economic goals. The political goal aims to suppress the payment capacity of its trade partner countries. In contrast, the economic goal tries to consolidate the internal positions of the country through the increase in domestic production profitability and bolster the external ones by shifting the depreciation through the price to the consumer’s budget, which, to a certain extent, helps the producer. This political and economic goals of this policy are revealed in the article of Kuvshinova and Pismennaya [8]. The depreciation fund acts as one of the sources of simple and extended reproduction. According to Y. A. Konkin, it is possible to expand the fleet of agricultural machines at the expense of the depreciation fund and increase production capacity without additional capital investment [2]. Monetary means are involved in turnover and, consequently, in the expansion of production during the accrual of fixed assets depreciation. The current system and the employed methods of depreciation of mobile agricultural machinery are continuously updated but, due to their changing quality, do not fully reflect the depreciation of machines. It is oriented towards the repayment of the initial cost of the production means by methods only reflecting the transfer of their initial value to the depreciation fund only to a certain extent. The subjective desire to accelerate capital turnover is not supported by the scientific justification of the used methods. The real depreciation of the object is not taken into account [4]. In a market economy and other conditions (the equal interest of the seller/manufacturer or the intermediary/buyer in improving the production), the preferred form of depreciation is the so-called “accelerated depreciation,” in which the depreciation fund transfers most of the original cost in the first half of the lifespan of fixed assets. In real practice, the “accelerated depreciation” should be replaced by depreciation that takes into account the actual deterioration of the object, the decrease in its use-value, and the cost transferred to the depreciation fund. Depreciation policy can regulate the economic mechanism of relations between the state and producers, while also having an environmental and social orientation [1].

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3 Results The problem of improving the depreciation system is the provision of depreciation rates with the most accurate reflection of the real depreciation of technical production means. Current depreciation rates do not satisfy this condition. In commercial production, policy documents and their scientific support should ensure equal relationships and equal mutual economic interest of business partners [3]. Currently, most enterprises charge depreciation at non-fair market value. The fair market value is the amount for which an asset can be exchanged, or the obligation can be fulfilled in a transaction between knowledgeable, willing, and independent parties. The volume of the depreciation fund does not reflect the actual costs of the enterprise incurred in the production using the depreciated property, which leads to a distortion of the cost price. Low volumes of depreciation do not affect the production cost. If depreciation is calculated from the fair market value, then the amount of depreciation deduction becomes significant and may increase the amount of the cost price (discounted costs). There are several options for calculating depreciation charges, and the company is allowed to choose the most appropriate method of transferring the cost of a production asset to the manufactured products. The enterprise can create a more flexible cost price, depending on the market situation and the real state of the production means. The enterprise can monitor the real market situation, review, and adjust the timeframe of valuable use of production assets and depreciation methods. Currently, depreciation rates should reflect impairment following physical and mental depreciation during the use of the equipment. However, the applied depreciation methods do not reflect the real loss of use-value and the cost of technical means, which is confirmed by the market of used equipment and the corresponding calculations made by the Kovaleva (2016), Chutcheva and Seidov [1]. The depreciable value of machines calculated based on current regulations does not correspond to the real value. It cannot be used to justify the market price of a machine that provides an equivalent exchange. There are differences in the definition of methodological approaches to determining the total wear and residual value of specific labor tools. The widespread expert assessment of deterioration does not have sufficient theoretical justification and is not objective. The deterioration is continuous. Its cumulative nature with any object allows us to say that deterioration cannot be reduced, completely or partially eliminated. Deterioration, like the age of an object, took place in time and space. Any types of repairs are not going to eliminate wear; they are only compensators that indicate the replacement of worn-out elements in the machine, building, or equipment with new or restored ones. We propose to refer to the replacement cost of worn-out structural and non-structural elements of fixed assets as compensating costs (all costs associated with maintaining the means of labor in working condition). These expenses, mostly (but not fully), reflect the depreciation of the object. They are intended to ensure that

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the means of labor are maintained in working condition through compensation of their wear. The patterns of compensating costs, dynamics over the years, and the nature of their changes can be used to form a criterion for evaluating the movement of capital in natural and value forms. It should be used as the basis for the depreciation method. These costs are accounted for by accounting entries and are recorded in documents. Taking the form of maintenance, current, and capital repair costs, they serve as indicators that show the wear of agricultural machinery in periodically conducted mass checks of machines within enterprises of the AIC. The development of a method for calculating depreciation using the laws of real costs and the indicator of compensating costs will reduce the inadequacy of the cost assessment of technical labor means. The increase in compensation costs is a pattern common to all machines. The technical and economic literature describes the usual wear curve of the machine, its certain components, and parts. The economic deterioration of machines is shown in the form of a similar pattern represented by compensating costs.

4 Conclusion The development of depreciation policy and methods of its accrual accelerating the capital turnover and preventing its value reduction can be carried out if compensating costs are taken into account. It seems appropriate to develop a method of accelerated depreciation that considers the real patterns of deterioration of fixed assets and objectively reflects the value reduction of technical assets. The transfer of the significant part of the original cost of the machine to the depreciation fund in the first half of its service life could be used for purchasing new equipment. Using this method of depreciation, we can observe the real process of the quality reduction, while the entire initial cost of the machine is transferred to the depreciation fund.

References 1. Chutcheva YV, Seidov MM (2014) Foreign experience in the construction of depreciation policy. Int Tech-Econ J 1:13–16 2. Konkin YA, Golubev IG, Konkin MY, Kuzmin VN (2011) The experience and development prospects of technical Service. FSBIS “Rosinformagrotech”, Moscow, Russia 3. Kovaleva EV (2015) Depreciation accruals as a method of accounting for quality loss and impairment. Int Sci J 6:49–53 4. Kovaleva EV (2017) Depreciation charges as an indicator of equipment quality. Econ Agric Process Enterp 8:15–18

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5. Kovaleva EV (2017b) Problems of depreciation and quality assessment of technical means of agricultural production. Vestnik of Moscow State Agroengineering University named after V. P. Goryachkin 1(77):64–68 6. Kovaleva EV (2018) Strategy and methods of the economic evaluation of the quality of technical means of AIC production. In: Proceedings from the international scientific and practical conference on agrarian economy in the era of globalization and integration 7. Krupina NN, Trilitskaya OY (2016) Rationalization of depreciation of agricultural machinery as a condition for its extended reproduction. Econ Yesterday, Today and Tomorrow 6(10B):332–348 8. Kuvshinova O, Pismennaya E (2011) Reaganomics prescription. Vedomosti 19:1–3

Creating High-Performance Sectors in the Agro-Industrial Complex Under Digital Economy as a National Development Goal of the Russian Federation Dmitriy A. Pashentsev , Aleksandra A. Dorskaia , and Datkajim A. Abdieva Abstract The paper focuses on the interrelation of such Russian national goals as the creation of a high-performance sector in the agro-industrial complex [AIC] and the development of the digital economy. The study indicated the main directions for the use of modern digital technologies in the AIC. The authors emphasize that creating a high-tech AIC is impossible without the active use of digital technologies in forecasting, production, storage, and marketing of agricultural products. Currently, agricultural production does not always show a profit. Hence, its development requires state support not only in the form of economic backing (benefits and grants) but with organizational involvement. According to the authors, the conservative nature of agricultural production requires targeted efforts on the state’s part to “digitalize” it. The introduction of digital technologies in the production cycle involves the robotization of this cycle, including the creation of automated processing lines controlled by artificial intelligence. Additionally, it involves the development and implementation of “unmanned” ground equipment (tractors, combine harvesters), the use of drones for irrigation and pest control, the introduction of artificial intelligence in the greenhouse irrigation system, etc. Successful development in this direction will help to increase agricultural workforce productivity and agricultural production. The implementation of digital technologies will allow for the prediction of climate risks and yields while helping to determine the number of necessary products of various types. The digitalization of the AIC can be carried out in several stages. These stages are as follows: the development of the required digital technologies for the AIC and tools for their effective use; the introduction of digital technologies in agriculture, robotization, and automation of production based on artificial intelligence [AI]; training of operating personnel for new digital technologies in agriculture. The paper underlines the priority of rural education development since professionals within modern highperformance AIC must have the knowledge and expertise required to use modern digital technologies. D. A. Pashentsev (B) · A. A. Dorskaia · D. A. Abdieva Institute of Legislation and Comparative Law under the Government of the Russian Federation, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_49

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1 Introduction In current conditions, the country’s progressive development is almost impossible without strategic planning, which is designed to set the main vectors for such development, determine its directions, set the main goals, and outline ways and means to achieve them. The development of the agro-industrial complex [AIC] is a complicated and multidimensional task that is also impossible to solve without appropriate planning. The decree of the President of the Russian Federation “On the National Purposes and Strategic Development Challenges of the Russian Federation in the period up to 2024” [May 7, 2018 No. 204 (as amended on July 19, 2018)] states that the creation of a highly productive export-oriented sector within the basic sectors of the economy (specifically in manufacturing and agriculture) is currently considered one of the national objectives (Collection of Legislation of the Russian Federation, May 14, 2018, No. 20, Art. 2817). Another national task set by the country’s leadership is to ensure the accelerated implementation of digital technologies [3]. This allows us to question the theoretical and practical relevance of the problem analyzed in this study.

2 Materials and Methods During this research, we analyzed the legal acts regulating the development of the AIC and the digital economy, as well as the President and the Government of the Russian Federation’s policy documents on the indicated issues. The general scientific methods of analysis and synthesis, induction, deduction, and generalization are applied during this study. They allow identifying the main directions for the introduction of digital technologies in the AIC.

3 Results Under the development of the digital economy, the issue of creating a competitive AIC cannot be resolved without taking into account and using the opportunities provided by modern digital technologies. Therefore, the development of AIC and the digital economy’s development are important and interdependent tasks. The following factors determine the importance of these tasks and their interdependence. Firstly, digitalization is one of the leading drivers for socio-economic development. Under the influence of new digital technologies, the very nature of the economy inevitably undergoes rapid changes with the simultaneous transformation of forms and methods of economic activity. The nature of production is changing,

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while the structure of employment changes right along with it. Agriculture is one of the most conservative branches of production activities. Thus, it is poorly susceptible to significant modernization. Moreover, currently, agriculture does not always show a profit. Hence, its development requires state support not only in the form of economic backing (benefits and grants) but with organizational involvement. In this regard, the implementation of modern digital technologies in agricultural production requires targeted efforts from the state. Secondly, the use of modern digital technologies contributes to the growth of labor productivity within the industry and in public services, which allows us to confidently state the possible positive impact of digitalization on the development of the AIC. However, the utilization of tools provided by digitalization requires appropriate training and a high level of education. Unfortunately, the level of employees’ education is not high enough and not always meet the requirements. In this regard, the solution requires measures for developing the system of rural education, improving its quality, and the degree of focus on modern digital standards. It seems fair to say that “the modernization of the AIC with the help of information and communication, as well as digital technologies, the scale, and pace of digital transformation should become a priority of Russian development” [1]. The potential of digital technologies can be used in the development of AIC in several directions at once. The introduction of digital technologies into the production cycle can be considered the first direction. The introduction of digital technologies in the production cycle involves the robotization of this cycle, including the creation of automated lines and lines controlled by AI for product processing. Additionally, it involves the development and implementation of “unmanned” equipment (tractors, combine harvesters), the use of drones for irrigation and pest control, the introduction of AI in the greenhouse irrigation system, etc. Successful development in this field will help to increase agricultural workforce productivity and agricultural production. The second direction is the introduction of digital technologies in the storage and marketing of agricultural products. It involves the use of AI-based programs to determine and maintain the optimal temperature in warehouses and granaries, to organize sales of agricultural products via the Internet. The programs will handle the delivery of fresh farm products to consumers using nscrewed aerial vehicles and manage electronic forms of trade within the AIC, etc. The third direction is analytical. The implementation of digital technologies will allow for the prediction of climate risks and yields while helping to determine the number of necessary products of various types. The implementation of the indicated directions can be carried out in several stages: – The development of the required digital technologies for the AIC and tools for their effective use; – The introduction of digital technologies in agriculture, robotization, and automation of production based on AI; – Training of personnel for operating newly implemented digital technologies.

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It should be noted that the AIC consists of many different elements, apart from agricultural production and its infrastructure. It also includes manufacturers of agricultural machinery (including nscrewed aerial vehicles), crop insurance system, rural production crediting system, and transport related to agro-industrial production [2]. All the indicated areas will also benefit from the introduction of digital technologies. Increased efficiency of their work will contribute to the development of the entire AIC and the growth of agricultural production. The problem of education for employees of the AIC acts as the main issue hindering digitalization. The mastery of necessary knowledge and skills is essential for the digital economy. Thus, it is necessary to emphasize the state’s role since the development of education is one of the most important state functions. Currently, only the state has all the necessary resources to modernize rural education following the digital era’s requirements. Thus, it is possible to state the need to adjust the state educational policy, which should include the priority development of the educational environment in rural areas as one of its main directions to provide literate and competent specialists for the digital environment. This shows the state’s complexity towards the regulation of agricultural relations [4].

4 Conclusion The development of AIC is one of the national goals of the Russian Federation. The AIC should reach high levels of competitiveness within current conditions. The development of the digital economy is the second national goal of Russia. The development of a modern high-performance economy is based on the active use of digital technologies, which increase labor productivity and positively affect the volume and quality of production. The study allowed us to draw the following conclusions: (1)

(2) (3)

The creation of a high-tech AIC is impossible without the active use of digital technologies in forecasting, production, storage, and marketing of agricultural products; The conservative nature of agricultural production requires targeted efforts from the state aimed at its “digitalization”; One of the most important directions for solving the tasks outlined above is the priority development of rural education since the personnel of the AIC must have the knowledge and competence necessary to use modern digital technologies.

References 1. Altukhov AI, Dudin MN, Anishchenko AN (2019) Global digitalization as an organizational and economic basis for the innovative development of the agro-industrial complex of the Russian

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Federation. Probl Mark Econ 2:17–27 2. Khabrieva TY (2018) Law in the face of the challenges of digital reality. J Russ Law 9:5–16 3. Kulinichev I (2018) Digitalization of agro-industrial production. APK News 5:50–53 4. Volkova N, Dorskaya AA, Pashentsev DA (2019) Trends in state regulation of agrarian relations in Russia: experience, problems, and prospects. IOP Conf Ser Earth Environ Sci 274:012061

Innovation-Oriented Government Support of Agricultural Industry Margarita A. Grudkina , Tatyana I. Grudkina , and Tatyana S. Kravchenko

Abstract We examined the government support for agriculture on the example of dairy cattle husbandry. The improvement of dairy cattle husbandry in Russia is hindered by: (1) difficult macroeconomic conditions, (2) high price disparity, (3) the use of inefficient dairy production technologies, (4) ineffective selective breeding, and (5) high dependence on foreign equipment. The current system of state support mainly aims to compensate for negative factors. The government subsidies are not used for introducing innovative technologies into dairy farming. We proposed an innovation-oriented mechanism that provides targeted differentiated support for dairy enterprises. The competitive selection of subsidy recipients allows supporting only the most efficient enterprises that implement resource-saving technologies of dairy production. We also substantiated the application of complex estimates for choosing subsidy recipients. Keywords Dairy cattle husbandry · Government support · Innovations · Government regulation

1 Introduction The current government support for dairy cattle husbandry is yet to stop the reduction in cattle numbers and provide sustainable growth of dairy production. Therefore, the Russian economy is still dependent on foreign dairy products (i.e., the government objective of import substitution is not completed) [1]. In 2018, the share of Russian dairy on the internal market was 80.7%, while the share of imported dairy was 15.0%.

M. A. Grudkina Federal Research Center of Agrarian Economy and Social Development of Rural Areas—All Russian Research Institute of Agricultural Economics, Moscow, Russia T. I. Grudkina · T. S. Kravchenko (B) Orel State Agrarian University Named After N.V. Parakhin, Orel, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_50

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The prospective development of the industry depends on improving the competitiveness of milk producers, introducing better equipment, developing new resourcesaving technologies [3]. Innovations are an essential part of achieving production growth and resisting market fluctuations [11]. Better technologies of keeping and feeding cattle and the use of digital technologies in production can increase the milk production of cattle [14]. Currently in Russia, most dairy cattle are tied to posts (62.8%). In the United States and Europe, cows are mostly not tied (97% and 85%, respectively). Complete feeds are the predominant feeding regime of cattle in the United States and Europe (97% and 75%, respectively). In Russia, only 68.8% of cattle get complete feeds. Most cattle in Russia are milked by pipeline (60.6%); in the United States and Europe, the predominant method is the use of milking parlor (84% and 60%, respectively) [6]. Increasing the investment attractiveness of dairy cattle husbandry is caused by the need for radical innovative transformations in this branch of agriculture. The main directions of the “Strategy of Sustainable Socio-Economic Development of Russian Agro-Industrial Complex until 2030” sets the objective of modernizing animal husbandry. These include [16, 17]: • Transitioning from post-tying (72% of all livestock) to loose-keeping of the cattle herd; • Transitioning from separate feed distribution (50%) to using complete feeds; • Transitioning from milking into buckets (39%) to using milking parlors and milking machines.

2 Materials and Methods Russian and foreign secondary literature on economic regulation of the agricultural industry served as the theoretical and methodological basis of this study [12, 18]. In this study, we employed the economic-statistical, abstract-logical, and monographic methods. The information material was sourced from the Federal State Statistics Service [Rosstat], the Ministry of Agriculture of the Russian Federation, the legal provisions on the government support of dairy cattle husbandry, the annual reports of agricultural enterprises in the Oryol Region, and the online information sources.

3 Results In this study, we examined the impact of milk production technology on the production efficiency on the example of agricultural organizations of the Oryol Region. In 2017, out of 55 agricultural enterprises of the Oryol Region, only nine organizations used the milking parlor method. However, they accounted for 38.6% of the produced milk. The milk yield per one cow in these enterprises exceeded the

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Fig. 1 Influence of cow milking technology on the effectiveness of milk production in Russia agricultural organizations of the Oryol Region in 2017. Source Data from annual reports of organizations in the Oryol Region

regional average by 22.6%. The labor intensity of milk production with the milking parlor methods is 33.1% lower than the regional average and four times lower than the bucket method. The profitability of milk sales in the enterprises that used the milking parlor method was 40.3% in 2017. Conversely, the profitability of milk sales in the enterprises that used milking buckets was −8.7% (Fig. 1). In the transition to automated milking methods, manual labor is partially replaced by management systems, which is especially important when there is a lack of personnel [5]. The effectiveness of introducing automation technologies depends on several factors. Automated production can only be effective if the cattle herd contains at least 35–40 heads; the efficiency of milk production increases with the size of the farm [8]. Currently, dairy cattle husbandry is mainly self-regulated by the influence of the market economy. Dairy plays a significant role in the diet of the population, the economic and social sustainability of rural areas, and the food security of the country. Therefore, the dairy industry must be supported directly (by budget subsidies) and indirectly (government regulation of prices, lending, taxation, and insurance) [2]. The market demand for milk is unstable and unpredictable, which lowers the investment attractiveness of the industry. According to the Rosstat data, in 2014– 2018, the dairy sales increased by 23.8%, while the sales of grains and legumes increased by 35.8%. The average sales of all agricultural products increased by 31.1%. Since milk sales in 2018 decreased by 6.7% compared to 2017, the dairy enterprises lost 35.1 billion RUB of revenue. In contrast, the subsidy funds, allocated from the Federal Budget amounted to only 23.5 billion RUB. The main directions of improving the government pricing regulations are: • Decreasing the price fluctuations of dairy by developing the system of consumer cooperatives, government procurements and interventions, and programs for increasing the demand for dairy [9, 15];

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• Increasing the profits of milk producers by introducing minimum prices for dairy and establishing the maximum mark-up for dairy [1, 4]; • Mechanisms of supporting the incomes of dairy producers by regulating resource prices and expanding the insurance of agricultural producers [1]. The formation of the dairy market aims to guarantee a supply of high-quality and safe food. The decreased production of milk caused an increase in the import of palm oil. According to Rosstat data, the amount of imported palm oil was 1.06 million tons in 2018 (150% of the 2014 imports). This decreases the demand for Russian-made dairy and its quality. The methods for detecting low-quality dairy and counterfeit dairy must be improved. This also includes training qualified personnel, developing new ways of detection, and clarifying the old ones. Favorable tax treatment plays an important role in increasing the yields of agricultural producers in Russia. These include: • Special tax mode—the single agricultural tax; • Preferential income tax rate (rate 0%); • Preferential VAT rate (10% rate). For comparison, in the EAEU countries, the agricultural taxes are as follows [17]: • • • • •

Kyrgyzstan: 1.0–1.6%; Armenia: 1.0–1.6%; Kazakhstan: 5.9%; Belarus: 10.3%; Russia: 12%.

In our opinion, to increase the investment attractiveness of the agricultural industry, the government should implement different tax rates for activity types, tax-free periods for producers implementing investment projects, and targeted tax benefits [13]. Regional tax benefits also stimulate the investment attractiveness of agriculture. For example, the Law of Oryol Region No. 364-OZ “On Corporate Property Tax” exempted the dairy farms from tax until December 31, 2018, provided that they keep at least ten head of cattle per 100 ha of land. The measures of credit loaning can include: • Compensating the revenue lost by credit organizations because of preferential loan giving; • Developing special credit rates for entities investing in innovations of dairy farming, increasing the grace period to 5 years, reducing the collateral requirements on loans; • Reducing the marginal rate on preferential investment loans granted to dairy producers (from 5 to 3% per annum), according to the Decree of the Government of the Russian Federation No. 1528; • Increasing the subsidies provided to authorized banks on loans for the development of dairy cattle husbandry (up to 100% key rate of the Central Bank of the Russian Federation).

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In our opinion, the budgetary support has significant potential for stimulating the innovative activity of dairy producers. The current budgetary support is directed at: • Innovation-oriented enterprises (21% of total subsidies); • Potentially innovative enterprises (reimbursement of part of the direct costs incurred for the creation and modernization of dairy farms) (31%); • Non-innovative enterprises (compensating for the loss of productivity, reimbursing insurance payments, etc.) (48%). Selective breeding is especially important in improving the efficiency of dairy production. The productivity of cattle in breeding experimental sites is 76.1% higher than average, and 55.9% higher in breeding enterprises. However, the share of breeding cattle in Russia is only 13.7%. Currently, state subsidies do not apply to purchasing young breeding animals abroad. However, in 2018 the demand for young breeding cattle was 305.6 thousand heads, while only 94.7 thousand heads of Russian-bred and 60.0 imported young animals were sold. Therefore, we believe that state support should extend to imported breeding animals. From 2015 to 2018, the Ministry of Agriculture of the Russian Federation has selected and financed 232 investment projects with a total capacity of 258.7 thousand cattle-places. According to Rosstat, 643.8 thousand cattle-places were put into use in this period. Thus, only 40.2% of the commissioned cattle breeding facilities received state support. The amount of support from the federal budget per one cattle-place was 63.2 thousand RUB, while the cost of creating one cattle-place was 295.5 thousand RUB. Despite the high importance of this support measure in stimulating the investment and innovation activity of the industry, several factors limit its expansion: • The subsidy is provided after the complex is put into operation, so the producer provides initial funding themselves; • Strict selection criteria for applicants for state support. In particular, the positive evaluation of the state expertise, which undoubtedly increases the cost of the project (especially for small farms); • There is no subsidy for the reconstruction of dairy farms (only construction or modernization), which also significantly narrows the range of potential recipients of subsidies; • In 2018, the subsidy was reduced from 30 to 25% of the estimated cost of construction or upgrading of dairy complexes. Despite the competitive selection of investment projects, this mechanism is not sufficiently focused on stimulating the creation of high-tech dairy complexes. For example, only two requirements concern the innovative level of the project—the minimum level of cow productivity (at least 6 tons of milk per cow per year), and the achievement of the designed capacity for milk production not later than 2 years from the date of putting the complex into operation. As a result, the equipment of new and reconstructed dairy farms does not always meet the requirements for the maintenance and feeding of highly productive cows [1].

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In our opinion, to stimulate the technological modernization of the industry, the government should expand the list of indicators used to evaluate the potential subsidy beneficiaries and use a differentiated approach in determining the subsidy amount. This approach can also be used to calculate subsidies for: • Partially compensating the direct costs incurred in setting up and modernizing dairy complexes; • Preferential investment loans; • Grant support for novice farmers; • Development of family livestock farms that implement innovative technologies. We suggest using the following indices to fully evaluate the investment projects: • Average annual milk yield per 1 cow; • The time of reaching the designed capacity; • Gross milk production (during the construction of dairy complex) or milk production increase (during reconstruction and modernization) by 1 RUB of capital investments; • Capital investments for the creation of 1 cattle-place; • Production cost of 0.1 ton of milk; • Profitability of milk sales; • Labor intensity of 0.1 ton of milk; • Capital investment per 1 RUB of the announced subsidy; • Gross milk production (in case of dairy complex construction) or milk production growth (in case of reconstruction and modernization) by 1 ruble of the declared subsidy. A rating scale and weighting values, reflecting the relative importance of each indicator, should be developed for each index. To assess the efficiency of subsidy granting, the government should extend the period of monitoring the project implementation (i.e., observe until the dairy complex reaches its designed capacity). Compensatory subsidies only allow maintaining the profitability of dairy production during price fluctuations. The subsidy recipient uses the funds at their own discretion [10].

4 Discussion In our opinion, compensation subsidies should be replaced by innovative-oriented ones. The limited subsidy funds should be better targeted and address the problems of specific milk producers. Competitive targeted subsidies can become an important part of supporting dairy production [7]. Subsiding the initial costs of production development will allow milk producers to reduce the cost of servicing borrowed funds and will reduce the prime costs of

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milk production. Competitive subsidies allow supporting only innovation-oriented producers that implement resource-saving solutions and technologies. To improve the efficiency of using budget funds, we offer establishing financial penalties (fines, partial or full refund of the received subsidy) for the grant recipients that fail to achieve indices of the cattle husbandry development program.

5 Conclusion The balanced improvement of all elements of economic regulation of dairy cattle husbandry can ensure the sustainable development of the industry, stimulate innovation activity of producers, and increase their competitiveness on the internal market. The government program of agricultural development, in our opinion, should include a sub-program or a department for the development of dairy cattle husbandry. This department should establish the volume of financial support for the industry, and the measures for improving its economic regulation.

References 1. Altukhov AI (2018) Development of dairy cattle husbandry in the country: problems and prospects possible ways to solve them. Agribusiness: Econ Manage 9:86–92 2. Bogoviz AV, Taranov PM, Shuvaev AV (2018) Innovational tools for the provision of food security through state support for the agro-industrial complex in the conditions of the digital economy. Adv Intell Syst Comput 622:659–665 3. Butler D, Holloway L, Bear C (2012) Impact of technological changes on dairy products agriculture: robotic milking systems and the changing role of the pastoralist. J R Agric Soc England 173:1–6 4. Chinarov VI (2019) Dairy and meat cattle husbandry in Russia: problems and prospects the prospects. Econ Agric Process Enterp 2:8–11 5. De Koning K (2010) Automatic milking is a common practice on dairy farms. First North American conference on accurate dairy product management. Retrieved from https://www.pre cisiondairy.com/proceedings/s3dekoning.pdf 6. Dunin IM (2019) New breed resources and the realization of their genetic potential for intensification of Russian animal husbandry. Retrieved from https://mcx.gov.ru/upload/iblock/fbf/ fbf03b5c43da07991a0e51d6cd3070e5.pdf 7. Grudkina MA (2018) Mechanism for providing targeted differentiated information support for milk producers. Reg Econ Theory Pract 16(5):956–971 8. Hansen BG, Herje HO, Höva J (2019) Profitability on dairy farms with automatic milking systems compared to farms with conventional milking systems. Int Rev Food Agribusiness Manag 22(2):215–228. https://doi.org/10.22434/IFAMR2018.0028 9. Kibirov AY, Petrov SE (2018) Economic mechanism of development in high-tech investment projects of the investment system development of agro-industrial production. Theor Pract World Sci 10:2–6 10. Kulov AR (2019) In Subsidizing investments in the dairy industry of countries European Union. Econ Agric Russia 7:82–87

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11. Lapple D, Thorne F (2019) The role of innovation in ensuring the economic sustainability of farms: generalized propensity assessment data were obtained on Irish dairy farms. J Agric Econ 70(1):178–197. https://doi.org/10.1111/1477-9552.12282 12. Maret T, Scavarda L, Thomé A, Cyrino Oliveira F, Alves T (2019) Analysis determinants of technical efficiency of dairy farms in Brazil. Int J Perform Perform Manag 68(2):464–481. https://doi.org/10.1108/IJPPM-06-2018-0234 13. Polukhin AA, Grudkina TI, Grudkina MA (2019) Factors that increase efficiency of state support for agriculture. IOP Conf Ser Earth Earth Environ Sci 274 [012113]. https://doi.org/ 10.1088/1755-1315/274/1/012113 14. Surovtsev VN (2018) Mastering digital technologies as the basis of the strategy development of dairy cattle husbandry. Agribusiness: Econ Manag 9:108–117 15. Tikhomirov AI (2018) Improving public administration mechanisms support to the livestock sector. Econ Agric Russia 6:72–78 16. Ushachev IG, Paptsov AG, Serkov AF, Altukhov AI, Bondarenko LV, Chekalin VS et al (2018a) Main directions of the sustainable development strategy socio-economic development of the agro-industrial complex of the Russian Federation for the period up to 2030. Sam Polygraphist, Moscow, Russia 17. Ushachev IG, Paptsov AG, Serkov AF, Maslova VV, Chekalin VS, Zaruk NF … Borkhunov NA (2018b) Stable development and increase the competitiveness of Russian agriculture in the conditions of deepening in the integration of the EEU. Scientific consultant, Moscow, Russia 18. Yi J, Ifft J (2019) Labor efficiency and financial performance of a New York dairy farm performance. Agric Financ Rev 79(5):646–665. https://doi.org/10.1108/AFR-02-2019-0016

Differentiations in Educational Services in Urban and Rural Areas in the Republic of Bashkortostan (Russia) Dilara I. Yapparova

and Alfiya R. Kuznetsova

Abstract In this article, we focused on the importance of education in the socioeconomic development of the country. We analyzed the government statistics of the Russian Federation, the experience of other countries, and the scholarship of Russian and foreign researchers. Based on this analysis, we established the basic differences in the level of educational service in the rural and urban areas of the Republic of Bashkortostan. We concluded that even though the government objective is to increase the birth rate and keep young professional workers in rural areas, the number of pre-school educational institutions in rural areas is declining, and the infrastructure of rural pre-school education lags behind the urban one. The difference in education quality of rural and urban schools creates unfavorable conditions for rural university applicants. The dire state of rural education increases the rate of rural flight. Young people move from rural areas to the cities of Bashkortostan, other regions (especially to Moscow, Saint Petersburg, and Kazan), and other countries. This contributes to brain drain and creates serious issues in the socio-economic development of rural areas of Bashkortostan. Keywords Educational system · Educational migration · Educational service market · Rural areas

1 Introduction Education is an important factor in national socio-economic development. The population’s education affects not only the growth and competitiveness of the national economy but also the cultural and moral development of society. However, the education level and the quality of education services may vary significantly between rural and urban areas. Studying this disparity is an effective D. I. Yapparova (B) Ufa State Aviation Technical University, Ufa, Russia A. R. Kuznetsova Bashkir State Agrarian University, Ufa, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_51

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way of presenting the strategies for the development of rural areas. The differences in rural and urban education services are the subject of many Russian and foreign studies [1, 2]. N. R. Kuznetsova, one of the co-authors of this study, in her work “The Impact of Education on the Income of the Economically Active Population in the European Union” (2019) stated, “There is a direct link between the conscious birth of children and the education of people. The higher the income of workers, the higher the level of education. The higher the level of education, the lower the birth rate” [3]. Austrian scholars Fessler and Schneebaum [4] concluded that attending pre-school (provided that the quality of educational services is sufficient) has a significant impact on a person’s life. They wrote, “We find strong and positive effects of pre-school attendance on later educational attainment, the probability of working full time, hourly wages, and the probability that the mother is in the labor market.” Italian researchers Odoardi and Muratore [5], in the study “The Role of Human Capital After the Crisis in Italy: A Regional Analysis,” presumed that the workers with better education could perform tasks with higher efficiency. They stated, “Workers with a better education can promote economic recovery through productivity enhancement” [4]. Saniter et al. [6] researched the effect of attending job information centers (JIC) by German students and stated, “The individuals who went to school in administrative districts with a JIC have higher educational attainments, experience educational upward mobility, and have a smoother transition to the labor market” [6]. Kazakh scholars Yessentayeva et al. [7] concluded that academic mobility and migration are growing every year in the whole world. The benefits of acquiring education have been studied by Indian researchers [8]. The interconnection between school, work, and the incompatibility of education with the demands of the labor market is represented in the works of Dutch scientists [9]. German scholars explored the interconnection between lifelong learning and the retirement age [10]. The article of Iranian researchers dwelled on the impact of social factors on the development of human resources [11]. The impact of the family structure on the results and quality of children’s education is studied in the works of Italian scientists [12]. These studies reveal the importance of education and migration on socio-economic development. However, the difference between rural and urban education quality, student migration to urban areas, and its impact on rural development require additional attention.

2 Materials and Methods In this study, we used the official statistical data on migration and education, provided by the Federal State Statistics Service for the Republic of Bashkortostan [13, 14]. The methodological basis of this study is formed by monographic, statistical, analytical, and graphic methods.

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3 Results While the number of pre-school educational institutions in urban areas was relatively constant between 2010 and 2017 (decreased by 0.2%), the number of pre-schools in rural areas fell by 58.7% (Fig. 1). However, the number of pre-school branches rose by 442.4%. We may observe two parallel processes: (1) the consolidation of educational institutions (the growth of branch networks), and (2) the reduction of the total number of educational institutions. However, we cannot establish the cause-effect relationship between these two processes (meaning that the pre-school institutions were acquired by consolidated institutions and thus became branches). The total number of preschool institutions in rural areas decreased by 55.5% over the period. We also note that, in urban areas, most institutions are independent (there are almost no branches). In contrast, the number of students in urban and rural pre-schools has been steadily increasing between 2010 and 2017. In urban areas, the increase during this period was 45% and in rural areas was 33.6% (Fig. 2). However, the enrollment rate growth (percentage of children enrolled out of the total children population) is higher in rural areas: 35%, compared to 10% in urban areas. Despite the higher enrollment growth, pre-school enrolment in rural areas (63.6%) is still lower than that of the urban areas (74.3%), as of 2017. According to the 2017 data, the number of pre-school educational organizations whose buildings require major renovation is relatively small both in rural (3.7% of the total number of buildings, including branches) and urban areas (3.6% of the total number of buildings). Almost all buildings of pre-school educational institutions are connected to the Internet: 99.3% in urban areas and 96.9% in rural areas. On average, rural pre-school buildings have 8.3 m2 of area, compared to 6.8 m2 in urban institutions. However, urban pre-school buildings are better equipped with specialized rooms:

Fig. 1 Number of pre-school educational organizations in urban and rural areas of Bashkortostan, by year (units). Source [15]

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Fig. 2 Number of students in urban and rural pre-schools of Bashkortostan, by year (thousands). Source [15]

• • • •

Music halls (659 in urban areas, compared to 318 in rural areas); PE rooms (381 vs. 183); Indoor swimming pools (111 vs. 12); Sunrooms (68 vs. 28).

Currently, the government policy aims mostly to increase the birth rate, the socioeconomic development of rural areas, and the involvement of young specialists in rural development. However, the government is reducing the number of pre-schools in rural areas. Even though the number of pre-school educational institutions in rural areas currently meets the needs of the population, this policy may pose problems in the future. It also reduces the return rate of professional workers, raises migration losses, and decreases the involvement of young specialists. General and secondary is the next stage after pre-school education. These stages determine the future life of a student. The number of general education institutions in urban and rural areas displays the same statistical patterns. The number of general-education institutions in urban areas remained the same in 2016–2018 (0.3% decrease). The number of general-education institutions in rural areas decreased by 3.5%. The branching of general-education institutions decreased by 3.5% (Fig. 3). The branching of urban institutions remained unchanged. Over a longer period (2010–2017), the number of general-education institutions in urban areas fell by 8.8% and in rural areas by 33.8%. The difference in the number of in-depth study classes between the urban and rural institutions is more than tenfold (2.98% in urban areas and 0.19% in rural areas). The number of gymnasium and lyceum classes in urban areas is also higher. The lower quality of classes in rural areas forces the population to migrate to towns and neighboring regions. Between 2010 and 2017, the number of pupils in urban institutions increased by 6.8%, while the number of pupils in rural areas decreased by 7.4% (Fig. 4).

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Fig. 3 Number of general-education institutions in urban and rural areas in Bashkortostan, by year (units). Source [15]

Fig. 4 Number of pupils in the general-education institutions of urban and rural areas in Bashkortostan, by year (people). Source [15]

We also note that the rural areas of Bashkortostan lacked education centers and cadet schools at the beginning of the 2017–2018 school year. There were ten education centers and one cadet schools in urban areas. At the end of 2017, only 36.5% of rural general-education buildings had accommodations for special-needs students and people with mobility issues. In rural areas, this index was higher—52%. In 2017, 21.3% of rural and 12.5% of urban buildings of general-education institutions lacked water supply and sewage connection. The significant disparity in the education infrastructure causes rural flight and reduces the attractiveness of rural education jobs on the labor market. Other regions display similar patterns. The Minister of Education of the Russian Federation stated that, at the beginning of 2019, there was a shortage of about 12 thousand teachers in rural education institutions. Official statistics do not fully reflect the shortage of education staff in rural areas. Formally, most education positions in schools are occupied, but many teachers have to work 1.5 or 2 times the normal amount and teach several subjects.

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However, the government is trying to attract young teachers to rural areas. For example, the Federal Program “Rural Teacher,” set to launch in 2020, allocates subsidies (1 mln. RUB) to young teachers who move to rural areas and teach there for 3–5 years. Nevertheless, solving the shortage of rural teachers will require increasing wages, improving rural infrastructure, developing rural culture, and integrating the rural population into the digital economy of the nation. Secondary or higher education comes after general education. At this stage, a student is more independent and is ready to travel without their parents. Migration statistics show that the rural out-migration increases sharply at the age of 15–19 (i.e., at the age of entry into secondary-specialized, secondary-vocational, and higher education institutions) (Fig. 5). In 2017, 11,124 people aged 15–19 left the rural areas of Bashkortostan. Around 79.8% moved to the cities of the region, 19.4% moved to other regions of Russia, 0.8% moved to other CIS countries, and less than 1% moved even further away. However, there is a reverse pattern –significant amounts of people aged 20–24 arrive in rural areas. We can assume that people of ages 23 and 24 are the same people who left to study in urban areas at the age of 15–19. Due to the absence of higher education institutions in rural areas, people have to travel to the cities of their region or other regions to continue their studies. In Bashkortostan, many rural areas are situated near the border. Therefore, some people prefer to leave Bashkortostan for other regions or countries. Many of them move to Moscow, Saint Petersburg, or Kazan. In 2017, the intra-regional education migration was 11,097 people, while the educational migration to other regions and countries was 5,308 people. The influx of people returning to rural areas at the ages of 20–24 is replaced by an exodus at the next age bracket. The out-migration of educated young people is a great loss for rural areas. It leads to a steady decline in intellectual capital. This behavior stems from several important social, economic, and psychological factors.

Fig. 5 Migration of the rural population in 2016 and 2017 in Bashkortostan, by age (people). Source [15]

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4 Discussion We analyzed statistical data on the education sector and the migration processes of Bashkortostan. It demonstrated a high disparity between the level of education in urban and rural areas, which significantly influences the socio-economic development of rural areas. The reduction of pre-school institutions in rural areas may contradict the government objectives of increasing birth rates and involving young people in developing rural areas. Young teachers that come to rural areas as part of the government programs face difficult choices. They either work for several years (because they have to) and leave for the city or stay in rural areas and start a family. The quality of rural pre-school education plays a major role in making these choices. Rural education is overall inferior to urban education. The quality of general education is worse, the number of advanced study classes is less, and the shortage of teaching staff is more pronounced. This lowers the quality of given education and the quality of testing. In some cases, weaker control structures allow rural students to obtain unjustifiably high scores at the Russian Unified State Exam. However, rural students do significantly worse in the higher institutions of urban areas. To receive secondary or higher education, rural pupils have to move to the urban area. Many students then never come back: they either cannot find a good job in rural areas or feel out of place due to the slower lifestyle and less developed infrastructure. The population’s education level is an important element of the social and economic development of rural and urban areas. Therefore, the development of rural areas requires not only involving younger specialists but also narrowing the gap between the quality of rural and urban education.

5 Conclusion In the Republic of Bashkortostan, there is a significant disparity between the quality of educational services provided by the educational institutions of rural and urban areas. The quality of education and the educational infrastructure of rural areas are overall inferior to those of urban areas. The number of pre-school and general education institutions in rural areas is steadily falling. However, the government policy sets increasing birth rates and attracting young specialists to the rural areas as its main objectives. This contradiction can be resolved not only by improving the quality of rural education and its infrastructure but also by the complex socio-economic development of Bashkortostan rural areas.

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References 1. Gregg P, Macmillan L, Vittori C (2019) Intergenerational income mobility: access to top jobs, the low-pay no-pay cycle and the role of education in a common framework. J Popul Econ 32(2):501–528. https://doi.org/10.1007/s00148-018-0722-z 2. Kuznetsova A, Saitova R, Gusmanov R (2019) Prospects for the development of educational migration in the Russian Federation. Adv Soc Sci Educ Humanit Res 298:367–373. https:// doi.org/10.2991/essd-19.2019.81 3. Kuznetsova A (2019) The impact of education on the income of the economically active population in the European Union. Adv Soc Sci Educ Humanit Res 298:608–614. https://doi. org/10.2991/essd-19.2019.133 4. Fessler P, Schneebaum A (2019) The educational and labor market returns to pre-school attendance in Austria. Appl Econ 51(32):3531–3550. https://doi.org/10.1080/00036846.2019.158 4368 5. Odoardi I, Muratore F (2019) The role of human capital after the crisis in Italy: a regional analysis. Socio-Econ Plann Sci 66(C):58–67. https://doi.org/10.10116/j.seps.2018.07.002 6. Saniter N, Schnitzlein D, Siedler T (2019) Occupational knowledge and educational mobility: evidence from the introduction of job information centers. Econ Educ Rev 69:108–124. https:// doi.org/10.1016/j.econedurev.2018.12.009 7. Yessentayeva A, Akhmetova BZ, Kadirsizova SB, Kaziev K, Baiulov G, Rakhimbekova GO et al (2019) The specifics of modern educational migration in the countries of the Customs Union (Russia, Republic of Belarus, Kazakhstan). Amazonia Investiga 8(19):130–137 8. Agrawal T, Agrawal A (2019) Who gains more from education? A comparative analysis of business, farm and wage workers in India. J Dev Stud 55(6):1081–1098. https://doi.org/10. 1080/00220388.2018.1443209 9. Boi T, Eller CC, van de Werfhorst HG, DiPrete TA (2019) School-to-work linkages, educational mismatches, and labor market outcomes. Am Sociol Rev 84(2):275–307. https://doi.org/10. 1177/0003122419836081 10. Gries T, Jungblut S, Meyer H, Krieger T (2019) Economic retirement age and lifelong learning: a theoretical model with heterogeneous labor, biased technical change and international sourcing. German Econ Rev 20:129–170. https://doi.org/10.1111/geer.12140 11. Haghighi NF, Bijani M, Parhizkar M (2019) An analysis of major social affecting human resource development in Iran. J Hum Behav Soc Environ 29(3):372–388. https://doi.org/10. 1080/10911359.2018.1536577 12. Guetto R, Panikella N (2019) Family structure and learning outcomes of children: heterogeneous fines in high school. Demogr Res 40:1015–1046. https://doi.org/10.4054/DemRes.2019. 40.35 13. Federal State Statistics Service (2018) Education and culture in the Republic of Bashkortostan: statistical yearbook. Bashkortostanstat, Ufa, Russia 14. Federal State Statistics Service (2018) Population migration in the Republic of Bashkortostan: statistical yearbook. Bashkortostanstat, Ufa, Russia 15. Official website of the Federal State Statistics Service for the Republic of Bashkortostan (n.d.). Retrieved from https://bashstat.gks.ru/folder/25474

Directions and Forms of Public–Private Partnership in Agriculture Zlata A. Ivanova

Abstract This paper discusses the main anti-crisis measures for agricultural regulation applied to large agricultural producers of strategic importance and supporting medium-sized agricultural producers. Keywords Agriculture · Innovative development · Competitiveness · Rural areas · Risks · Crisis · Promising areas · Rural economy · Public–private partnership · Agro-industrial complex

1 Introduction The agro-industrial complex [AIC] of the country was always considered as one of the primary sectors of the economy. Its sustainable development determines the level of life security in the country because its activities are aimed at meeting the basic physiological needs of a person. It also has a direct impact on the quality of life. Therefore, large-scale state support of agriculture in developed countries with market economies is considered an axiom, due to the social and political perception of the subsidized nature of reproduction in agriculture and the economic and political importance of increasing food resources [6]. State support of the agricultural sector mitigates the effects of the global financial crisis. However, some programs were not fully implemented. They were later revised due to the sanction pressure. The reform of the Russian food industry and the modernization of its infrastructure will increase the competitiveness of goods. To reach this goal, it is necessary to provide investments for priority sectors of the food complex in the country [3]. The current problem can be resolved in several different ways. Firstly, it can be resolved through the apparent extensive and quantitative increase in production within the country. Secondly, one can change production and storage technologies for agricultural products intensively and qualitatively, introduce new agricultural technologies, invest in the development of highly qualified personnel, and improve Z. A. Ivanova (B) Academy of Management and Production, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_52

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social security in rural areas. To ensure the implementation of both directions with the focus on intensive development, the executive bodies need to adjust the current course of agricultural development and prepare a set of measures expanding state support for the AIC. Anti-crisis measures for agriculture coordination must apply to large agricultural producers of strategic importance, as well as medium-sized agricultural producers. Market conditions assume that the expenses of the company are reimbursed, while the extended reproduction is mainly carried out at the cost of its financing sources. However, the vast majority of agricultural producers do not have the necessary economic conditions to implement this market business pattern principle. They also transfer financial resources from the industry due to the nonequivalent exchange between the industry and agriculture and disparity of prices.

2 Materials and Methods The prioritized target program “Development of the Agro-industrial Complex” launched in 2004 (subsequently modified and approved by the state development program for 2013–2020) covers a wide range of critical areas and implements projects involving state aid, as well as different tracks of public–private partnerships. The most significant function of PPP is the participation of partners in the combined scheme of final product development and the agricultural production chain for the formation of added value [5]. Thus, direct assistance from the state includes subsidies and short-term loans, and, therefore, public–private partnerships should include the following elements: • Feed development (an increase of the sown area); • The development of the private sector (horticulture); • The development of cattle breeding and animal husbandry in personal subsidiary farms, etc. A group consisting of areas other than those belonging to the AIC may include the following elements: • The patronage of agriculture (crop and livestock production); • The preservation of soil fertility; • Accelerated transition to new technologies of production to increase productivity and save natural and human resources; • Other elements (encouragement of enterprises using new technologies; the improvement of administrative management system for more efficient operation; • The attraction of the investments for the improvement and technical re-equipment of agricultural production technologies, etc.). It should be emphasized that the measures mentioned above aimed at increasing the productivity of agricultural enterprises should be implemented based on the principles of the food security doctrine.

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3 Results and Discussion To introduce and develop a public–private partnership for the benefit of the country’s economy, it is necessary to interpret PPP as a process that establishes friendly relations between economic agents, as well as relations between the market and the elements of civil society thus creating conditions for socio-economic stability and national security. Consequently, the PPP function ensures that the partner fully participates in the production chain of product development; the formation of added value becomes fundamental [7]. When concluding foundation agreements where the state and the private sector act as participants, it is necessary to observe and maintain contractual relations norms. Thus, the PPP should develop the essential sub-sectors of agriculture. To achieve this goal, it is necessary to promote the activities of both those with a good reputation in the market and certain competitive advantages and those without such advantages and not receiving assistance from the state, often failing to fulfill their production potential truly. In modern Russia, state protection and assistance is essential in dairy and meatrelated areas of agriculture. The measures taken by the government in these areas are to ensure a stable environment for the development of prior types of livestock and to increase the production of meat and dairy products. To address these issues, it is necessary to develop a suitable model of public–private partnership in the development of livestock farms. For example, some researchers, L. A. Kosholkina [4], describe two directions for state support in agriculture: North American and Western Europe. The North American direction consists of purchasing interventions at government-set prices, with the amount of funding directly dependent on the income of farmers. While the Western European option involves the payment of financial support under a quota, depending on the sown areas, as well as economic and environmental conditions. The renovation of the PPP program will become more urgent over time, as it is necessary to expand the volume of subsidies to small farmers and households to promote the development of family dairy farming in Russia. N. V. Ershova [2] indicated that the rational use of lands would help solve problems in dairy farming within the regions. Factoring in the permanent demand, the need for mutually beneficial cooperation between farming and research institutes becomes naturally rational, following the conditions of a competitive dairy market. However, despite its seeming complexity, the implementation of the cooperation can be modeled on the existing relationship of state support and farming. The financial situation of agricultural producers must be relatively stable so that they can meet the demand for innovative products and scientific activities for production and modernization. This should apply to at least most of the producers. The scale of secondary importance of investment in the innovative component of agriculture throughout the country is radically changing public–private partnerships and improves other forms of its application, which allows the agricultural economy to be guided along the path of modern technological modernization. While

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factoring in the diversity of the agricultural sector, we must understand that PPPs are multi-sectoral and aim towards diversification. In reality, theoretically possible associations between the private sector and government in the agricultural sector lead to irrational and unsustainable exploitation of the available material, labor, and financial resources. At the same time, many researchers believe that PPP would not make a positive long term difference. However, the situation in Russia has an opposite nature. The agricultural producers are forced to diversify agricultural production due to the need to mitigate the seasonality of production.

4 Conclusion Naturally, a detailed review of public–private partnerships shows that the economy receives much more money from the regional budget in state support programs than from the federal budget. All kinds of measures for the development of agriculture envisaged at various levels of state authority make it necessary to divide public– private partnerships into two groups: • Associations of federal level; • Associations of the regional level. The analysis of subsidies in some areas illustrates that the state is trying to stimulate agricultural activities to expand the manufacture of national agricultural products. It is expected that these measures will contribute to the effective development of agriculture and help the country reach the level of the primary agricultural powers [1].

References 1. Bogoviz AV, Bugai YA, Minenko AV (2019) Economic analysis of effectiveness of the existing tools of state support for entrepreneurship in the AIC in the digital economy. Lecture Notes Netw Syst 57:789–794 2. Ershova NV (2010) Rent as an instrument of the turnover involvement of unused agricultural lands (Dissertation of Candidate of Economics). Russia, Moscow 3. Goncharov VD, Selina MV (2017) Reforming the food complex of Russia. Econ Manage: Probl Solut 2(62):11–18 4. Kosholkina LA (2004) State support of agriculture (Dissertation of Candidate of Economics). Russia, Moscow 5. Maksimov VV (2010) Public-private partnership in transport infrastructure: Criteria for evaluating concession tenders. Alpina Publishers, Moscow, Russia 6. Orlova AG (2017) Economic mechanism of restoration and development of viticulture in the region. Russia, Moscow 7. Zeldner AG, Smotritskaya II (eds) (2012) Public-private partnership in the conditions of innovative development of the economy. IE RAS, Moscow, Russia

Youth Unemployment in the Labor Market of Uzbekistan: Problems and Ways of Solution Madina Kh. Saidova , Azizahon M. Maksumkhanova , and Khabiba Kh. Karimova

Abstract This paper focuses on the issues of youth employment in the Republic of Uzbekistan. The relevance of the problem is highlighted. The problems of youth employment in Uzbekistan are revealed. The lack of professional knowledge, lack of necessary labor skills, and abilities among youth are considered as factors of youth unemployment. The legal foundations of socio-economic reforms in Uzbekistan are studied. The recommendations to solve the problem associated with the improvement of the education system were developed. Keywords Economics · Politics · Labor · Unemployment · Social protection · Labor market · Jobs · Education · Youth

1 Introduction The state policy on ensuring employment in Uzbekistan, which problems and indicators were identified in the early 1990s, became irrelevant and did not meet the requirements of our time. At that time, in the initial transitional stage to a market economy, the main goal of Uzbekistan was to prevent mass unemployment and to provide employment for workers released from unprofitable and bankrupt enterprises with a high level of social insecurity. In Uzbekistan, the overwhelming majority (94–95%) of the economically active population has been employed in the economy over the past twenty years. A significant part of employees was involved in the informal sector of the economy of the country and external labor migration [1]. When Uzbekistan became independent, informal employment and external labor migration made it possible to maintain overall unemployment at the level of 4–5%. Many people get incomes necessary for survival and improving the living conditions of their families. This was considered as the main measure of reducing social tension in society [1]. M. Kh. Saidova (B) · A. M. Maksumkhanova · K. Kh. Karimova Tashkent Institute of Irrigation and Agricultural Mechanization Engineers, Tashkent, Uzbekistan © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_53

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Nowadays, Uzbekistan has reached such a level that it is possible to speak of it as a country with rapidly developing social and economic spheres. The creation of well-paid jobs and the eradication of forced and child labor became relevant for the country. The legal basis for further fundamental social and economic reforms in the Republic of Uzbekistan was the Strategy for Action in the five priority areas of the development of the Republic of Uzbekistan in 2017–2021, approved by the Decree of the President of the Republic of Uzbekistan (February 7, 2017 No UP-4849). The fourth direction of the Strategy is the development of the social sphere. It provides for the implementation of measures to increase employment, improve the system of social protection and public health, develop and modernize transport, engineering, communication, and social infrastructure, improve the supply of electricity, gas, and the quality of social assistance to vulnerable segments of the population. It also increases the status of women in public and political life, reforms the healthcare, ensures the accessibility of preschool educational institutions, improves the quality and development of general and specialized secondary education, and higher education [2]. To implement the tasks identified in the Strategy, the Ministry of Labor was transformed into the Ministry of Employment [3].

2 Materials and Methods The problem of annual employment of about 300 thousand young citizens entering the labor market for the first time is of particular relevance. According to official data, the population of Uzbekistan is 31 million 573 thousand people. Of them, 50% live in rural areas [1]. The Uzbek nation is the youngest in the CIS and one of the youngest in the world. The number of youth (from 14 to 30 years old) on the planet is 18% of the total population; in Uzbekistan, this number is about 31%. If we take children under 14 years old into account, then approximately 60% of Uzbekistan people are under the age of 30 [1]. To ensure a decent future for such a considerable number of youths, it is necessary not only to conduct a competent youth policy but also to improve it continuously. The share of young people among the working population in Uzbekistan is about 34% [1]. Young specialists are the future of Uzbekistan, and its development depends on the initial conditions of their work. We should not forget that youth is one of the vulnerable social groups. Additionally, due to the long stagnation of GDP and the high level of the economically active population in the country, there observed negative moods regarding further employment among young people, especially among the rural population. According to the UN classification, young people are people aged 15–24. The UN notes that different countries have a different meaning of the term “youth.” Moreover, it is constantly changing due to political, economic, and cultural

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situation. The World Health Organization and UNICEF say that people from 10 to 19 years old are “teenagers,” people from 15 to 24 years old are categorized as “adolescents,” and the category of “youth” includes people aged 10–24. In Uzbekistan, the category of “youth” includes people of 14–30 years old [1].

3 Results and Discussion One of the main directions of the social policy of the state is stabilizing the labor market as a whole and reducing unemployment since the macroeconomic development of the country depends on it. The most crucial objective of this policy is to create conditions to optimize the process of employing young specialists and their adaptation to work. Nowadays, job opportunities and decent wages are the most important condition of a good personal financial situation. Currently, restoring the competitiveness of human potential depends on the state strategy in the labor of young specialists. Young people are already largely influencing political, economic, and social processes in society. For the state, this is a serious reason to deal with this problem. The difficulties that young professionals face at the beginning of their careers often arise because of a mismatch between their needs and the requirements of society. To resolve this contradiction, specialists need to create conditions for the self-realization of young people, allow them to make proposals in the country development, and participate in various local projects. The successful adaptation of youth in the labor market depends on the economic situation in the country and the policies pursued by the state. It is important to note that young people often change jobs or are temporarily unemployed. This is caused by the fact that, when graduating, young people do not know what kind of professional activity they want to be engaged in. Moreover, their job search skills are not as effective as in adults. Most of them have financial assistance from their parents and do not need additional financial support. Moreover, some employers prefer to hire workers with work experience. In turn, young people have insufficient work experience or do not have it at all. Lack of work experience is also a reason for the dismissal of young people from enterprises and organizations during job cuts. The above circumstances explain the high unemployment rate among youth. The problem of youth employment is also complicated because education and labor markets are functioning independently. In Uzbekistan, the marketing efforts of many educational institutions are mainly focused on applicants and their parents. They, in turn, choosing a specialty and a place for further training, focus not on the situation on the labor market but on all kinds of social stereotypes. The danger of this situation is that the imbalance is increasing, affecting the entire economy of the country. There is an opinion that their low competitiveness explains the problem of employment of young people in the labor market among other people. This is explained by

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the lack of professional knowledge and necessary labor skills and abilities, which leads to the reluctance of employers to hire a young specialist. In this case, we can see the unwillingness of employers to bear the costs associated with the organization of additional professional training for young specialists. According to the Russian economist, N. Skudareva, the problems of youth employment can be divided into three main groups [4]. The first group includes unsubstantiated ideas of young professionals about ways to adapt to work and employment. This is manifested in the choice of their future profession. Often, when choosing a specialty, applicants come from a perfect image of their future career, not from an analysis of the country’s economic state. The second group is marked with a mismatch between the level of knowledge of graduates and the requirements of employers in the Uzbek labor market. It includes the lack of experience in making responsible decisions, lack of knowledge, skills necessary to work in market conditions and withstand competition with experienced workers. The third group includes a decrease in the ability of young professionals to withstand competition in the labor market. This leads to the loss of their qualifications, the emergence of a sense of uselessness as a specialist, and a search for a job different from their specialty. The considered problem is relevant in Uzbekistan and its specific areas. In total, according to the results of 2018, the unemployment rate in the country amounted to 9.3% of the economically active population, which is 0.3% higher than in 2017. The highest unemployment rate of 9.7% was noted in such regions as Kashkadarya, Samarkand, and Ferghana. The lowest rate is seen for Tashkent (7.9%). The population in need of employment exceeded 1.3 million. More than 14.6 million people became economically active, and 4.1 million people became economically inactive. The number of people employed in the economic sector was 13.2 million. At the same time, the number of employees in the official sector of the economy exceeded 5.4 million people [1]. At the same time, the employment of the population remains an acute issue not only for young people with a low level of education but also for highly-educated young people. A high rate of the disorder among highly educated urban youth indicates that a large proportion of young people in Uzbekistan are often involved in informal employment with low-income. The reasons for low youth employment are high demographic pressure on the labor market (in 2016, the birth rate per 1,000 people in Uzbekistan was 22.8 permille). One more problem is an insufficient level of youth competencies (low productivity due to insufficient work skills; low competencies of graduates of vocational schools, due to poor quality of education and inefficient selection of applicants (absence of practical skills; low level of theoretical knowledge and practical skills); underdeveloped mechanisms of social partnership in the field of ensuring the integration of theory and practice in educational institutions of secondary vocational education; a chronic manifestation of the unrealized potential of knowledge and skills among many young specialists due to the incorrect choice of a profession in the absence

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of an effective system of vocational guidance for young people; the lack of compliance with the structure of training and the needs of the economy in them; low youth enrollment in higher education for many years [1].

4 Conclusion An essential role in solving the problem of employing young specialists belongs to the state. It is necessary to determine the forecast parameters of employment from the position of macroeconomics, which only government bodies can carry out. The implementation of the economic need for youth in a market economy occurs through the demand for the educational sector from the economy in the form of state orders, and from employers in the form of various agreements with universities with further employment of graduates in enterprises. To resolve the imbalance between supply and demand in the market of educational services, we need to know what specialists and in what quantities are required for the current and future development of the economy, what labor skills they must possess to be competitive in the modern labor market. The next way to solve this problem, as indicated above, is to train young people in specialties commissioned by enterprises. Often, representatives of companies and enterprises consider graduates of higher educational institutions to be the main source of updating and replenishing their personnel, rather than labor exchanges or personnel services. This confirms the economic need for the interaction of the market of educational services and the labor market during youth education. To increase youth employment, it is also necessary to use various economic methods. These include, for example, tax benefits provided to enterprises for the employment and hiring of young specialists, their further professional training, advanced training, and retraining. Furthermore, it is recommended that young people be involved in acquiring labor skills and in real work as early as possible. With a decrease in the working-age population, the demand for labor resources will increase, and the struggle for young professionals will only intensify. The success of labor adaptation at a new workplace depends on the personality, business quality, and mobility of the person, on professional skills acquired when studying at the university, on the ability to introduce these qualities to the employer, on the willingness to start a career in the labor conditions offered by the employer. Thus, the changing conditions of various spheres of public life require the state to adopt a new approach to educate young people and help organize their interaction with employers.

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References 1. Kabulova D (2018) “Unsustainable employment in Uzbekistan: state, problems, and solutions.” UNDP Uzbekistan, Tashkent, Uzbekistan. Retrieved from https://www.undp.org/content/dam/ uzbekistan/docs/un_uzb_employment_in_uzbekistan_report.pdf. 2. President of the Republic of Uzbekistan (2017a) The decree “On the strategy for the further development of the Republic of Uzbekistan” (February 7, 2017 No. UP-4947). Tashkent, Uzbekistan 3. President of the Republic of Uzbekistan (2017b) The decree “On measures to further improve the state policy in the field of employment and radically increase the efficiency of the work of labor bodies” (May 24, 2017 No. UP-5052). Tashkent, Uzbekistan 4. Skudareva NZ (2017) The problem of youth employment in the labor market. Bull MFLA 1:294–301

On the System of State Support for the Dairy Subcomplex in Russia Alesya N. Anishchenko , Daler I. Usmanov , and Konstantin A. Zadumkin

Abstract The development of the dairy industry is one of the priorities of the state policy in the country’s agriculture due to its high importance associated with the need to provide the population with irreplaceable dairy products of domestic production, solving the problems of food independence, improving the efficiency of labor resources, and improving the social conditions of the rural population. It should be noted that although the State program for the development of agriculture and regulation of the market of agricultural products, raw materials, and food for 2013–2020 and other legal documents brought positive results, they do not fully contribute to the development of the dairy subcomplex and provide the population with milk and dairy products. Therefore, we believe that the sufficiently high importance of state support for the subcomplex, the need for its prolongation, increasing the volume of subsidies, and improving the mechanisms for providing subsidies, also requires the development of new approaches to the management of the subcomplex, concerning the macroeconomic (adoption of federal and regional decisions on the regulation of the industry) and the microeconomic level (decision-making on the strategy and tactics of managing the activities of economic entities), which will be reflected in further studies. Keywords Agro-industrial complex · Dairy subcomplex · Dairy cattle breeding · State support · State management · Strategic planning · Region

1 Introduction There is an objective need to strengthen the support for the dairy complex and improve its management system by public authorities due to the high socio-economic importance of dairy cattle breeding in food security of the country, the importance A. N. Anishchenko (B) · D. I. Usmanov Market Economy Institute of RAS, Moscow, Russia K. A. Zadumkin Institute for the Development of Strategic Initiatives, Yaroslavl, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_54

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of addressing the question of import substitution, the importance of measures to improve the competitiveness of sub-sectors [1]. Also, of particular relevance is the need to increase the volume of domestic production of high-quality milk and dairy products, improve the breeding base, increase digitalization and modernization, and solve existing systemic problems [2, 4]. It should be noted that the State program for the development of agriculture and regulation of the market of agricultural products, raw materials, and food for 2013– 2020 [the State program] and other legal documents do not fully contribute to the development of dairy cattle breeding and the provision of milk and dairy products to the population of the country. For example, the State program [6] provides the level of milk production to 32 million tons. The consumption of dairy products decreased by almost 1,8 times to the level of 1990. In 2018, the level of self-sufficiency in milk and dairy products amounted to 84.2%, with a threshold value not exceeding 90%. In this case, it is evident that without increasing the volume of state support, changing the approach to the management of the country’s dairy subcomplex, and improving the mechanisms for providing subsidies in current economic conditions, it is impossible to make a transition to a sustainable path of development of the sub-sector or a “breakthrough.”

2 Materials and Methods Using the principles of complex analysis, the authors tried to conceptualize the indicated problem and determine its solution. The study examined the legislative and regulatory acts regulating the state support of the Russian dairy subcomplex. The study is based on the data from Rosstat, analytical materials of the Ministry of Agriculture of Russia, National Union of milk producers, estimated AIC of Russian regions, and results of previous studies of academic economists.

3 Results The development of the dairy industry is one of the priority directions of the state policy in the AIC of the country. The importance of the industry is associated with the need to provide the population with high-value dairy products of domestic production, solving the problems of food independence, increasing the efficiency of labor resources, and improving the social conditions of the rural population. The state support of the industry is carried out within the framework of the State program for 2012–2020 and its regional programs, economically significant regional programs for the development of agriculture of Russian subjects in the field of animal husbandry, etc.

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The main objectives of state agriculture and food policy include guaranteed production of milk to the extent that the threshold is reached, according to the specific weight of domestic milk and dairy products (recalculated to milk) in the total volume of commodity resources of the domestic market (including carryover stocks), established by the food security Doctrine of Russia; accelerated import substitution; improving the competitiveness of milk and dairy products on the domestic and foreign markets; increased milk production efficiency, providing expanded reproduction in the industry. In 2018, the volume of subsidies to support dairy cattle in the framework of the State program for 2012–2020 amounted to 23,472.7 million rubles or 9.4% of the total funding of the program. Per 1 kg of milk produced (without households), the amount of paid subsidies amounted to 1.25 rubles, and per 1 cow at the beginning of the year (without households)—5,158 rubles. If we consider the structure of state support from the budgets of all levels in the areas, the largest share (about 62%) falls on subsidizing the production of commercial milk, about 21%—subsidizing part of the interest rate on investment loans, and the smallest share (about 17%) is subsidizing dairy cattle breeding. Since 2013, a new type of state support for milk producers was introduced. It implied providing subsidies for one liter of commercial milk sold (from 2014—for 1 kg of milk sold and (or) shipped for processing, from 2017—to increase productivity in dairy cattle breeding). A significant advantage of this support is that it can be obtained by all milk producers (except for households, which are not legally applicable). Since 2019, for the first time, support was provided to manufacturers for the construction of capacities for the production of dry dairy products for baby food and their components. From 2020, new rules will come into force, dividing state support into two main areas—compensating and stimulating subsidies. Compensating subsidies will be provided to all regions to support agricultural production. Incentive subsidies will be provided to the constituent entities of Russia, established for priority areas of development of agriculture. The volume of concessional lending and compensation of capital costs in the dairy market will remain at the same level, which will contribute to the implementation of the five-year plan for milk production [8, 9]. Based on the forecast of experts, this figure may exceed 31.6 million tons in 2020. In addition to these areas of support, milk producers have the opportunity to receive state support in other areas when meeting the relevant requirements (support for small family livestock farms, novice farmers, grant support for agricultural consumer cooperatives for the development of material and technical base). Starting from 2017, grant support for novice farmers, family livestock farms, and agricultural consumer cooperatives is carried out within the framework of a “single” subsidy. In 2018, 11.73 billion rubles (113.9% compared with 2017) or 29.45% of the budget allocations given for the “single” subsidy were allocated from the Federal budget to support small businesses and agricultural consumer cooperatives, including 3.93 billion rubles (104.1% compared with 2017) to support 2,352 novice farmers, 4.5 billion rubles (120.9%) for family livestock farms (718 farms received support),

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2.65 billion rubles for agricultural consumer cooperatives (177.3%) (support was provided to 214 cooperatives), and 0.65 billion rubles to reimburse part of the cost of interest payments on loans received by small businesses before December 31, 2016 (a decrease of 50,2% compared with 2017). The average size of the grant per novice farmer was 2.07 million rubles, while about 40% of farmers received grant support in the 2018 plan to develop dairy cattle breeding. In most Russian subjects, there are local directions of support for milk producers financed from the budgets of the subjects. For example, the Vologda region, one of the leading regions of the North-Western Federal District in terms of productivity and volume of milk production, provides for the implementation of 17 subprograms, including the dairy industry in the region [7]. Despite the deficit of the regional budget, the Government of the Vologda region expanded a range of measures and tools to preserve and increase the potential of the dairy industry. As a result, by 2019, the decline of the dairy herd was suspended, the yield increased by one cow, and the new and modern construction of existing dairy complexes is actively underway. “Northern milk” JSC organized the production of Feta cheeses under the brand “Sirtaki.” The production group of companies “Nevsky cheeses” invested more than 200 million rubles in the modernization of the facilities, which will produce 4.5 thousand tons of cheese per year. In general, the measures taken to improve the situation with the production of own livestock raw materials are aimed at radically changing the situation in this sector of agriculture. For example, in 2015, direct state support was provided from the federal and regional budgets to stabilize the number of cattle and stimulate the increase in the number of cows. Subsidies were allocated for 1 kg of milk sold and (or) sent for further processing, increasing the number of cows, and compensation to farms [3]. The growth of livestock productivity and milk production is promoted by the course of the construction of new modern farms and modernization of the industry carried out within the framework of the state program. The development of the food industry is carried out within the subprogram “Development of food and processing industry, quality, and safety of food raw materials and food products in the Vologda region for 2013–2020.” In 2018, nine organizations were included in the number of participants of the subprogram and received subsidies for reimbursement of part of the costs for the purchase of technological equipment for primary and subsequent processing of agricultural products. To stimulate the implementation of investment projects in dairy cattle breeding, the Belgorod region provides a subsidy toward the purchase of heifers at the rate of 50% of heifers’ value if at least 1,000 heifers are bought [5]. Additionally, milk producers are provided with a subsidy from the regional budget to provide unrelated support in the field of dairy cattle breeding. The subsidy is provided at the rate of 3,000 rubles per 1 hectare of leased arable land, owned by the Belgorod region and used by the milk producer on the right of a lease (sublease), but not more than 2 hectares per 1 cow. In general, despite the annual increase in cow productivity and milk production in the country (an increase of 1.5% in 2018 compared to the level of 2017, which

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amounted to 30.6 million tons), the analysis of the dairy subcomplex for 1990–2018 revealed that the stagnation was not overcome: • The number of cows continues to decline (in 2018, it amounted to 8,226 million heads, 40% lower than in 1990); • The volume of milk production is declining (in 2018, 30,6 million tons, which was 54.9% compared to 1990); • The production potential of dairy cattle was not fully utilized; • A high debt load of milk producers; • The lack of state support of dairy cattle breeding led to a realignment of relations and violation of organizational and economic relations and loss of control; • The low technological level of milk production, not allowing domestic producers to compete with foreign manufacturers, etc. Additionally, according to the Federal State Statistics Service: • The imports of butter decreased from 125.5 thousand tons in 2014 to 79.9 thousand tons in 2018; • The imports of condensed milk and cream decreased from 194.1 thousand tons to 166,8 thousand tons; • The imports of milk and cream decreased from 300 thousand tons to 260.7 thousand tons; • The imports of milk powder decreased from 132.2 thousand tons to 116.9 thousand tons. In the commodity resources of milk powder and cream, the share of imports amounted to 52.7% (a decrease by 7.8% compared to 2013), animal oil—24.2% (a decrease of 11.7%), cheese—27.3% (a decrease of 20.7%). Due to a shortage of dairy products, palm oil import to Russia in 2018 amounted to 1,059.7 thousand tons, which is 353.4 thousand tons (50%) higher than the imports in 2014.

4 Conclusion The Russian mono chloroacetic subcomplex operates in difficult economic and political conditions, with the food embargo, the necessity of solving import substitution, high level of counterfeit products, etc. All the conditions result in a rise in the price of credit resources, increasing the cost of production, reducing the profitability of producers and processors of milk, and several other negative trends and unresolved system problems. The current State program for the development of agriculture and regulation of the market of agricultural products, raw materials, and food for 2013–2020 and other legal documents brought positive results. However, they do not fully contribute to the development of dairy subcomplex and provide the population with milk and

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dairy products. Therefore, we believe that the sufficiently high importance of state support for the subcomplex, the need for its prolongation, increasing the volume of subsidies, and improving the mechanisms for providing subsidies also require the development of new approaches to the management of the subcomplex, concerning the macroeconomic level (adoption of federal and regional decisions on the regulation of the industry) and the microeconomic level (decision-making on the strategy and tactics of managing the activities of economic entities), which will be reflected in further studies. Additionally, it should be noted that large agricultural enterprises, organizations, and companies mainly operate in the dairy subcomplex market, including in the dairy cattle industry. Their advantage is manifested in lower production costs, the possibility of ensuring environmental safety, deep complex processing of raw materials with minimal losses, and investment in the production of raw milk and the development of new equipment and technologies. Integration processes, production, consolidation, and association of all food market links are natural tendencies in Russia and the world. Within the framework of the implemented state support, large enterprises can receive subsidized loans for the purchase of agricultural machinery, not the construction of dairy farms and complexes and equipment purchases. At the same time, peasant farms (with revenues up to 120 million rubles) can receive the above types of loans. We believe that this prioritization is not correct and requires improvement. Acknowledgements The paper is prepared in the framework of the state task of the IPR RAS, 2019, the research “Socio-economic and scientific-technological development at various levels of management in the sectors, complexes, and spheres of activity of the national economy of Russia,” “Spatial and territorial development of the regions of Russia.”

References 1. Altuhov AI, Semenova EI (2019) Dairy cattle breeding in Russia: economic problems and ways to solve them. Econ Agric Russia 2:33–38 2. Anishchenko AN (2013) Improvement of the economic mechanism of management in dairy cattle breeding. Proceedings of higher educational institutions. Series: Economics, Finance, and Production Management 3(25):14–21 3. Anishchenko AN (2016) Modernization of production—the basis for improving the efficiency of dairy cattle. Vologda Research Center of the Russian Academy of Sciences, Vologda, Russia 4. Anishchenko AN (2018) The role of dairy cattle breeding in the Vologda region in solving the problems of providing the population of the European North with food. Econ Agric Russia 10:63–69 5. Government of the Belgorod region (2016) On providing subsidies to agricultural commodity producers, the enterprises carrying out activities in dairy cattle breeding at the expense of means of the regional budget for the development of dairy cattle breeding. (September 26, 2015 No. 351–pp). Belgorod, Russia. Retrieved from http://www.consultant.ru/ 6. Government of the Russian Federation (2012) State program of development of agriculture and regulation of markets of agricultural products, raw materials, and food for 2013–2020 (July 14,

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2012 No. 717). Moscow, Russia. Retrieved from http://mcx.ru/activity/state-support/programs/ program-2013–2020/ 7. Government of the Vologda region (2012) The state program of development of the AIC and consumer market of the Vologda region for 2013–2020 (October 22, 2012 No. 1222). Vologda, Russia. Retrieved from http://www.vologda-agro.ru/gprogramms 8. Tsvetkov VA (2017) Agro-industrial complex of Russia: Current state, necessary and sufficient conditions for overcoming the crisis. Probl Market Econ 3:14–16 9. Usmanov DI (2013) The essence and factors of institutional development of regional food markets. Bull BSTU Named after VG. Shukhov 3:112–118

The Features of Cooperation in the Republic of Tatarstan Alsu R. Nabiyeva

Abstract Agricultural cooperation is in demand in the economy, which is due to the unattractiveness of the agricultural sector for investment, restrictions on attracting wage labor, increased risk, and an extensive social base. Due to the specifics of the external and internal conditions for the emergence and development, agricultural cooperatives have standard features that determine the extent of their distribution, the internal nature of the organization, and the prospects for modern development. The purpose of the study is to show the features of the development of the cooperative movement in the Republic of Tatarstan. It is concluded that the cooperatives of Tatarstan have a high potential for the development of cooperation as small forms of farming in the countryside. The measures applied to support the cooperative movement at the regional level are also different. Keywords Republic of Tatarstan · Cooperation · State support

1 Introduction The cooperation of citizens and business entities is carried out when creating cooperatives, as legal entities that provide access to borrowed resources, supply industrial and domestic products, procuring and marketing of agricultural products, processing, and joint use of fixed assets. The basis of the cooperative movement in agriculture is determined by the theoretical provisions of the works of A. V. Chayanov (on households of family-labor type, differential optimum of the size of enterprises) [1], V. I. Lenin (on the use of a cooperative organization in the transition period to socialism) [6], N. D. Kondratiev, N. P. Makarova, and A. N. Chelintsev (continuity in the development of the theory of cooperation), A. Shapiro (on the formation of cooperatives modeled on large corporations, which are characterized by strict unity of command, centralization of management, and the highest degree of responsibility), M. Deutsch (the system A. R. Nabiyeva (B) Kazan Cooperative Institute (Branch), Russian University of Cooperation, Kazan, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_55

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of interaction and interdependence between members of a small group, as well as legislative and normative acts of the Russian Federation that determine the legal framework for the development of cooperation) [2], and the works of many modern economists on the problems of the cooperative movement, including scholars of the Republic of Tatarstan [9, 11, 5,7]. Due to the specifics of the external and internal conditions for the emergence and development, agricultural cooperatives have standard features that determine the extent of their distribution, the internal nature of the organization, and the development prospects.

2 Materials and Methods The object of research is agricultural cooperatives. When conducting research, general economic research methods were used. Based on the database of organizations that submitted financial statements to the Federal State Statistics Service [3, 4], a grouping and analysis of the results of activities of production and consumer cooperatives of the Republic of Tatarstan was carried out according to activity type 01 “Plant growing and livestock raising, hunting, and the provision of relevant services in these areas.”

3 Results Following the plan for the development of cooperation in the Republic of Tatarstan, from 2017 to 2020, the annual growth in the volume of procurement, trade, and production activities of catering enterprises should be at the level of at least 10%. The costs of implementing measures to develop agricultural consumer cooperation in Tatarstan in 2018 amounted to 250 million rubles. Cooperatives purchase and process products, provide veterinary services, artificial insemination of farm animals, prepare accounting, tax reporting, and supply livestock, machinery, equipment, and feed to the cooperative members. The social importance of cooperatives in resolving issues of rural life management should contribute to the creation of cooperatives in every large rural settlement in the municipal regions of the Republic of Tatarstan. Analyzing the development of cooperation in the Republic of Tatarstan, we highlight the following features inherent in this region: 1.

The importance of small forms of farming in the agricultural sector as a potential resource for the development of cooperation. The rural population makes up 23.4% of the total population of the republic. Small business forms (five thousand peasant (farmer) enterprises and 451 thousand households) produce 53.7% of agricultural products in the region (more than 128 billion rubles). The

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2.

3.

4.

5.

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volume of livestock and poultry production in small forms of management is 28.5%, milk—31.8% of the total production in the region, which confirms the importance of this sector in the development of the industry. State support for cooperation. The cooperative grant support program was launched in 2015. In 2018, more than 2 billion rubles were allocated to support small business forms, including 525 million rubles for grants to farmers, 478 million rubles for subsidies to private farms (in seven directions), 208 million rubles for loan servicing, 200 million rubles for subsidies for plant growing, 180 million rubles for livestock breeding, 141.5 million rubles for equipment, up to 5 million rubles to support the development of the material and technical base for start-up cooperatives. According to the results of 2018, 64 agricultural cooperatives were created in the Republic of Tatarstan. In 2019, the Federal project “The creation of a system of support for farmers and the development of rural cooperation” was launched, which is designed until 2024. It provides grant support to the newly organized peasant (farmer) enterprises, which are members of an agricultural cooperative, in the amount of 4 million rubles, subject to 25% of the grant to the indivisible cooperative fund for the development of its material and technical base. Agricultural consumer cooperatives will also be provided with subsidies for the reimbursement of part of SPOK costs associated with the sale of agricultural products from 10 to 15% of the costs (of total sales), for reimbursement of costs (not more than 50%) for the purchase of farm animals for members of the cooperative and agricultural machinery to provide services to members of the cooperative. These measures are aimed at increasing the attractiveness of the association of disparate agricultural producers. The creation of infrastructure for the development of cooperation. The creation in the municipal districts of wholesale distribution centers and agro-industrial parks with the legal form “Agricultural Consumer Cooperative” to combine small forms of management and production of the necessary raw materials, its subsequent processing, packaging, and certification of product delivery to retail chains. Since 2017, the construction of 6 agricultural parks has begun in the Sabinsky, Bugulminsky, Almetyevsky, Zainsky, Drozhzhanovsky, and Kukmorsky districts. In Tatarstan, the revision union “Cooperative Union” was created. It is a non-profit organization uniting agricultural cooperatives to conduct audits of their financial and economic activities. Membership in the union is mandatory according to the law 193-FZ “On agricultural cooperation.” Promoting the sale of cooperative products in convenience stores based on the development of partnerships between rural entrepreneurs and retailers, the introduction of a discount card system for buying local products at a discount. In Kazan, seven tent sites for the sale of agricultural cooperatives were provided, two grounds for fair trade were transferred to the management of the Association of Farmers and Peasant Farmsteads of Tatarstan, specialized sections are allocated at retail outlets for selling farmer products. An online portal has been developed to create an online store for product sales. Providing information and consulting services to the rural population, teaching the basics of cooperation. For that purpose, the Competence Center for the

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Table 1 The description of the Republic of Tatarstan cooperatives by type of activity 01 “Crop production and livestock raising, hunting, and the provision of related services in these areas,” 2017 The number of organizations

Total, million rubles

Per 1 organization, million rubles

Units

%

Revenue

Revenue

Assets

Production cooperatives

27

3.6

3,338.4

Assets 6,807.4

123.6

252.1

Consumer cooperatives

17

2.2

111.6

212.7

6.5

12.5

All organizations

745

100

96,785.6

216,568.3

129.9

290.7

Source Developed by the authors

6.

Development of Agricultural Cooperation was created in the Republic of Tatarstan. Its tasks include informing cooperators about grant support programs, assistance in business planning, audit union work, and performance monitoring. The attractiveness of a cooperative form of management. Based on a database of 745 organizations of the Republic of Tatarstan that submitted financial statements to the Federal State Statistics Service, we analyzed their results by type of activity 01 “Crop production and livestock raising, hunting and the provision of related services in these areas” [8] (Table 1).

Joint-stock companies prevail among the legal forms (88.2%). The cooperative form occupies 5.9% of all organizations. Production cooperatives dominate, marked with the revenue of 123.6 million rubles per organization, which corresponds to the average value for all legal forms (129.9 million rubles per organization). In consumer cooperation, the scope of activities is lower. The assets of cooperatives are two times higher than revenue. The growth of the income of cooperative members is ensured by the distribution of value-added between shareholders in proportion to the share of participation [10].

4 Discussion Such cooperatives as “Vostok” (Nurlatsky district), “Indeyka” (Zelenodolsky district), “Big Yelga” (Rybno-Slobodsky district), “Vostok” (Menzelinsky district), “Agro Leader” (Muslyumovsky district), “Karat” (Novosheshminsky district) are good examples of successful cooperatives, although there are cooperatives created formally. The cooperative “Indeyka” for the production and processing of turkey poultry, which provides the members of the cooperative with young poultry and feed, buys livestock and helps to realize it. The cooperative “Village” located in the Almetyevsk district unites five farmers and specializes in the production of vegetable

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products. The cooperative provides its members with favorable conditions, specialized equipment, a vegetable store, and a sales department. The republican grant for the development of the material and technical base made it possible to create drip irrigation infrastructure on an area of 170 hectares, temperature-controlled fruit storage, purchase a set of refrigeration equipment, a freezer, electric forklifts, and a filling machine. The development of agricultural consumer cooperation is aimed at increasing profitability and ensuring access for agricultural producers, small farms in rural areas, and consumer societies to markets for the sale of agricultural products and food, which helps to improve the quality of life in rural areas, in the development of the territory and employment. For the development of cooperation in the Republic of Tatarstan, it is proposed to attract young people into cooperatives, along with individual shareholders, including cooperative and production cooperatives, which will allow participating in state support programs and increase the effectiveness of rural cooperation.

5 Conclusion The development of rural cooperation is an urgent task. An example of its successful implementation is the Republic of Tatarstan, where the number of cooperatives increased over six years from 15 to 200 units. Russian cooperation is notable for the level of mobile commerce, the revival of folk crafts, interest in national culture and everyday life, the diversity of talents of cooperative workers, and the continuity of generations.

References 1. Chayanov AV (1925) A short course of cooperation. USSR, Moscow 2. Deutsch M (2005) Conflict resolution (constructive and destructive processes). In: Leonov NI (ed) Conflictology: Study guide. Voronezh, Russia: NPO “MODEK” 3. Federal State Statistics Service (2018) Russia in numbers. Statistical digest. Federal State Statistics Service, Moscow, Russia 4. Federal State Statistics Service (n.d.) Russian classification of economic activities. Retrieved from https://novyefopmy.pf 5. Khomenko VV (2018) Tatarstan in the system of all-Russian and international economic cooperation. Bull Econ Law Sociol 2(1):154–158 6. Lenin VI (1969) On cooperation. Complete set of works. Political Literature Publishing House, Moscow, USSR, pp 369–377 7. Nabieva AR (2018) Strategic management of the development of the cooperative movement in the region. Sci Rev: Theory Pract 7:220–226 8. Nabieva AR (2019) The assessment of the activities of agricultural cooperatives in the Republic of Tatarstan. Innovation and Investment 5:329–331 9. Romanova TE (2015) State support for the innovative development of small business forms. Scientific Review 10–2:263–266

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10. TestFirm.ru. (n.d.). Official website. Retrieved from https://www.testfirm.ru. 11. Yakushkin NM, Gainutdinov IG, Gubaidullin RG (2017) Small forms of management in the Republic of Tatarstan: State, trends, and development problems. Achievements of Science and Technology of Agribusiness 12(31):72–77

Poverty in Russia: Problems and Solutions Elena I. Semenova , Natalia V. Bykovskaya , and Alexey I. Afonin

Abstract The purpose of the study is to describe poverty and show the depth of this problem using statistical indicators, which is especially pronounced in rural areas. The paper presents the main features of poverty in Russia: poverty of the working population, its dependence on household size, place of residence, and the presence of children. The consequences of the managerial influence of regional authorities on the socio-economic situation of the region are also indicated. The ways of solving the problem of poverty are proposed. Keywords Poverty level · Subsistence level · Poor population

1 Introduction Poverty is a state when a person cannot satisfy the minimum level of need. The poverty line in Russia is determined by the minimum subsistence level that corresponds to the price of the consumer basket, mandatory payments, and fees. The fundamental economic theories explain this phenomenon: as an opportunity to take care of the poor in the form of charity, as a hidden element of capitalism, the motive to work, and strive for success, as the continuity of lifestyle, actions, and choices [9]. Analyzing the publications on this issue of domestic and foreign authors, we note that poverty is not unique to developing countries, countries that have climatic problems (limited land and water resources, challenging conditions for cultivating crops), high population density (including in rural areas), and low investment in E. I. Semenova (B) Federal Research Center of Agrarian Economy and Social Development of Rural Areas—All Russian Research Institute of Agricultural Economics, Moscow, Russia e-mail: [email protected] N. V. Bykovskaya Russian State Agricultural University, Balashikha, Russia A. I. Afonin Moscow Region State University, Mytishchi, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_56

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human capital, but also manifested in developed countries. Thus, N. Black, K. Scott, and M. Shucksmith studied social inequality in rural England and the problems of youth associated with the 2008 crisis [2]. J. S. Probst, J. S. Barker, A. Anders, and P. Gardiner [10] highlighted the features of the rural environment that may affect children’s health. Research by S. K. Lauder, R. Bertini, and A. Croppenstedt [6] revealed a sharp increase in government spending on social protection in recent decades. However, the amount of social assistance is low, and payments are the smallest where poverty is prevalent. Only a few households receive social assistance and agricultural subsidies. A study by J. Bernard compared the quality of life of rural and urban residents by examining regional differences using indicators of poverty, satisfaction, and disability [1]. For most indicators, differences within rural areas were more significant than differences between urban and rural areas. For modern Russia, the study of poverty in the context of individual sociodemographic and socio-economic groups of society is conducted by L. Bondarenko [4]. The paper analyzes the dynamics of the spread of poverty in rural areas, emphasizes the migratory mood of rural residents. The study of the problem of poverty is relevant to the development of measures to reduce its scale.

2 Materials and Methods The study used data from the Federal State Statistics Service, and calculation and constructive methods, a method of graphical presentation of statistical data, and comparison of rating estimates.

3 Results Let us single out the features characterizing poverty in Russia. 1.

A high level of the poor working-age population (54.1%) is often due to the inability to find a job in a specialty, get a place for a child in kindergarten, and work evasion and asocial behavior.

According to the Federal State Statistics Service, nowadays, more than 19 million Russians, representing 13% of the population, live below the poverty line. 2.

In 2018, 18.9% of the population had incomes below the subsistence minimum. Some of them received wages below the subsistence minimum. In 2017, this was 7.3% of employees. Despite the positive dynamics in a decrease in the population with low income, a polynomial trend with a high level of reliability notes the growth of this share in the future. According to the linear equation,

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the proportion of the population with wages below the subsistence level will decrease in the future by 2.34%. Since January 2019, the minimum monthly wage was equated to the cost of living, which, to some extent, reduced poverty and inequality. However, this does not solve the problem of poverty itself since the minimum wage is calculated based on the cost of the consumer basket that does not meet rational consumption standards. Additionally, an increase in the minimum wage leads to an increase in shadow wage payments. We also note that, in 2019, the Federal State Statistics Service changed the methodology for calculating the poverty level: the share of salaries in the structure of income of the population increased, and the share of other incomes decreased (profit from the business, use of property, etc.). 3.

The number of poor grows with the growth of household sizes from 5.3% among single people to 34.9% with a family of more than five members. For the entire population surveyed, the trend is the opposite. The poor populations consist of a high percentage of families with 1–2 children. This leads to a low level of investment in human capital, a low level of development of children, and their further unskilled labor. That is, poverty creates poverty.

Higher rural poverty is caused by the specifics of the agricultural labor market (the predominance of small forms of management and secondary employment in private household plots, seasonality of labor, lack of jobs, aging of the rural population, lower wages, lack of social infrastructure, differences in living conditions of the urban and rural population, etc.). Regional differences can also be seen. Thus, in the Tomsk region, the poor population in rural areas makes up 26%, in cities only 5.9%, with an average poverty level of 12.9% in the country (Figs. 1, 2 and 3). Figure 4 shows that the percentage of poor decreases as the size of settlements increases. 4.

Poverty stimulates employment that does not increase income. Among working people, the poor population makes up 31.5%, of which 0.7% are working pensioners. Among the unemployed, this percentage is 2.3% lower. Nonworking pensioners are the main category of the poor population after families with children (Fig. 5).

In order to increase incomes for the poor, it is necessary to increase the level of education and change their profession or residence since there are not enough vacancies with high salaries in the labor market, i.e., poverty stimulates employment, which does not lead to income growth [12]. A high percentage of poor people among the employed population testifies to the weakness of the middle class, which leads to the transfer of skilled workers to unskilled labor, leading to a shortage of personnel in certain sectors. The differentiation of wages by type of occupation is presented in Fig. 6, which indicates the differences in the payment of skilled and unskilled labor, production, and services.

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Fig. 1 The distribution of the poor population by age, 2017. Source Developed by the authors based on [5]

Fig. 2 The population with incomes and wages below the subsistence level, 2017. Source Developed by the authors based on [5]

5.

In the public sector, the problem of the working poor was partially solved by raising salaries for health, education, and science workers, according to Presidential decrees, which were never implemented. At the same time, their implementation on the ground was also achieved by reducing staff, transferring to shares of rates, and combining jobs. In 2019, the wages in the public sector were indexed only by the inflation rate. It is necessary to abandon the operation

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Fig. 3 The distribution of the number of poor households depending on their size and the number of children, 2017. Source Developed by the authors based on [5]

Fig. 4 The distribution of the poor by location, 2017. Source Developed by the authors based on [5]

Fig. 5 The distribution of the poor by economic activity, 2017, %. Source Developed by the authors based on [5]

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Fig. 6 Average accrued wages of employees of organizations by occupation groups, thousand rubles, 2017. Source Developed by the authors based on [5]

of the qualifying work of state employees in the form of a monopolistically low assessment of their activities. The poverty of the population requires ever-increasing social support. In 2017, regular and one-time cash payments of 29 billion rubles were received from regional budgets by 3.7 million people. In 2017, social payments amounted to 19.7% in the structure of population income. To reduce poverty, a social contract is successfully used. This implies the provision of money with the condition of reaching a stable income, usually for personal subsidiary plots or for personal needs (treatment, placement of children in kindergarten, trips to camps.) In 2018, 104.6 thousand social contracts were signed in Russia. To recognize the household as poor, it is necessary to confirm the income. Therefore, support is not received by people who cannot confirm income, the fact of residence, or citizenship. 6.

7.

Poverty slows economic growth. Cheap labor does not encourage entrepreneurs to invest in the modernization of production, the introduction of new technologies. The regions differ by poverty level. News Agency “RIA” compiled a ranking of Russian regions by income level in 2019, taking into account the real value of income (relative to the standard consumer basket), the share of the population living below the poverty line, and below the extreme poverty line (Fig. 7).

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Fig. 7 The rating of Russian regions by poverty level (fragment), 2018. Source Developed by the authors based on [7]

The wealthiest region is the Yamalo-Nenets Autonomous Okrug, which is explained by its specialization in oil and gas production. As poverty in the regions decreases, the value of income increases, and the proportion of the population living below the extreme poverty line decreases. The Republic of Tuva, the Republic of Altai, and the Republic of Kalmykia were leading in terms of poverty for several years. These regions are marked with chronic poverty. Management measures taken in the regions to solve socio-economic problems do not always bring the expected effect. To assess the impact of managerial decisions on the socio-economic development of the regions (including poverty reduction), we will use the data on the rating of management efficiency in Russian regions and the rating of the socio-economic situation of regions (Fig. 8). The rating of management efficiency in the region is prepared by the Agency for Political and Economic Communications. It evaluates the effectiveness of the current regional authorities and the highest official of the subject of the Federation in three blocks: political and administrative, social, and financial and economic [8]. The rating of the socio-economic situation of the regions was prepared by News Agency “RIA” according to the data of the Federal State Statistics Service and the Ministry of Finance and the Federal Treasury. It estimates groups of indicators that assess the scale of the regional economy (the volume of production of goods and services, consolidated budget revenues, the number of people employed in the economy, retail turnover), the effectiveness of the regional economy (the volume of production of goods and services per capita, investment in fixed assets per capita, the share of profitable enterprises, the level of tax collection), budgetary indicators (consolidated budget revenues per capita, the share of tax and non-tax revenues in the total volume of consolidated budget revenues, the ratio of public debt to tax and non-tax revenues of the consolidated budget, the ratio of tax and non-tax revenues

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Fig. 8 The dependence of the regional socio-economic situation on the managerial impact of the executive branch, points, 2018. Source Developed by the authors based on [5]

of the consolidated budget to expenses), and social indicators (the ratio of household income to the cost of a fixed set of consumer goods and services, unemployment, life expectancy at birth, infant mortality rate, the mortality rate of the working-age population, and the share of the population with incomes below the subsistence level). The obtained dependence (Fig. 8), shows the presence of a weak linear relationship, since R2 = 0.367. The obtained trend equation shows that the managerial impact of regional authorities affects the socio-economic situation of the region by 23.96%. 8. Poverty leads to debts. For example, in the Nizhny Novgorod region, 13% of the income of low-income families is spent to pay loans, 10–13% of income is spent to pay for housing and communal services. The population of the Republic of Kalmykia lives on credit. The average resident must pay 83% of the salary for the year (or salary for ten months) to banks. Moreover, the average salary in the region is 14.6 thousand rubles.

4 Discussion The survey conducted by the All-Russian Public Opinion Research Center identified the main factors of poverty for Russians. The main factors include the unfair distribution of the Russian budget, mass job cut, liquidation of enterprises, and social inequality [3]. A pilot project to reduce poverty is being implemented in Tatarstan, KabardinoBalkaria, Primorye, Nizhny Novgorod, Ivanovo, Lipetsk, Tomsk, and Novgorod

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regions. Its first stage consists of compiling a “portrait of poverty” and registering the poor population (with income below the subsistence level) [11]. Based on the calculation of the Gini index, the Robin Hood index (Hoover index), and the stratification of society, the analytical service of the company “Finexpertiza” determined that to equalize the income of Russians it is necessary to redistribute a third of the country total income, since the Robin Hood index is, on average, 30.2% at a rate of 20% [3]. In his studies, French economist T. Picketti notes that political studies always justified the existence of inequality and poverty. To solve the problem, he suggests introducing a 2% tax on wealth, restricting the voting rights of large shareholders of companies to 10%, and allocating half of the seats on the board of directors to ordinary employees. He also proposes the idea that millionaires should possess their wealth only temporarily.

5 Conclusion In Russia, poverty has specific features. The Russian Federation is a social state; therefore, the pursued policy should provide every citizen with favorable conditions for the realization of abilities and the organization of a decent life. The main ways to solve the poverty problem are to accelerate the growth rate and social benefits of national economy to those in need.

References 1. Bernard J (2018) Rural quality of life—poverty, satisfaction, and opportunity deprivation in different types of rural territories. Eur Countryside 10(2):191–209. https://doi.org/10.2478/ euco-2018-0012 2. Black N, Scott K, Shucksmith M (2019) Social inequalities in rural England: impacts on young people post-2008. J Rural Stud 68:264–275 3. Bogoviz AV, Kletskova EV, Sultanova MK, Lavrova EV, Shapoval EV (2020) The new concept of social justice in the globalizing economy. Lect Notes Networks Syst 73:1001–1008 4. Bondarenko LV (2012) The poverty of rural Russia. Domest Notes 6(51):104–116 5. Federal State Statistics Service (n.d.) Official website. Retrieved from https://gks.ru/compen dium. 6. Lowder SK, Bertini R, Croppenstedt A (2017) Poverty, social protection, and agriculture: levels and trends in data. Glob Food Sec 15:94–107 7. News Agency “Ria.” (2019) Rating of the socio-economic situation of the regions—2019. Retrieved from https://riarating.ru/infografika/20190604/630126280.html 8. Orlov D, Turovsky R (2019) The rating of management efficiency in the constituent entities of the Russian federation in 2018. Retrieved from https://www.apecom.ru/articles/?ELEMENT_ID= 5140 9. Piketty T (2019) Capital and ideology. Harvard University Press, Cambridge, MA 10. Probst JC, Barker JC, Enders A, Gardiner P (2018) Current state of child health in rural America: how context shapes children’s health. J Rural Health 34:3–12. https://doi.org/10. 1111/jrh.12222

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11. Russian Federation (1997) Federal law “On the subsistence wage in the Russian federation” (October 24, 1997 No. 134-FZ). Moscow, Russia 12. Sidorov R (2019) Rating of Russian regions by income, 2019. Retrieved from https://basetop. ru/rejting-regionov-rossii-po-urovnyu-zarplat-2019/

Development of IFRS for Food Security Tatiana Y. Bobovnikova

and Tatiana M. Vorozheykina

Abstract Specialists pay great attention to the development of land asset accounting. Nevertheless, the specificity of agriculture is practically not reflected in scientific papers. At the international (IFRS) and national (RAS) level, issues of land accounting in agricultural organizations remain open. The paper presents practical recommendations on the organization of accounting for agricultural land. For quality accounting, it is proposed to introduce an account that considers the result of the transformation of land assets and land relations. Further development of IFRS is required to maintain land fertility as the primary condition for food security in the country and the world. Keywords Land resources · Accounting · IFRS · Agriculture · Fertility · Food security

1 Introduction The gradual transition of reporting to IFRS leads to a change in the accounting system at the enterprise. The development and implementation of appropriate accounts will significantly increase the analytical capabilities of accounting, considering the specifics of agriculture. Additionally, the development and implementation of appropriate accounts will allow evaluating the performance of agricultural organizations.

T. Y. Bobovnikova (B) Russian State Agrarian University—Moscow, Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] T. M. Vorozheykina The Financial University Under the Government of the Russian Federation, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_57

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2 Materials and Methods During the study, we used such methods as comparison, analysis, systematization, generalization, as well as the balance method of research. The research was based on official statistics from agricultural enterprises in the Kursk region and Russia.

3 Results Agriculture is a sector of the economy aimed at providing the population with food. The functioning of agricultural production is continuously connected with the state of land resources and weather conditions. The current accounting regulatory framework does not provide for separate regulation of the agricultural sector and does not take into account its specifics. According to I. Buzdalov, a feature of agricultural production is that the reproduction cycle is based not on exhaustible minerals but also reproducible resources (soil fertility and biological potential of plants and animals). V. Uzun, A. Fomin, D. Loginova, N. Sviridov, N. Kovalenko, and V. Mingalev point to territorial dispersion and vast areas. A. Popov notes that the peculiarity of agricultural production is manifested in the socialization of labor and production, determined by the forms of land ownership and land use. Thus, all the presented provisions are reduced to the basis (land resources), which ultimately necessitates the need for their consideration. One of the features of the development of the modern agricultural economy is the rapid integration of agricultural organizations’ activities, which changes business and accounting rules. Growth in investment leads to the expansion of agricultural activities. According to BEFL, as of May 2019, the largest agricultural landowner in Russia was “Miratorg” LLC, with the land bank estimated at 1 million hectares. “Prodimeks” GC occupies the second place. The company, together with the affiliated “Agrokultura” GC, controls 865 thousand ha. “Rusagro” LLC is in third place with 650 thousand hectares of land. Five years ago, in March 2014, BEFL called the “Ivolga” LLP, owned by Kazakh businessman V. Rozinov, the largest Russian agricultural landowner. As of the end of 2018, the company had 240 thousand hectares of arable land in Russia [1]. S. Kashuba, the manager of the agribusiness of “Pokrovsky” concern, is confident that: “It is better to have 250 thousand hectares, but of the best land in the country on which one can get high agricultural productivity, than a large bank of the land of dubious quality” [3]. The reorganization of most agricultural companies led to an imbalance in production, not increasing agricultural land turnover. In a market economy, the responsibility of the landowner for its rational use should increase.

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The largest landowners should preserve the fertility of agricultural land because land resources are the only asset on the planet that cannot disappear, completely depreciate, and that quality is not reflected in reporting. Following IAS 41, agricultural activity is the management of biotransformation and collection of biological assets for their sale or processing into agricultural products or the production of additional biological assets. From our point of view, additional biological assets are an increase in fertility. IAS 41 is not applicable if the biotransformation is not started. IAS 41 is developed taking into account the features of agricultural enterprises in Western countries. In Western countries, unlike Russia, agricultural products are often sold in the bud. Foreign farmers pre-sign option and futures contracts for the sale of agricultural products. Such contractual relations allow the buyer to acquire the right (or obligation) to acquire a biological asset in a strictly specified volume at a specific time. Russian agricultural producers do not know such specifics of sales, but have a typical feature—most of the produced agricultural products go to their own needs (seeds, feed, etc.). Following IAS 41, biotransformation includes processes that result in qualitative or quantitative changes. IAS 41 does not say anything about changes in land assets (land). In the international aspect, agricultural activity is the management of biotransformation of plants and animals, i.e., biological assets for selling, obtaining agricultural products, or producing additional biological assets. IAS 41 does not cover land processes, as it considers land to be the main asset of IAS 16 “Property, Plant, and Equipment” or investment property of IAS 40. In addition to IAS 16, it is necessary to consider other standards when accounting for property, plant, and equipment: • IFRIC 1 “Changes in the obligations for the dismantling and liquidation of fixed assets, restoration of the environment, and other similar obligations”; • IFRS 5 “Non-current assets held for sale and discontinued operations”; • IAS 17 “Rent”; • IAS 20 “Accounting for government subsidies”; • IAS 21 “The effect of changes in foreign exchange rates”; • IAS 23 “Borrowing costs”; • IAS 36 “Impairment of assets”; • IAS 40 “Investment property.” The land is not recognized as a biological asset, unlike perennial planting, plants, shrubs, vineyards, fruit crops, and animals. The specificity of the land is that it is both an object and a means of labor. Crops that are inextricably linked to land are accounted for separately from the land. Changes in land lead to an increase or decrease in fertility, nutrient balance, affecting the amount of biomass obtained. Following IAS 16, the land must be recognized at cost without accumulated impairment losses or revalued amounts. In our opinion, accumulated losses are a negative balance of nutrients, deterioration of fertility, and land fatigue.

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Agricultural use is one of the main factors in changing the content of soil organic matter, which should also be reflected in accounting. Biotransformation of land resources leads to a decrease or accumulation of soil and organic matter. Thus, currently, an essential element of the accounting policy of an economic entity is the issue of setting up analytical and synthetic accounting of land assets and the results of their biotransformation.

4 Discussion When growing crops from the topsoil, organizations receive economic benefits in the form of agricultural products. Currently, legislation and accounting for soil pollution are in force. However, fertility degradation is not taken into account. Agrochemical services for each administrative district provide information in form 5 of DDZ-sh. Nevertheless, there are only two stations in 28 districts of the Kursk region. Accounting for the humus layer once every 15 years does not provide operational information. In the system of national accounts of Russia, accounts not fully reflect data on natural resources are used. Accounts do not reflect on their degradation. The net gain/loss of natural assets is not taken into account. There is no cost estimate of the anthropogenic impact on natural resources in the existing accounting and statistical indicators of agriculture. Thus, there is no data on the loss of land resources after their use in economic activities in value terms. The land features of the organization (Federal State Statistics Service, 2016) did not include the dynamics of qualitative indicators. In order to assess the quantity and quality of land resources, the data sources necessary for calculating natural (nutrients, soil carbon compounds, etc.) and cost indicators are not defined. About 85% of the loss of soil organic matter is associated with land use methods (crops, processing technology, fertilizers, etc.). Land accounting should be through the organization of high-quality agriculture, taking into account soil fertility. Reliable land accounting is not possible without improving the chart of accounts. In our opinion, to adapt accounting and procedures for the preparation of financial statements of agricultural organizations to IFRS, it is advisable to enter a synthetic account 92 “Potential agricultural production, income, and expenses from the transformation of land assets” with further closure to account 85 “Potential agricultural profit/loss from the transformation of the land” (Table 1). The proposed adjustments in the accounts system will allow the formation of operational and reasonable accounting policy on land assets. IAS 41 recommends splitting the changes in the fair value of each group of biological assets into two parts: 1. Associated with a change in the physical properties of an asset group; 2. Related to changes in market prices.

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Table 1 Business operation of agricultural organizations Business operation

Debit

Credit

Accounting for the increase in the fair value of land assets (land “Land assets” 92 and natural resources) Accounting for the decrease in the fair value of land assets (land 92 and natural resources)

“Land assets”

Potential financial result (a) Profit (b) Loss

92 85

85 92

85 99

99 85

Write-off of potential financial result in the reporting period of (a) potential profit (b) potential loss Source Compiled by the authors

Information reflecting land resources should be in quantitative and qualitative value terms. Gross crop production is the sum of the value of crop production and the balance of work in progress. In this case, such an indicator as fertility is not taken into account. It is also worth noting that the conditions for receiving subsidies should include environmental components, increasing land fertility, and a positive balance of nutrients. This provision must be taken into account when concluding long-term lease agreements, especially for 49 years.

5 Conclusion Thus, the peculiarity of farming is that its activity is aimed at biotransformation of living organisms (plants and animals). The land is the primary means of production. The complexity of the problem also lies in the fact that the reproduction of land fertility is carried out during agricultural production. To organize fertility accounting, it is necessary to allocate accounts associated with increasing land fertility. State support for agriculture should take into account the regulation of environmental and economic land turnover. Agro-industrial holdings must provide open reporting reflecting the balance of nutrients and the fair value of land assets. The Ministry of Agriculture of Russia should establish reporting forms for agricultural holdings that characterize changes in land assets and land relations (in the section “non-current assets,” it is necessary to include the article “Land assets”). IFRS 41, 16, and 40 do not describe a specific asset (agricultural land). Therefore, it is necessary to refine these standards taking into account the specifics of agriculture.

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Information on changes in the physical properties of land assets allows users to evaluate agricultural activities for the reporting period and prospects for the implementation of food security.

References 1. Dyatlovskaya E (2019) The central bank can get 150 thousand hectares of agricultural land. Agroinvestor. Retrieved from https://www.agroinvestor.ru/regions/news/32533-tsentrobankmozhet-poluchit-150-tys-gektarov-selkhozzemel/ 2. Khusainova N, Vorozheykina T (2019) Time to collect stones: problems and prospects for the fur farming industry in Russia. Espacios 40(24): 21. Retrieved from https://www.revistaespac ios.com/a19v40n24/19402421.html 3. Kulistikova T (2019) Large agricultural holdings plan to expand land banks. Agroinvestor. Retrieved from https://www.agroinvestor.ru/rating/news/32521-agrokholdingi-planiruyut-ras shiryat-banki/ 4. Osipov VS, Skryl TV, Evseev VO (2016) An analysis of economic issues of territories of priority development. Res J Appl Sci 11(9):833–842 5. Osipov VS, Skryl TV, Blinova EA, Zeldner AG, Alexeev AN (2017) Institutional analysis of the public administration system. Int J Appl Bus Econ Res 15:193–203 6. Shchetinin A, Vorozheikina T, Shabunina V (2019) Counter-sanctions, milk production efficiency, and scale: How are they interrelated? IOP Conf Series: Earth Environ Sci 274:012096 7. Sycheva I, Voronkova O, Vorozheykina T, Yusupova G, Semenova A, Ilyin A (2019) The main directions of improving the environmental and economic efficiency of regional production. J Environ Manage Tourism 10(3):631–639 8. Voronkova O, Sycheva I, Kovaleva I, Khasanova A, Gorovoy S, Vorozheykina T (2019) Assessing the environmental impact of the intensification of agricultural production. J Environ Manage Tourism 10(3):697–705

The National Technological Initiative FoodNet Market: Regional Perspectives Ekaterina G. Agalarova , Julia A. Gunko , Olga N. Kusakina , Olga A. Cherednichenko , and Zuhra S. Dotdyeva

Abstract The paper considers the tasks and prospects of state policy in the framework of the development of the National technology initiative “FoodNet Market.” The main stages and expected results of the formation of a personalized food market at the regional level are determined. Keywords National Technological Initiative (NTI) · Food market · Personal nutrition · FoodNet · Regional personalized food market

1 Introduction Nowadays, one of the priority areas in public policy is the implementation of the National Technological Initiative [NTI]. The program got its name in 2014 when the state started to develop measures to support the development of promising industries, which are designed to meet the needs for scientific and technological innovations not only domestically, but also internationally in the long term. The main goal of the NTI is to ensure global technological parity between Russia and countries leading in technology. To achieve the goal, the tasks were set to solve the problems of import substitution within 5–7 years and to make the transition to a new technological structure of the domestic economy in 20–30 years [2]. As part of the development of the program, several markets for the implementation of initiatives were identified. One of them is “FoodNet,” which has a direction in the field of innovation in nutrition. It includes such segments as smart agriculture, accelerated selection, new sources of raw materials, affordable organic food, and personalized nutrition.

E. G. Agalarova (B) · J. A. Gunko · O. N. Kusakina · O. A. Cherednichenko Stavropol State Agrarian University, Stavropol, Russia e-mail: [email protected] Z. S. Dotdyeva North-Caucasus Federal University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_58

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2 Materials and Methods The NTI includes systemic solutions for identifying key technologies, necessary changes in the field of norms and rules, working measures of financial and personnel development, and mechanisms for involving and rewarding carriers of the necessary competencies. The technologies are chosen, taking into account the main trends of world development, based on the priority of network technologies concentrated around a person as an end-user. The development of the NTI involves the design and creative teams, technology companies willing to absorb new developments, leading universities, research centers, business associations of the country, development institutions, experts and professional communities, and concerned ministries. Soon, the food supply system and the products themselves will radically change due to several trends. One of them is personal nutrition, which is already manifesting itself nowadays. The system of personal production and delivery of food and water [FoodNet] is one of the priority markets of the National Technology Initiative. “FoodNet” is a market for the production and sale of nutrients and final food products (personalized and general) based on traditional raw materials and their substitutes, as well as related IT solutions, which include services for logistics and selection of personal nutrition. The formation of the “FoodNet market” will be carried out under the influence of consumer activities. It will expand the possibilities of producing high-quality products based on the intellectualization, automation, and robotization of technological processes throughout the entire production cycle. The main goal of the market is to create “smart” services and products that will become leaders in world markets due to the best technological solutions for ensuring food security by 2035. Russian companies that create such services and products will occupy significant shares of the global market, which, depending on the segment, will reach 5–15%. Key segments of the “FoodNet market” are shown in Fig. 1. Smart agriculture is a segment of technological solutions for efficient crop and livestock production. It includes automation and robotics, geography, artificial intelligence, big data, and other digital technologies. Accelerated selection is a segment of new varieties of crops and animal breeds obtained using the technology of genomic modeling of organisms with specified requirements, as well as solutions and services of accelerated selection. New sources of raw materials are a segment of products of new processed types of biological raw materials, including biomass from algae and insects (synthesized protein), waste, pseudo-cereals, and cell cultures (including for the production of feed additives, bioplastics, and biologically active substances). Affordable organics is a segment of biological products and substances for agriculture, including high-quality feed, feed additives, and medicines for veterinary use, as well as pesticides and agrochemicals of biological origin and organic food.

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Fig. 1 The main directions of the development of the “FoodNet market.” Source Developed by the authors

Personalized nutrition is a segment of technology for the analysis of nutritional and micronutrient status of a person. It is possible to achieve results using genomic and post-genomic methods, personalized food products, selection services for individual diets, and innovative delivery services. The Agency for Strategic Initiatives presented a plan for the development of the market. By 2035, the market should be fully formed, function, and reach an international level. Personalized nutrition is the result of scientific research in medicine, marketing, and agricultural economics. Therefore, approaches to the definition of this concept are interdisciplinary (Table 1). Table 1 Approaches to the personalized nutrition of foreign and domestic authors Author

Approach

Vigel, N. L

The phenomenon of modern food culture based on nutrigenomics, which substantiates the scientific approach to improving health through the use of food [6]

Hans, K. M

The Institute of the Future defines individual nutrition as the application of the physical knowledge of modern nutrigenomics in nutritional decisions. However, we believe that personalization goes beyond genetics and includes other information related to personal preferences, such as perceived health status, tastes, values, and other relevant segmentation variables [5]

Nikityuk, D. B Personalized nutrition is a complex scientific approach, which basics are useful for anyone who cares about their health Yulina, G. N

The culture of personalized nutrition is a multifaceted concept that should be disclosed both from a technological point of view and from a psychological one

Source Compiled by the authors

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Thus, personalized nutrition is a new approach to compiling a diet and regulating human eating habits. Since this market is just emerging, there are no visible technological leaders in this field, which becomes one of the most reliable motivations for its development among Russian entrepreneurs. In the future, personalized nutrition implies a diet based on the genetic characteristics of a person. Such studies are currently expensive for an individual. However, there are already advances in the diagnosis of genetic diseases, recommendations for the exclusion of certain foods from the diet, simple calculations of micro and macronutrients that allow choosing a necessary set of products for a particular client. As a result, a person receives nutrition options that are entirely consistent with their needs and take into account all the features, for example, lactose intolerance or a deficiency of certain vitamins. Additionally, modern technologies make it possible to take into account a person’s preferences for food, which will make it possible to choose a menu that does not depress a person. This will be especially important for horizontally challenged people who cannot withstand the standard recommendations of nutritionists for a long time. Within the framework of existing developments, the following products are presented for the development of the “FoodNet” market: 1.

2.

3.

4.

“Atlas” genetic test. The study of DNA gives essential information about the state of human health: what ratio of fats, proteins, and carbohydrates is recommended for a person, how many cups of coffee are safe for an individual to drink, which sport is preferable, and what activities should be refrained by the person. This genetic test takes into account not only the hereditary part but also the current state of health. As a result, we get a unique personalized medicine tool that can help to change our lifestyle consciously. “Genotek” DNA tests. Genotek developed a set of tests that allow each person to assess their health and find the most effective way to maintain it. Thus, the “Health and Longevity” DNA test reveals the likelihood of diseases, the “Planning for children” test determines the presence of hereditary diseases and their appearance in future children of the couple, the “Diet and Fitness” test will allow one to choose the perfect diet, and the “Genealogy” test will report the origin and ethnicity of the client. “Elementaree” personal food service. The service offers to assemble a personal menu. Clients choose one of the menu options offered on the website following their goals, and receive a ready-made “kit” of healthy and varied food: a nutritionist develops the menu, the products of the highest quality are carefully measured, the instructions describe the recipe in detail, it is only necessary to spend a little time on cooking the received products. This idea combines two popular concepts: food delivery and individual selection of products. Soon, “Elementaree” plans to introduce a special menu based on genetic analysis. The subscription to the basket of farm products “Forest Farm.” The “Forest Gardens” farm grows environmentally friendly products based on the ideology of permaculture and living systems. All the created products are not sold on the open market but delivered to a limited circle of clients with an annual or

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semi-annual subscription. A food basket is formed once a week and contains everything necessary for a healthy family menu. The economic model of direct relations between urban consumers and the farmer is an organizational innovation that solves the main problem of small agricultural production and product marketing. It is a promising direction for the development of modern farming in Russia.

3 Results The formation of the personalized food market is based on modern trends in digitalization, personalization, urbanization, security, and greening. The agroindustrial complex [AIC] is designed to follow these trends for its development and satisfaction of end consumers. The creation of competitive products of high quality and high added value is achieved through the interaction of “FoodNet market” segments. – preparation—launching personal support for the analysis of human nutritional status; – storage and delivery—the application of personalized logistics; – consumption and sales—the use and sale of personalized products and services. Personalized nutrition includes the following stages: – preparation—launching personal support for the analysis of human nutritional status; – storage and delivery—the application of personalized logistics; – consumption and sales—the use and sale of personalized products and services. Other segments of the “FoodNet market” are responsible for the stages of sowing, growing, harvesting, storage, and delivery (Smart Agriculture, Accelerated Selection, New Sources of Raw Materials, and Affordable Organics). To implement the initiative at the regional market of personalized food, it is necessary to create a holistic system, implement strategic planning, and forecast the development. It can be achieved by developing and implementing the following solutions: 1. 2. 3. 4. 5.

Legal support for the development of innovative personalized food products and their promotion through participation in programs. Marketing research of priority market segments and support for the implementation of marketing strategies of its subjects. Personalized group meals in sanatoriums and other accommodation facilities. Functional technologies of a new generation of food products for individual nutrition programs. Production, storage, and processing of agricultural products to obtain food and directed action, including functional purpose [1].

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Since the personalized food market is new, it is necessary to form the appropriate infrastructure for its effective functioning. To support the growing demand for market products, it is necessary to popularize it by holding regular events and changing eating habits and lifestyle. To increase business interest in market formation, it is possible to conduct training courses, workshops, training, online seminars, and consultations on the creation and development of personalized nutrition in the region.

4 Discussion The problem with the current personalized nutrition market is that one can already get the recommendations of doctors, nutritionists, and DNA test results, but it is quite difficult and expensive to collect a diet in ordinary stores. It is necessary to activate all stages of production and marketing of food products to solve this problem. The producer should be informed about the needs of the client within the prescribed diet to shorten the path to the consumer. There is already a trend towards healthy eating, and, in this connection, there forms the whole industry for the delivery of healthy food. There are companies involved in the selection of easy-to-cook products with calculated energy value that take into account the needs of consumers rations. Nevertheless, so far, it is quite expensive, since the “healthy” products themselves are not cheap. Perishable food is also limited in sales. In this regard, lowering the price of these products is possible only by popularizing personalized food, making it a mass phenomenon that extends to all market segments. The positive effects of the development of personalized nutrition in the agricultural region are as follows: 1.

2.

in the whole region: the transition of the AIC to high-performance, high-tech, resource-efficient, and climate-adaptive production of raw materials and products; the implementation of the transition of food and processing industries to resource-saving and waste-free technologies with minimal environmental impact; reducing the critical dependence of the AIC on imported seed and breeding genetic material; the transition to the sustainable development of the AIC based on “smart” forecasting models; the development of technologies for deep processing of organic raw materials [4]; in the business environment: the emergence of new companies in breakthrough segments; the diversification of agricultural production and development of agricultural processing; an increase in labor productivity; the entry of regional manufacturers into promising markets; technological renewal of enterprises in the sector; scaling up the best interaction practices at regional sites; increasing efficiency due to increasing crop yields, expanding sales markets, developing

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4.

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new markets for software products, reducing the cost of animal feed, and developing and digitalizing logistics networks; the formation of a permanent operating communication platform for determining growth points in the field of technological development of the region [3]; in the scientific field: the development of a new generation of scientific organizations in the agricultural sector; the creation of a segment of commercial research; the increase in patent activity in the field of agribusiness; the introduction of new educational programs; an increase in the share of commercialization of scientific projects; fundraising for research schools; for the population: ensuring food security; the creation of new food; an increase in quality of life and life expectancy, and public health; supplying cities of the region with organic food; stimulation of the economic development of the region; the content of new jobs; an increase in the share of employed graduates of the region.

Since personalized nutrition is based on the end-user receiving a healthy and balanced diet, the most important source of raw materials for this market is agricultural products that can be used in their initial (vegetables, fruits, berries, herbs, beans, and cereals) and processed forms, including deep processing (dairy products, including lactose-free, lecithin, glucose, gelatin, fiber, dried fruits, and various concentrates). The most promising and more prosperous players in the market of personalized food in the region are large agricultural producers. However, households and peasant (farmer) enterprises have access to the personalized food market as they sell products that do not require processing and meet the requirements of a healthy diet for a specific consumer with personal preferences and recommendations. Additionally, these categories of producers are in high demand among services and distributors of healthy food (farm, environmentally friendly products).

5 Conclusion The goal of the personalized food initiative is to take 8% of the world market by 2035 due to the active development of the domestic market, as well as the export of products and technologies. As part of the implementation of this area, the following was already achieved: the availability of centers for genetic testing of patients, the production of healthy foods in Russia, the development of business for the delivery of an individually selected diet. Thus, the “FoodNet market” aims to create a “healthy nation,” increasing consumer satisfaction and developing the agricultural economy to bring products to the international level. In the market system, the final consumption is represented by the “personalized food” segment, which development is quite crucial since the creation of specific products should depend on the existing and developing demand. Since “FoodNet” is, first of all, the food market made from high-quality agricultural

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raw materials, pilot projects must be implemented in leading Russian agricultural regions, i.e., when measures aimed at developing this market will become regional in scale and nature. The regional market for personalized food is a market for innovative products with a complex structure and precise segmentation. The essence of the concept of personalized nutrition comes down to the fact that there are genes affecting the human condition: obesity, satiety, and a tendency to certain diseases. With the help of in-depth studies, the consumer receives a significant amount of information about personal metabolism and approaches to proper nutrition for improving health. In this connection, personalized nutrition is becoming the key to solving public health problems and the fight against obesity in the regions. Thus, to develop the personalized food market at a high pace, it is necessary to ensure legal support for the development of innovative personalized food products and promote them through participation in industry programs at the state and regional levels related to supporting manufacturers and suppliers of products. It is also necessary to conduct marketing research on priority segments of the personalized food market and support the implementation of marketing strategies.

References 1. Agalarova EG, Gunko YuA, Kosinova EA, Chernova KS (2019) Strategic analysis of agricultural development in the Stavropol region in the personalized food market system. Bull Inst Friendship People Caucasus 2(50):15–22 2. Agency for Strategic Initiatives of the Russian Federation. (n.d.). National technology initiative. Retrieved from https://asi.ru/nti/ 3. Barsukova T, Ivashova V, Gunko J, Gavrilova O, Chaplitskaya A (2019) Designing the professional competence of leaders of the regional agrarian sector. Int J Civ Eng Technol 10(1):768–776 4. Kosinova EA, Agalarova EG, Gunko YA (2016) Economic condition and development trends in the dairy industry. Bull Inst Friendship People Caucasus. Theor Econ Natl Econ 4(40):5 5. van Trijp HCM, Ronteltap A (2008) A marketing and consumer behavior perspective on personalized nutrition. In: Kok FJ, Bouwman L, Desiere F (eds) Personalized nutrition principles and applications. CRC Press, Boca Raton, FL, pp 185–202 6. Vigel NL (2015) Personalized nutrition as a phenomenon of food culture. Humanit Sci Res 12. Retrieved from https://human.snauka.ru/2015/12/13573

HR Management in Russian Higher Educational Institutions: Mechanisms to Foster Sustainable Development of Regional Socio-economic Systems Sergey M. Kosenok

Abstract The paper focuses on the changes in the volumes of academic mobility of Chinese students in Russia. These changes, in a certain way, also result in changes in the pace of sustainable development of socio-economic systems of the Russian regions. These transformations are new challenges for top management of both universities and the regions where these universities are located. With effective management of these trends, these new challenges will also become a stimulator of transformation in the issues of HR management of these higher educational institutions. Keywords Higher education · Transformation · Regions · International engagement · Personnel management · Sustainable development · Russia · China

1 Introduction New times also correct the tactics of implementing the formed goals and objectives in different directions. The issues of higher education are no exception. Programs for the sustainable development of socio-economic systems that were relevant until 2014, remained so after the indicated year. However, the agenda for their implementation has somehow changed. In connection with the well-known political events that took place in the world in 2014, transformed into international, socio-economic events, the interaction of Russia with other countries started to change [2]. The main trading and socio-economic partner for Russia has become the People’s Republic of China. Trade turnover with China, in 2018 and 2019, exceeds $100 billion. At the level of the first persons of two countries, the interaction in the educational sphere of the higher education system is recognized as one of the prior. In particular, if in the 2013–2014 academic year, the number of students from China studying in Russia amounted to just over 18 thousand people, then currently, this indicator has exceeded the mark of 30 thousand people. Therefore, there is an increase of more than 1.5 times in S. M. Kosenok (B) Surgut State University, Surgut, Russia e-mail: [email protected]; [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_59

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6 years. The authors of this work decided to figure out if this growth is huge or little in the total population of international students in Russia, how it affects the pace of sustainable development of the socio-economic indicators of regions (positively or negatively), and, if positively, how to stimulate further growth of this indicator for Russian universities.

2 Materials and Methods Many scholars devoted their works to the general foundations of the sustainable development of socio-economic systems in Russia and the world, as well as their transformation after 2014 ([9, 10, 14]). In this regard, of particular interest are the works describing the effect of the increase in the number of international students in Russian universities on the sustainable socio-economic development of regions [16, 13]. Among the materials focused on the problems of student exchange for the international component of the development of Russian universities, before the adjustment in 2014, it is worth noting, first of all, the works by [6, 15]. From the materials of recent years, on the functioning of the academic mobility of international students in Russia, the works of K. Lyubskaya [7], a young scientist from the Institute of the Far East of the Russian Academy of Sciences, stand out, ending with the dissertation of the candidate of economic sciences. In particular, in the paper “The Russian-Chinese market of educational services as a platform for establishing long-term business ties” [8], the author provides a relatively systematic description of this issue as a strategically important aspect of the work for the Russian Federation. In the final dissertation [8], the author presents a systematic analysis of the academic mobility of international students in Russia, showing the leading roles in this issue for the citizens of China and Kazakhstan in these years. Separately for students from China, this topic is systematically presented in the works of T. L. Guruleva [3, 4]. In recent scientific publications, the author systematically examines the possibility of cooperation between higher education systems in Russia and China, citing a large block of socio-economic statistical data and legal aspects of the problems. It is worth noting that since the author has worked for a long time at universities in the Trans-Baikal Territory, a large number of aspects of Russian-Chinese educational interactions are built on personal experience in that region. However, the universities of Moscow and St. Petersburg are the leading players in this area, and the Federal University of FEFU in Vladivostok involved in such interaction only partially. A great deal of work in understanding the problems of the transformation of higher education in Russia, including through interaction with the People’s Republic of China, is being conducted nowadays by a team of authors from St. Petersburg guided by professor E. Brazhnik. The collective work under her leadership was also a valuable source of information in our study (Brazhnik et al. [1]).

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The analyzed works do not give full answers to such a basic question as what is the impact that the improved mechanisms of personnel management at Russian universities can have on the increase in the number and quality of international students in them. The issues of the sustainable development of socio-economic systems of the Russian regions where these universities are based are also relevant. In connection with the identified shortcomings, which formulation formed the basis of the research objective, the following tasks were set in the work: 1. 2. 3.

To analyze retrospective and current status in the issues of academic mobility of international students in Russia and identify growth potentials in this area; To determine the potential market volumes of consumers of these educational services while improving programs for HR management at Russian universities; To study the role of academic mobility of international students in Russia on the sustainable socio-economic development of the regions now and in the long term.

3 Results As part of the first task, it was determined that the most critical point in the currently implemented state program in this area was the program signed in 2014 by the Deputy Prime Minister of the Government of the Russian Federation, Olga Golodets, and the Deputy Chairman of the State Council of the PRC, Lu Yandong. This program aims to achieve, by 2020, the number of students in the amount of 100 thousand people in the framework of the mutual exchange between educational institutions of higher education of the Russian Federation and China. In subsequent years, the need to implement this program has been confirmed many times by the leadership of countries. At the time of signing the agreement, the number of students from Russia studying in China and from China studying in Russia was approximately the same (17–18 thousand). However, in subsequent years, there was a roll towards an increase in students from China in Russia, reaching about 30 thousand students by 2019. The second document, formulated in January 2019 by the Minister of Science and Higher Education of the Russian Federation, M. M. Katyukov, is also aimed at helping to stimulate the program. It indicates the purpose of achieving a twofold increase in the number of international students in Russia from 300 to 600 thousand people over the next five years. In recent years, Chinese and Kazakhstan students have been sharing 1st and 2nd places in terms of the number of international students. Students from other countries take courses at Russian universities to a much smaller extent. However, students from Kazakhstan are still citizens of the CIS countries and the Eurasian and Customs Unions, i.e., at some stage, they may not even be fully referred to as international students. Therefore, the priority will be given to international students from China. There are already about 11% of such students among the total number of international students, remaining in the range of 9%–16% of the total share of international students over the past 20 years. However, if we consider the analysis of international students

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thousand students 30 25 20 15 10 5 0 -5

1950

1960

1970

1980

1990

2000

2005

2010

2015

2017

-10 thousand students

Linear (thousand students)

Fig. 1 The dynamics of changes in the number of students from China in Russia (USSR) in 1949–2017. Source [11]

from far abroad, i.e., non-Russian-speaking students from the republics of the former USSR, then the share of China in the same years will reach 90–95%, leaving such countries as Vietnam, India, and African countries far behind. It is worth noting that this situation is different in all countries of the world. For example, in the United States, the number of Indian and Chinese students is comparable and large, and students from South Korea come in third place, whereas, in modern Ukraine, there prevail Indian students, while the proportion of Chinese students is less than 4%. There are differences in other countries. In this regard, the general history of the dynamics of the number of students from China studying in our country, both in the USSR and in modern Russia, shown in Fig. 1, is of interest. In the 1920s, students from China first visited our country to take courses in higher education. In some of those years, there were up to 2,000 people from China studying at the same time in Russia. However, that education was of a militarypoliticized format. Therefore, the real history of this issue is usually counted since 1949. In the 1950s, the number of students reached one thousand, and in the early 1960s—two thousand. After freezing this issue for more than 25 years, a new story begins in 1989, with an annual increase in the students from China, regardless of economic problems in both countries. Judging by the trend of the graph in Fig. 1, we can say that there is progress. However, it is worth considering the experience of other countries in this matter. In this regard, for example, the US experience is of particular interest for the analysis. Looking at the five-fold increase in students from China in the United States in just ten years, and comparing it with a double in Russia, we can say that we are not working efficiently, especially given the foreign policy in the world (Fig. 2). Let us make calculations on the ten-year increase in students from China in Russia and the USA in 2005–2015 (Russia = 22,000:12,500 = 1.76; US. = 329,000:63,000 = 5.22). Russia lags more than three times. The issue here is not only on the fact that the United States has a stronger education, and English is the international language of communication that is taught in China from the second grade until graduation,

HR Management in Russian Higher Educational Institutions … Fig. 2 The comparison of student growth rates from China in Russia and the USA in 2005–2015. Source ([12], pp. 104–107)

539

350000 300000 250000 200000 150000 100000 50000 0 Russia

USA

2005

2015

unlike Russian, which is almost unknown in Chinese schools, except, perhaps, some schools of the provinces of the North-East of the country. If we delve into the history of the same issue in the United States, we will see that the US had similar trends for students from the PRC at the very beginning of the 2000s, and before that, the growth rate was not impressive at all. In this regard, we can say that Russia can progress in this integration element. However, it is necessary to understand how to organize it, to determine priorities for marketing activities, since in China, as in any other country, the consumer, including the consumer of educational services, decides which paid educational program abroad to choose based on their the desire and the opportunity for training. It is necessary to conduct a series of systematic studies to identify the reasons for the lag in the implementation of this task. One of the areas of search is the analysis of the effectiveness of Russian language acquisition by Chinese students at the present stage and recommendations for the elimination of difficulties. With the development of cooperation in various fields, interest in the Russian language in China is steadily growing, gradually returning, if not to the times when it was the most popular among foreign languages in the country, then at least to the state when it will gradually come closer to the second most important, among foreign languages, after Japanese. This is what determines the relevance of this study. Teaching Russian in China, nowadays, is far from being limited to the field of philology. Thus, with the 56,000 Chinese citizens studying Russian, non-philological students account for about 20,000. This set of students are essentially potential applicants for master’s, postgraduate, and doctoral studies in higher educational institutions of Russia, and, summing up 56 thousand potential students that can come to Russia with 44 thousand Chinese studying in Russia, we reach the planned figure in 100 thousand exchange students. Evidently, in order to turn these numbers into summation, it is necessary to resolve a broad set of problems, which include the work with the personnel of Russian universities. Currently, there are not so many programs of this kind in China implemented with higher education institutions from Russia. The work of Moscow State Pedagogical University seems to be the most active in this matter, in particular, a double diploma program has been opened together with the Weinan Pedagogical University of students in similar specialties, and, by 2020, it is planned to train up to 1,200

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students there. There are similar plans for other Chinese universities in different specialties. The Moscow State University named after M. V. Lomonosov is also quite active in this matter, primarily in connection with the opening of the Joint University of Moscow State University and the Beijing Polytechnic Institute in Shenzhen, where the total number of students is planned to bring up to 5 thousand students over time. There are similar projects at such universities as Moscow State Technical University, Moscow State Institute of Culture, Moscow State Pedagogical University, St. Petersburg State University, and others. Since 2019, Surgut State University joined similar projects. They are planned in the framework of the academic mobility program for student exchange with the Harbin Far Eastern Polytechnic University, laid down based on a five-year agreement on academic cooperation between the two universities in Harbin in June 2019. According to preliminary calculations in the framework of this study, it was found that the admission of up to a thousand people from China per year as part of academic mobility programs can increase the pace of socio-economic development of the city and the region, including sustainable development programs up to 10% since the region’s products in the form of oil and gas and forestry complexes remain one of the priorities for investors from China, and since the concept of sustainable development involves the development of a high-tech sector. Other regions have their advantages for interaction. However, this kind of transformation of work, especially not in the agglomerations of Moscow, St. Petersburg and several border cities of the Far East, will require significant financial and infrastructural investments, which will be necessary for the effective implementation of these programs, including through improving the work of university personnel, starting from teachers, and ending with the staff of the departments for working with international students, librarians, etc. Currently, such projects are being carried out initially in the universities of Tyumen, Novosibirsk, Tomsk, and several other cities. Similar work is planned to be carried out in Surgut in the coming years. These works will make the University more competitive, and the city and region more investment-attractive for foreign investors. Another project that would help the development of this direction would be to strengthen the unifying platforms of universities in Russia and China by profile, whether it be associations, unions, clusters, or something similar. Similar associations for the period 2011–2019 were already created at technical, pedagogical, classical, and other profiles of universities in Russia and China [5]. Currently, these associations are, in most cases, more representative. However, from time to time, they could coordinate their work more successfully and efficiently, helping in organizing joint activities in this area.

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4 Discussion As part of the work on the analysis of the retrospective and the current state of academic mobility of foreign students in Russia and the identification of growth potentials in this area, it was revealed that the most effective was the interstate program to increase the number of students from China to Russia and from Russia to China. This program is designed for 2014–2020. It is also worth mentioning the internal Russian project of the program of the Minister of Science and Higher Education of the Russian Federation, M. M. Katyukov, for 2019–2024. This program aims to increase the number of foreign students in Russia from 300 to 600 thousand people. When constructing a retrospective of changes in the number of Chinese students studying in Russia, the previously existing and currently existing rates of increasing the student enrollment rate in Russia were identified. The determination of the potential market volumes of consumers of these educational services when improving personnel management programs at universities of the Russian Federation revealed that this improvement of programs, coupled with the effective work of the upper levels of management, can give at least a threefold increase in existing indicators, from 28 thousand Chinese students in 2017 to 84 thousand in the coming years considering the Chinese students studying Russian in China nowadays. The comparison of the growth rate of the number of students from China for the period 2005–2015 showed that, if in Russia it was 1.76, then in the United States it amounted to 5.22 (three times higher). Nowadays, when RussianChinese relations are growing from year to year, and US-Chinese relations, on the contrary, are failing, students from China are beginning to receive restrictions on applying for several educational directions and obtaining study visas in this country, Russia has excellent opportunities for increasing this pace. The study of the role of academic mobility of international students in Russia on the sustainable socio-economic development of the regions now and in the long term has shown a positive result. According to preliminary calculations, it was found that admitting up to a thousand people from China per year as part of academic mobility programs can increase the pace of socio-economic development of cities and regions, including under sustainable development programs, up to 10%.

5 Conclusion The programs for the sustainable development of socio-economic systems that were relevant until 2014, have remained so to this day and will remain so in subsequent years, even despite a slightly changed format, the agenda for their implementation in connection with current foreign policy events remains relevant. The programs of academic mobility in Russia among international students, as shown by the study, will only grow. Along with this, the absolute and specific number of students from China will undoubtedly grow among all international students.

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However, the pace of such growth is mainly dependent on the host. In order to realize this opportunity, which has a positive effect on the socio-economic development of the regions in the country, it is necessary to systematically improve the mechanisms of HR management of Russian universities in aspects of working with the contingent of international students, both in the field of communications and in the field of infrastructure component.

References 1. Brazhnik EI, Zhdanov AV, Tryapitsyn AV, Yuan F (2019) Trends in the development of the scientific and educational environment in modern universities in China and Russia. Svoye izdatelstvo, St. Petersburg, Russia 2. Gasparyan AY, Kitas GD, Nurmashev B, Seksenbayev B, Trukhachev VI, Kostyukova EI (2017) Plagiarism in the context of education and evolving detection strategies. J Korean Med Sci 32(8):1220–1227 3. Guruleva TL (2018) The educational system of the People’s Republic of China and RussianChinese educational cooperation. VKN, Moscow, Russia 4. Guruleva TL (2019a) Joint educational programs of Russia and China: State and problems of implementation. Higher Educ Russia 27(12):93–104 5. Guruleva TL (2019b) Association as a new form of cooperation between Russia and China in the field of education and science. Proceedings from the annual scientific conference of the center for political studies and forecasts of the institute of the far east of the russian academy of sciences. 70 years of the modern Chinese state. Institute of the Far East of the Russian Academy of Sciences, Moscow, Russia 6. Ivanova YuO (2016) The impact of international student exchange programs on the formation and development of the university’s image. Sci Works Free Econ Soc Russia 198(2):469–473 7. Lyubskaya KA (2017) The Russian-Chinese market of educational services as a platform for establishing long-term business ties. Problems Far East 3:150–156 8. Lyubskaya KA (2018) Economic aspects of cooperation between Russia and China in the field of higher education since 2010 (Dissertation of Candidate of Economics). Institute of the Far East of the Russian Academy of Sciences, Moscow, Russia 9. Nagoev AB, Rokotyanskaya VV, Batova BZ, Bischekova FR, Hokonova MZ (2018) Mobilization of innovation and investment resources for environmental management in Russian Federation regions. Environ Qual Manage 27(4):47–54 10. Rokotyanskaya VV (ed) (2019) Spatial planning in the sustainable development management system of spatial socio-economic systems. TLCA reports. Russian State Agrarian University, Moscow, Russia 11. Sklyarenko SA (ed) (2019b) Prospects for the development of the market for educational services in Russia for Chinese citizens. Proceedings from the IX international scientificpractical conference: Russia and China: history and prospects of cooperation. Blagoveshchensk State Pedagogical University, Blagoveshchensk, Russia 12. Sklyarenko SA (ed) (2019a) Opportunities for increasing the volume of the market for educational services in the field of RCT for Chinese citizens. Proceedings from the international scientific-practical conference: the modern paradigm of teaching and studying Russian as a foreign language. Moscow State Pedagogical University, Moscow, Russia 13. Tatuev AA, Abanokova EB, Ovcharova NI, Rokotyanskaya VV, Usanov AY (2018) Social budget and the dynamics of socio-economic development. Espacios 39(4):38 14. Udovik EE, Ibragimova ZM (2019) Sustainable development of regional socio-economic systems. Sci Issues: Innov Eng Technol 1:73–76

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15. Vasenev SL, Ovanesyan NM, Rossinskaya MV, Volgina SV, Rokotyanskaya VV (2017) Crisis management of regional development: cluster initiatives in Russia and their efficiency. J Adv Res Law Econ 8(2):644–657 16. Zyryanov RV (2013) The influence of international students on the development of the oil and gas region. Proceedings from the all-Russian scientific-practical conference of students, graduate students, and young scientists dedicated to the 50th anniversary of the Tyumen industrial university. New technologies for the oil and gas region. Tyumen Industrial University, Tyumen, Russia

Demographic Problems with Human Resources for Agricultural Production in the Region Marina G. Leshcheva , Tatyana N. Steklova , Tatyana N. Uryadova , Arif G. Ibragimov , and Vyacheslav G. Borulko

Abstract The paper analyzes the demographic processes taking place in the Stavropol Krai, one of the largest agricultural regions of the country. The study was conducted based on municipal statistics, departmental statistical monitoring of the Ministry of Agriculture of the Stavropol Krai, and a questionnaire survey of agricultural workers in the region. It was revealed that, for the period 2010–2018, the natural increase in the population declined; the migration outflow of the population, especially youth, intensified; an increase was noticed in the coefficient of demographic burden, primarily due to people of working age. The municipal areas with most active depopulation processes and areas characterized by an influx of rural population are identified. A qualitative analysis of migrants was carried out. The deficit of permanent workers of agricultural organizations of the region has been identified and quantified. The structure of demand for personnel was determined. The analysis of the need for specialists and workers in mass professions by municipal areas was carried out. The discrepancy between the personnel potential of the village and agricultural production introducing digital technologies has been established. The most urgently needed skills and competencies are identified, which absence hinders the innovative development of agriculture. Keywords Rural population · Migration · Demographic burden · Human resources · Staffing

1 Introduction The reproduction of the rural population serves as the basis for the formation of the personnel potential of agricultural organizations and peasant (farmer) households, M. G. Leshcheva (B) · T. N. Steklova · T. N. Uryadova Stavropol State Agrarian University, Stavropol, Russia A. G. Ibragimov · V. G. Borulko Russian State Agrarian University, Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_60

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which determines its main quantitative (number and composition) and qualitative parameters (health and intellectual abilities). With the technological re-equipment of agriculture and the digitalization of the economy, the human factor is of particular importance [3]. Nowadays, many domestic economists pay attention to the increasing role of demographic factors in the formation of rural labor resources (L. V. Bondarenko, N. A. Borkunov, Yu. V. Vasilenko, V. M. Kushnir, I. S. Ushachev, et al.). M. V. Muravyova [7] considers demographic processes as a determinant of sustainable rural development. The influence of internal migration on the demographic balance of rural territories is highlighted in the works of A. P. Budilov [1]. The causal relationships of social infrastructure and the demographic status of rural municipalities are investigated by P. M. Mansurov [6]. At the same time, the regional characteristics of the demographic conditions of staffing the industry are not fully considered [4]. Thus, the purpose of our study is to analyze the demographic aspects of sustainable agricultural development in the Stavropol Krai. The object of study is the rural population of the region. The subject of the study is the process of resuming the number and composition of the rural population of the Stavropol Krai from the standpoint of the stuffing potential of agriculture.

2 Materials and Methods The theoretical and methodological basis of the study was the works of domestic and foreign scholars in the field of demography, migration, and the formation of human resources in rural areas. The studies were conducted based on dialectical, abstractlogical, computational-constructive, and comparative methods using the analysis of official statistical information. The empirical base was the data of municipal statistics, annual reports of the Federal State Statistics Service for the Stavropol Krai, and the Ministry of Labor and Social Protection of the Population of the Stavropol Krai, as well as the results of a questionnaire survey of agricultural workers in the region.

3 Results As of the beginning of 2019, the total population of the Stavropol Krai amounted to 2,795.2 thousand people, 1,155.9 thousand people of the rural population. For 2010– 2019, the rural population decreased by 37.6 thousand people (Table 1). Its share decreased to 41.4% but remained significantly higher than the average for Russia (23.3% as of January 1, 2019). This fact characterizes the agrarian orientation of the region, in which GRP accounts for 15% of the agricultural sector. Population decline takes place in 21 out of 26 districts of the region. The growth is observed only in areas where large cities are located, primarily the regional center, the Caucasian Mineral Waters, and areas bordering the North Caucasian republics. The most intensive depopulation occurs in the Petrovsky, Ipatovsky, Izobilnensky,

Demographic Problems with Human Resources … Table 1 The dynamics of the population of the Stavropol Krai, a thousand people

547

Years

Whole population

Including Urban

Rural

2010

2,786.3

1,592.7

1,193.5

2011

2,785.5

1,593.6

1,191.9

2012

2,787.0

1,600.2

1,186.8

2013

2,790.8

1,608.5

1,182.3

2014

2,794.5

1,619.2

1,175.3

2015

2,799.5

1,627.5

1,172.0

2016

2,801.6

1,632.1

1,169.5

2017

2,804.4

1,636.8

1,167.6

2018

2,800.7

1,636.9

1,163.8

2019

2,795.2

1,639.3

1,155.9

100.3

102.9

96.8

2019 in % to 2010

Source Rosstat regional office of North Caucasian Federal District [8]

Neftekumsky, Blagodarnensky, Kochubeyevsky, and Aleksandrovsky Districts, in each of which the rural population decreased by more than 4 thousand people, over 2010–2018. The main factors in changing the rural population are migration processes, natural growth (decrease), and administrative-territorial transformations (Table 2) [5]. The Table 2 Factors of changes in the rural population of the Stavropol Krai, 2010–2018 Factors

The number of districts

The name of municipal districts and urban districts

Migration outflow, natural decline

11

Alexandrovsky, Andropovsky, Petrovsky, Apanasenkovsky, Izobilnensky, Trunovsky, Ipatovsky, Kochubeyevsky, Krasnogvardeisky, Mineralovodsky, Georgievsky

Migration outflow, a natural increase

11

Budennovsky, Sovetskiy, Kursky, Neftekumsky, Arzgirsky, Kirovsky, Levokumsky, Turkmenskiy, Novoselitsky, Stepnovsky, Blagodarnensky

Natural outflow, migration increase

2

Novoaleksandrovsky, Grachevsky

2

Shpakovsky, Predgorny

Natural and migration growth Total

26

x

Source Developed by the authors based on (Rosstat regional office of North Caucasian Federal District [8])

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Fig. 1 The migration loss rate of the rural population of the Stavropol Krai Source Rosstat regional office of North Caucasian Federal District [8]

grouping of municipal districts and urban districts by factors of changes in the rural population shows that, in only two of them (Shpakovsky and Predgorny), factors of natural and migration growth have positive dynamics. Migration outflow is observed in 22 regions of the region. In 10 regions, it is accompanied by a natural decline. The migration activity of the rural population, which results in the predominance of migration outflow over the influx, is growing. The migration loss coefficient increased from −8.1 in 2010 to −50.5 in 2018 (Fig. 1). The migration balance for this period amounted to 34.1 thousand people, including 7.4 thousand people in the Neftekumsky District, 5.7 thousand people in the Budennovsky District, and 4.7 thousand people in the Aleksandrovsky District. The migration outflow of young people is highest, and it is growing: in 2016, more than 80% of the outflow of the working-age population was made up of young people aged 15–29 in 2018, their share increased to 95%. The proportion of 15–18year-old youth leaving for getting an education is also growing. A small positive migration balance is registered only in people aged 0–15 and people older than working-age—300–600 people a year. A significant part of all migratory movements is carried out within the region. At the same time, the priority direction of the intraregional migration flow is “village— city.” At the same time, the oncoming flow from the city to the village acquired in 2010–2019, steady character and grew from 4.5 to 8.3 thousand people (Fig. 2). Rural areas attract urban residents with a good environment, the possibility to have a settled life, have their own home, personal plot, and engage in agriculture [2]. Within the framework of interregional migration, more than 30% of arrivals arrive in the countryside from the neighboring North Caucasian republics. The main areas of outflow of the population from the village are the Southern (26% in 2018) and Central (25%) federal districts.

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Fig. 2 Intra-regional migration flows (arrivals), a thousand people Source Rosstat regional office of North Caucasian Federal District [8]

The most common reasons for changing a place of residence are, along with family circumstances, moving due to work or study, and return to the previous place of residence [9]. Of the number of arrivals in the Stavropol Krai, men make up 47%, including 72% of working-age, 7%—over 65, 20.4%—under15 years old. Most of the women who arrived in the Stavropol Krai are also of working age, their proportion is slightly less than men and makes up 69.4%; over 13% are women over working age, and 16.9% are children under the age of 15. In the structure of migrants aged 14 and over, more than a third have higher and incomplete higher education, ¼—secondary vocational education. At the same time, there is an outflow of the rural population with higher education. At the heart of it, along with economic factors (dissatisfaction with the level of wages and its conditions), lies the lack of decent social conditions (medicine, leisure, education) and the search for life prospects. The natural movement of rural residents reflects an outstripping reduction in the number of births compared with the number of deaths (Fig. 3). The result is a natural decline in the rural population, with depopulation processes growing at a significant pace. In just the last four years, the natural loss rate, equal to zero in 2015, increased to −1.8 in 2018. The intensity of natural decline in the rural population significantly exceeds the urban level (Table 3). Half of the municipal districts and urban districts of the Stavropol Krai are characterized by a negative balance of the natural movement of the rural population. In the Petrovsky and Ipatovsky urban districts, the number of deaths exceeds the number of births by 1.7 times, in Izobilnensky, Kochubeyevsky Novoaleksandrovsky, and Aleksandrovsky districts by 1.5 times. These are the regions with the most pronounced decline in the natural population.

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Fig. 3 Reproduction rates of the rural population of the Stavropol Krai (per 1000 population) Source Rosstat regional office of North Caucasian Federal District [8]

Table 3 The coefficient of natural population decline in the Stavropol Krai 2010

2011

2012

2013

2014

2015

Urban area

−0.4

−0.7

0,3

0.9

1.5

2.3

Rural area

−0.8

0.1

1

1

0

0.8

2016 2.4 −0.3

2017 1 −0.8

2018 0.4 −1.8

Source Rosstat regional office of North Caucasian Federal District [8]

At the same time, in the Neftekumsky, Kursky, and Stepnovsky Districts bordering Dagestan, North Ossetia-Alania, and the Chechen Republic, the coefficient of natural population growth, on average for 2010–2018, is more than 4.5; the number of births exceeds the number of deaths 1.4–1.5 times. It should be noted that every fifth person in the region dies in working age. The leading causes of mortality are diseases of the circulatory system, in second place are external causes. It is these reasons that determine the main losses of the life expectancy of a population from life before old age. In 2018, more than 70% of people who died from unnatural causes in the region were of working age, with four times more men dying of working age than women. This cannot but affect the characteristics of the rural population associated with a change in the size of its main age groups and the indicator of the demographic burden of dependents of children and retirement ages on non-disabled adults. The decrease in the demographic burden on the working-age population, observed from 2002 to 2010, has been replaced by a steady process of its growth by children and adolescents aged 0–15 years and people over the working age. The demographic burden in the Stavropol village is growing not only due to an increase in the number of people of working age but also by a steady decrease in the number of people of working age. In 2010–2016, it decreased annually by an average of 1%. At the same time, the annual growth rate of the population aged 0–15 averaged to 1.5%, while the

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elderly—2%. In 2018, of 1,155.9 thousand rural residents of the region, 54.9% were non-disabled adults, 24.8%—men and women over working age, 20.2%—children and adolescents aged 0 to 15 years, who are a demographic source of replenishment of labor resources in the village. Over the past three years, the burden of persons of incapable age per thousand people of working age has increased from 770 to 821 people. Moreover, the increase in load is due to the outstripping growth in the number and proportion of older people. Thus, for the period 2016–2018, the burden on children increased by 7%, and the burden on older people by 10%. This is a manifestation of the aging process of the rural population of the region.

4 Discussion The demographic processes taking place in the rural territories of the Stavropol Krai reflect a decrease in the level of population reproduction, and, therefore, a narrowing of the base for the formation of the labor potential of agriculture. Agricultural organizations of the region are already experiencing a shortage of permanent workers. According to the departmental statistical observation of the Ministry of Agriculture of the Stavropol Krai in 2018, agricultural organizations had 2,141 unoccupied vacancies, including 532 managers and specialists and 1,609 workers in the mass professions. The lowest level of staffing was noted in Izobilnensky (83%), Predgorny (84%), Petrovsky (86%), Arzgirsky (87%), and Andropovsky (89%) districts. The provision of agricultural organizations with managers and specialists amounts to 94% in the whole region. Their deficit is most acute in the Andropov, Izobilnensky, Predgorny, Arzgirsky regions, where the supply of senior and middle managers does not reach 90%. The structure of demand for personnel is dominated by workers in mass professions. The need for them is 75.2% of total demand. At the same time, from 2010 to 2018, the share of demand for workers in mass professions decreased by 11.6% due to an increase in the deficit of managers and agricultural specialists. The number of vacant places has increased over the past three years by 273 people, that is, more than two times. The issue of rural staff potential and the challenges of agricultural production introducing innovative technologies is becoming more acute. A sample survey of agricultural workers in the Stavropol Krai showed that they lacked the skills to use modern analytical methods and tools for intellectual work with information, longterm and short-term forecasts of the development of agricultural production and the market for agricultural products, raw materials, and food. This was noted by 48% of the respondents. There is also a lack of skills in processing electronic data on hydrometeorological, phytosanitary, and epizootic conditions, and on the state of the markets for agricultural products, raw materials, and food. This fact was indicated by 23% of the respondents. The lack of skills in digital inventory, monitoring of agricultural land, the control of their condition and use was indicated by 17.2% of the respondents.

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The respondents, in 11.5% of cases, consider it necessary to have, at present, absent skills in servicing digital equipment and cyber-physical devices. It is evident that while maintaining the identified trends, the rural population will continue to decline, increasing the difficulty of young people replacing people of retirement age. The reduction in the rural demographic potential limits the formation of the personnel potential of agricultural producers, which largely determines the possibility of developing agriculture and the entire economy of the region. Of particular concern is the increasing migration outflow of youth and the aging of the rural population. Sustainable development of agriculture, its entry into a competitive position in the market of agricultural raw materials and food involves the widespread introduction of modern technologies and innovative projects in agricultural production. First of all, young people who are receptive to everything new and who have grown up in a digital environment will be able to master and successfully implement them. Current socio-cultural conditions form a desire among rural youth to improve the quality of life, expand options for choosing social preferences, interests, and personal opportunities. The development and modernization of agricultural production should be accompanied by the creation of comfortable working and living conditions so that villagers do not consider moving to the city as the only way to improve their well-being. State support for the industry, including small business forms, opens up prospects for the transformation of the village, turning it into a center of attraction not only for retirees seeking a measured life but also for active, entrepreneurial-minded young people who will be interested in working using modern digital technologies. A significant role in the positive development of the village is played by the national project “Demography,” within the framework of which five federal projects are envisaged: “Financial support for families at the birth of children,” “Promoting the employment of women—creating conditions for pre-school education for children under three years,” “Older Generation”—a program of systemic support and improving the quality of life of the older generation, “Strengthening Public Health,” “Sport is the norm of life.”

5 Conclusion Among the most pressing demographic problems of the rural areas of the Stavropol Krai, it is worth mentioning the increase in the migration outflow, primarily of young people and the adult working population. The movement of the population from the city to village, migration from other regions of Russia, and from abroad does not compensate for the natural decline and migration outflow of rural residents. This increases the dependency burden on the working population and a reduction in the base for the formation of the personnel potential of agricultural production in the region. Between 2010 and 2018, the labor shortage in agricultural organizations of the region has grown, and the unmet need for managers and specialists is growing at the fastest pace. Under the innovative development of the industry, this restrains its

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positive development. The development and implementation of regional programs to create favorable socio-economic living and working conditions aimed at attracting young people to the region and creating new jobs within the framework of priority national projects should contribute to overcoming the identified problems.

References 1. Budilov AP (2019) The main trends of internal migration of the Russian population. Issues Territorial Dev 4(49):5 2. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2019) The organization of an environmental audit into international and Russian ecological-economic activities. Indo Am J Pharm Sci 6(3):5729–5734 3. Ilyasov R Kh, Yakovenko VS, Malyutina TD, Tkachenko DD, Magomadov EM (2019) Methods of “new econometrics” in the study of interrelations with variable structure. Proceedings from SCTCGM: social and cultural transformations in the context of modern globalism. EpSBS, Grozny, Russia 4. Lipatova LN, Gradusova VN (2015) The demographic basis for the formation of the labor potential of agriculture: regional aspects. Nikonovskiye Chteniya 20:370–373 5. Lipatova LN, Gradusova VN (2015) The agrarian policy of modern Russia: scientific and methodological aspects and implementation strategy. The encyclopedia of Russian villages. Moscow, Russia, All-Russian Institute of Agrarian Problems and Informatics, pp 370–373 6. Mansurov PM (2012) The influence of the level of development of social infrastructure on the demographic status in rural municipalities of the Ulyanovsk region. Reg Econ: Theory Pract 32:42–45 7. Muravyova MV (2013) The demographic determinant of sustainable rural development in foreign countries. Bull Saratov State Agric Univ Named After N I. Vavilov 1:77–81 8. Rosstat regional office of North Caucasian Federal District (2019) Statistical yearbook of the Stavropol Krai. 2019. North Caucasusstat, Stavropol, Russia 9. Sokolov NA (2019) Demographics of rural settlements: problems and solutions. The encyclopedia of Russian villages. Moscow, Russia, All-Russian Institute of Agrarian Problems and Informatics, pp 36–39

Tax Payments Optimization for Agricultural Producers Olga. A. Moiseeva

Abstract The optimization of tax payments of agricultural producers contributes to the efficient use of financial resources. It should be implemented only within the framework of current tax legislation. It involves an analysis of existing tax systems, taxes, and the use of such schemes and methods to reduce the tax burden on agricultural producers, taking into account their size and scope of activity. Keywords Taxes · Optimization · Agricultural producers · Agricultural organizations · Peasant (farmer) farms · Individual entrepreneurs · General taxation system · Special tax regimes · Value added tax · Corporate income tax · Corporate property tax

1 Introduction Agriculture is a unique branch of the economy because the results of production and financial activities are influenced not only by economic factors (purchase prices and prices for raw materials, taxes, subsidies, etc.) but also by natural factors (climate, quality of biological materials), which are practically not susceptible to corrective action. In this regard, significant attention should be directed to economic factors, one of which is tax planning. It involves building relationships with the external environment (tax authorities, contractors), which will provide agricultural producers with the opportunity to optimize the amount of tax payments, which will positively impact their financial condition. The process of taxation in any field of activity involves the withdrawal of funds from the manufacturer of products (works, services) to the budget of the state (region, local authorities). Therefore, the natural desire of taxpayers is to minimize cash flows that are “distracted” from their main activities. The positive result of such financial decisions cannot be the amount of calculated taxes equal to zero; this will indicate the unprofitability of the manufacturer’s activities or illegal methods and schemes used to achieve this result. The word “optimization” in Latin Olga. A. Moiseeva (B) Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_61

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means the best, so the goal of tax optimization is to reasonably reduce the number and amount of tax payments, penalties, and tax risks on the part of the inspection authorities. Tax optimization should be considered only within the legal boundaries, that is, use such schemes, techniques, and methods that comply with current tax legislation.

2 Materials and Methods Agricultural producers include enterprises and organizations, peasant (farmer) farms engaged in the production of crops and livestock products, fish farming, hunting, fur farming, and game breeding as well as fishing artels (collective farms) for catching fish and other aquatic bioresources [8]. Additionally, agricultural products are created by households. In the production structure, they account for about 30% of the created products in the industry [1]. The primary purpose of the private farms is to meet personal needs within the family; this activity is not entrepreneurial, it is carried out independently without individual registration and documents [9], 10. Therefore, of more significant scientific interest for research are the taxes paid by organized structures that carry out business activities in the industry (agricultural organizations of various organizational and legal forms (about 36.4 thousand of them), peasant (farmer) farms (136.6 thousand), and individual entrepreneurs (38 thousand). When conducting statistical observations, agricultural organizations are divided into small (up to 60 employees) and large and medium-sized (more than 60 employees) organizations based on the number of employees. Agricultural organizations are structures that have established management, decision-making, accounting, and reporting services that have several production divisions. In the industry, the total share of products produced by agricultural organizations is about 57% [1]. Peasant (farmer) farms and individual entrepreneurship are a form of business activity without forming a legal entity. The share of this category of farms accounts for about 13% of production in the industry. This form of economy is managed by the head of peasant (farmer) farms or the entrepreneur owning the production means; family members participate, and, if necessary, employees are involved. This paper presents a study that allows to optimize tax payments taking into account the size of the activities of agricultural producers.

3 Results Tax optimization is applied to certain taxes (value-added tax [VAT], corporate income tax, etc.), types of activities (agricultural and non-agricultural), and categories of producers (agricultural organizations, peasant (farmer) farms, and individual entrepreneurs).

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The optimization of taxation by categories of producers involves deciding during tax planning about which tax system will be applied: the general taxation system [GTS] or special tax regime [STR] [4]. Agricultural producers operating on a regional scale, as a rule, use special tax regimes—increasing production volume implies expanding the list of contractors, revenues, the number of accounting employees who coordinate these processes, and the application of a standard tax system. When registering a commodity producer with the tax authorities, it is assumed that they will use the main tax regime, so the founders need to implement tax optimization at the stage of creating the enterprise. If a decision is made to use the STR, the tax authorities must be notified. Following Chap. 26 of the Tax Code of the Russian Federation [Tax code], agricultural producers can use unified agricultural tax [UAT], simplified tax system [STS], the patent system of taxation [PST]. In this case, a single tax is calculated and paid, which replaces VAT, corporate income tax, and the property tax for organizations or individuals (for sole proprietors) [3], which significantly simplifies tax accounting and interaction with tax authorities, does not require a lot of accounting staff. When deciding on tax optimization to use benefits (for example, 0% corporate income tax, UAT) stipulated by the tax legislation for producers in agriculture, 70% of the producer’s income must be sales of agricultural products, including products of primary processing manufactured from agricultural raw materials of own production, as well as from the provision of services by the agricultural producer [7]. If this ratio is not observed, it is possible to apply such special modes as STS or PST. From 2019, agricultural producers applying the UAT pay VAT if the amount of received income exceeds 100 million rubles in 2018, 90 million rubles in 2019, 80 million rubles in 2020, 70 million rubles in 2021, and 60 million rubles in 2022. They will also be able to accept input VAT as a deduction, since subparagraph 8 of paragraph 2 of Article 346.5 has become invalid since January 1, 2019. However, the input VAT will no longer apply to expenses, which will lead to an increase in costs and an increase in the estimated single tax for those taxpayers who will not decide to switch to the UAT regime with VAT. Following Article 145 of the Tax Code, they can take advantage of VAT exemption, but they must declare the exemption in the same year with the UAT transition. In connection with this change, producers must decide whether to apply the UAT with VAT or the UAT without VAT. It is necessary to analyze the composition of counterparties if they pay VAT. Accounting and employees of the company must consider the technical side of things (the regular update of accounting software, submission of VAT declarations on telecommunication communication channels) and economic efficiency (more appropriate given the scale of the enterprise activity working with VAT or without indirect tax). As a rule, agricultural enterprises sell food products with a VAT rate of 10% (Article 164 of the Tax Code) and purchase raw materials with a VAT rate of 20%. In this case, VAT will be “reimbursed from the budget,” which will attract the tax authorities’ attention to such producers who will regularly receive funds from the budget as compensation for this tax. To reduce tax risks, the accounting staff in the company must ensure that tax rates are applied correctly, invoices are filled out correctly, contracts are signed, etc. [5].

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The primary tax system, along with VAT, involves the payment of income tax on non-agricultural activities at a rate of 20% and corporate property tax. The scale of activity of large and medium-sized enterprises contributes to the broad coverage of contractors, the presence of departments for accounting and financial planning, which results in the use of a standard tax system, the payment of a large number of taxes, which increases the volume of work and, consequently, the cost of accounting and reporting. Small businesses, peasant (farmer) farms, and individual entrepreneurs, where an accountant maintains accounting, usually use the unified tax code without VAT in a single person. If the condition of Article 346.2 of the Tax Code to use this particular model is not satisfied, it is possible to use STS or PST, taking into account the specifics of activities. The simplified system assumes that income will be taxed at a rate of 6%, or the difference between income and expenditure is 15%. If the activity of a commodity producer is related to production, it implies significant expenses, so it is recommended to use the difference between income and expenses as the tax base. The object of taxation can be changed before the beginning of the next tax period. The STS has restrictions on use. One of the main ones is that the amount of revenue cannot exceed 150 million rubles; to switch to this mode, the revenue for nine months must not exceed 112.5 million rubles. The PST can be used only by individual entrepreneurs and peasant (farmer) farms with the number of employees not exceeding 15 people and the amount of revenue not higher than 60 million rubles for limited activities. The optimization of tax payments for property taxes, particularly for the property tax of organizations, provides for the use of regional tax incentives for agricultural producers. When using the STR for main activities, producers do not pay property tax, which simplifies accounting for small businesses.

4 Discussion The conducted research allows us to correlate the size of agricultural producers with the number of accounting employees, the scale of their activities, and tax systems, the use of which contributes to the optimization of tax payments (Table 1). At the same time, with choosing a tax system, it is necessary to optimize tax payments for individual taxes using tax schemes provided for by tax legislation. Otherwise, tax authorities consider such actions of the taxpayer as an unjustified tax benefit; tax penalties and fines will be accrued [2]. In order to reduce tax risks on the part of the inspection bodies (requirements for the explanation and field tax audits), all tax schemes must be clear, transparent, and supported by relevant documents (contracts, orders, accounting policies of the enterprise for accounting and taxation purposes, etc.) (Table 2).

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Table 1 The optimization of tax payments for agricultural producers depending on the tax system Categories of producers

Taxation system

Main taxes and rates paid (%)

Large and medium-sized producers

GSN

VAT (10%, 20%), corporate income tax (0%), non-agricultural activities—20%, property tax on fixed assets for agricultural (in the absence of benefits) and non-agricultural purposes (2.2%)

Medium and small producers (organizations, peasant (farmer) farms, individual entrepreneurs)

UAT

Single tax—6%, property tax on fixed assets for agricultural (in the absence of benefits) and non-agricultural purposes (2.2%)

Medium and small producers (organizations, peasant (farmer) farms, individual entrepreneurs)

STS

A single tax—15% or 6%

Individual entrepreneurs, peasant (farmer) farms

PST

Potential revenue—6%

Source Compiled by the author based on [7] Table 2 Schemes for optimizing individual taxes for agricultural producers Tax

Tax scheme

A brief description of the contents

VAT

Reducing VAT payable to the budget

Signing contracts with contractors paying VAT, guarantee payments, penalties, write-off of bad accounts receivable when making a profit

VAT refund from the budget

The legal use of the 10 and 20% rates makes it possible for a large number of producers to reimburse VAT

Tax schemes related to expenses

Identified and documented losses, damaged goods, inventory, payment of a penalty to a business partner, full recognition of normalized expenses

Tax schemes related to expenses

The creation of a reserve for doubtful debts, the reduction of the tax base for losses of previous years, transfer of divisions to independent organizations working on the STS

Corporate income tax

Corporate income tax

Rate

For agricultural producers—0%

The adjustment of the tax base

Depreciation method, penalty method, revaluation, lease of fixed assets from companies or sole proprietors using the STS, the use of regional benefits

Source Developed by the authors based on [6], 7]

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5 Conclusion The optimization of tax payments should be carried out from the idea of creating a business in agriculture. The optimization is different for each company and continues depending on changes in the tax legislation. The optimization should be carried out only within the legal boundaries.

References 1. Federal State Statistics Service (2020) Production of agriculture on categories of economies. Retrieved from https://www.gks.ru/free_doc/new_site/business/sx/tab-sel1.htm 2. Federal Tax Service of the Russian Federation (2007) The concept of planning field tax audits (May 30, 2007 No. MM-3–06/333@). Moscow, Russia. Retrieved from https://www.nalog.ru/ rn77/taxation/reference_work/conception_vnp/ 3. Malis NN (2019) Tax policy of the state, 2nd edn. Urait, Moscow, Russia 4. Ministry of Agriculture of the Russian Federation (2018) On taxation of agricultural producers, Informational. Russia, Moscow 5. Moiseeva OA (2019) Taxes and taxation: textbook. RGAU-MSHA named after K. A. Timiryazev, Moscow, Russia. Retrieved from https://elib.timacad.ru/dl/local/umo408.pdf 6. Pimenov NA, Demin SS (2019) Tax planning: A textbook and workshop for academic undergraduate students. Urait, Moscow, Russia 7. Russian Federation (2006a) Tax code of the Russian Federation (Part 2) (August 5, 2000 No. 117-FZ). Moscow, Russia. Retrieved from https://base.garant.ru/10900200/a9a754f9362cc6d 913de8ff6886b8c4c/ 8. Russian Federation (2006b) Federal law “On the development of agriculture” (December 29, 2006 No. 264-FZ). Moscow, Russia. Retrieved from https://www.consultant.ru/document/ cons_doc_LAW_64930/7f3f9c7f0cf173922fa37783b2f49c8fc3d0ce1e/ 9. Uzun VY (2002) Large and small businesses in Russian agriculture: market adaptation and efficiency. Retrieved from https://dissers.ru/books/1/3469-3.php 10. Zinchenko AP (2002) Agricultural enterprises: Economic and statistical analysis. Finance and Statistics, Moscow, Russia

Diversification of Regulatory Powers in Social, Environmental, and Economic Relations as a Factor for Stimulating Regional Development Tatiana Yu. Anopchenko , Elena I. Lazareva , Anton D. Murzin , Roman V. Revunov , and Evgeniya V. Roshchina Abstract The paper discusses the socio-environmental and economic aspects of the current environmental practices in Russia. The authors analyzed the relationship between environmental management and human capital indicators. The authors substantiate proposals regarding the improvement of the mechanism of state regulation of social, ecological, and economic relations in promoting sustainable development of Russian regions. Keywords Region · Sustainable development · Regulation · Control · Resources · State

1 Introduction Modern trends in the innovative digital transformation of society create the conditions for regional development, a significant growing role in the formation of the structural features of which are played by high-quality human, social, and environmental resources [1, 3]. From this perspective, balancing the public, state, and business interests in time and space is one of the most complex tasks. As noted by the researchers, T. Yu. Anopchenko · E. I. Lazareva · A. D. Murzin (B) · R. V. Revunov · E. V. Roshchina Southern Federal University, Rostov on Don, Russia e-mail: [email protected] T. Yu. Anopchenko e-mail: [email protected] E. I. Lazareva e-mail: [email protected] R. V. Revunov e-mail: [email protected] E. V. Roshchina e-mail: [email protected] R. V. Revunov Platov South-Russian State Polytechnic University (NPI), Novocherkassk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_62

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“the coordination of public and private interests is extremely rare; special mechanisms of management are required to ensure it” [8]. Sustainable development of complex socio-economic systems is impossible without an effective mechanism for developing a compromise that allows for the most efficient and acceptable resource allocation process [5]. In connection with the preceding, the relevance, timeliness, and scientific and practical significance of research aimed at finding ways to optimize socio-ecological and economic relations are of no doubt. Of high importance is the formation of such a mechanism for exploiting the natural resource potential that would meet the criteria of business efficiency, sustainable development standards, and a public request for a social environment of appropriate quality [21]. In this context, a unique role is played by the regulatory procedures enshrined in legislative and regulatory acts that determine how to coordinate private, public, and state interests [22]. A positive attitude to the environment should be morally and materially rewarded. The one who acts differently must be sanctioned with fines, taxes, and administrative penalties to compensate for the caused damage. The regulatory system of the state can be used for these purposes. The market helped to bring industrial and information revolution. Market levers, which are properly used along with state regulation, can also lead to the next revolution, the result of which will be the achievement of socio-ecological and economic sustainability. One of the essential factors of such a transition may be the termination of subsidies at the expense of taxpayers (budget) of production in case of damage to the social, ecological, and economic system [19]. In essence, the quality of natural environment is supported by a basic framework developed at the national level that defines policies in relation to the natural environment and includes regulatory standards and requirements. Based on such standards and requirements, a variety of interests-based behavior of all entities is built, and all issues related to the exploitation of the natural resource potential are resolved [6, 7]. Market-oriented environmental policies also include encouraging people to be environmentally friendly without violence and coercion. Nevertheless, financial and other sanctions are not excluded. The primary role in updating this process is played by human capital development (public information, education, persuasion, etc.). Ultimately, it is the influence of individuals through a civil society that encourages government agencies, international institutions, and entrepreneurs to implement sustainable development strategies [10, 12]. Entrepreneurship is called upon to play a special role in the future development of the planet. Leaders of various companies and entrepreneurs must adhere to sustainable development principles and meet the needs of current generations without prejudice to future well-being. Even though the idea of sustainable development is global and can be realized only on a global scale, there are examples from the practice of companies and corporations around the world that already successfully solve environmental problems and confirm the viability of the idea of balanced socio-ecological and economic development [18].

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2 Materials and Methods Let us consider the performance indicators of the components of the natural environment of Russia (State report “On the state and environmental protection of the Russian Federation in 2018,” [14] State report “On the state and environmental protection of the Russian Federation in 2017,” [15] State report “On the state and environmental protection of the Russian Federation in 2016” [16]). The dynamics of anthropogenic impact on the Russian environment calculated by the authors by the type of economic activity for 2016–2018 are presented in Table 1. The information given in Table 1 allows us to state the following. Multidirectional trends are observed. The positive trend is that the scale of the emission of pollutants Table 1 The dynamics of anthropogenic impact on the Russian natural environment by type of economic activity for 2016–2018 Types of economic activity

Years

Dynamics

2016

2017

2018

The dynamics of emissions of air polluting substances, thousand tons Agriculture, forestry

61.8

129.5

58.3

−3.5

3,167.5

2,640.8

1,934.4

−1,233.1

Industrial production

25,894.9

27,994.3

23,225.9

−2,669.0

Production and supply of electricity, heat, and water

19,284.4

18,880.9

15,864.6

−3,419.8

Subsoil use

Transport and logistics complex Total

133.7

194.7

328.2

194.5

48,542.3

49,840.2

41,411.4

−7,130.9

The dynamics of the discharge of polluted waters in the water area, million m3 Agriculture, forestry

816.8

740.4

748.8

−68.0

Subsoil use

801.3

832.2

784.1

−17.3

Industrial production

2,634.8

2,402.6

2,257.5

−377.3

Production and supply of electricity, heat, and water

1,106.8

996.8

883.1

−223.7

Transport and logistics complex Total

647.9

683.9

754.0

106.1

6,007.6

5,655.8

5,427.5

−580.1

The dynamics of the formation of solid industrial and municipal wastes, million tons Agriculture, forestry Subsoil use Industrial production Production and supply of electricity, heat, and water Transport and logistics complex Total Source Compiled by the authors

49.2

41.5

42.8

−6.4

4,723.8

5,786.2

6,850.5

2,126.7

549.3

274.8

243.8

−305.5

27.7

20.6

20.1

−7.6

3.0

3.9

2.9

−0.1

5,353.0

6,127.0

7,160.0

1,807.0

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into the air decreased during the observation period from 48,542.3 thousand tons to 41,411.4 thousand tons (−7,130.9 thousand tons). By types of economic activity, the most significant dynamics of reducing anthropogenic impact is demonstrated by the enlarged group “Production and supply of electricity, heat, and water,” which reduced pollutant emissions from 19,284.4 thousand tons in 2016 to 15,864.6 thousand tons in 2018 (−3,419.8 thousand tons). Such types of economic activity as industrial production (−2,669.0 thousand tons) and subsoil use (−1,233.1 thousand tons) also show a reduction in the emission of pollutants into the air. The inflow of polluted waters in the water area shows a negative trend, decreasing from 6,007.6 million m3 in 2016 to 5,427.5 million m3 in 2018 (−580.1 million m3 ). In particular, the supply of contaminated water due to industrial production decreased by 377.3 million m3 in 2016–2018. The supply of contaminated water due to the production and supply of electricity, heat, and water resources decreased by 223.7 million m3 . Among the negative trends, we can note a significant increase in the generation of solid industrial and municipal waste. The volume of their emissions increased from 5,353.0 million tons in 2016 to 7,160.0 million tons in 2018 (+1,807.0 million tons). The leading source of waste is subsoil use. Its impact increased by 2,126.7 million tons (from 4,723.8 million tons to 6,850.5 million tons). At the same time, industrial production reduced waste emissions by 305.5 thousand tons. The researchers established a close correlation between exploiting the resource potential and the so-called “outcome” indicators of regional development. They also found a correlation with indicators of widely interpreted human capital, a new dimension of which, unlike the traditional one, covers such aspects as freedom of enterprise and political choice, security (both physical (social) and economic), the quality of the education system and healthcare, and other aspects. In particular, based on the development and empirical testing of a four-sector model of human capital, it was found and proved that the quality of the ecological environment, along with such components as the quality of the regional socioenvironmental system (marked primarily with the degree of social segmentation of regional society), material living standards, and quality of individual human capital has a statistically significant effect on the sustainability of innovation-oriented development trends in Russian regions [11]. Additionally, the anthropogenic impact on the environment is one of the factors determining the incidence rate of citizens living in the area of such exposure [2]. In turn, the incidence rate affects the dynamics of indicators of human capital in regional comparisons. Table 2 presents the dynamics of the number of additional cases of diseases in the context of the leading sanitary and hygienic environmental factors. The established reduction of anthropogenic impact on the atmosphere and water bodies contributes to improving the qualitative features of human capital by reducing the environmentally-caused incidence of citizens from 5,127.66 million cases to 3,001.43 million (−2,126.23 million cases). Thus, the interrelation of indicators of social, ecological, and economic relations and indicators characterizing human capital is confirmed.

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Table 2 The dynamics of the number of additional cases of diseases in the context of the leading sanitary and hygienic environmental factors for 2017–2018, million cases Influence factor

Years

Dynamics

2017

2018

Air pollution

1,657.74

863.55

−794.19

Water pollution

2,062

1,764.49

−297.51

Soil pollution

1,401.71

345.08

−1056.63

Other types of anthropogenic impact

6.21

28.31

22.10

Total

5,127.66

3,001.43

−2,126.23

Source Developed by the authors

3 Results Russian legislation establishes the legal basis for environmental management. According to article 42 of the Constitution of the Russian Federation, everyone has the right to a favorable environment, reliable information about its condition, and compensation for damage caused to the health or property by an environmental offense. Under the indicated legal norm, nature management, environmental protection, environmental safety, specially protected natural territories, etc. are referred to as the subject of the joint jurisdiction of the Russian Federation and its constituent entities. The subject of joint jurisdiction includes land, water, forest, subsoil legislation, and environmental protection. The implementation of these constitutional norms was carried out in federal legislation, delimiting and concretizing jurisdictions, powers, duties, and responsibilities on the above issues of Russia, its constituent entities, and local authorities. The Land Code of the Russian Federation (Article 94) establishes the procedure for the exploitation of natural resources. State authorities of the constituent entities of Russia and local government bodies have the authority to classify lands located within their administrative borders as specially protected territories based on the laws of the constituent entities of the Russian Federation and regulatory legal acts of local governments [17]. Additionally, state and local authorities have the right to develop agreements on public-private or municipal-private partnerships with investors following the applicable federal laws. In particular, a promising area for implementing such projects is the utilization of solid municipal and industrial waste. National projects determine the development of Russian public-private partnership [PPP] projects in the coming years. National projects are comprehensive programs in the main areas of solving socially significant problems of investment development: transport, education, ecology, demography, housing, construction, etc. The analysis of domestic practice in the preparation and implementation of PPP projects shows that the predictive and analytical support of the relationship between business and government structures requires tools to make an informed choice of the best PPP model in terms of risk diversification (which determines the degree

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to which the interests of the parties are respected when implementing sustainable development projects). Based on the results of the analysis, we can propose evaluation criteria and alternatives. An algorithm for multi-criteria modeling of the choice of the best PPP model in minimizing risks was developed [4]. The advantages of the expert-analytical multicriteria decision-making model [MCDMM] from the point of view of supporting the harmonization of public (state) and private interests include a hierarchical reflection of the relationship of decisions with factors and evaluation criteria, ensuring accuracy, consistency of the information base, and identifying the most significant factors and probable situations of change of the decision. The justification of the criteria and multi-criteria assessment of PPP models will allow potential project participants to predict risks and evaluate strategies (tools) for their minimization (diversification). The proposed three-stage MCDMM-modeling algorithm will make it possible to evaluate alternative PPP models from the point of view of observing the interests of interested parties (government and public structures, businesses, and others). This unique toolkit allows us to integrate four aggregated factors (economic, social, managerial (institutional), and environmental) in the assessment of PPP models. When applying the three-stage MCDMM algorithm, the assessment criteria and indicators were sequentially determined. A group of experts was formed. Furthermore, expert evaluation for alternative public-private models and calculation of integrated assessment indicators were implemented, allowing participants to decide on whether to choose a specific model of public-private partnership or not. Reducing the risks of public-private partnerships is impossible without a sound investment policy, the purpose of which is to attract multichannel investments in the form of direct financing of priority projects and by creating a favorable investment climate. From the selection procedure, investment decisions based on a multi-criteria assessment of several multidirectional economic, social, and environmental risks and trends, are among the most complex. The criteria for state support for such design decisions are indicators of social, environmental, and economic efficiency. The basis for the selection of criteria is the sustainable development model created by the international community. Within the framework of such a model, economic efficiency, economic security, social justice, social security, and security in the environmental development should be ensured simultaneously [13]. The very nature of the regional social, ecological, and economic system as a multistructural unity of subsystems of different quality encourages a revision of the state strategic policy, the real content of which should be the territorial organization of the reproduction of resources, first of all, high-quality ones, focused on stimulating economic growth primarily based on social investments (Fig. 1). Investments in environmental measures and improving the quality of the environment are one of the most important conditions for improving the quality of human life and, in particular, health. They constitute a necessary condition for sustainable economic growth. To assess the effectiveness of these investments, it is crucial to know how changes in environmental quality lead to changes in the health of the population, i.e., what are the estimated gains or losses [9, 20].

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Fig. 1 The mechanism of public spending of rents on quality resources in regional strategic management. Source Developed by the authors

4 Discussion Managing the risks of developing a social, ecological, and economic system may reduce damage to material objects, human resources, and the natural environment. The effects of risk management include the increase in the volume of economic activity, the growth in industrial production in the region, the improvement of the quality and consumer value of manufactured goods, and the reduction of the cost of eliminating human-made damage to the environment and territory. The aggregate parameters of the effectiveness and cost of the program are a vector with a dimension corresponding to the number of criteria taken into account. Following the analytical model of “cost-benefit,” the total average expected effect could be determined based on the difference in the probable profitability of management decisions, the expected amount of damage arising from the implementation of adverse factors, and the total cost of project (program) activities. It is necessary to take into account that the maximum effectiveness of the control effect on the managed social, ecological, and economic system can be achieved only if the list of the most appropriate program measures is implemented. The use of econometric tools makes it possible to identify that the fixed value of possible damage occurring if preventive measures are not implemented is the first

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factor of the function seems. In this case, the effectiveness of the impact increases with decreasing costs for the event’s implementation. Another analytical model of “risk-benefit” in the tasks of determining the effectiveness of program activities also requires the cost expression of performance indicators and costs for the implementation of program activities. Nevertheless, it allows evaluating events of the same type, marked with some inaccuracy and/or significant variation in the values of analytical indicators. In this case, the main efficiency criterion is expressed as the ratio of the change in the risk level to the unit of the cost necessary for implementing programmed measures of the control effect. Models for reconciling public and private interests can undoubtedly find their application in the regional project management system both in coordinating the interests of participants in PPP projects and in developing a mechanism for cooperation in border areas (local production and trade contacts in border areas; long-term interactions based on cooperation agreements of individual organizations/territorial units; temporary agreements on network cooperation; the implementation of individual cross-border projects in the territories; forms of spatial (inter-regional) integration of a new type – cross-border clusters, development corridors, etc.). Due to the involvement of a large number of stakeholders in the preparation and implementation of PPP projects and the difficulty of providing state guarantees, especially financial ones (insurance and other sources of risk coverage), the diversification of the risks of implementing such projects requires a systematic approach, including the analysis of the risks of all project partners and lengthy negotiation processes. An essential principle of risk-sharing is the principle of closing PPP risk by a participant with the corresponding potential.

5 Conclusion The analysis of the statistical base shows that the anthropogenic impact on the components of Russian natural environment is gradually decreasing in terms of pollution of the atmosphere and aquatic environment. However, waste production is significantly increasing, contributing to an irreversible regression of the qualitative features of the resource potential. One of the features of this process is the significant spatial differentiation of the technogenic impact perceived by ecosystems, expressed in the diversity of the current ecological state of Russian territories, which varies from relatively prosperous to extreme crisis. Among the negative socio-ecological and economic consequences of the environmentally unbalanced exploitation of regional resource potential, it is necessary to single out additional costs of households arising due to the growth of morbidity of citizens caused by the environment, forced migration of people from environmentally disadvantaged areas, additional costs of economic entities caused by the degradation of soil and land potential, reducing the species diversity of forests, the need for additional treatment of water resources used in the production process, fines for environmental pollution, increasing the payback period of ongoing investment

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projects, etc. Combining the above factors destabilizes the sustainable development of Russian regions and reduces the competitiveness of their economic systems. The system of regulation of social, ecological, and economic relations, formed by the current Russian legislation and regulatory legal acts, is inadequate to modern environmental practices, does not help stimulate economic entities to introduce advanced resource-saving technologies and practices, does not contribute to achieving a balance between the interests of a society striving to preserve the natural environment and the economic interests of businesses seeking to maximize revenues, including through the exploitation of natural resources. The main disadvantages of the existing system of regulation of social, ecological, and economic relations, in our opinion, include: • Excessive concentration of powers in federal government bodies; • The uniformity of rules and norms throughout the Russian Federation, which does not allow for proper consideration of regional specifics, • Low speed of response to changes in the external and internal environment; • The absence of a system of incentives encouraging economic agents to introduce resource-efficient technical and technological solutions into practice. The diversification of regulatory powers is one of the main areas of intensification of social, ecological, and economic relations in Russia. It consists of the redistribution of control and supervision functions in favor of local authorities, which will significantly accelerate the response to violations of environmental standards. Another essential element of the proposed diversification is the transfer of a part of the state authorities of the organizational and administrative functions in water and subsoil use and waste management to the constituent entities of Russia. The implementation of this measure will allow for complete consideration of the territorial specificity in the development of strategies and programs for regional development. Acknowledgements This work was supported by the Russian Foundation for Basic Research: Project no. 18-010-00594.

References 1. Ablyazov T, Rapgof V (2019) Digital platforms as the basis of a new ecological system of socio-economic development. IOP Conf Ser: Mater Sci Eng 497: 2. Anopchenko TY, Murzin AD (2018) Segregation and dynamics of human capital as a factor of regional socio-economic development. Sochi J Econ 12(4):346–354 3. Anopchenko TY, Lazareva EI, Lozovitskaya DS, Murzin AD (2019) The analysis of the key parameters of sustainable development of the region in the context of digitalization. Sci Educ: Econ Econ Entrepreneurship Law Manage 1(104):7–12 4. Anopchenko T, Gorbaneva O, Lazareva E, Murzin A, Ougolnitsky G (2019) Modeling publicprivate partnerships in the innovative economy: a regional aspect. Sustainability 11(20):5588. https://doi.org/10.3390/su11205588

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5. Erokhin V, Endovitsky D, Bobryshev A, Kulagina N, Ivolga A (2019) Management accounting change as a sustainable economic development strategy during pre-recession and recession periods: evidence from Russia. Sustainability 11(11):3139 6. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2019) The organization of an environmental audit into international and Russian ecological-economic activities. Indo Am J Pharm Sci 6(3):5729–5734 7. Frolov AV, Kulish NV, Sytnik OE, Tunin SA, Germanova VS (2018) The development of environmental auditing in Russia and international practice in market conditions. Res J Pharm Biol Chem Sci 9(6):1573–1579 8. Gorbaneva OI, Murzin AD, Ugolnitsky GA (2018) Mechanisms for the coordination of interests in the management of territorial development projects. Manage Large Syst 71:61–97 9. Hartwick JM (1977) Intergenerational equity and the investing of rents from exhaustible resources. Am Econ Rev 67(5) 10. Kazantseva E, Chistyakova G (2018) Ensuring regional security in the context of economic aspects of sustainable development. E3S Web of Conferences 41:04045. https://doi.org/10. 1051/e3sconf/20184104045 11. Lazareva E, Anopchenko T, & Murzin A (2020) Human capital in the system of urban territory sustainable development management. In: Vasenev V, Dovletyarova E, Cheng Z, Valentini R, Calfapietra C (eds) Green technologies and infrastructure to enhance urban ecosystem services. SSC 2018. Springer Geography. Cham, Switzerland 12. Lazareva EI, Kosolapova NA, Pashkova AYu et al (2008) Ecological orientation models of public-private strategies for investing human capital in an innovative economy. Southern Federal University, Rostov-on-Don, Russia 13. Lazareva E, Anopchenko T, Roshchina E (2016) Innovative technologies of land resources management for the sustainable spatial development of urban areas. Proceedings from SGEM ‘16: international multidisciplinary scientific conference on social sciences and arts, pp 327– 334 14. Ministry of Natural Resources and Environment of the Russian Federation (2019) State report “on the state and environmental protection of the Russian federation in 2018.” Moscow, Russia. Retrieved from http://www.mnr.gov.ru/docs/gosudarstvennye_doklady/ 15. Ministry of Natural Resources and Environment of the Russian Federation (2018) State report “on the state and environmental protection of the Russian federation in 2017.” Moscow, Russia. Retrieved from http://www.mnr.gov.ru/docs/gosudarstvennye_doklady/ 16. Ministry of Natural Resources and Environment of the Russian Federation (2017) State report “on the state and environmental protection of the Russian Federation in 2016.” Moscow, Russia. Retrieved from http://www.mnr.gov.ru/docs/gosudarstvennye_doklady/ 17. Murzin AD, Revunov RV (2019) The environmental and economic conditions and regulatory mechanisms for the formation of specially protected areas of the Rostov region. Econ Ecol Territorial Entities 3(1):46–55 18. Skufina T, Baranov S, Samarina V, Samarin A (2019) Natural resources as a factor of socioeconomic development of the Arctic territories: theoretical components of the research problem. IOP Conf Series: Earth Environ Sci 302: 19. Starikova T, Filimonova N, Zaitseva I (2018) Research on the effectiveness of budgetary instruments of the regional socio-economic systems development. Adv Econ Bus Manage Res 71:50–55 20. Stiglitz JE (1974) Growth with exhaustible natural resources: efficient and optimal growth paths. Rev Econ Stud 41:123–137 21. World Bank (2012) Inclusive green growth: The pathway to sustainable development. World Bank, Washington, D.C 22. Yescombe ER (ed) (2015) Public-private partnerships principles of policy and finance. Kidlington, UK

Economic Growth in Russia: Main Problems at the Current Stage Viktoriya V. Rakhaeva

Abstract The study aims to identify the problems of economic growth in Russia at the present stage of economic development. The study was conducted based on the analysis of quantitative and qualitative indicators of economic growth of Russia and international statistics. The paper assesses the quality and determines the causes of low economic growth in Russia. As a result of the study, it was found that in the structure of gross domestic product [GDP] in Russia, consumer spending occupies the main share, while the share of investment spending is insignificant, which impedes the improvement and renewal of fixed capital and production growth. The rates of Russian economic growth are lower than the rates in the world and are not sustainable. Low indicators of the quality of economic growth are observed. Moreover, the indicated problems include the stagnation of real income of the population, high growth in lending, uneven distribution of national income among members of society, and relatively high poverty. The main problems of economic growth are the continuing raw material orientation of the Russian economy, low investment activity, increased tax burden, social tensions caused by raising retirement ages, and economic sanctions and geopolitical conflicts arising in the world. The social orientation of the economic policy of the state is necessary to increase quantitative and qualitative economic growth indicators. The following tasks are of particular importance: increasing human capital, improving social infrastructure, effectively redistributing national income, emphasizing the economy of innovation, stimulating investment activity, and digitalizing all sectors of the economy. Keywords Stages of development of the russian economy · Investments · Human capital · Real disposable incomes · Poverty

V. V. Rakhaeva (B) Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_63

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1 Introduction Economic growth is the result of the interaction of specific causes, conditions, and factors. Their combination allows us to realize the growth potential but not always and not in all countries. Nevertheless, each country strives for it, since economic growth helps increase the material well-being of citizens and maintain national security [10]. The indicators of the dynamics and quality of economic growth are the essential features of national economic development. Therefore, achieving high and stable rates of economic growth is the primary task of the state [2]. Since the beginning of the 1990s, three main stages were identified in the development of the Russian economy [6]: 1. 2. 3.

The decline of 1990–1998—the period of transformation of the economy from planned to market. The recovery growth of 1999–2008, associated with the restructuring of the socio-economic structure of society. Economic inhibition of 2009–2018 – the current economic growth stage, marked with low growth rates, a combination of cyclical and structural crises, and the formation of a new economic growth model based on the innovative development of the country.

In Russia, one of the most important centers of world science and culture, there are conditions for intensive neoinformation development [8]. Nevertheless, since 2014, there has been a tendency to reduce the stability of the dynamics of economic growth and decrease the economic potential of the country. Weak domestic demand, a low growth rate of real disposable income, an increase in poverty, an increase in the tax burden, and volatility of energy prices revealed the weaknesses and vulnerabilities of the current economic system. The solution to increasing the rate of economic growth is one of the primary tasks to ensure the national security of the country. The study highlights the main problems of low economic growth in Russia.

2 Materials and Methods For the theoretical part of the study, methods of analysis and synthesis of new knowledge were used based on the study of materials in relevant journals and conferences. For the analytical part, we used materials from the Federal State Statistics Service and the Central Bank of Russia and reference and informational materials from the IMF, the World Bank, and the OECD. We applied such methods as analysis, synthesis, economic-statistical, graphic, deduction, induction, and comparison during the study.

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3 Results According to the World Bank, in 2018, more than 40% of global GDP at purchasing power parity was created by Asian countries. The largest share in the world GDP structure belongs to China (18.58% of world GDP). Russia, the largest country in terms of territory and resource provision in the world, occupies only the 6th place with a specific gravity of only 2.92% of world GDP [11]. As a result of the study, it was found that in Russia, the nominal GDP growth rate has not been stable since 2009. Despite the growth of this indicator over the study period by more than 55%, the average annual growth rate of GDP is reduced from 3.6% (in 2006–2010) to 1.6% (in 2011–2015) and up to 1.4% (in 2016–2018), that is, more than 2.5 times (Federal State Statistics Service). Having studied the real growth of the Russian economy using the index of the physical volume of GDP, which allows us to level out the effect of prices on GDP (Fig. 1), it turned out that the current stage is in a protracted recession, which is replaced by growth only after 2015. The study found that the model of economic growth in Russia is a consumer model. When analyzing the GDP structure by expenditure, we revealed the prevalence of gross consumption for the entire study. On average, during the study period, the share of consumer spending in the Russian GDP structure amounted to more than 60%. Investment expenditures occupied the second position in the share of GDP, not exceeding 23% of GDP for the entire period under review (Federal State Statistics Service). Meanwhile, economic growth carried out on an investment basis is more stable and efficient than growth based on consumer spending, since it is associated with the emergence of new industries, increased productivity, and renewal of fixed capital. Leading countries in terms of economic growth demonstrate an investment model (China) or a mixed model (Germany and Japan) when consumer and investment spending have approximately the same contribution to economic growth [9]. In Russia, there is a significant gap between these components. The direction of investment changes coincides with changes in GDP. Thus, for 2006–2010, the growth rate of investment in fixed assets amounted to 11%. In 2011– 2015, it saw a decrease of up to 4.5%. In 2016–2018, it decreased to 2.2%. That is, it decreased more than four times [5]. The rate of change in investment exceeds the rate 110.0

108.5

105.2

104.5

104.3

103.7

105.0

101.8

100.7 97.5

100.0

100.3

101.6

2016

2017

92.2

95.0 90.0 85.0 80.0 2007

2008

2009

2010

2011

2012

2013

2014

2015

Fig. 1 Volume Index of GDP in Russia. Source (Federal State Statistics Service [5])

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Fig. 2 Investments in fixed assets in the sectors of the Russian economy. Source (Sukharev [9])

of change in GDP, which indicates a decrease in the effectiveness of capital investment in the economy. The decreasing investment rate at this stage is explained by the unattractiveness of investment in the face of macroeconomic instability, growing debt burden, and high risks. As a result, investors postponed investment plans until better times, taking advantage of investing in other countries. If we consider the structure of investments in fixed assets by sectors, then the most significant contribution to the economic growth rate is provided by the transaction sector (Fig. 2). Such a structure can be explained by the uneven distribution of risks and incomes in these sectors. The manufacturing sector can contribute to economic growth provided that it has a sufficient technological level. The technological structure of manufacturing industry in Russia lags behind the structure of developed countries. While in the leading countries, the share of high-tech production is 19%, and the share of medium hightech production is 28%, the share of these industries in Russia does not exceed 7.5% and 24%. That is, in total, it is more than 1.5 times less than in leading countries [1]. Technological progress in the modern world is global. Therefore, the risks of technological lag in our country are significantly increased due to the application of sanctions. After examining the qualitative indicators of economic growth in Russia, it was found that cash expenditures in 2014–2018 were growing faster than income, while household savings were reduced (Table 1). Over the study period, the growth of loans exceeded the increase in deposits of the population. Thus, the total debt on all loans in Russia increased by 2.7 trillion Table 1 The rate of cash income and expenses of the population, % Years

2014

2015

2016

2017

2018

Total cash income

107.0

111.4

102.2

103.0

104.0

Total cash expenses

108.7

104.0

102.5

105.2

107.5

67.6

74.9

98.8

80.1

56.4

The total increase in population savings

Source (Central Bank of the Russian Federation [3])

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26.4 37.3

III

41.7 45.6

I

50.1 0

10

20

30

40

50

60

Fig. 3 The share of food in total household spending on consumption for 20% of the population (I—20% of the poorest, V—20% of the wealthiest) in 2018, %. Source (FAO [4])

rubles. Mortgage loans increased by 1.2 trillion rubles. The volume of bank deposits increased by a little over 2.5 trillion rubles [3]. This situation indicates a decrease in the well-being of the population and dependence on credit funds. As a result of the study, two negative trends were identified in the structure of consumer spending—the growth rate of interest on loans exceeds the dynamics of nominal incomes of the population, which leads to an increase in the share of payments related to servicing debt to banks in total household expenses [6]. Additionally, the share of food costs is high (Fig. 3). The poor part of the Russian population spends half of their income on food. Even the wealthiest 20% of Russians spend more than a quarter of income on food. Meanwhile, in developed European countries, a fair and comfortable share of food expenditures for the population is considered 15% of earnings. Reducing this share provides the ability to satisfy the needs of higher levels for the harmonious development of the individual. In the ranking of countries in terms of GNI per capita, Russia occupies 73rd position out of 207 countries. According to the World Bank methodology, Russia belongs to the category of countries with an average income per capita (from $1,036 to $12,615). For the study period, this indicator in Russia increased and amounted to $10,230 in 2018 [11]. However, this indicator does not take into account how evenly national income is distributed among the population. The analysis found that the available income for 2009–2018 is unevenly distributed between Russians. The decile ratio of funds calculated for 20% groups of the population in Russia is quite high, despite a slight decrease from 16.6 times in 2009 to 15.6 times in 2018. The main reasons for this differentiation are intra-industry, inter-industry, and inter-regional differences in the remuneration of Russians. The Gini coefficient for income for the study period does not leave the limits of 0.421–0.413. However, the Gini coefficient for property for the period under review is approaching unity, which indicates an extremely uneven distribution of property between Russians [5]. The analysis found that 18.4 million people (12.6% of Russian population) live below the poverty line. From 2009 to 2018, the poverty level slightly decreased by 0.4%. However, in 2018 compared with 2009, the depth of poverty increased by more than 97% (Federal State Statistics Service). This situation is associated with an increase in the cost of living by 49.9% and an annual decrease in the real disposable incomes of population from 2014 to 2018 (Table 2). The most important indicator of the quality of economic growth is the Human Development Index [HDI], which integrates such important social and economic

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Table 2 Real disposable cash income in the Russian federation Years Real disposable cash income, % of the Years Real disposable cash income, % of the previous period previous period 2009

103.0

2014

99.3

2010

105.9

2015

96.8

2011

100.5

2016

94.0

2012

104.6

2017

98.9

2013

104.0

2018

99.9

Source (Federal State Statistics Service [5])

indicators as the state of health, level of education, and the actual income of citizens. According to this indicator (the value of 0.824), Russia ranks 49th out of 149 countries (World Economic Forum, n.d.). Despite the growth of this indicator in Russia, some problems determine the relatively low position of the country in the world ranking. Firstly, the Russian regions are unevenly developed; they differ significantly in living conditions, infrastructure, employment opportunities, price levels, and incomes and their differentiation. About 20% of Russians live in prosperous regions and 10% in depressed ones. Secondly, Russia has low disposable incomes and growth rates. Thirdly, we can see the imbalance of specific components of the HDI (income, education, and longevity). Despite a high education index (0.910), Russia has a rather low index of longevity (0.671). The income index is 0.703. The share of human capital in Russia per capita is one-fifth of the OECD average. At the current pace, Russia will be able to approach this level no earlier than one century [7].

4 Discussion In an attempt to understand the problems of low economic growth in Russia, we consider the current period of development from 2009 to 2018, defined as the stagnation of the economy (Fig. 2). In general, the dynamics of global economic growth currently slowed down. The World Bank estimates the rate of global economic growth as “sluggish” [11]. In Russia, the economic growth rates were even lower than the world ones. Especially difficult for the Russian economy were 2009 and 2015. In 2009, the Russian economy reached its “bottom.” This situation was the result of the global financial and economic crisis of 2008. The economy began to grow due to the economic policy of the state aimed at stimulating demand, increasing revenues, and compensating for losses using the Reserve Fund to neutralize the crisis effects (2010–2017). The rather high economic growth rates at the beginning of this period are declining and reach negative values in 2014.

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The fall in the economy in 2015 was due to geopolitical aggravations, the imposition of sanctions, and the decline in oil prices. A feature of this stage of economic growth was its low quality—a decrease in the real incomes of the population, its well-being, an increase in the cash income deficit, and a rather high poverty level in the country. In the face of adverse economic expectations, the Russians switched to the selective-savings model of current consumption marked with the action of the psychological law of J. M. Keynes and the decreased consumer demand. The second driver of the current stage of Russian economic growth is an investment. Macroeconomic instability in the country does not provide a significant increase in investment activity within the country. In 2018, direct foreign investment in the non-financial sector reached a minimum since 1994—$1.9 billion [6]. Over the past ten years, in the structure of foreign direct investment, the share of mining occupied 41%, the share of finance, insurance, and trade equaled to 37%. Thus, foreign investors are ready to develop these industries in Russia. The share of manufacturing industries in foreign investment is only 9% (excluding metallurgy, the production of chark and oil products, wood processing, and other industries related to the extraction of raw materials) (Central Bank of the Russian Federation). Thus, in the face of economic risks associated with sanctions and the difficult geopolitical situation, low monetization of the economy, and increased tax burden, foreign investors prefer to invest in industries that provide rents of raw material. Currently, there is a need for investments related to the development and implementation of new technologies and productivity growth, so-called “smart” investments that will strengthen its position on the world stage and increase the competitiveness of the country. The continued raw material orientation of the Russian economy is another reason that holds back economic growth. It “… does not ensure the development and relevance of human potential, does not allow a person to find application for their abilities, talents, work, and education” [8]. Meanwhile, it is not raw materials, but manufacturing that should be an essential driver of economic growth. It is here that there are reserves for a significant increase in labor productivity, the possibility of saving on the scale of production, the use of innovations, direct and reverse inter-industry ties, ease of integration into global production systems, and a positive impact on social justice and environmental friendliness of production [10]. However, there is a problem of an insufficient level of technical equipment of industries, significant industry differences in the application of advanced technologies, and technological lag behind developed countries. This problem gives rise to the problem of attracting domestic and foreign investments, which can be solved by increasing the investment attractiveness of Russia. The main capabilities of the technological breakthrough in modern conditions are information and communication technologies, biotechnologies, robotics, nanotechnologies, and the new power industry. Their development is possible subject to increased investment in R&D. It can lead to a qualitative breakthrough in the manufacturing sector. The main risks for the economic growth of Russia include a weakening global economy, increased trade tension, and several internal factors. Russia is exposed to external shocks through foreign trade, financial channels, and commodity markets.

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Russia also remains vulnerable to the introduction of possible additional economic sanctions, which could entail a further reduction in domestic and foreign private investment. The implementation of national projects of a federal scale adopted in Russia in 2018 in three areas: “Human Capital,” “Comfortable Living Environment,” and “Economic Growth” will contribute to a comprehensive solution to the main problems of Russian economic growth and improve its quality.

5 Conclusion As a result of the study, the main problems of the current stage of Russian economic growth were identified. Russia has a consumer model of economic growth. Given the negative factors affecting consumer spending in Russia (a decrease in the real incomes of citizens, unfavorable economic expectations of the population, and economic sanctions), this model cannot ensure stable and high rates of economic growth. Outstripping growth rates in the extractive sector, the continuing raw material orientation of the Russian economy and, therefore, high dependence of Russia on resource exports, which, in the face of a tense political situation, can become a significant obstacle to economic growth. The main reasons that limit the ability to build an investment model for the development of the economy include the desire of foreign investors to invest mainly in the industry, the unattractive use of domestic investment resources, the comparative advantages of investing in the economies of other countries, and an increase in the debt burden. Significant industry differences in the application of advanced technologies. Poor quality of economic growth manifested in a low level of population’s well-being, high-income differentiation, and a relatively high level of poverty. Since 2018, Russia took a new course towards achieving economic growth. The priorities of the state are changing: the policy is mainly focused on maintaining investment activity. State resources are concentrated on investment support for the implementation of national goals and priorities. An increase in consumer demand follows mainly investment demand [6].

References 1. Bogachev SY (2017) The technological structure of the manufacturing industry as a factor in the sustainable development of the Russian economy. Strateg Manage 3:21–29 2. Bogoviz AV, Sozinova AA, Ostrovskaya VV (2018) Approaches to managing economic growth of socio-economic systems. Stud Syst Decis Control 135:131–137 3. Central Bank of the Russian Federation (n.d.) Macroeconomic financial statistics. Retrieved from https://www.cbr.ru/statistics/macro_itm/ 4. FAO (n.d.) Russian federation: selected indicators. Retrieved from http://www.fao.org/faostat/ en/#country/185

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5. Federal State Statistics Service (n.d.) Official website. Retrieved from http://www.gks.ru/ 6. Mau VA (2019) National goals and model of economic growth: new in the socio-economic policy of Russia in 2018–2019. Econ Issues 3:5–28 7. OECD (n.d.) Official website. Retrieved from http://www.oecdru.org/ 8. Skryl TV (2013) The relationship between modernization and the problems of economic growth in Russia. Bull Tomsk State Univ 6(122):12–16 9. Sukharev OS (2019) Structural dynamics of the Russian economy and the tasks of social development. Econ Entrepreneurship 1:587 10. Szirmai A (2012) Industrialization as an engine of growth in developing countries, 1950–2005. Struct Change Econ Dyn 23(4):406–420 11. World Bank (n.d.) Official website. Retrieved from https://data.worldbank.org/

Innovative Activity in Organizations in the New Technological Order: International Perspectives Olga N. Kusakina , Svetlana V. Levushkina , Yulia V. Narolina , Tatiana V. Sabetova , and Galina V. Tokareva

Abstract The paper defines the relationship between innovative activities and the susceptibility of business entities and the state of the innovation climate and innovative potential of the country (region), which affect their innovative behavior. The authors pay special attention to digital technologies that significantly impact the forms and methods of conducting modern business. The author substantiated the necessity of introducing digital strategies into the activities of organizations, including a new approach to the formation of human resources. The introduction of digital technology requires changing models of innovative development of modern organizations. Keywords Innovation · Innovative activity · Digital technologym · Digital strategies

1 Introduction The challenges of modern changes determine the development of the economy of the state and economic entities based on technological transformations, the level of which depends on the innovative activity of economic entities and their adaptability to the global transformation of the technological structure. Innovation is a complex design intersecting with other common concepts such as technology, creativity, and change. The research in the field of innovation covers many areas, including business, economics, engineering, public administration, various levels of analysis (individual, group, and organizational), and sectors of the O. N. Kusakina (B) · S. V. Levushkina · G. V. Tokareva Stavropol State Agrarian University, Stavropol, Russia e-mail: [email protected] Y. V. Narolina Voronezh State University of Engineering Technologies, Voronezh, Russia T. V. Sabetova Voronezh State Agrarian University aamed after Emperor Peter the Great, Voronezh, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_64

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national economy and regions [18]. The innovation research is multidimensional and multi-level. It depends on the type and scope of the business entity, the external and internal conditions for stimulating innovation, the innovation process management program, and organizational behavior in organizations [14, 15]. Innovative development and technology are inextricably linked. The current economic environment encourages investment in technology as emerging markets increase their demand for technology to drive growth. The developed markets look for new ways to reduce costs and stimulate innovation. Regardless of location, firms that want to grow must interact with the thriving parts of the economy—the digital and developing world [10]. According to forecasts, due to the digital economy, the GDP may grow by 1.8% in developed countries and by 3.4% in developing countries by 2020 [22]. This creates favorable conditions stimulating the digital market in both developing and developed countries. Nowadays, digital technologies are integrated into all processes of modern companies. Thus, they ceased to be only part of the strategy. Digital technologies transform the economy forcing companies to develop digital strategies to remove barriers, preventing them from maximizing the potential impact of recent innovations [7]. This process is confirmed by the analysis of the contribution of digital technologies to the development of the Russian economy. In 2016, the contribution of the digital economy to GDP of Russia amounted to 2.8%. It should be noted that 19% of GDP is formed by Internet-dependent markets (e-commerce is estimated at 1,238 billion rubles). The contribution of the mobile economy to GDP of Russia was 3.7%. The Russian segment of the Internet (Runet) has 2.5 million employees. Infrastructure and software are estimated at 2,000 billion rubles, marketing, and advertising—171 billion rubles, including the volume of the online advertising market amounting to 136 billion rubles, digital content—63 billion rubles, e-commerce—1,238 billion rubles. For comparison, the digital economy forms 6.9% of GDP in China, 5.4% in the USA, and 5.4% in India [17]. The capabilities of digital technologies have a significant impact on the further development of the business, moderately or massively violating the established forms and methods of business. Outdated business models, which often generate the bulk of company revenues, create cultural and organizational problems, barriers to introducing changes at the required pace. Entrepreneurial structures actively use digital technologies and demonstrate a steady upward trend in the costs of their implementation.

2 Materials and Methods During the study, the authors used the monographic survey, comparative economic evaluation, generalization, and statistical analysis. Several works are devoted to the issues of innovative development of economic entities depending on the innovative potential of their regions [12, 5, 16].

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The problems of innovative susceptibility depending on the innovation climate and the innovative potential of the business through the prism of factors influencing the formation of the innovative environment are also of particular interest [19, 20]. Vasiliev and Schukina [23] studied industrial and technological policy at the national and regional levels and innovative business development areas. Popadyuk and Adzhiev [5, 8, 21] paid particular attention to the models of knowledge generation, their commercialization, creation of innovations, and scenarios of the transformation of the innovation environment. In our opinion, these works do not offer directions for the innovative revitalization of business through the systematic introduction of digital technologies in all areas of management. As a result, the main goal of this study is to determine the relationship between the innovative activity of a business and the introduction of digital technologies with the identification of areas of innovative transformation of modern organizations.

3 Results Under current conditions, there is a need for a digital strategy. However, the pace of modern changes in digital technology created a gap in the skills of managers, which hinders the development of many organizations [4]. It is necessary to note a decrease in the total level of innovative activities of ICT organizations in all areas of innovation (Fig. 1). In the general structure of costs for innovation in the ICT sector for 2015–2017, costs of technological innovations occupy more than 97%, which indicates a low level of financing and the development of marketing and organizational innovations, which, in our opinion, are essential tools for introducing and promoting technological innovation.

Fig. 1 Innovative activity of organizations in the ICT sector in the total number of organizations, %. Source Developed by the authors based on [1–3, 5,12]

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Fig. 2 Export of goods and services related to ICT, $ mln. Source Developed by the authors based on [1–3, 5,12]

As a result of this ratio, Russian economic entities reduce the volume of exports of goods related to ICT. Over the studied period, the decrease was 25% (Fig. 2). Despite the decrease in the total export of goods in the ICT, we should note the growth in such products as communication equipment (2 times), consumer electronic equipment (by 16%), and other components and products related to ICT (by 50%). There is also a positive trend of 20% growth in exports of ICT-related services. Computer and information services are export leaders in the ICT sector. The import of ICT-related goods has a growth trend of 26%. This trend is characteristic of all the studied product groups. The volume of imports of ICT-related services saw a slight decrease (4%), which was achieved due to a decrease in imports of telecommunications services (by 38%). At the same time, imports of computer and information services are growing by 23% and 24%, respectively (Fig. 3). The study of the number of developed advanced production technologies related to ICT shows that Russia is lagging behind global trends when comparing fundamentally new production technologies related to ICT and technologies new for Russia (Table 1). The most significant gap is typical for such areas as computer design, engineering and consulting services, local computer networks, including the exchange of technical, design, and technological information, the exchange of electronic information, a supervisor control system, and a system for collecting and accumulating information. The above trends determine the place of Russia in international rankings, particularly the development of ICT (Table 2). For the study period, by the ICT development index, Russia ranked 42nd from 175 countries in 2018, 43rd from 176 countries in 2016, and 45th from 176 countries in 2017. Thus, Russia grows ICT slowly but steadily.

Innovative Activity in Organizations in the New Technological …

585

25000 20837 20000 16482

16006

15000

10000

8433 6749

6328 5000

7423

5065

6101 5521 2772 2582 2388 1471 361

5395 3063 2649 1873 1543 459

5315 3399 2986 1470 1995 446

0

2015

2016

2017

ICT related products - total

Computers and peripherals

Communication equipment

Consumer Electronics

Other ICT related components and products

ICT related services, total

Computer Services

Telecommunication Services

Information Services

Fig. 3 Import of goods and services related to ICT, $ mln. Source Developed by the authors based on [1–3, 9]

In 2017, among the leading countries, the 6th place in the rating on the ICT development index was taken by Hong Kong (China), demonstrating a high level of innovative activity in the ICT sector.

4 Discussion Russian organizations should reconsider their strategies, orienting them to digital status. Digital strategies should be based on such areas as meeting the expectations of interested parties, continuous improvement of goods, works, and services through the introduction of digital technologies, the development of network forms for developing joint innovations and transformation of organizational forms of managing [6, 11]. Modern organizations should pay special attention to the formation of such human resources that can define a digital strategy allowing them to transform in the modern digital economy. There exist the following ways to solve this problem:

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Table 1 The development of advanced manufacturing technologies related to ICT by type, 2017 Total

New for Russia Fundamentally new

Advanced manufacturing technology

1,402 1,212

190

Computer design, engineering, and consulting services

347

293

54

Simple robots performing pick-and-place operations

11

6

5

Complex robots used for installation, finishing and fine finishing

44

38

6

Automated storage (warehousing) and search systems

18

15

3

Automated storage systems (warehousing) and automatically controlled vehicles

16

12

4

The local computer network for the exchange of 21 technical, design, and technological information

20

1

The local computer network of the enterprise

67

58

9

Computers used to control equipment installed in the structural unit of the enterprise

22

21

1

Electronic information exchange

38

35

3

Wireless communication systems

27

24

3

Integrated computer manufacturing

24

22

2

Supervisory management systems, information collection and storage systems

33

31

2

Artificial intelligence and/or expert systems

13

12

1

Source Developed by the authors based on [1–3, 9]

1.

2.

3.

The introduction of such an organizational role of an employee as a digital catalyst that can identify tools to overcome organizational inertia and stimulate digital transformation and innovation throughout the organization; The change in organizational culture by creating a culture of decision-making based on data, which will give organizations more opportunities to predict future changes; The formation of a digital commitment of employees by determining their role in the digital strategy of the organization and creating a motivation system for this role.

8.56

8.88

8.75

–

8.53

8.49

8.59

8.67

8.47

Switzerland

Denmark

Great Britain

Hong Kong (China)

Netherlands

Norway

Luxembourg

Sweden

Japan

Russia

6.95

8.37

8.45

8.36

8.42

8.43

–

8.57

8.74

8.68

8.84

8.83

7.07

8.43

–

8.47

8.47

8.46

8.61

8.65

8.71

8.74

8.85

8.98

Source Developed by the authors based on [1–3, 9]

6.91

8.96

…

8.86

7.24

8.85

8.90

9.49

8.24

9.04

–

9.24

8.72

9.20

9.00

9.37

2015

The Republic of Korea

Access to ICT 2017

2015

2016

ICT development index

Iceland

Countries

7.23

8.80

8.69

9.54

8.21

9.02

–

9.24

8.52

8.95

8.99

9.42

2016

7.23

8.80

–

9.54

8.00

8.65

9.22

9.15

8.39

8.85

8.85

9.38

2017

5.52

7.98

8.32

8.34

8.43

7.69

–

8.42

8.83

8.01

8.42

8.11

2015

ICT use

Table 2 A comparative analysis of the development of ICT in Russia and the leading countries

5.87

8.14

8.36

8.05

8.48

7.77

–

8.09

8.91

8.67

8.57

8.44

2016

6.13

8.15

–

8.30

8.82

8.28

8.21

8.38

8.94

8.88

8.71

8.70

2017

9.04

8.68

8.91

7.29

9.10

9.21

–

8.42

9.29

8.35

9.82

9.35

2015

ICT practical skills

8.55

7.97

8.17

6.59

8.70

8.56

–

8.18

8.87

8.15

9.08

8.40

2016

8.62

8.22

–

6.65

8.71

8.59

8.19

8.17

8.87

8.21

9.15

8.75

2017

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For companies anticipating massive digital changes in their industries, these three levels are the key to realizing the potential that lies ahead. It is necessary to hire the right people to make a difference, create a data-driven decision culture, and fully commit to focusing on digital development in the management system [13].

5 Conclusion Digital technologies are rapidly transforming both business practice and society. They are an integral part of the innovative economy of the future. Creating effective organizations for the digital economy is a daunting task for our time, and companies that are already adapting are leading the way. Leadership should be achieved by reducing costs and aimed at improving the quality of life. Successful companies in the digital economy should accelerate the implementation of key technologies—mobility, cloud computing, business analytics, and digitization, improvements in the field of AI, robotics, and networks that transform the business, affect the development of the economy and society, and cause a new wave of wealth creation in a globalizing world.

References 1. Abdrakhmanova GI et al (2016) Digital economy indicators: a statistical digest. Higher School of Economics, Moscow, Russia 2. Abdrakhmanova GI et al (2017) Digital economy indicators: a statistical digest. Higher School of Economics, Moscow, Russia 3. Abdrakhmanova GI et al (2018) Digital economy indicators: a statistical digest. Higher School of Economics, Moscow, Russia 4. Abdrakhmanova GI et al (2019) Digital economy: 2019: a brief statistical digest. Higher School of Economics, Moscow, Russia 5. Adzhiev AA (2018) On the issue of assessing the degree of maturity of the region’s innovation environment. Manag Sci Mod World 1–1:105–111 6. Bobryshev AN, Elchaninova OV, Tatarinova MN, Frolov AV (2015) Management accounting in Russia: problems of theoretical study and practical application in the economic crisis. J Adv Res Law Econ 6(3):511–519 7. Bogoviz AV, Ioda EV, Ioda YV, Kuranova VB, Bobrova VV (2017) Cluster development of innovational entrepreneurship: New possibilities and priorities in the conditions of the innovational economy creation. Eur Res Stud J 20(3):530–538 8. Etzkowitz H (2008) The triple helix: University-industry- government innovation in action. In: Uvarova AF (ed) Tomsk State University of Control Systems and Radioelectronics. Tomsk, Russia 9. Frolov AV, Frolova AA (2015) The analysis of the effectiveness of the functioning of agricultural producers in the Stavropol Krai. Econ Agric Russia 4:72–79 10. Grossman R (2016) The industries that are being disrupted the most by digital. https://hbr.org/ 2016/03/the-industries-that-are-being-disrupted-the-most-by-digital/ 11. Higher School of Economics (2019) The use of ICT in organizations in the business sector. Retrieved from https://www.hse.ru/data/2017/08/02/1173493149/IIO%202017.%207.%20I spolzovanie%20IKT%20v%20organizacijah%20predprinimatelskogo%20sektora.pdf

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12. Izyumova ON (2014) Methodological aspects of the formation of an innovative regional subsystem. Sci Bull South Inst Manage 3:37–39 13. Kusakina ON, Tokareva GV, Ermakova AN, Dykan YA (2019) The application of information and communication technologies as a tool for developing rural territories’ labor resources: possibilities and perspectives. Adv Intell Syst Comput 726:695–700 14. Levushkina SV, Miroshnichenko RV, Kurennaya VV, Agalarova EG (2016) Program for the development of small and medium enterprises in the Stavropol region of the Russian Federation. Int J Econ Financ Issues 6(2):151–157 15. Levushkina SV, Varivoda VS, Elfimova JM, Ivolga AG (2017) Modeling of small and medium enterprises’ sustainable development. Espacios 38(33) 16. Merzlikina GS, Babkin AV, Pshenichnikov IV (2015) The innovative potential of the region: formation and development strategy. Bull Astrakhan State Tech Univ. Series: Economics 3:99– 109 17. Plugotarenko S (2017) Digital economy of Russia 2017: Analytics, figures, facts. Retrieved from https://www.shopolog.ru/metodichka/analytics/cifrovaya-ekonomika-rossii-2017-analit ika-cifry-fakty/ 18. Popadyuk TG, Adzhiev AA (2018) Economics and management of a national economy. Econ: Yesterday, Today and Tomorrow 8(7A) 19. Rud NYu, Pavlova TS (2017) The innovative environment of the region: essence, structure, and management. Proc Kabardino-Balkarian Sci Cent Russ Acad Sci 1(75):99–104 20. Rudaleva IA, Kabasheva IA (2014) Innovative susceptibility of employees of the organization. Basic Res 11:2495–2498 21. Shkarupeta EV (2018) Scenarios of the transformation processes of the innovation ecosystem. Econominfo (Innovation and Investment) 15(1):77–80 22. Truflyak EV, Kurchenko NYu, Kramer AS (2018) Precision farming: status and prospects. Kuban State Agrarian University, Krasnodar, Russia 23. Vasiliev AN, Schukina AY (2018) The analysis of the dynamics of the innovative activity of the Russian economy for 2003–2016. Bulletin of the Volga University named after V. N. Tatishchev 2–1

Assessing Design Decisions in Agriculture Oksana G. Karataeva , Oleg P. Andreev , Olga V. Chekha , Mihail V. Stepanov , and Lidiya M. Trushina

Abstract The relevance of the research is due to the situation in training agricultural engineers with the appropriate professional competencies. According to statistics, the industry currently lacks highly qualified specialists in agricultural engineering. The study of the theoretical and practical aspects of the technical and economic evaluation of design decisions in agricultural engineering is the main direction of training competitive personnel and ensuring the innovative development of agricultural production in Russia. Keywords Agricultural engineering · Engineering personnel · Agriculture · Agro-industrial complex · Digitalization

1 Introduction The digitalization of the agro-industrial complex [AIC] is the process of interaction of agricultural organizations with the educational environment of agricultural universities for the training of agricultural engineers. The promotion of the profession of an agricultural engineer in the main educational programs includes the following main tasks: O. G. Karataeva (B) · O. P. Andreev · O. V. Chekha · M. V. Stepanov · L. M. Trushina Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia e-mail: [email protected] O. P. Andreev e-mail: [email protected] O. V. Chekha e-mail: [email protected] M. V. Stepanov e-mail: [email protected] L. M. Trushina e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_65

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• The formation of competencies of graduates taking into account international and European standards of higher education; • Training of competitive personnel providing innovative development and modernization of technical services for the industry; • The participation in design and research projects to create new technologies for highly efficient technical service processes at agricultural enterprises. The development of the AIC and the digitalization of society implies the formation of specialists with strategic thinking, able to accumulate scientific achievements, the best practices of domestic and foreign enterprises in agricultural engineering, clearly formulate the goal and objectives of a comprehensive study in the theory and practice of project management, and effectively use available resources in agricultural the enterprise. In this regard, new approaches are needed in the training of agricultural engineers, taking into account the study of engineering and technical knowledge and the disciplines associated with the production, the economy, and the management of agricultural production. The purpose of the study is to develop a methodology for evaluating innovative projects in the agricultural sector. The research objective is to develop methodological approaches to determining the technical and economic evaluation of design decisions in agricultural engineering.

2 Materials and Methods In agriculture, the innovation process is a constant process of the transformation of scientific research in relation to the production and technological support of the agricultural sector [4]. Scientific and technological support of the AIC implies technical and technological modernization and scientific and innovative development of agriculture [4]. The agricultural engineer must be able to identify problems that arose in the workplace and find and reasonably substantiate technical and economical options for solving the problem. An engineering solution is the introduction of a new agricultural production process or the improvement of an existing one. The feasibility study of design decisions is the determination of the feasibility of practical use of projects in production. The feasibility study of design decisions must be carried out in two directions: 1. 2.

Technical evaluation of design decisions substantiates the effectiveness of technical and technological indicators of the project; The economic evaluation of design decisions is the calculation of the economic efficiency of the project in the existing economic conditions.

The feasibility study affects all elements of the production process:

Assessing Design Decisions in Agriculture

• • • • •

593

Labor resources; Tools; Objects of labor; Science development; Organizational, technical, and managerial impact.

The innovation policy of agricultural enterprises is a complex of interconnected engineering solutions, tools, mechanisms, organizational forms, and design developments made taking into account: • Technical and economic feasibility; • The introduction of developments into practice; • A sufficient level of knowledge of the engineer, the ability to correctly carry out calculations to evaluate engineering projects, taking into account the solution of the following problems: – To define the object of evaluation; – To assess the dynamics of external and internal conditions and the scale of changes caused by the project implementation; – To optimize a set of indicators and project performance criteria; – To choose a scheme for calculating project performance indicators; – To assess the reliability of the computational procedures; – To justify the effectiveness of decisions made in the draft.

3 Results The achievements of science and technology create the opportunity to solve the engineering problem in each technical project in different ways: 1. 2.

Design decisions are complex in changing the production system arising during the implementation of design activities; The evaluation of the effectiveness of the developed engineering solution should take into account all factors affecting the result of the study.

Therefore, during the design process, engineers need to analyze the decisions taken to analyze scientific and technical solutions, calculate the leading technical and economic indicators affecting the effectiveness of engineering solutions that solve a scientific, technological, or technical problem, taking into account international and European standards and methods for evaluating design decisions. The proposed methodology consists of six sequential steps. Step 1.

The evaluation of technical means and engineering systems (Fig. 1).

The evaluation of technical means and engineering systems is the level of engineering decisions that determine the economic efficiency of improving the technical means of engineering systems. The technical excellence of technical means and engineering systems is estimated by the indicators shown in Fig. 2.

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O. G. Karataeva et al. The assessment of technical means and engineering systems The assessment of technical excellence of technical means and engineering systems

Technical and economic assessment of agricultural production facilities

The determination of probable material damage from emergency failures of technical equipment

Comparative economic assessment of technical means and engineering systems

The methodology for substantiating the most costeffective technical solution

Fig. 1 The assessment of technical means and engineering systems. Source Developed by the authors

The perfection indicators of technical means and engineering systems

Reliability

Ergonomics Security

Processability

Unification

Economic indicators

Fig. 2 Indicators of technical means and engineering systems. Source Developed by the authors

Step 2.

Evaluating the economic efficiency of the introduction of technical means and engineering systems in agricultural production (Fig. 3).

The assessment of the efficiency of agricultural production is determined by a system of indicators, factors, and the level of production efficiency. The level of agricultural production efficiency is evaluated by the following types and criteria of efficiency:

The evaluation of the economic efficiency of the introduction of technical means and engineering systems in agricultural production

Basic concepts of agricultural production efficiency

The economic feasibility of introducing new technical equipment in agricultural enterprises

An economic evaluation of the effectiveness of the introduction of technical means and engineering systems

Fig. 3 The evaluation of the economic efficiency of the introduction of technical means and engineering systems in agricultural production. Source Developed by the authors

Assessing Design Decisions in Agriculture

595

The evaluation of design developments

The determination of the cost of manufacturing (modernization) of the structure

The economic feasibility of design development aimed at increasing output

The economic feasibility of design development aimed at reducing the complexity of the operation

The economic feasibility of design development aimed at improving product quality

The economic feasibility of design development aimed at improving the operational properties of the machine

The economic feasibility of design development aimed at reducing the consumption of material resources

Fig. 4 The assessment of design developments. Source Developed by the authors

• Technological efficiency is evaluated by the level of output from a unit of production; • Economic efficiency is evaluated by the level of income for expanded production; • Social efficiency is evaluated by the degree of achievement of the standard of living in rural areas [1]; • Environmental efficiency is evaluated by the environmental friendliness of production [3]. Step 3.

The assessment of design development is the determination of costs and the manufacture and modernization of design development (Fig. 4).

The modernization is the improvement (updating) of an object, changing it following modern requirements, norms, technical conditions, and quality indicators [2]. Step 4.

Step 5.

Step 6.

The assessment of the improvement of technological processes and machines in agribusiness is the rationale for the perfection of technology and mechanization in the production of crops and livestock products (Fig. 5) The evaluation of design decisions in the technical service of the AIC is the rationale for improving the organization of technical maintenance of the machine and tractor fleet to improve the quality of machine repair while reducing cost (Fig. 6). The evaluation of technical means and systems of the small electric power industry is a solution to the problem of energy saving due to centralized energy supply and the capacity of local energy sources (Fig. 7).

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The economic rationale for improving the technology and means of mechanization in the production of crops

The economic rationale for improving the technology and means of mechanization in the production of livestock

The economic rationale for improving the composition and use of the machine and tractor fleet

The economic rationale for improving the organization of the petroleum economy

The economic rationale for improving the storage of agricultural machinery

The economic justification for the organization of the supply of equipment to agricultural enterprises

Fig. 5 The assessment of technological processes and machines in agribusiness. Source Developed by the authors

The assessment of design decisions in the technical service of the AIC

The economic rationale for improving the organization of maintenance of the machine and tractor fleet

The economic rationale for improving the organization of repair of the machine and tractor fleet

The economic rationale for improving the organization of maintenance and repair of livestock equipment

The economic assessment of the technical reequipment of the repair shop

The economic feasibility of designing a tire repair section of an agricultural enterprise

The economic assessment of the improvement of maintenance and repair on the example of a cylinderpiston engine group

The economic rationale for the modernization of the design of the stand for diagnosis

The economic rationale of the technology for the restoration of parts and assemblies

Fig. 6 An economic evaluation of design solutions in the technical service of the AIC. Source Developed by the authors

4 Conclusion The training of agricultural production engineers has specifics aimed at solving industrial, technological, and technical problems and problems related to economic valuation and agricultural production. Effective production management requires highly qualified specialists with an agro-engineering education. The proposed methodology for evaluating technical and economic solutions will allow the engineer to receive additional professional competence in project management in the agricultural sector.

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The assessment of technical means and systems of the small electric power industry

Economic foundations and prerequisites for the development of small-scale electric power in rural areas

Cost of electricity production in small power plants

Economic foundations and prerequisites for the development of small-scale electric power in rural areas

Technical and economic assessment of wind power plants: - Trends and economics of the development of wind energy; - Types and technical and economic features of rural wind power plants; Comparative economic assessment of local power supply systems of a farm based on wind turbines;

Investments in small electric power facilities

Economic assessment of small hydropower plants: -

-

Economic assessment of small-scale energy facilities based on biomass energy:

Economic assessment of engineering systems of solar energy:

- Economic and environmental prerequisites for energy production from plant biomass; - The methodological framework for assessing the bioenergy potential of agricultural waste; - Energy, economic, and environmental features of biogas systems; - An economic evaluation of the effectiveness of the implementation of a bioenergy installation.

- Status and development prospects of solar energy; - Comparative economic assessment of the photovoltaic system.

Status and development prospects of the global hydropower industry; Economic assessment of the construction of minihydropower plants;

The economic rationale for choosing a source of electricity for a rural property.

Fig. 7 Feasibility study of technical means and systems of the small electric power industry. Source Developed by the authors

References 1. Bogoviz AV, Lobova SV, Ragulina JV, Chutcheva YV, Bykovskaya NV (2018) Increase of labor productivity in the agrarian sector: a view from the standpoint of a modern man. Qual Access Success 19(S2):103–107 2. Karataeva OG, Karataev GS, Pulyaev NN (2018) Directions of modernization of the engineering system of the agro-industrial complex. Int Tech Econ J 4:103–109

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3. Skryl T, Osipov V, Vorozheikina T (2019) On the way to ecological agriculture. Int Sci Pract Conf Agrarian Econ Era Globalization Integr 274:012066. https://doi.org/10.1088/1755-1315/ 274/1/012066 4. Stepanov MV (2019) The main directions of scientific and technological support for agricultural production. Int Sci J 4:51–55

Spline Analysis of Flow Correlation in Economic Systems Ruslan H. Ilyasov

and Victor S. Yakovenko

Abstract The effectiveness of process control in complex socio-economic systems requires a significant increase in accuracy in mathematical modeling of the dynamics of the studied indicators. When searching for interconnections between processes, there often arises the problem of comparability of data representing the static and dynamic components in economic systems (stocks and flows). If in a discrete representation, data transformation is possible by calculating chain gains, then it is necessary to differentiate the stock function in systems with continuous time. Thus, by analogy with physical movement, the first derivative or rate of change of stocks becomes a stream. Given the functional relationship between the dynamics of stocks and their flows, it is essential to maintain accuracy when modeling the dynamics of stocks and their subsequent transformation into flows. The proposed methodology for the spline approximation of economic dynamics with absolute coincidence at the nodal points of empirical and model equivalents allows us to preserve the accuracy of the data. The differentiability of the splines solves the problem of data conversion. The paper investigates the efficiency of the apparatus of spline functions in modeling the dynamics of different “quantities” in the economy by the example of an analysis of the relationship between the flow of oil exports and money supply in the Russian economy. The proposed methodology of analytical data transformation with the search for the relationship between continuous paths of acceleration and deceleration of processes determines the scientific novelty of the study. The study results can be useful in solving the problems of managing stocks and flows in the economy, when searching for the relationship between flows, and studying the seasonality and cyclical nature of flows. Keywords Stocks · Streams · Correlation · Approximation · Splines · Data comparability

R. H. Ilyasov Chechen State University, Grozny, Russia V. S. Yakovenko (B) Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_66

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1 Introduction When studying the relationship in the economy, it is necessary to consider the differences between indicators representing the static and dynamic parts of economic systems. The static part of the economic system is represented by stocks, also known as levels of accumulation, wealth, and funds. Simultaneously, the quality of modern development is marked not so much with the magnitude of states as with the rate of their change (flows that determine the dynamics of the economic system). Flows, being a dynamic part of the economic system, are widespread in credit and financial transactions, the management of trade stocks, migration indicators, etc. Most studies are limited to the discrete form of their representation in models more suitable for accounting purposes. The use of models with continuous time, working with economic flows, should allow more finely and accurately find, analyze, and visualize market conditions, calculate correlations of flows, their competition in the market, identify the beginning and degree of “displacement” from the market, use their physical equivalents, etc. The verbal concepts of stocks and flows and their mutual connection in the economy appeared quite long ago. Lawrence Harris [5] succeeded with stocks and flows in monetary theory, particularly during cash flow management and stock manipulation. Nobel laureate mathematician Irving Fisher [3] widely used these concepts in the quantitative theory of money. He interpreted money flow as cash flow. John Kenneth Galbraith [4], in his book “The New Industrial Society,” proposes to separate the concepts of stocks and flows and use them differently in economic analysis. In his research, S. V. Jacques [7] used the very successful phrase for the mathematical definition of flow: “Flow is a derivative of a stock.” In a monograph published in the Soviet Union on the application of splines in the economy [10], attention was paid to data comparability. This problem arises when studying the relationships between indicators that differ in their dynamic features— stocks and flows. It is known that converting data to one type in discrete models is possible by converting reserves into flows by calculating chain gains. In continuoustime models, such a transformation is possible by differentiating the stock function. Mathematically accurate—flow is the first difference or first derivative of the stock function. If we denote the flow function by F (flow) and S (stock) the stock function, then: F(t) = S(t)/t or F(t) = d S(t)/dt = S  . If the conversion of stocks to flows by calculating absolute gains in discrete models does not lead to a distortion of empirical data, then the quality of their conversion in continuous-time models depends on the choice of the type of function approximating the initial dynamics of stocks.

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2 Materials and Methods When forming the conceptual basis for the study of dynamic flows in a volatile modern economy, it is essential to detail the requirements for an accurate empirical economic signal—the basis for the validity of the constructed practice models. In current conditions of globalization, acceleration, complications, and turbulent transformation of the economy, it is evident that the applicability of standard econometric analysis procedures designed for more stable conditions is limited. The “old econometric” model is drawn past the starting points, and the approximation quality can still somehow be checked by the coefficient of determination. The analytical image of the obtained regression curve is quite far from true analytics and is not controlled by anything. Differentiating the equation of the regression line to obtain the first derivative, “trend,” or economic flow takes the analytical description of this object from the natural one even further and is not verified. The second derivative, with the receipt of “intensity,” pushes the analytics further from the truth. Hence, future models of interconnection will suffer from incurable ulcers of the discrepancy between stocks and their flows or will be “rude” to identify “latent” correlations between accelerations and decelerations of processes, i.e. correlations between threads. As an example, we examine the relationship between the dynamics of oil export volume (“flow” type indicator) and the money supply dynamics M2 (“stock” type indicator) with a new methodology that fundamentally refuses to average the empirical signal. The initial dynamics of two economic indicators of Russia, as can be seen in Fig. 1, are presented in the “lattice” form that is familiar to classical econometrics—a set of points of a two-dimensional plane along which it is intuitively difficult to imagine the course of processes in time over the entire reporting interval and at its temporal sections and find patterns of their development, a possible futurological history. There are no slopes of the curves, their trends (first derivatives), intensities (second derivatives), and beyond. It is also impossible to find extrema and “cusps.” It is difficult to determine the interconnections and interdependencies of macroeconomic archetypes. It is known that classical econometrics constructs a least-squares relationship model, revealing only a time-averaged correlation. However, averaging the responses of the productive attribute to fluctuations in the factor attribute does not allow observing the time-dependent changes in the connection and studying the local features of the mutual influence of the flows. The combination of “stock” and “flow” indicators in one model is a typical example of data incomparability. To bring the indicators to a comparable form, it is necessary to convert the data on the dynamics of the money supply M2 into growths or the rate of change in the money supply into an indicator of the “flow” type. In models with discrete-time, an indicator of the “flow” type is obtained by calculating the chain growth of money supply reserves M2. To study the temporal features of the mutual influence of flows, we replace the discrete data of the studied parameters with continuous models. “New econometrics” allows the best use of the values of a variable from the economic “lattice function” (table). For this, the approximating polynomial line must precisely pass through all points of the empirical indicator in

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Fig. 1 The dynamics of oil exports and money supply (M2) in the Russian economy in 2005–2017. Source Compiled by the authors

a system of any dimension [6]. If such functions are used to approximate the data of the processes under study, then econometric modeling, analysis, visualization, and forecasting will become institutionally and fundamentally accurate. The accuracy in the analytical representation of empirical dynamics in stocks is necessary for their subsequent transformation into flows to search for “latent” relationships between accelerations and decelerations of processes [8].

3 Results Simulation of flow dynamics with the exact coincidence of model and empirical processes at “nodal” points is possible by involving spline functions in the analysis of apparatus [9]. Figure 2 shows the classical use of splines for smoothing “trellised” dependencies in the form of ensembles of spline images SPL3_VEO, SPL3_MS (SPL3 is a third-order spline). Spline fragments are “hung up” on the “old” econometric lattice with “stitching” of adjacent fragments in each of its “nodes.” Splines pass precisely through all the “nodes” of economic indicators (at these points, the initial discrete and model continuous equivalents coincide), they are analytical, smooth, continuous, and optimally “stitched” at the “nodal” points themselves. The dynamics of indicators are visible, and an idea of the temporary behavior and local interconnection of processes appears. The spline is analytic at the same time as all its derivatives, which do not need to be obtained by differentiation “from the outside”

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Fig. 2 Smooth continuous cubic spline ensembles smoothing the “lattice” dynamics of oil export flow (RED) and money supply reserves (M2) (GREEN) in 2005–2017. Source Compiled by the authors

and computed. They form an integral part of the spline structure. Thus, it is impossible to obtain more accuracy and validity than a spline apparatus at all stages of the mathematical and instrumental construction of a model. Figure 3 shows the results of the polynomial (least squares) and spline approximation of the dynamics of the money supply M2. We can see the external representativeness of the spline model to the economic sense. On the contrary, the polynomial curve does not always coincide with the real values of the process at the nodal points, while losing information about local accelerations and growth retardations. The requirement to preserve the absolute accuracy of the initial statistical material under conditions of high intensity of changes in the modern economy becomes especially useful when studying the “event components” of dynamics [2]. The evolution of the dynamics of economic time series is expressed in high rates of recession or growth of indicators, leading to the appearance of ejections. Ejections, recording the reaction of the research object to some events, can be quite informative, revealing the causes of structural changes in the dynamics of the process under study or in the parameters of the relationships in the economy. In current conditions, there are frequent cases of the impact of extraordinary (political, social, …) events on the dynamics of economic indicators, for example, a sudden decision to cancel flights between some countries, the suspension of a large oil refining complex, the introduction of trade sanctions, etc. As can be seen in Fig. 4, the differentiation of the polynomial trend smooths out data on local accelerations and decelerations of the process. The flow is an average

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Fig. 3 The comparison of the polynomial (dashed-dotted) and cubic spline (solid line) approximations of the time series of stocks of money supply M2. Source Compiled by the authors

Fig. 4 Converting a spline approximation (solid line) and least-squares (dash-dotted) models of the dynamics of stocks of money supply into flows. Source Compiled by the authors

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growth path. The derivative of the modeling spline function, on the contrary, represents the dynamics of the money supply flow, more clearly revealing the features of the “event components” (a slowdown in the growth of money supply in the Russian economy during the crisis) of the dynamics in 2008–2009 and 2014–2015. When using spline mathematical models adequate to economic processes, it becomes possible to study the impact of “event components” on the dynamics of economic flows. New methods for detecting and analyzing relationships are relevant and able to identify global and local reactions of the process to variation of factor attributes.

4 Discussion Instantaneous speeds reveal a direct relationship between changes in the studied parameters (Fig. 5). By differentiating the spline models of dynamics indicators, we obtain instantaneous rates of continuous change in “economic quantities” (money supply stocks and oil export volumes). The first derivative of stocks of money supply becomes a streaming quantity—the instantaneous rate of change of stocks with a unit of measure of billion rubles/year. From a mathematical perspective, the first derivative of oil export volume is also a flow quantity—the instantaneous flow rate with a unit of measure of $ million/year. Here, it is appropriate to mention the ratio of the indicator to moments or time intervals as the main feature, according to which economic indicators relate to stocks or flows. The strong dependence of money flow

Fig. 5 The correlation between oil export and money supply flows (M2). Money flow (M2) was increased by 15 times to bring it to a unified base of comparison with the rate of change in oil exports in 2005. Source Developed by the authors

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on the dynamics of oil exports may be the mechanism of money issuance by the Bank of Russia, which is associated with the purchase of foreign currency—income from energy exports. The behavior of the studied flows reveals some temporal features of the revealed relationship. In recent years, the reaction of money flow to fluctuations in oil export volume intensified. By the asynchronous behavior of the curves, it can be noted that within some short intervals, the flows can also be negatively correlated, for example, in 2005–2006 and 2016–2017.

5 Conclusion Among the many models that must pass precisely through all the points of the original “lattice” representation, the spline model should differ for better in that its solution curve will pass with minimal curvature of the segments, adapting to the variable structure of the empirical process [1]. Processes in the modern economy are becoming so fast, turbulent, complex, and secretive that to study their market conditions, one has to turn to a type of “subtle” paradigm and new approaches. The key to one of them is economic flows, dynamics, and correlations. Since flows, as the first derivatives of variables, are more mobile, they are used to predict changes in an economic indicator. It allows us to find a correlation not only of the absolute indicators of economic movement, but also to reveal it in the features of the slowdown or acceleration of processes. The analytical properties of splines and their derivatives clearly, deeply, and informatively demonstrate the trends of processes occurring in the economy, expanding the spectrum of their “classes of temporary behavior.” Splines bring the methods of the analytical mathematical apparatus into the study of economic flows. The first (“trends,” flows) and the second derivatives in economic theory fundamentally distinguish approaches from classical static collisions. The low order of the spline and the small degree of its derivatives facilitate the economic interpretation and control of the model, correlating with how the economist understands and controls the behavior of dynamic variables and flows. Spline flow modeling relieves the researcher of some of the limitations of regression. Firstly, the construction of splines on the rows of the original dynamics allows one to replace discrete data with continuously differentiable functions necessary for the mutual conversion of stocks and flows in continuous-time models. Secondly, the use of splines allows one to detect patterns by comparing not the discrete states (stocks), but the rate of change (flows). Thirdly, splines allow us to study anomalies in data changes. Another useful feature of splines is the ability to generate additional points between nodes of the empirical process. This helps avoid the limited regression in the study of local correlations within intervals with a small number of points.

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References 1. Botasheva F (2014) Phase images of macroeconomic conditions. AGRUS, Stavropol, Russia 2. Cleophas T (2016) Clinical trials: spline modeling is wonderful for nonlinear effects. Am J Ther 23(3):844–849 3. Fisher I (1897) The role of capital in economic theory. Econ J 7(28):511–537 4. Galbraith J (2004) New Industrial Society. Tranzitkniga, Moscow, USSR 5. Harris L (1990) Monetary theory. Progress, Moscow, USSR 6. Ilyasov RK, Yakovenko VS, Malyutina TD, Tkachenko DD, Magomadov EM (2019) The methods of “new econometrics” in the study of interrelations with variable structure. Proceedings from SCTCGM: social and cultural transformations in the context of modern globalism. EpSBS, Grozny, Russia 7. Jacques S (1997) Mathematical models of management and marketing. LaPO, Rostov-on-Don, USSR 8. Odoardi I, Muratore F (2015) Understanding the support of savings to income: a multivariate adaptive regression splines analysis. Adv Intell Syst Comput 373:385–392 9. Poirier D (1976) The econometrics of structural change. With special emphasis on spline functions. North-Holland Publishing Company, New York, NY 10. Rozin B (ed) (1987) Spline functions in economic and statistical research. Novosibirsk, USSR: Institute of Economics and Industrial Engineering of the Siberian Branch of the Russian Academy of Sciences

Economic Foundations for Developing Human Resources in the Stavropol Region of Russia Tatyana N. Uryadova , Marina G. Leshcheva , Tatyana N. Steklova , Natayia P. Adintsova , and Elena P. Zhuravleva

Abstract Modern economic realities lead to the fact that the role of human resources in ensuring the sustainable development of the Stavropol Krai increases. They predetermine the primary vector of economic development—the achievement of a competitive, innovative, self-sufficient, export-oriented region. The conditions of the formation and development of modern economic realities are the primary trend of socio-economic development. The conducted analytical study of the economic situation made it possible to identify positive and negative conditions affecting the formation and development of human resources in the Stavropol Krai. The favorable conditions include the positive dynamics of the socio-economic development of the region, making it possible to improve several rating positions of the Stavropol Krai among the constituent entities of the Russian Federation, investment attractiveness, and growth in the number of employed people. Simultaneously, the imbalance in the labor market and the lag of rural areas from the city in terms of people’s wellbeing and infrastructure development is an obstacle that can stop all the renewal and transformation attempts. Keywords Human resources · Economic situation · Factors of economic development of the Stavropol Krai · Labor market

1 Introduction Human resources are the most important factor in the sustainable development of Stavropol Krai. They predetermine the implementation of the policy of economic breakthrough. The main trends in socio-economic development are the conditions for the formation and development of human resources [2]. In this context, the study of the economic situation in the Stavropol Krai acquires particular relevance, which will T. N. Uryadova (B) · M. G. Leshcheva · T. N. Steklova Stavropol State Agrarian University, Stavropol, Russia N. P. Adintsova · E. P. Zhuravleva North-Caucasus Federal University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_67

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reveal the conditions that affect the formation and development of human resources. The current economic conditions have a direct impact on the labor market and growth in the well-being of the population [1]. Recently, the situation on the labor market of the Stavropol Krai became more stable and is marked with positive dynamics in terms of the leading indicators: the unemployment rate, the coefficient of tension in the labor market, and the level of employment. However, there remains an imbalance between supply and demand. There is a difference in the level of disposable resources of households in urban and rural areas, and a high level of poverty remains [10]. Thus, in the region, the population with cash incomes below the subsistence minimum, despite the downward trend, amounted to 13.5% in 2018, which is 0.6% higher than the average in Russia. This is primarily due to the significant share of the rural population in the region [7].

2 Materials and Methods The research subject was the economic development factors of the Stavropol Krai, which affect the state and development of human resources. The main research methods are a systematic and logical approach. Descriptive techniques, methods of generalization, comparison, systematization, and argumentation were also used.

3 Results An analytical study of the economic situation in the Stavropol Krai made it possible to identify positive and negative conditions affecting the formation and development of human resources. The positive conditions include the positive dynamics of indicators of the socio-economic development of the region [3]. Thus, in 2018, the volume of the Stavropol Krai gross regional product amounted to 703.9 billion rubles or 109.2% to the level of 2016. In the structure of GRP, the most significant specific weight is occupied by industry (19.9%), wholesale and retail trade (16.3%), and agriculture, forestry, hunting, fishing, and fish farming (14.9%) (Fig. 1). During the analyzed period, positive trends were observed in most types of economic activity. Thus, for the reviewed period, the retail trade turnover increased by 14.6 and 12.0%. In terms of retail turnover, the region takes the 17th place in the rating of the Russian regions. In 2018, the industrial production index in the Stavropol Krai was 103.5%, while the average for the Russian Federation was 102.0%. However, several regions provided a significant increase in this indicator. Compared to 2016, there is a drop from the 13th position to the 35th position in the all-Russian rating [11]. The financial security of the Stavropol Krai is improving. In 2018, consolidated budget revenues increased by 26.8% compared to 2016. Simultaneously, according to the indicator “consolidated per capita income,” the region is on the 78th place

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industry trade

19.9

26.8

agriculture, hunting, fish farming 16.3 7.6 6.8

7.7

14.9

health care and social services transportation and storage building other

Fig. 1 GRP structure of the Stavropol Krai for 2018, %. Source [8]

in Russia. It is significantly inferior to neighboring regions (for comparison, the Krasnodar Krai—56th place, the Rostov region—68th place). It should be noted that, recently, the central part of the consolidated regional budget expenditures were the expenditures on social and cultural events, which indicates the social orientation of the budget. The Stavropol Krai is a leader in the production of agricultural products. In 2018, the share of this industry in the gross product was almost 15%, while the average for Russia did not exceed 5%. Currently, all-Russian problems are also reflected in the region. During the analyzed period, there is a negative trend in agricultural production. Thus, in 2018, agricultural products in farms of all categories amounted to 190.3 billion rubles, which is 4.2% lower than the level of 2016. At the same time, it should be noted that animal husbandry maintains a positive dynamic of development. The most substantial increase is observed in peasant farms (11.7%). In animal husbandry, the number of cattle is decreasing, while poultry, on the contrary, is increasing. Although the bulk of livestock production comes from large agricultural enterprises (57.5%), personal subsidiary plots also account for a significant amount (35.9%). The negative economic processes in agriculture are also marked with a sharp decrease in the analyzed period in the amount of the balanced financial result of agricultural organizations from 25,413 million rubles up to 16,779 million rubles (40%) (Fig. 2). In the system of indicators of economic development, special attention is paid to investment activities. Investors take into account not only the infrastructure of the region but also staffing. The implementation of investment projects is a point of accelerated growth of the regional economy [5]. Consequently, human resources are the primary condition for implementing strategic transformations and a key factor in the innovative development of the Stavropol Krai [4]. The annual increase in the volume of investment in fixed assets by 28.7% for the analyzed period allowed the Stavropol Krai to rise from the 70th place to the 38th in the all-Russian rating in 2018 and maintain its position as the “region with an average level of investment attractiveness” according to the national rating agency (Fig. 3).

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Fig.2 The dynamics of the balanced financial result (profit minus loss) of agricultural organizations, million rubles. Source [8]

Fig. 3 The dynamics of investments in fixed assets in the Stavropol Krai, billion rubles. Source [8]

200

140.1

158,2

122,9

150 100 50 0 2016

2017

2018

During the study period, the interest of investors in the AIC remains. The agrarian sector of the regional economy accumulates 8–11% of all investments. In the structure of investment in fixed assets, 63.0% are the capital owned by organizations (49.8 billion rubles), and 37.0% are borrowed funds (29.3 billion rubles). The most significant volume of investment in large and medium-sized organizations in 2018 falls on the industry (39.3%), agriculture (20.0%), and transportation and storage (10.5%). According to the rating of investment attractiveness, the Stavropol Krai ranks 23rd in “Investment potential” in the rating of Russian regions prepared by the international rating agency RAEX. In 2018, the inflow of investments into the regional economy amounted to 158.2 billion rubles. The real disposable cash income of the population of the Stavropol Krai decreased by 1.9%. In terms of the dynamics of the real money of the population income in 2018, the Stavropol Krai ranks only 35th among other Russian subjects. At the same time, it should be noted that the share of the population with incomes below the subsistence level of the total population for the study period decreased from 14.0% to 13.5%. However, despite the positive dynamics, this indicator did not reach the average Russian value (12.9%). It should be noted that there is a significant gap in the size of the average monthly accrued wages, not only in the sectoral but also in the territorial aspect. Thus, in 2018, the highest average wages were in the city of Nevinnomyssk (36,884.8 rubles), in the Izobilnensky urban district (36,497.1 rubles), and in the city of Stavropol (36,475.9

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rubles). The lowest level of wages was noted in the Levokumsky (23,604.6 rubles), Turkmen (23,724.6 rubles), and Stepnovsky (24,044.2 rubles) districts. The available resources, taking into account the place of residence, are among the leading indicators of the living standard of the population in the city and countryside. In 2018, they amounted to 25,453.6 rubles per month per one household member in urban areas and 16,469.6 rubles in rural areas, which is 10.1% and 8.5% higher than the values of indicators for 2016. In rural areas, disposable resources per household member are 25.2% lower than the value of the indicator “disposable resources per one member for all households” and 35.3% compared to urban residents (Table 1). The change in the available resources in nominal terms is associated with significant changes in their structure. In urban areas, the share of cash income increased from 93.5% to 94.0% due to a decrease in the share of income in-kind from 3.4% to 2.9%. In rural areas, the share of monetary income decreased from 89.0% to 76.9% due to an increase in the share of in-kind receipts from 8.5% to 10.3%. Moreover, there is a significant increase in the share of attracted funds and spent savings (from 2.5% to 12.8%). The structure of disposable households in urban and rural areas in 2018 is presented in Fig. 4. Table 1 The dynamics of disposable resources of households in the Stavropol Krai per household member per month Indicator

2016

2017

2018

rubles

% deviation from average

rubles

% deviation from average

rubles

deviation from average

Average per household

19,800

x

21,687

x

21,720

x

urban area

23,109

+ 16.7

24,845

+ 14.6

25,454

+ 17.2

rural area

15,182

−23.3

17,261

−20.4

16,470

+ 24.2

Source [8]

Urban areas

cash income

in-kind income

Rural areas

loan amount and spent savings

Fig. 4 The structure of disposable resources of households in the Stavropol Krai in 2018. Source [8]

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Consequently, during the analyzed period, there is a tendency for the growth of the share of natural income in rural areas and a significant decrease in the part of disposable cash income, as well as a sharp increase in the share of borrowed funds and spent savings (fourfold excess compared to urban areas). This situation also acts as a factor in reducing the attractiveness of living in the countryside. The analysis of the monetary incomes of the population of the Stavropol Krai showed changes in their structure. Thus, the share of social payments increased against the background of a decrease in the income from business and income from the property. In 2018, more than 21% of social payments formed cash income (for comparison, in 2015, this figure equaled to 19%), which indicates an increase in the social burden on the budget. Thus, the analysis of economic conditions is paramount in studying the facts of development and the formation of human resources.

4 Discussion The main economic processes taking place in the regional economy indicated that healthcare organizations and the agricultural sector would experience the greatest need for personnel (18.2% and 16.9%, respectively). In the main sectors of agriculture, six thousand jobs will be created through the implementation of investment projects, the processing of agricultural products—four thousand, and the logistics infrastructure—500. In the regional context, the highest demand for labor is forecasted in the fourth agroclimatic zone (more than 39.4% of new jobs were created primarily in the processing and crop industries). It should be noted that large investment projects in the field of processing are being implemented in the Mineralovodsky region (LLC Agroindustrial Park “Stavropolye” and the meat processing plant “Delikatesy”). Thereby, the need for personnel against the background of an already formed deficit is increasing. Highly qualified personnel are the main conductors of innovative ideas in production [6]. The ongoing investment projects will lead to an increase in the share of skilled workers from 62% in 2017 to 74% in the medium term. For the implementation of the announced investment projects, greenhouse vegetable production will be most in demand. Additionally, high demand will remain for such professions as a car driver, accountant, economist, and tractor driver-machinist. In general, in the region in the medium term, stable demand for workers in bluecollar professions is expected. In the structure of the forecast of the demand for personnel for 2018–2024, the demand for specialists will be up to 37.6%, and the demand for skilled workers will also grow as a result of the creation of highly technological jobs. In this regard, the issues of staffing and the needs of the developing economy acquire relevance and require an integrated approach.

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Although the number of people employed in 2018 increased by 24.9 thousand people (by 1.9%) compared to 2017 and amounted to 1.3 million people, at large and medium-sized enterprises, the number of employees continued to decline by 1.6%. A decrease in the number of jobs was noted in such types of economic activities as the activities of hotels and public catering enterprises (by 9.0%), manufacturing (by 5.1%), construction (by 3.8%), and education (by 2.1%). At the same time, an increase in the number of jobs occurred: administrative activities and related additional services (by 8.1%), professional, scientific, and technical activities (by 7.3%), transportation and storage (by 5.3%), agriculture (by 3.4%), activities in the field of health care and social services (by 3.3%). There is an increase of 17.4 thousand people or 1.9% in the number of people employed in the private sector of the economy. At the end of 2018, this figure was 914.4 thousand people. In 2018, the unemployment rate equaled to 5.0% of the economically active population. At the same time, there remains a high level of unemployment among rural residents. In 2018, this indicator formed at 6.4%, while the unemployment rate among urban residents is 4.1%. In the Stavropol Krai, the level of registered unemployment, as of December 31, 2018, was 0.7%. In the Russian Federation, this figure was 0.9%, and in the North Caucasus Federal District—2.7%. The share of the unemployed registered in the regional employment institutions in rural areas amounted to 56.9% in 2018 and increased by 7.4% compared to 2017. As of January 1, 2019, the highest level of registered unemployment was in the following districts: Arzgirsky (3.1%), Apanasenkovsky and Stepnovsky (2.3%), Trunovsky (2.0%), Grachevsky and Kursky (1.5%). The minimum is in Pyatigorsk (0.2%), Yessentuki and Zheleznovodsk (0.3%), Kislovodsk (0.4%), the city of Stavropol (0.4%), Budennovsky district (0.3%), Izobilnensky (0.3%), and Novoaleksandrovsky (0.3%) and Mineralovodsky (0.5%) urban districts. Thus, in the Stavropol Krai, we can see a higher proportion of the unemployed is observed among rural residents (56.9% of the total number of unemployed) and a high proportion of the unemployed with secondary vocational (35.5%) and higher education (29.3%). A positive trend is a decline in the unemployment rate. The Stavropol Krai needs highly qualified specialists and skilled workers for further economic recovery and increasing investment attractiveness. The imbalance in the labor market is marked with the coefficient of tension in the labor market. In the region, the load of the unemployed population of unemployed citizens per one declared vacancy over the past three years decreased from 0.7 to 0.45. This is lower than in the Russian Federation and in the North Caucasus Federal District, where this indicator was 0.5 and 3.7. In terms of the achieved value of the coefficient of tension in the labor market in the rating of the constituent entities of the Russian Federation, the Stavropol Krai takes the 26th place. The analysis showed that there is a serious differentiation of the districts of the region according to the level of tension in the labor market. For example, in the

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Levokumsky district, this indicator was 9.9 people per vacancy, Stepnovsky—9.2, Apanasenkovsky—5.9, Arzgirsky—8.7, and Kursk—5.8. The minimum coefficient of tension in the labor market was formed in the cities of Pyatigorsk (0.1 unemployed per vacancy), Zheleznovodsk, Kislovodsk, and Stavropol (0.2 each), and Mineralovodsk urban district (0.2). Additionally, one of the strengths of the development of social and labor relations in the Stavropol Krai is the rise in the standard of living. In 2018, compared to 2016, there is an increase in the integral indicator of the quality of life from 49.85 to 53.02. Despite a significant increase in this indicator, it remains lower compared with traditional cities with a high standard of living (Moscow—77.37, St. Petersburg— 75.69) and in comparison with neighboring regions (Krasnodar Krai—63.97). This fact is the main reason for the outflow of the population (and primarily of young people) from the region. Thus, the sustainable economic development of the region is the most important factor determining the development of human potential.

5 Conclusion The conducted analytical study made it possible to identify the following economic conditions in the region that negatively affect the development and formation of human resources: – A decrease in the number of jobs in regional organizations by 1.6%; – A decrease in labor resources; – The persistence of tension in the labor market associated with the outstripping growth of the economically active population over economic growth; – The lag of rural areas from the city in terms of well-being; – A high degree of unevenness of the economic and social development of the region in the territorial context of regions. Here, the areas of the eastern zone of the Stavropol Krai stand out especially. Positive trends include an increase in the labor force, an increase in the employment rate of the population, an increase in the number of working-age students, and an increase in the number of employed in the regional economy by 1.9%. A high labor potential (the 4th place among the regions of the Southern Federal District and the 19th place in Russia in terms of “the number of the economically active population”) is maintained.

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References 1. Auzan AA (2015) On the possibility of transition to an economic strategy based on the specifics of human capital in Russia. J New Econ Assoc 2(26):243–248 2. Bogoviz AV, Lobova SV, Ragulina JV (2019) The cost and value of human capital in the modern digital economy. Lect Notes Netw Syst 57:1224–1230 3. Gerasimov AN, Gromov YI, Sklyarova YM, Sklyarov IY, Shanin SA (2018) The regional features of socio-economic development of the Stavropol Region. Res J Pharm Biol Chem Sci 9(6):1882–1889 4. Grachev SA, Donichev OA, Malkova TB (2016) Human capital as a resource for the innovative development of the region. Economic Analysis: Theory and Practice 5(452):64–77 5. Ingale S, Basagare Sh (2019) Human resource potential development. Hum Prog 5(5):1–8 6. Krekova, M. M., Kiseleva, E. M., & Krasilnikov, A. V. (2017). The impact of the formation of the digital economy on the development of human resources. Modern science: actual problems of theory and practice. Series: Economics and Law, 12, 41–43. 7. Ministry of , Labor, and Social Protection of the Population of the Stavropol Krai (2018) The report on the state and forecasts of the situation on the labor market of the Stavropol Krai. Stavropol, Russia 8. Rosstat, regional office of the North Caucasian Federal District (2019) Statistical yearbook of the Stavropol Krai 2018. Stavropol, Russia 9. Savelchenko IA, Nikiforova LE (2017) Human resource management in the context of the organization’s intellectual capital development strategy. Creative Economy 7(11):735–748 10. Solodova NG, Vasilieva AN (2015) Human resource management: Problems and prospects. Baikal Research Journal 4(6):1–14 11. Varavva MYu (2016) Vital resources of Russian human capital: State indicators, formation factors, and development trends. Bulletin of the Novosibirsk State University of Economics and Management 4:238–252

Improving the Mechanism of Taxation Within State Environmental Policies Elena V. Kouzmina , Tatyana P. Satsuk , Olga V. Koneva , Alla A. Geizer , and Alexandr A. Frolov

Abstract The paper focuses on the problems of environmental accounting and taxation in the interests of environmental accounting in Russia. It examines the essence of environmental taxes and payments, their various types and functions, their application in Western countries, the stimulating effect on the economy and business entities, and their significance for the environment. The paper also discusses the concept of environmental taxation and the economic essence of resource rental taxation, the tools used for the extraction of natural rent used in developed countries, and the mechanism for the extraction of natural rent in force in the Russian Federation. The paper proposes and substantiates a new methodology for calculating environmental payments. Keywords Environmental accounting · Environmental taxation system · Environmental protection · Environmental management · Resource rental taxation · Environmental taxes and payments

E. V. Kouzmina St. Petersburg Branch of the Higher School of Economics—National Research University, St. Petersburg, Russia e-mail: [email protected] T. P. Satsuk · A. A. Geizer Emperor Alexander I St. Petersburg State Transport University, St. Petersburg, Russia O. V. Koneva Siberian Federal University, Krasnoyarsk, Russia e-mail: [email protected] A. A. Frolov (B) Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_68

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Fig. 1 The dynamics of biological capacity and ecological footprint in the USSR and Russia in 1961–2009 Source (McLellan et al. [3])

1 Introduction The concept of sustainable development [SD] was developed and implemented in 1992 at the United Nations Conference on Environmental Development in Brazil. The paradigm of the concept of sustainable development, often called the World Model of the Future Civilization, considers the achievement of a balance between such areas of human development as social, economic, and environmental. The concept takes into account the needs of our time so that the similar capabilities of future generations are not compromised. In other words, SD assumes economic growth, which does not lead to environmental damage and is accompanied by the solution of social issues [1]. With all the wealth of natural resources, Russia holds the first position in the world in terms of negative environmental impact (per one person). Thus, environmental protection and conservation of natural resource potential are critical for Russia [2]. In many areas, after the accident at the Chernobyl nuclear power plant, pollution zones of up to 55.1 thousand square meters were formed. An extremely unfavorable situation developed in the Ural region. The state of land territories is constantly deteriorating, their degradation and desertification occur. Figure 1 shows the dynamics of biological capacity and ecological footprint in the USSR and Russia from 1961 to 2009. Nowadays, it is more profitable for companies to pay fines for pollution than to implement measures to protect the environment. Therefore, it is necessary to improve the environmental tax mechanism. In this case, one cannot ignore the accumulated world experience [4]. The primary objective of the introduced measures should be the promotion of environmental management.

2 Environmental Accounting in Russia In Russian practice, environmental accounting is a relatively new direction of accounting, and its methodological and theoretical provisions were not yet fully

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Table 1 EPA environmental accounting system Type of environmental accounting

Accounting object

Addressee

National income

Population

External

Financial accounting

Company

External

Management accounting

Enterprise, department, service channel, production line or system

Internal

Source[10]

developed. Some researchers consider it as some mechanism for working with information on environmental expenditures and the results of environmental activities to manage the enterprise [5]. Other authors consider it an integral part of accounting, which contributes to the display in the documents of the financial report of complete and reliable information about the environmental activities of a company [6]. In their opinion, environmental accounting is a methodology for reporting systematic information on environmental activities carried out following legislatively established requirements [7]. Despite the variety of definitions of environmental accounting, all authors agree that it should provide information on the enterprise’s activities related to environmental protection, providing effective control over these activities [8]. In general, environmental accounting can be understood as the compilation of formal and documented systematic information on environmental activities in accordance with the legal requirements for accounting information and the preparation of integrated reporting. It includes the following elements [9]: • • • •

costs of environmental protection measures; financial obligations in the field of ecology; reporting on nature conservation activities; organization and conduct of environmental audits (Table 1).

Environmental accounting, along with environmental payments, is the essential tool for implementing the concept of sustainable development and environmental safety [11, 12], which allows us to approach international standards of financial and management accounting, which ultimately contributes to the sustainable development of the country [13]. Sustainable development is such economic and social transformation when the exploitation of natural resources, investments, scientific and technological progress, and major institutional changes are coordinated. Let us note that for Russia, which is in different macroeconomic conditions than the developed countries of the West, it is necessary to implement programs to increase GDP. However, GDP growth does not always correlate positively with socio-ecological and economic development indicators, which include improving the environmental situation, reducing inequality between social groups, and developing scientific and educational programs [14]. At the present stage of human civilization development, most developed countries are marked with an increase in welfare, if it is understood as an increase in GDP.

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3 Environmental Taxes and Payments Environmental taxes are present in all economically developed countries. They were first introduced in 1973 in the text of the First European Union Environmental Action Program. It was then that the “polluter pays” principle was first formulated. According to this principle, an entity bearing formal responsibility for environmental pollution is obliged to compensate the state for the damage. In other words, environmental taxes are an indirect method of economic regulation of the impact that taxpayer have on nature [15]. Arthur Cecil Pigou formulated the concept that “the amount of tax should cover the losses of society.” A tax satisfying these requirements is often called the “Pigouvian tax,” after this prominent English economist of the twentieth century [16]. The idea of “double dividend” is included in the environmental tax, which implies that the introduction of environmental taxes improves the environment, particularly in reducing pollution by environmental enterprises. On the other hand, it allows the state to reduce labor and capital taxes [17]. For countries with a high share of the commodity sector in the economy, a resource-rent taxation is an essential tool used to build a system of using natural resources through the fiscal mechanism [18, 19].

4 Resource Rental Taxation Resource (natural, environmental) rent represents a superprofit. Unit costs include the cost of invested capital, labor, materials, and energy needed to turn a resource into a commodity. After deducting the cost of these factors of production from the value of the goods, there remains the actual cost of the natural resources (land, water, minerals, marine biological resources, forests, and such resources as clean air and water) (Friedmann [20]). Mountain and land are types of natural rent. Mountain rent, in turn, is divided into minerals, gas, and oil. Land rent is classically divided into water, forest, agricultural, and other types of rent. Natural resource rent can arise due to such a factor as limited deposits of natural resources, which allows companies to use such resources to become monopolists. Such rent is called “absolute rent.” A different type of rent is differential rent. It arises from the “objective difference in surplus production from different subjects of exploitation of natural resources” [21]. In Russia, the concept of rent is not legislated. A portion of rental income is seized through taxation of natural resources [22]. The current tax system in Russia does not stimulate business in terms of innovative programs aimed at protecting the environment. It is often cheaper for enterprises to pay a fine, for example, for water pollution, than to bear the costs of wastewater treatment. It makes sense to introduce a new industrial and environmental tax that stimulates the rational use of natural resources by enterprises [23].

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5 The Proposed Methods of Calculation of Industrial and Environmental Tax The environmental damage assessment proposed below is based on identifying the number of environmental pollutant emissions that occurred during production. To stimulate business entities, a rent coefficient is involved in all calculations, which is established depending on the size of quotas for the extraction of hydrocarbon raw materials and other natural resources, because the amount of harmful effects on the environment directly depends on the volumes of extraction of natural resources. It should be clarified that we proposed to buy mining rights due to their limited nature. However, since subsoil users pay mineral extraction tax and payments for subsoil use, it makes sense to introduce tax benefits. Moreover, it is possible to envisage the possibility of tax holidays for the enterprise for the installation and launch of large-scale treatment facilities or the implementation of large-scale projects related to environmental protection [24]. Let us note that for payment for the negative environmental impact that was currently introduced, periodic indexation is provided due to inflation. However, many experts believe that it does not take into account the real inflation. In agreeing with this opinion, within the framework of the proposed measures, it is advisable to introduce a deflator coefficient for environmental payments that considers the real inflation rate [25]. Given the above, the environmental tax formula is as follows (1): 

=

n  (V pol − Vuti ) × K inc × K de f × R pli ,

(1)

i=1

where Vpol Vuti K inc K de f R pli

the volume of pollution created by the company; the volume of utilized or liquidated contaminants; the increasing coefficient; the deflator installed by the Ministry of Economic Development of the Russian Federation; the rate of charge for emission or discharge of the ith pollutant.

The increasing coefficient is proposed to be obtained by the following formula (2): K inc =

V pr o f × kr ent , Vinv

where Vprof Vinv

the net profit of the company; the corporate investment in environmental activities;

(2)

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krent

the coefficient proportionally related to the number of rights of a company to extract minerals.

The increasing coefficient regulates the relationship between the company’s revenues after deducting all operating expenses and funds to improve the environmental situation. In connection with the proportional volume of production, by increasing the negative impact on the environment, it is proposed to introduce a rent coefficient. The proposed approach to calculating the amount of environmental tax, taking into account the rental component, is based on the introduction of rental payments. Payments from rents should be sent to specially created environmental funds in the Russian regions, which will be targeted for implementing various environmental programs aimed at improving the environment, reproduction of renewable natural resources, construction of treatment facilities, and research in the field of ecology [9]. Let us now calculate the amount of the environmental tax for several major air pollutants from stationary sources for pollution and other negative impacts on the environment following the current legislation and the method we set out. The primary air pollutants reported in the 2016 report are methane, nitric oxide, carbon monoxide, and sulfur dioxide. Information on the structure of “Gazproms” PJSC emissions into the air for 2016 is presented in Table 2. Let us calculate the payment for the negative impact on the environment according to the formula (3): Pni =

n 

Mni × Rchi × Rt × Rni ,

(3)

i=1

where Mni Rchi

Rt

the payment base for emissions or discharges; the charge rate for the emission or discharge of the ith pollutant following the decree “On rates of fees for negative impact on the environment and additional ratios” (September 13, 2016 No. 913) (Government of the Russia Federation [26], rubles/ton (rubles/cubic meter); an additional coefficient to payment rates related to territories and objects under special protection following federal laws [27], equal to 2;

Table 2 The data on pollutants of “Gazprom” PJSC for 2016 No. Pollutant

The volume of pollution produced, Cleaned off gas thousand tons

1

Hydrocarbons (including methane) 1,462.35

2

Nitric oxide

550.48

519.07

3

Carbon monoxide

288.46

270.43

4

Sulfur dioxide

346.09

324.46

Source (“Environmental Report” 2016)

1,374.61

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Rni

625

the coefficient to the rates of payment for emission or discharge of the ith pollutant for the volume or mass of emissions of pollutants, discharges of pollutants within the limits of standards for permissible emissions, standards for permissible discharges, equal to 1 [28]

After carrying out all the calculations according to the formula, we revealed that, according to the available data, the environmental tax should be 13,423.61 rubles. Let us calculate the environmental tax according to the model recommended and proposed by us. We take the rental coefficient for 5% of every 10 million tons of quotas for mining. For the source data, the coefficient will be: • 20% for 420.1 billion m3 of gas. • 20% for 47.2 million tons of oil. The final coefficient for this data will be 40% as the sum of each type of resource’s coefficients. Then krent equals to: kr ent =

209, 725 million r ubles × 1.4 = 8.6 34, 103.25 million r ubles

The deflator coefficient is equated to the mathematical expectation of the coefficients set by the Ministry of Economic Development of the Russian Federation. Then, it will be 1.4. Based on the initial data, we calculate the base volume of negative environmental impact on the primary pollutants into the air from stationary sources. Vhydrocarbon, including methane = 114,090.07 rubles; Vnitric oxide = 35,359.49 rubles; Vcarbon monoxide = 6,262.79 rubles; Vsulfur dioxide = 11,823.30 rubles. After all calculations according to the formula, we found that, according to available data, the environmental tax should be 167,535.65 rubles.

6 Conclusion The environmental tax calculated by the new methodology is fairer and allows us to receive a significant amount of funds for environmental needs. As previously stated, the current environmental payment has no incentive and regulatory impact. In contrast to the current payment, the proposed tax is an incentive in that companies must either extract fewer natural resources or reduce emissions by introducing treatment facilities to lower the environmental tax. The tax also contributes to the accumulation of funds received in environmental funds and stimulating investment in environmental protection.

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References 1. Ryumina EV (2009) Economic analysis of damage from environmental violations. Economic Science of Modern Russia 2:87–95 2. Vasyanina EL (2014) Issues of charging for negative environmental impact. Taxes 4:40–44 3. McLellan R, Iyengar L, Jeffries B, Oerlemans N (2014) Living Planet Report 2014: species and spaces, people, and places. WWF International, Gland, Switzerland (in Russian) 4. Gurova SYu (2013) Greening the tax system. Bull Russ Univ Cooperation 1:26–29 5. Ivanova MD (2015) The need to organize environmental accounting and environmental reporting. Bull Buryat State Univ 2:27–30 6. Vasiliev AK (2008) Environmental accounting and reforming the traditional accounting system. Actual Issues Econ Sci 1:280–284 7. Klychova AS, Gareev RI (2016) Conceptual and organizational aspects of environmental accounting and auditing. Account Budgetary Non-profit Organ 14(398):37–41 8. Chkhutiashvili LV (2014) Organization and improvement of environmental accounting at Russian enterprises. Lex Russica 2:185–198 9. Sisina NN (2012) Environmental facilities of enterprises and their reflection in financial statements. Bull Saratov State Socio-Econ Univ 5(44):171–176 10. Vinogradova AV (2015) Rental taxation in Russia and abroad. Econ Manage 3:14–18 11. Yesina EI (2009) Environmental taxes and payments as an element of the financial mechanism for ensuring the environmental safety of the Russian Federation. Financ Res 1(22):45–52 12. Yesina EI (2012) Natural resource payments as a factor in ensuring the environmental safety of the Russian Federation. Finance and Credit 22(502):68–72 13. Stiglitz J (2012) The price of inequality: how today’s divided society endangers our future. W.W. Norton & Company, New York, NY 14. Grigoriev LM, Parshina EN (2013) The economic dynamics of the countries of the world in 1992-2010: uneven growth. Bull St. Petersburg Univ 4:70–86 15. Gromov VV (2014) Environmental taxes: A classic and modern understanding of the essence. Stat Econ 4:41–45 16. Pigou AC (n.d.) The economics of welfare. Retrieved from http://www.econ-lib.org 17. Goulder LH (1995) Environmental taxation and the double dividend: a reader’s guide. Int Tax Publ Finance 2:157–183 18. Chernyavsky SV, Zolotarev NA (2015) Determining the amount of natural rent and improving the mining tax. University Herald 2:141–144 19. Sukharev AN (2010) Natural rent as an instrument of fiscal policy for stabilizing the Russian economy. Finance and Credit 15(399):40–46 20. Friedman AA (2010) The economy of depleted natural resources. Higher School of Economics, Moscow, Russia 21. European Foundation for the Improvement of Living and Working Conditions (1996) General Briefing on Environmental Taxes and Charges: National Experiences and Plans 22. Melnikova YuV (2011) Improving natural resource payments: a complex of resource rental and indirect taxes. Bull Volgograd Inst Bus 2:178–186 23. Kirsanova KA (2016) The impact of the global price, environment, and government policy on Russian oil companies’ tax burden. Probl Econ Manage Oil Gas Complex 10:7–12 24. Barshinov VI (2008) Legal content and forms of environmental payments in Russia. Lex Russica 5 25. Yudin EA (2015) Environmental payments: is their target and tax status possible? ETAP: Econ Theory Anal Pract 6:141–154 26. Government of the Russian Federation (2016) The decree “On rates of fees for negative environmental impact and additional ratios” (September 13, 2016 No. 913). Moscow, Russia 27. Russian Federation (1992) Federal law “On Subsoil” (February 21, 1992 No. 2395-1). Moscow, Russia: Government of the Russian Federation 28. Russian Federation (2002) Federal law “On environmental protection” (January 10, 2002 No. 7). Government of the Russian Federation, Moscow, Russia

The Algorithm for Assessing Regional Foreign Trade Relations Svetlana N. Bludova , Olga V. Elchaninova , Elena V. Filimonova , Irina N. Kiseleva , and Gulnara I. Alekseeva

Abstract The paper focuses on the issues of assessing regional foreign trade relations based on four blocks of indicators: assessing the commodity structure of foreign trade turnover, assessing the level of foreign trade openness, assessing the innovative effectiveness of foreign trade, and assessing the intensity of foreign trade. To assess the effectiveness of measures to support foreign trade at the regional level, it is proposed to use the shift analysis. Keywords Foreign trade · Regional foreign trade · Export · Import · Intra-industry and inter-industry trade · Shift analysis method

1 Introduction The geographical position of Russia predetermines the peculiarities of the research methodology of its territories and regions. Almost any region can be considered as a separate state with its features in socio-economic development, demographic and production indicators, and the implementation of foreign economic (including foreign trade) relations. The analysis of the regional foreign trade in current conditions requires the use of macroeconomic indicators based on modern and classical

S. N. Bludova North-Caucasus Federal University, Stavropol, Russia e-mail: [email protected] O. V. Elchaninova (B) Stavropol State Agrarian University, Stavropol, Russia E. V. Filimonova · I. N. Kiseleva Stavropol State Medical University, Stavropol, Russia e-mail: [email protected] G. I. Alekseeva Financial University Under the Government of the Russian Federation, Moscow, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_69

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methods of assessing foreign trade and indicators of economic stability and growth of the regional economy as a whole. It should be noted that interest in assessing and analyzing regional foreign trade relations is noted mainly in the scientific works of Russian scientists [1, 2]. Foreign authors practically do not consider the trade relations of particular regions of their countries with other regions or countries. Scholars often consider the foreign trade relations of one country with a group of countries united in a region or an integration association, for example, the study on foreign trade cooperation between the EU and Turkey and Romania. Assessing the indicators and methods of analysis of foreign trade cooperation, it is worth noting such widespread indicators as export, import, and foreign trade quotas; the coefficients of comparative advantages, estimates of the foreign trade balance, the Balass, and Grubel-Lloyd coefficients characterizing intra-industry and inter-industry trade. Often, when assessing foreign trade, a gravity model is used [3]. The study aims to develop an algorithm for assessing regional foreign trade relations. The goal is expected to be achieved through the formation of a system of logically verified indicators for assessing the regional foreign trade relations and the control impact of regional authorities on the development of the regional foreign trade based on shift analysis.

2 Materials and Methods The methodological basis of the research is the methods of analysis, synthesis, coefficient analysis, and shift analysis. In this work, we do not consider the entire range of regional foreign economic relations, including investment activities, joint entrepreneurship, and international cooperation in its various manifestations. We focus only on one direction of assessing regional foreign economic relations—foreign trade since we consider it the most important [4, 5]. The advantage of the proposed algorithm is the ease of obtaining statistical information for calculating indicators. All data are publicly available and can be freely used to carry out the necessary calculations. Nowadays, there are plenty of scientific works related to the assessment of foreign trade relations. Nevertheless, almost all of them consider foreign trade operations at the country level. Few authors pay attention to the problem of finding an algorithm for assessing the regional foreign trade activity. Of particular interest is the work on the analysis of the regional foreign economic relations [6]. At one time, this was the first major scientific work devoted to analyzing foreign trade activities of Russian regions. However, the authors used only the simple analysis of foreign trade activity and practically did not try to determine the features of foreign trade flows and their structural features. Subsequently, the authors occasionally turned to the topic of assessing regional foreign trade activities. For several decades, a particular interest of Russian scientists was aroused by the issue of assessing export potential of regions [7]. In general,

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these were just the attempts to consider certain issues of the foreign trade activities of regions, which did not set the development of a comprehensive assessment methodology as their goal. M. Sh. Galieva [8] suggests using the correlation-regression analysis to assess the foreign economic activity of a region. Having considered the models of the interdependence of individual indicators of the socio-economic development of the region on foreign trade operations, the author determines the statistical relationship between indicators of foreign economic activity and indicators of the economic development of the region to find out what indicators need special attention when planning the concept and programs in this area. Following this approach, the estimation algorithm includes the following stages: 1. 2.

The determination of the dependence of foreign trade turnover, trade balance, exports, and imports on indicators of economic development; The interdependence of foreign trade operations and indicators of the regional economy are analyzed based on the obtained results.

As a result of the analysis, the author found that the increase in foreign trade indicators depends on the number of organizations with the participation of foreign capital per capita in the region. This approach does not allow for a qualitative assessment of the foreign trade activities of the region in its full diversity. Therefore, it will not allow determining the necessary adjustments. Many researchers (Cejvanovic et al. [9]) suggest using the gravity model in various modifications to assess foreign trade cooperation. Using this approach, we determined the countries providing the most beneficial foreign trade operations. As a rule, these countries include those that are in geographical proximity, with concluded trade relations, or those that, following the theory of similarity of countries, have a similar culture, socio-economic development, customs, etc. The disadvantages of the gravitational model, in our opinion, include the complexity of the calculations with sufficient evidence of the conclusions. This approach does not provide answers to questions related to the structure of foreign trade turnover and its qualitative assessment. The most effective, in our opinion, is the statistical approach, which allows, based on the calculation of a certain number of coefficients, to conduct a qualitative analysis of the structure of foreign trade turnover, to determine the advantages of exporting or importing certain groups of goods, as well as priority geographic areas of trade. Adherents of this approach are found in Russia ([10]) and abroad (Gilbert and Mikic [11]; Lima et al. [12]). It should be noted that the entire system of statistical indicators for assessing foreign trade turnover was developed a long time ago. The best known are the coefficients developed by [13] and 14]. We propose an adapted system of indicators for assessing the foreign trade activity of any region, by which we mean a part of the country, allocated based on administrative-territorial division.

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3 Results The analysis of the regional foreign trade activity should include several stages (Fig. 1). At the first stage, the foreign trade activity of the region is assessed in the following areas: • • • •

The commodity structure of the regional foreign trade turnover; The level of openness of the economy of the region; The innovative efficiency of the regional foreign trade activities; The intensity of the regional foreign trade activities.

In the second stage, an assessment of the management impact of measures to promote and stimulate foreign trade in the region is carried out. In the third stage, the foreign trade strategy of the region is being adjusted, which is designed based on the results obtained to determine the promising directions of trade and the commodity structure of exports and to optimize the structure of imports. To assess the commodity structure of the regional foreign trade turnover, it is proposed to use the following indicators (Table 1). The Balass and Grubel-Lloyd coefficients allow to determine the level of foreign trade turnover in inter-industry and intra-industry trade. Regions with prevailing intra-industry trade are, as a rule, more developed economically, and the structure of their foreign trade operations is often more “high-quality” and is often represented not by raw materials, but by finished products.

Fig. 1 The algorithm for assessing the regional foreign trade activity Source Developed by the authors

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Table 1 Indicators for assessing the commodity structure of the regional foreign trade turnover Indicator

Calculation algorithm

Balass coefficient (shows the intersectoral nature of trade)

Cb =

n |E −I ni=1 i i i=1 (E i +Ii )

where Ei —the export of goods i by this country to other countries; Ii —the import of goods i from other countries; n—the number of goods accepted for calculation 



+Ii j )− | E i j −Ii j ( Ei j ( Ei j +Ii j ) where Eij , Iij —export and import of country j of product group i

Grubel-Lloyd coefficient (shows the intra-industry nature of trade)

Cgl =

The ratio of the comparative advantage for export (import) of a specific group of goods

RCAe =

Er t j ×E c Er ×E ct j

where Ertj —the export from the region of the jth product; Ec —total exports of the country Er —total exports of the region Ectj —the export from the country of the jth product

Trade balance ratio (shows the contribution of T = ib    each commodity item to the trade balance of E i +Ii 1000 G R P × (E i − Ii ) − (E − I ) × E+I the region) where: Tib —trade balance of the region GRP—gross regional product Ei —the export volume of the product i Ii —the import volume of the product i Source [11]

The trade balance ratio makes it possible to assess the contribution of each product category to the general foreign trade balance of the region. This indicator helps to determine the most promising groups of goods for both import and export. To assess foreign trade openness, we can use a group of indicators, including export and import quotas, etc. (Table 2). The indicators of openness were widely used in the analysis of foreign trade activities of countries. Nevertheless, there are no reasons why they cannot be used at the regional level. To assess the innovative efficiency of the regional foreign trade activities, a group of indicators can be used, including assessing the efficiency of export and import of technologies (Table 3). The assessment of the intensity of the regional foreign trade activity includes several groups of indicators (Table 4). At the next stage, it is necessary to determine the control impact of measures to promote and stimulate foreign trade in the region. Thus, we propose to use the wellknown method of shift-analysis, which consists of the sequential allocation of the federal, sectoral, and regional components of changes in exports (imports) (Table 5).

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Table 2 Indicators for assessing the openness of the regional economy to foreign trade Indicator

The calculation algorithm

Export (import, foreign trade) quota

Ce = G ER P × 100% where: E—the export volume of the region, rubles GRP—gross regional product, rubles

The coverage ratio of imports by exports

Cei = EI where: E—the export volume of the region, rubles I—the import volume of the region, rubles

International competitiveness ratio

Cei = E−I Tv where: E—the export volume of the region, rubles I—the import volume of the region, rubles Bo—foreign trade turnover of the region, rubles

Source [11]

Table 3 Indicators for assessing the level of innovative efficiency of the regional foreign trade activities Indicator

Calculation algorithm

Export (import) manufacturability ratio

Cemr = VEa × 100% where: Va —net asset value, rubles

The coefficient of export (foreign trade) efficiency of innovation activity

Ceei = CVRaD × 100% where: Va —net asset value, rubles CRD —R&D costs, rubles

Import (export) manufacturability ratio

Cimr = IIm × 100% where: Im —the export of engineering products, rubles I—the volume of export, rubles

Source Developed by the authors

The calculation of these components allow us to estimate the growth in the volume of exports or imports through the promotion and stimulation of foreign trade operations at the federal, sectoral, and regional levels. This approach does not allow obtaining specific data, but it shows a general trend and allows us to determine the degree of involvement of regional institutions in stimulating and facilitating foreign trade. At the third stage of the algorithm, it is planned to develop corrective actions based on the obtained data.

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Table 4 Indicators for assessing the intensity of the regional foreign trade turnover Indicator

The calculation algorithm

The intensity factor of foreign trade turnover

CIij =

E ij Ei

:

Ij (Iw −Ii )

=

E ij ×(Iw −Ii ) E i ×Ij

where: Iij —the index of intensity of trade flows from region i to country j Ei —total exports of the region i; Ii —total import of the region i; Eij —export of the region i to the country j; Ij —total import of the country j; Iw —the total world imports The intensity factor of foreign trade turnover within the integration association

KIint =

Eir +Iir I r +Er Ir+Er Ew+Iw−(Ir+Er)

where: KIint—trade intensity index in the integration association; Eir—export of the region in the integration association; Iir—the import of a region in an integration association Er—total exports of the region; Ir—total region imports; Ew—world export; Iw- world imports Source (Gurova [15])

Table 5 Calculation of the control action Indicator

The calculation algorithm

Federal component

F = Vei t-1 * (Tt/T t-1)—1 where: Vei t-1—the export (import) volume in the region Tt/Tt-1—export (import) growth rate in the whole country

Industry component

O = Vei t-1 * (Tot/Tot-1)—(Tt/T t-1) where: Tot/To t-1—the export (import) growth rate in the industry

Regional component

R = Sei t-1 * (Rei t/Rei t-1)—(Tot/Tot-1) where: Rei t/Rei t-1—the export (import) growth rate in the region

Source Developed by the authors

4 Discussion Considering the issues of assessing foreign trade relations, it is worth noting that assessing the manufacturability and innovativeness of export-import operations was studied rather poorly. The existing methods for assessing the manufacturability of exports and imports based on the study of individual groups of goods according to the Commodity Nomenclature of Foreign Economic Activity are rather laborious [16]. Unfortunately, widely used mathematical methods do not always show results comparable with other methods in their accuracy and efficiency. Therefore, in our opinion, their use is not always advisable. Additionally, the issues of the possibility of regional authorities, independently, without the help of the federal center, stimulate innovative production oriented

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towards export and to stimulate the import of high-tech products to the regions, remain debatable. The analysis of the structure of imports often shows its inefficiency associated with the import of products or goods produced in the region. Accordingly, the question arises of the expediency of such imports. In modern scientific literature, quite a little attention is paid to the study of the input-output approach, which allows the analysis of value chains in the region. The issue of the structure of imports of high-tech products and the geographic focus of such imports is poorly considered. It is not evident whether one should buy high-tech and expensive equipment in developed countries or limit themselves to buying cheaper and less technological equipment from China. Currently, there are practically no instruments assessing the impact of institutions on promoting foreign trade. The approach proposed in the study using shift analysis allows, to some extent, to assess the influence of institutions. However, the study of this issue should be continued.

5 Conclusion The proposed algorithm does not claim to be complete and can be supplemented with other indicators or, conversely, may change the direction of reducing a large number of indicators. Nevertheless, in our opinion, it is in this variant that the proposed algorithm allows us to qualitatively assess the structure and features of the regional foreign trade turnover. The advantage of the proposed algorithm is the availability of all the data necessary for the assessment, and modern information technologies make it possible to automate calculations as much as possible. In our opinion, the optimal time interval for assessment is a calendar year. A necessary condition for implementing the algorithm is the coordination of the control action based on the assessment results.

References 1. Bobryshev AN, Elchaninova OV, Tatarinova MN, Frolov AV (2015) Management accounting in Russia: problems of theoretical study and practical application in the economic crisis. J Adv Res Law Econ 3(3):511–519 2. Kostyukova EI, Yakovenko VS, Germanova VS, Frolov AV, Grishanova SV (2017) The evaluation of the company’s financial condition from the position of different groups of stakeholders. Espacios 38(33):11 3. Hufbauer GC, Schott JJ (1994) Western hemisphere economic integration. Institute for International Economics, Washington, D.C 4. Titova OV, Kostyukova EI, Boboshko NM, Drachena IP (2019) New types of taxes and forms of taxation in the information economy conditions: perspectives of optimization. In: Gashenko IV, Zima Y, Davidyan AV (eds) Optimization of the taxation system: prerequisites, trends, and prospects. Springer, Cham, Switzerland, pp 229–236

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5. Truhachev VI, Kostyukova EI, Bobrishev AN (2017) Development of management accounting in Russia. Espacios 38(27):7 6. Vardomsky LB, Skatershchikova EE (2002) The foreign economic activity of Russian regions: a textbook for universities. In: Glushkova VG (ed) Moscow. ARKTI, Russia 7. Kudratov NE, Askarov NI, Isakhov BA (2001) Methodological issues of assessing the level of development of the export potential of regions. Stat Issues 2:48–49 8. Galieva M (2017) The analysis of the dependence of indicators of foreign economic activity on the regional economic development factors. Sustain Dev Sci Educ 5:60–70 ´ 9. Cejvanovi´ c F, Miliˇcevi´c D, Kameri´c A (2018) The usage of the gravity model in evaluating foreign trade between Bosnia and Herzegovina and Montenegro as members of Cefta agreement 2006. Poslovna izvrsnost/Business Excellence, Faculty of Economics and Business, University of Zagreb 12(1):143–159 10. Makhotaeva M, Nikolaev M (1999) The formation of economic policy at the regional level. Economic Issues 9:80–89 11. Gilbert J, Mikic M (2007) Trade statistics in policy-making. A Handbook of commonly used trade indices and indicators. Retrieved from http://www.unescap.org/tid/publication/tipub2491. pdf 12. Lima D, Elías-Alvarez J, Mariano-Cracau D (2016) Manual on foreign trade and trade policy: Basics, classifications, and indicators of trade patterns and trade dynamics. ECLAC, Santiago, Chile 13. Balassa B (1986) The determinants of intra-industry specialization in US trade. Oxford Econ Pap 38:220–233 14. Grubel HG, Lloyd PJ (1975) Intra-industry trade: the theory and measurement of international trade in differentiated products. Wiley, New York, NY 15. Gurov IP (2012) Measuring global and regional trade integration. Eurasian Econ Integr 3(4):60– 73 16. Negrea A (2013) Concepts and methodologies regarding the improvement of Romanian foreign trade (I). Ann Facul Econ Univ Oradea Facul Econ 1(1):139–148

Social Health of Students Studying at the Stavropol State Agrarian University Svetlana I. Tarasova , Tatyana N. Dukhina , Olga O. Limonova , Natalia B. Drozhzhina , and Evgenia V. Taranova

Abstract The progressive socio-economic development of society is defined by the ideal functioning and behavior of people. One of the elements that provide the ideal functioning of humans is high health potential. In this paper, we analyzed secondary literature and examined the approaches to studying social health (philosophical, sociological, psychological, pedagogical, and medical approaches). Social health is understood as: (1) a socio-cultural activity, (2) the ability to differentiate social phenomena according to moral criteria, (3) the ability to actualize intellectual and personal activities, (4) the ability to identify oneself with a social group, (5) the ability to self-organize and interact with the society, (6) the ability to self-reflect, and (7) the ability to adaptation in social groups. We present a survey called “Social Health of a Person,” conducted at the Stavropol State Agrarian University. Moreover, we described a system of intra-education measures for forming the social health of the students. Keywords Social health · Personality · Education · Formation · Society · Development

1 Introduction Younger generations are tasked with building the future of Russia, implementing further governmental, information, and demographic programs related to the current transformation processes of the society. In the twenty-first century, the role of younger people has sharply increased because of scientific and technological progress. The younger generation helps discover and introduce new ways and mechanisms for implementing vital and adaptive strategies, which, in turn, impact the sustainable social and economic development of Russia [1–4]. Nowadays, issues of the future of the Russian state are being resolved. Many aspects depend on young people, their attitude to themselves, the future, and the S. I. Tarasova (B) · T. N. Dukhina · O. O. Limonova · N. B. Drozhzhina · E. V. Taranova Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_70

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country. Young people play an essential role in the innovative development of the Russian economy and the development of entirely new technologies. The younger generation has a good social adaptation, which is especially crucial in modern postindustrial society [5]. Young people demonstrate an extraordinarily high level of social health. By socializing and integrating into society, Russian youth inherits values, attitudes, and behavioral stereotypes, including social health indicators. Changes in society affect all social groups, including young people. Any political system generates its ideology, values, attitudes, and the younger generation. In the Soviet Union, young people had their own values, attitudes, and identity. Modern post-Soviet youth also has its own characteristics. The political and economic changes in the country also affect the ideology and value systems. These affect the young people as a socio-demographic group and change social health indicators and components [6]. Protecting the social health of young people is an objective of national security since the nation’s health is vital to the existence of the state. The state that recognizes the importance of health can raise a healthy younger generation, be confident in the future, and effectively develop large-scale state projects and plans [7, 8]. Social health is defined as a person’s ability to adapt to natural, technogenic, and social environment. The social health of a person includes the characteristic features of their interaction with society and their acceptance of social norms and values adopted in society. It is defined by the continuity of societal values. According to World Health Organization (WHO), health is “a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity” [9]. Health is the phenomenon that reflects the readiness of modern society to transition to a new historical state. In the recent past, health was only considered a part of the dichotomy: “health”—“unhealth.” The current approaches to health are more diverse. Presently, health is presented as the most important societal life factor (i.e., social health). Currently, persons, society, and the government recognize that social health is a problem that requires urgent attention [10, 11]. Social health is a widely researched subject of scholarship. N. A. Amosov stated, “To be healthy, one needs to apply constant and substantial effort. Nothing can replace it.” S. V. Popov and T. V. Bashkireva differentiate several types of health: • Somatic health is the current state of organs and systems of the human body. • Physical health—the state in which the indicators of all body systems are nominal and stable. It provides for the adaptability of a person to the environmental factors. • Mental health—psychological well-being of a person, meaning that they can realize their full potential, work creatively and productively, cope with stressful situations, and demonstrated acceptable behavior. It is a state in which a person can adequately assess the objective reality and coordinate their behavior to the challenges of the external social environment. • Moral health—the way the volition of a person manifests in their life and development. The main task of moral health is helping a person realize their life tasks. This health is realized in the personal and interpersonal activities of a human [12].

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2 Materials and Methods Currently, most researchers understand social health as a socio-cultural activity, the ability to differentiate social phenomena occurring in a society based on moral norms, the ability to actualize intellectual and personal activity, the ability to identify oneself with a social group, the ability to self-organize and interact with society, self-reflect, and adapt in reference societies (family, group) [13]. In 2019, the Stavropol State Agrarian University conducted a sociological survey called “Social Health of a Person.” In total, 507 students of all faculties participated in the survey. These include: • • • • • • • •

Agronomic faculty—76 people; Veterinary faculty—64 people; Plant protection faculty—45 people; Agricultural mechanization faculty—82 people; Technological management faculty—47 people; Accounting and financial faculty—65 people; Economic faculty—72 people; Power engineering faculty—56 people. The survey included several questions, the main ones being:

1. 2. 3. 4. 5. 6.

How do you feel about morality? Do you follow the moral norms accepted in society? Do you have the ability to actualize intellectual and personal activity? With what social group do you identify yourself? (Who is a very respected person for you?) Can you organize yourself to interact with society? Do you have the ability to self-reflect? Do you easily adapt to the referent group (family, group)?

3 Results The survey results demonstrated the following: 1.

2. 3. 4.

Most of the students (68%) have a positive attitude to morality and follow the moral norms accepted in society. However, 18% of respondents believe that morality can sometimes be overlooked, and 14% found it difficult to answer. Most of the respondents (75%) can actualize intellectual and personal activity, and the rest of the respondents (25%) are forming this ability. Many students (78%) consider family and close friends as their reference group, while other respondents (22%) consider teachers and famous people. Thus, 44% of the students consider themselves capable of self-organizing to interact with society, while the rest (56%) believe that they are yet to achieve this.

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More than 64% of the students can self-reflect, and 36% of respondents find it difficult to analyze their behavior. More than 85% of the respondents quickly adapt in reference groups (family, group), while the rest of the respondents (15%) find adaptation problematic.

As our research has shown, modern society highly values a person’s professional training, knowledge, and skills. This aspect allows a person to get access to the latest information but requires good health. Only a commitment to social health provides a person with real opportunities to move up the career ladder and grow professionally and personally. People can successfully learn as their work becomes increasingly creative. At the current stage, the main objective of society and the government is introducing the aspects of social health and a healthy lifestyle into educational and professional standards. Thanks to a healthy lifestyle, a person has great opportunities to strengthen and maintain their health, preserve their ability to work, and stay physically active. We can conclude that following the values of social health can positively impact the health of a person and society. These, in turn, lead to progressive development and the realization of the creative potential of the Russian people.

4 Discussion Social health is an interdisciplinary phenomenon, and, therefore, we can establish several approaches to its research. The philosophical approach considers the concept of “social heath” to be an integral complex, influenced by physical, biological, and social factors of the macroand micro-environment (T. Dichev, O. V. Kovaleva, O. A. Panova, M. V. Photonov, V. A. Lischuk. I. S. Larionova, I. V. Turkhanova, et al.). In sociology, the concept of “social health” is the reflection of society’s attitude towards a person, realized through their inclusion in various social structures (O. A. Ragimova, T. G. Pospelova, I. A. Bogacheva, T. K. Petrushenko, R. A. Zobov, L. A. Boykova, G. M. Andreeva, et al.). In psychology, the concept of “social health” denotes primarily a person’s ability to perform their social functions fully, their interpersonal, their participation in the societal life, their values, motives, and behavior (G. S. Nikiforov, A. A. Adler, E. I. Torokhova, E. M. Kazin, N. A. Litvinova, V. N. Myasischev, V. A. Ananyev, I. B. Bovina, et al.). The pedagogical approach (Y. A. Komensky, K. D. Ushinsky, P. I. Pidkasisty, A. N. Teslenko, I. I. Osipova, et al.) considers “social health” primarily from the standpoint of the result of personal socialization. It is mainly interested in how well a person developed and internalized positive ideas and skills of interpersonal interactions.groups. Upbringing and education are the main criteria of this approach. Education forms socially approved behavior, moral qualities, and values of a person [14].

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The medical approach considers “social health” to be a component of human health. Some scholars believe that social health is the abilities that allow a person to carry out their biological and social functions and realize their potential. They also consider social health as the motivation, connected with the personal needs to maintain and strengthen their health (I. N. Tarasov, M. M. Moskvichev, Y. V. Sokolova, V. V. Teslenko, A. V. Zhuravlev, V. N. Sokorun, et al.). Other scholars believe that “social health” is the optimal and adequate conditions of the social environment that prevent the occurrence of socially determined diseases and social maladaptations, protect a person from asocial acts, and form a state of social immunity (I. H. Pikalov, M. L. Yemelyanova, A. V. Litvinova, Y. Y. Korneva, V. N. Feofanov, et al.).

5 Conclusion Our research on the social health of the students of Stavropol State Agrarian University has shown that the modern post-industrial society has high demands on the personal qualities of professional workers and students. The students’ social health provides for internalizing a large amount of information, acquiring knowledge, skills, and education. It opens up opportunities for professional growth and fulfilling social needs. We note that motivating students to preserve and maintain their own health in later life is necessary for their successful social realization. In general, we conclude that following the values of social health can positively impact the health of a person and society. In the Stavropol State Agrarian University, the staff of the department of pedagogy, psychology, and sociology created and implemented a system for developing the social health of the students. This system is now an integral part of the educational process in the university. It includes: • A set of preventive measures aimed at strengthening the fight against harmful habits among the young population; • Social and psychological training on the subject “Forming of a Healthy Lifestyle”; • Workshops on the subject “Social Health of the Youth”; • Seminars on the topic “Healthy Youth is a Healthy Nation”; • A series of psychological lectures on the subject “Reproductive Health of Young People.” The Stavropol State Agrarian University also improves the social health of the educators, including consultations, conversations, demonstrations of scientific videos on this topic, workshops, etc. Higher education is an important stage in the socialization and professional development of the students. During their studies, the students experience entirely new environmental factors (changes in the social environment, increasing psychological

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stress, disorientation in society), which may negatively affect their health. Therefore, the educational environment plays a vital role in maintaining and improving the social health of the students. The implementation of measures for forming the students’ social health in the Stavropol State Agrarian University may serve as the basis for the sustainable socioeconomic development of Russia.

References 1. Anderson R (1988) The development of the concept of healthy behavior and its application in modern research. Res Healthy Behav Health Promot 22–35 2. Antonova LL (2004) Sociology of health as a promising branch of science. Educ Sci 3:112–119 3. Argyle M (1981) Social situations. Cambridge, UK 4. Baikova LA (2009) Theoretical and methodological foundations of the social health of children and students. Bull Russ Acad Educ 3:122–136 5. Rodionova VI, Shvachkina LA, Ivashova VA (2018) Social correlation of professional educational services and the labor market as a vector of successful social and economic development. Eur Res Stud J 21(2):285–293 6. Vereshchagina LV, Gafiatulina NKh, Samygin SI (2015) Problems of shaping the health of Russian youth in the context of ensuring national security: Sociological discourse. Natl Health 1:53–61 7. Schwartzer R (2000) Psychology of health. Int Handb Psychol 452–465 8. Zhuravleva IV (2010) Attitude towards the health of a person and the society. Nauka, Moscow, Russia 9. World Health Organization (1946) Constitution of the world health organization. New York, NY 10. Gafiatulina NKh (2014) Social health of student youth in the gender dimension. Bull Perm State Univ 1:146–157 11. Twadle A, Hessler R (1987) Sociology of health. Macmillan, New York, NY 12. Bashkireva TV (2007) General criteria for mental, psychological, and social health. World Psychol 2:140–150 13. Gorshkov MK, Sheregi FE (2010) The youth of Russia: Sociological portrait. Institute of Sociology of the Russian Academy of Sciences, Moscow, Russia 14. Barsukova T, Ivashova V, Gunko J, Gavrilova O, Chaplitskaya A (2019) Designing professional competence of leaders of the regional agrarian sector. Int J Civ Eng Technol 10(1):768–776

Management of Complex Socio-Economic Systems on the Example of the Mining Industry Inna V. Zhukova

and Aleksandr E. Zubarev

Abstract A growing share of economic activities uses digital technologies or direct digital management. In this study, we justify the need to transform the management of the complex socio-economic systems in the mining industry. The mining industry is an excellent example of the divide between digital management models and traditional production. Digitalization (i.e., the process of transitioning every aspect of economic and social interactions to using digitally stored data) causes the emergence of a new type of economy. New challenges in managing the mining industry and other forms of subsurface resource usage require a prognostic analysis of using new technologies. In these conditions, the management system of the industry should develop fundamentally different and innovative methods. Management becomes a multitasking system; new relationships emerge within its boundaries; its structure and the established connections change significantly. Keywords Mining industry · Subsurface resource usage · Organizational-economic management mechanism · Complex socio-economic system · Data-centricity · Digitalization · Digital economy

1 Introduction Changes in the complex socio-economic systems caused by digitalization and the adoption of digital technologies require new management systems. The digitalization of the global economy inevitably produces new manufacturing types and new resource industries. Any complex socio-economic system faces such problems as large information flows and databases and the need to adapt to a changing external environment. I. V. Zhukova (B) Far-Eastern Institute of Management (Branch) of the Russian Presidential Academy of National Economy and Public Administration, Khabarovsk, Russia A. E. Zubarev Pacific National University, Khabarovsk, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_71

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The current socio-economic development of Russia is inextricably linked to natural resources. The development of new economy branches is directly affected by introducing innovative technologies into the mining industry. Providing for this innovative development is one of the main managerial objectives of Russia. In the context of sustainable development, the application of different management methods should be integrative and complementary [1]. The complementarity of resource branches is achieved through the integrated nature of mineral resources. There is an urgent but not yet realized need for developing such strategic tools as management, forecasting, and subsurface research in mining. According to Kozlovskiy [2], Russia may face large-scale shortages of profitable mineral resource reserves if the strategic systems of subsurface resource analysis and usage are not developed in the near future. The role of information, Big Data, and digital technologies in transforming the management of socio-economic systems is extremely significant. However, many issues are still poorly understood. These include: (1) the digital management potential in different economy branches, (2) the institutional aspects of the digital economy, and (3) the place of information and information flows in the overall system of current economic relations. This study aims to justify the need to digitalize the management of complex socio-economic systems on the example of the mining industry.

2 Materials and Methods In the next 3 to 5 years, digitization will have an enormous impact on the competitiveness of the mining industry. Therefore, the management strategy of the industry must be defined by taking into account new technologies and the changing environment [3]. Using the methods of comparison and strategizing, we concluded that the increasing complexity of technological systems, caused by digital transformations in the mining industry, requires changing the methods and elements of management systems. We believe that geological exploration and mining no longer entail only the planned increase of geological reserves and their extraction. Currently, they also include confirming the profitability of subsequent mining, developing a strategy for the industry, and establishing the structure and volume of mineral needs. All of these processes require new management tools.

3 Results The economy of Russia is resource-based. The experience shows that resource-based economies can be innovative [4] and high-tech [5].

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A high-tech economy requires a sufficient supply of such minerals as rare earth elements, tin, titanium, manganese, chromium, tungsten, gold, and other minerals. The adequacy of the mineral and commodity base is linked to geological and geological exploration [GE]. The geological industry is at the intersection of scientific research and mining project realization. This means that GE is directly related to the demands of the mining industry and production. Many geological projects are implemented according to direct orders of subsurface resource users. Although government funding is one of the main factors influencing the digitalization of GE, government support of geological projects is minimal. Many factors influence the digitalization level of GE. Achieving its optimal level is only possible under the following conditions [6]: Kcge = max

L  N 

αi Ri, if Scge = const,

i=1 i=1

where Kcge —the level of digitalization of the GE for the period; Scge —the allocated funding for the GE digitalization during the; I = 1…N—the number of evaluated factors for the jth direction of digitalization; j = 1…L—the number of considered directions of digitalization during the implementation of GE; αi —the coefficient of the importance of the ith factor. We identified three reasons for the need for transformation in the management of the mining industry. The first reason is linked to the condition of the industry. System analysis allowed us to identify several groups of long-standing problems in subsurface resource usage. The state of the mineral reserve base [MRB] does not meet the needs of the Russian economy [7]. Currently, there is no unified information database on the state of the MRB, no publicly available information on the distribution of mineral reserves by regions, and no unified management body for the Government Subsurface Resource Fund. The legal issues of ownership of the subsoil, the geological research results, the extracted minerals, technologies, and methods of extraction are not resolved. The second reason is linked to the first one. It is connected to reviewing the management strategy of the industry, considering new technologies and the changing environment. In the conditions of digitalization, the management system and the Subsurface Fund must evolve to a new stage of development. The management system, which no longer meets the demands of the industry, must be reconstructed. The decision-making system must be complete, adaptive, integrated, and flexible. Designing an integrated management system is an extremely relevant and a relatively new element of management methodology. An integrated system entails uniting all functional systems into a single one on the basis of common information [8]. A common information base allows forming a datacentric management system. The information system is a component of the management system. It allows monitoring changes in natural resources and is mainly implemented through a system of government cadasters. However, these are scattered and do not solve the problems of the mining industry [9].

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Subsurface mining is a complex socio-economic system. It has different participants (various government management bodies and types of subsurface resource users), influence different areas of life (social, economic, etc.), and is innovative. Figure 1 shows a model of the current organizational and economic mechanism of managing the mining industry, considering the relations between the management system elements. The presented model of the mining industry organization does not contain an information block. There is also no such element as a mechanism of implementing the right of ownership of mineral resources and objects that use them. The model has a functional and targeted nature. It does not fully reflect all external and internal impacts and cannot quickly respond to external environment changes. Subsoil mining management is marked with the formation of considerable information arrays on natural resources, their users’ activities, and the state of the environment. Management decisions depend on these information arrays. Schematically, the information block of the industry management system can be represented as an

Fig. 1 The model of the current organizational and economic mechanism of managing the mining industry, considering the relations between the management and managed systems. Source Compiled by the authors

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Fig. 2 The information block structure of the mining management system and information arrays of the information block in the industry management system. Source Compiled by the authors

informational mechanism integral to the management system (Fig. 2). Each element of the presented structure can be divided into smaller information arrays. The third reason is related to introducing digital information technologies in all types of subsurface resource usage, including the mining industry. Especially active is the introduction of information technology in GE, where the level of technology use is low, and the need for intelligent analysis of large amounts of information is very high. On the one hand, the mining and oil industries are the driving forces behind the Russian economy. Such innovations as blockchain technologies, technology platforms, cloud services, smart contacts, and “smart” deposits are actively introduced to these economy branches. On the other hand, these industries have relatively low R&D indexes (compared to the rest of the world) and a large potential for the development of information technology [6]. Table 1 shows the main directions and obstacles of GE digitalization. The scale, depth, and speed of the ongoing economic transformations linked to digitalization determine the transformation of socio-economic systems. However, many issues are still poorly understood. These are issues of digital potential in certain industries, institutional aspects of the digital economy, the place of digital economy institutions, and digitalization processes in the overall system of economic relations.

4 Discussion The use of innovative tools in the sphere of management in the mining industry in the context of digitalization of the economy remains controversial. Industrial development will be more defined by the need to use innovative digital tools in the management system of the industry and its elements. The strategic management of subsurface mining is defined by: (1) The staged nature of work, (2) the implementation of certain stages by specialized organizations, (3) the transfer of the object to the actual subsurface use on a competitive

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Table 1 The state of digitalization of research activities in GE Main directions, processes, and results

Brief description and/or list of main directions, processes, and results of research work

The main directions of digitalization of GE

The automation of organizational and technical processes of scientific research The creation of automated information and integrated information systems for scientific research The implementation of innovative technologies in research processes The implementation of specialized applied software for individual research

Technical obstacles of the GE digitalization

A variety of data sources (including inventory) requiring interconnection Data obsolescence and the complexity of importing them from specialized software for geological modeling The use of outdated data formats by all participants in the work The complication of the geological structure of explored and developed mineral deposits Unrepresentative, inadequate, and unreliable geological information

Generation of large information arrays (Big Data)

The demand for the reinterpretation of geological data (geochemical, geophysical, petrological, etc.) Linking existing information arrays with up-to-date data processing and interpretation of up-to-date data, considering the available information (including seismic data) Reinterpreting of borehole information, mine workings, dumps Reinterpreting data and models for areas with complex geological structures Processing, interpretation, and binding of remote sensing data, geophysical research, information from space satellites

New interpretation results when applying big data

The identification of new patterns in geological and geophysical data and refinement of structural and geological models A new interpretation of seismic, geophysical, and satellite data, pattern recognition by their reflection in geophysical fields (continued)

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Table 1 (continued) Main directions, processes, and results

Brief description and/or list of main directions, processes, and results of research work Reducing the processing time for new geological and other special information (boreholes, mine workings, etc.) Improving the quality of study of sites and territories Reducing the cost of exploration work Reducing the level of influence of the human factor on the efficiency of GE

Source Compiled by the authors based on [6]

basis, (4) the participation of a government body as a customer, and (5) the participation of government and private enterprises in work as a contractor. Subsurface use includes various types of activities, ranging from geological work and GE research to processing and extraction of useful components from ores. The strategic nature of management ensures the timely preparation of the object for the work of the appropriate stage. Interpreting the data obtained in this study, we correlated their results with other studies on similar topics in Russia and abroad. Russian scholarship on the topic indicates that most scholars are trying to solve the issue of revising the mining strategy. Big Data technologies and the latest digital modeling methods open up new opportunities for studying and developing mineral deposits, obtaining and processing significant amounts of specialized information. This information allows management bodies to make optimal decisions on production. The introduction of intelligent systems and digital tools used to explore and develop deposits allows the enterprises to increase the net present value to 20% [10]. Additionally, many scholars suggest that the digital economy may dominate the conventional one after reaching certain indicator values [11]. This indicates that the main institutions and concepts of the digital economy are not formed and formulated sufficiently accurately and in detail. Foreign scholars are actively discussing the issues of antimonopoly regulation in the digital economy (for example, how competition law should be applied (adapted) to digital markets). The very definition of national production is questionable, given the possibility of locating intangible capital anywhere at the international level at the discretion of companies (for example, to take advantage of low corporate tax regimes). In the digital economy, competition is for the market, not on the market. Markets can be “tipped” and are organized and managed by only one or two digital (technology) platforms. Thanks to the network effect, economy of scale, and excellent data access, the success of such platforms becomes self-reinforcing. The platform operator determines the benefits of suppliers and customers and manages the coordination of supply and demand according to its parameters [12–14]. Few separate studies are devoted to the process of digitalization in the management system.

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However, they study digitalization not as an innovative tool but only as processes helping organize management [15]. Meanwhile, digital platforms allow us to effectively solve the issues of increasing new management tools [16]. For example, in the mining industry, it looks like this. For effective management, the organizational and economic mechanism should consist of elements that allow for the following sequence of actions: Monitoring → mathematical modeling of systems and processes → strategic forecast of the industry, development, and reproduction of the mineral resource base → synthesis of control actions → forecast of the results of control actions and optimization → taking measures → analysis of results → planning → monitoring. The foundation for such a mechanism is information flows and, in their entirety, Big Data. The ability to implement such a sequence of actions in the conditions of digitalization of management processes will allow us to use the latest technological applications—digital technology platforms. In this situation, the joint information base allows implementing a datacentric approach to the digital transformation of industry management. For example, mining companies actively discuss a project to create a single data warehouse on deposits based on a technological platform [17]. In the national programs and projects implemented in Russia to develop the digital economy, such issues are not a priority [18]. In the national project “Digital Economy of the Russian Federation,” the main objectives are set to achieve certain indicators and not create a high-tech environment [19]. This indicates that the government does not provide for the strategic, long-term modernization of real production [20].

5 Conclusion Russia has a significant spatial and natural potential that creates favorable conditions for economic growth. The social and economic development of the country and its potential will be defined in the coming decades by the mineral resource complex. The government does not create the conditions for the transition to a datacentric approach in the conditions of the digitalization of production processes. The desire for this on the part of responsible departments is not traced. We believe that this may become a serious obstacle to implementing the plans of the “Digital Economy” program, including the sphere of public administration. In the context of digitalization and digital transformation, the management system of industries is being modified. This is because new relations and new connections arise, and the existing ones are modified in all industries. In this case, the management must become a multitasking system. Government programs and national projects do not have clearly defined priorities for industries that will be affected by the digital economy. We believe that the management of the mining industry must be strategic. It must coordinate all strategic plans with the expected trends in development at all levels of government. Therefore, to update the geological industry strategy, the government must develop mechanisms for constantly updating and clarifying this vision.

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References 1. Andreeva GN, Badalyants SV, Bogatyreva TG, Boroday VA, Dudkina OV, Zubarev AE et al (2018) The development of the digital economy in Russia is a key factor in economic growth and improving the quality of life. Professional Science, Nizhny Novgorod, Russia 2. Kozlovskiy E (2016) Systemic crisis in the exploration of mineral resources and ensuring the country’s mineral and raw material security. In: Proceedings from parliamentary hearings of the committee of the state duma of the federal assembly of the Russian Federation on natural resources, nature management, and ecology “Improving legal regulation in the field of subsoil use.” State Duma Committee on Natural Resources, Environmental Management, and Ecology, Moscow, Russia 3. Zhukova IV, Zubarev AE (2019) To the issue of digital transformations in the control system of the mining industry and the “Digital Economy” national project. Bus Educ Low 3:45–53 4. Kondratev VB (2016) Resource model of economic modernization. Russ Min Ind 4:13–15 5. Ville S, Wicken O (2012) The dynamics of resource-based economic development: evidence from Australia and Norway. Ind Corp Chang 22(5):1341–1371 6. Karnaukhov AM (2017) Prospects for digitalization of research activities in geological exploration. Oil Gas Geol Theory Pract 4(12):5 7. Zhukova IV (2016) Classification of problems in subsoil use. Pub Serv 6:21–27 8. Akatkin Yu, Yasinovskaya E (2019) Digital transformation of government: data-centricity and model orientation. Inf Resour Russia I:2–7 9. Zhukova I (2012) Mining management system. LAP LAMBERT Academic Publishing, Saarbrucken, Germany 10. Belozerov B (2018) The era of smart intelligence. Oil.Capital.5. Retrieved from https://oilcap ital.ru/interview/22-05-2018/era-umnoy-razvedki?ind=72 11. Semyachkov K (2017) Digital economy and its role in the management of modern socioeconomic relations. Mod Manag Technol 8(80):8001. Retrieved from https://sovman.ru/art icle/8001/ 12. Bourreau M, de Streel A (2019) Digital conglomerates and EU competition policy. Retrieved from https://ssrn.com/abstract=3350512 13. Ezrachi A (2018) EU competition law goals and the digital economy. Oxford Legal Studies Research Paper, 17. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=319 1766 14. Zetzsche DA, Buckley RP, Barberis JN, Arner DW (2017) Regulating a revolution: from regulatory sandboxes to smart regulation. Retrieved from https://www.law.ox.ac.uk/business-lawblog/blog/2017/10/regulating-revolution-regulatory-sandboxes-smart-regulation 15. Fiorentino S, Bartolucci S (2019) New governance perspectives on the sharing economy. A blockchain application for the ‘Smart’ management of co-working spaces with a return for local authorities. Retrieved from https://ssrn.com/abstract=3478870 16. Huawei and Oxford Economics report (2017) The concomitant effect of digitalization. Measuring the real impact of the digital economy. Retrieved from https://www.huawei.com/ minisite/russia/digital 17. Trapezin V (2018) Storage of technological data of deposits. Control Eng 6:80–85 18. Presidential Executive Office (2018) The decree “On national goals and strategic objectives of the development of the Russian Federation for the period up to 2024” (May 7, No. 204). Moscow, Russia 19. Government of the Russian Federation (2018) Passport of a national project “Digital economy.” Russia, Moscow 20. Government of the Russian Federation (2010) The order “On the approval of geological industry development strategy in RF up to 2030” (No. 1039-r). Moscow, Russia

Eurasian Agricultural Technological Platform for Technical and Technological Modernization of Agriculture in the EAEU Member States: Thematic Research Vasiliy I. Nechaev , Sergey A. Arzhantsev , Pavel V. Mikhailushkin , Lyudmila I. Khoruzhy , and Tatiana G. Bondarenko Abstract In order to ensure the normal functioning of any branch of the economy in the country, it must be provided with an innovative infrastructure. Innovative infrastructure is a set of development institutions providing participants access to various resources, creating favorable conditions, and establishing various services, allowing to reduce the total costs of obtaining the result of scientific and technical activities and its commercialization. The research objective is to consider the issues of innovative development of the agro-industrial complex based on the creation of new institutional forms that ensure the formation of a balanced and sustainable R&D sector in agriculture of the Eurasian Economic Union (e.g., the Eurasian Agricultural Technological Platform [EATP]). The authors proposed the classification of development institutions, presented the organizational structure of the EATP, and justified the creation of the department of technology transfer. The paper substantiated the expediency of registration of the EATP in the form of a legal entity and proposes the design of a domestic regulatory legal instrument to create consortia to perform research and development work and commercialize research results. The authors considered the technology transfer as an essential function of non-financial institutions of development. The author’s definition of “technology transfer” was given. Additionally, the authors studied the R&D project aimed at the EATP for further expert examination and implementation. Keywords Eurasian economic union · Agro-industrial complex · Technological platforms · Innovations · Innovation processes · Scientific and technological development · Modernization · Transfer · Research and development

V. I. Nechaev · S. A. Arzhantsev (B) · P. V. Mikhailushkin · T. G. Bondarenko Federal Research Center for Agrarian Economy and Social Development of Rural Areas—All-Russian Research Institute of Agricultural Economics, Moscow, Russia L. I. Khoruzhy Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_72

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1 Introduction The modernization of the agro-industrial complex [AIC] based on innovation is one of the main priorities of each country in the Eurasian Economic Union. This fact is reflected in its strategic documents. For example, the State Program “Scientific and Technological Development of the Russian Federation until 2030” identifies the main tasks associated with the development of the institutional environment (the formation of a balanced, sustainable, and competitive R&D sector with optimal institutional structure, a radical increase in efficiency and effectiveness of “conducting” infrastructure for commercialization of research results). A similar national research program, the “Program 973” adopted in China, was created to support fundamental researches in natural and physical sciences. The “Program 973” is designed to address the socio-economic challenges of the twentyfirst century. The most critical challenges include: (1) the development of R&D of new technologies; (2) the transformation of scientific infrastructure and institutional environment; (3) training and development of human resources (training of a new generation of young scientists) [1]. The transition of the AIC of the EAEU countries to the innovative path of development requires the search and implementation of new institutional forms or significant transformation of existing institutions in research and development [2]. Great attention is paid to issues of demand for research and development, as well as understanding the needs of agricultural producers in foreign literature [3–5]. Consequently, the development institutions in the AIC of the EAEU states and their activities should be aimed at developing specialized infrastructure: Financial, production, technological, innovation, personnel, ensuring the commercialization of scientific research results, and functioning of innovative agribusiness [6].

2 Materials and Methods The methodological basis of the research included a review, analysis, and generalization of the secondary literature of domestic and foreign scholars related to the development of the institutional environment of the research sector and the commercialization of scientific results in the AIC. The legal basis of the study was the legislative and regulatory acts in the field of innovative development of agriculture of the EAEU member states. The main research methods are the method of theoretical knowledge, analytical, monographic, historical methods, and scientific abstraction. We also applied systematic and logical approaches. The research object is the institutional environment that ensures the formation of a balanced and steady R&D sector in agriculture of the Eurasian Economic Union countries.

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The research subject is organizational and economic relations between the participants of the market of scientific and technical products in the agricultural sector of the EAEU.

3 Results The authors proposed the classification of development institutions, presented the organizational structure of the EATP, and justified the creation of the Department of Technology Transfer. The paper substantiates the expediency of registration of the EATP in the form of a legal entity. It proposes the design of a domestic regulatory legal instrument to create consortia to perform research and development work (R&D) and commercialize the research results. The authors considered the technology transfer as an essential function of non-financial institutions of development. The author’s definition of “technology transfer” was given. Additionally, the authors studied the R&D project aimed at the EATP for further expert examination and its implementation.

4 Discussion Our research has shown that there is no legal definition of “development institution” in Russian practice. Therefore, there is an urgent need to develop this category. According to Sablin [7], the development institute is any socially determined structure (tool, mechanism), reducing uncertainty in the system, and stimulating more efficient economic activity. Bogatova [8] understands the development institute as organizational structures specially created by the state to implement and co-finance projects important for the economy and society, develop priority industries and infrastructure, and redistribute resources in their favor. According to the Chairperson of the Central Bank of the Russian Federation, E. S. Nabiullina, “institutions of development” are one of the instruments of state policy that stimulate innovation and infrastructure development using the mechanisms of public–private partnership” [9, 10]. In our opinion, we can divide them into two groups: (1) financial and (2) nonfinancial that analyze the classification of development institutions presented in the secondary literature. In our opinion, the most accurate classification of functions and directions of financial and non-financial development institutions is proposed in “Classification of institutions of development” [11]. One of the effective mechanisms of innovative infrastructure related to nonfinancial institutions of development is technological platforms [TP], which combine the efforts of business, science, and government in its activities. The main task of

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TP is the implementation of R&D, commercialization, and promotion of scientific results to the market of scientific-technical products [12–18]. This approach to the formation of institutions of development, involving a considerable number of stakeholders in innovation activities to develop R&D in the field of agriculture, is very relevant and studied in the works of foreign scholars [19–23] In particular, Adekunle and Fatunbi [24] considered the approach to creating an innovation platform to improve the impact of R&D in African agriculture, involving stakeholders in innovation. In our opinion, the creation and development of technological platforms within a single economic space should ensure the emergence of effective industrial, scientific, and educational cooperation within the Eurasian Economic Union [25]. Such cooperation will result in the appearance and promotion of innovative products and advanced technological developments, as well as in the introduction of completed innovations in production [26]. The Eurasian agricultural technology platform was established on June 1, 2016, in the form of a consortium for interstate cooperation of subjects of innovative activity (authorities, scientific communities, and business) to monitor, create and implement effective innovations in the agricultural sector of the economy of the EAEU member states [27–29]. More than 60 scientific and business organizations, which signed the agreement on participation in the consortium from Belarus, Kazakhstan, Russia, Kyrgyzstan, and Armenia, are part of the EATP. Figure 1 shows the organizational structure of the Eurasian agricultural technology platform proposed by the authors [30]. Within the framework of the consortium, participants received the opportunity to: • Perform research that could not be carried out independently due to a significant amount of financial resources necessary and risks arising; • Distribute costs on scientific research among the participating firms; • Consolidate scarce labor and material resources to implement scientific researches. The studies [31–33] confirm that the effective operation of technology platforms depends on many variables (forms of the TP organization, representation of a wide range of stakeholders, etc.). Therefore, to ensure further efficient operation of the EATP, we consider that it should be registered as a legal entity. The registration of the EATP as a legal entity will increase the interest in its activities on the part of the business sector. Moreover, we propose to develop an internal regulatory document of the EATP on the creation of consortia of R&D and commercialization of scientific results. The development of the AIC of the EAEU member states in modern conditions makes the problem of technological modernization of production extremely urgent since it will increase the competitiveness of products based on the most rapid introduction into production of the most advanced and progressive technologies based on the latest achievements of technical progress. One of the areas contributing to the achievement of this goal is technology transfer.

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General meeting of Association members Chairman

Chairman

Chairman

Coordination council

Supervisory council Management

Chairman

Board of founders (management members)

Expert council Directorate Director MEMBERS OF CONSORTIUM (Research institutes, universities, enterprises, unions and associations, Manager Section of livestock issues

Manager Section of plant growing and farming issues

Manager The section on veterinary medicine

Manager The section on the agricultural economy

Manager The section on agricultural produce processing issues

Manager Section of innovation technologies issues

Manager Section of agricultural engineering issues

Manager Section of staff training issues

Chairman Council of young scientists and specialists Inspector Organizationaladministrative department

Information department Projecting department Department of professional public accreditation

Department of transfer and technologies

Fig. 1 The organizational structure of the eurasian agricultural technological platform. Source Compiled by the authors

The economic essence of technology transfer is due to the transfer of scientific and technical knowledge and experience to provide scientific and technical services, the introduction and application of new technological processes, and the production of new products on the terms determined by the agreement between the participating parties [13]. In the world and domestic practice, the content of technology transfer is considered in two directions: (1) at the macro-level and (2) at the micro-level. In the first case, technology transfer is identified with international technology exchange [34]. In the second case, it is considered as the process of technology transfer from science to production at the level of research institutes, research laboratories, universities, enterprises, and other organizations [35–37]. In our opinion, technology transfer is the process of technology transfer from one person or legal entity to another person or legal entity on the terms defined by the

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legal contract concluded between them, with subsequent possible commercialization of this technology. In the context of globalization, intensification of the interstate division of labor, and internationalization of economic activity of the EAEU member states, technology transfer can and should be considered in two aspects: • Domestic technology transfer as the transfer of research results within one country (“commercialization of technologies”); • International technology transfer as the exchange of research results, technologies, and high-tech products between different countries (“export–import of technologies”). Technology transfer is a specific sphere of activity, unusual for researchers and developers, which requires specific knowledge about the market economy, marketing, etc. Therefore, the role of an intermediary in this scientific and production cooperation should be performed by professional structures or organizations. In our opinion, it is necessary to create a technology transfer department in the structure of the EATP. The experience of developed countries shows that the commercialization of R&D should be carried out by specialists in technology transfer, working in structures specially educated for this purpose. Foreign scientists [3, 38] note that most of the TP organizations are traditional research institutes, many of which have extensive research experience. However, their limited experience in the transfer of developed technologies is a key obstacle to the development of innovations in agriculture. Most organizations hire experts in technology transfer to implement the developed technologies. However, as the experience of different countries shows [39, 40], it takes considerable time. For several approved projects, the EATP participants prepared the “Passports for joint R&D in agriculture of the member states of the Eurasian Economic Union.” These passports were submitted to the Eurasian Economic Commission for further examination. One of the examples is the project “On the development of technologies and a complex of specialized machines for greening the production of potatoes, vegetables, and fruits.” Initiators and main executors of the project are FSBRI “Federal Research Center of Vegetable Growing” and Unitary Organization “Grodno State Agrarian University.” The total amount of funding is 155 million rubles. The project will be completed in five years.

5 Conclusion The existing system of development institutions in the AIC of the EAEU member states does not work properly for the common economic space. This is mainly due to the lack of strategic management and the creation of development institutions to implement a single course of AIC development. When forming and transforming institutions of development in the AIC of the EAEU member states, it is necessary to consider the positive experience of their

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creation in developed countries. However, such experience of borrowing the development institutions should be based on the internal economic conditions and the needs of the single economy of the EAEU countries. Without taking into account these conditions, de facto, there is only copying of the development organizations. Further activities of the EATP should be aimed at identifying ways and means of accelerated development of agriculture and improving the efficiency of agricultural production of the EAEU members based on the cooperation of all subjects of innovative activity, as well as the development and implementation of innovative products. The implementation of the developed proposals to improve the organizational structure of the EATP, including the change in the legal status of the platform itself and its organizational structure, will allow providing a more effective interaction between its participants in the development and implementation of joint projects.

References 1. Qian X, Lee PW, Cao S (2010) China: Forward to green pesticides via a basic research program. J Agric Food Chem 58(5):2613–2623 2. Bogoviz AV (2019) Approaches to building and evaluating sustainable agricultural systems in the member states of the Eurasian Economic Union. IOP Conf Ser Earth Environ Sci 274:012002 3. De Janvry A, Kassam AH (2004) Towards a regional approach to research for the CGIAR and its partners. Exp Agric 40:159–178 4. Giller KE, Leeuwis C, Andersson JA, Andriesse W, Brouwer A, Frost P, Windmeijer P et al (2008) Competing claims on natural resources: What role for science? Ecol Soc 13(2):34. Retrieved from https://www.ecologyandsociety.org/vol13/iss32/art34/ 5. Schut M, Klerkx L, Rodenburg J, Kayeke J, Raboanarielina C, Hinnou, Bastiaans L et al. (2015) RAAIS: rapid appraisal of agricultural innovation systems (Part I). A diagnostic tool for integrated analysis of complex problems and innovation capacity. Agric Syst 132:1–11 6. Kadomtseva ME (2013) Improvement of institutes of development as a necessary condition of development of the institutional environment of the AIC of an innovation type (Dissertation of Candidate of Economics). Retrieved from https://new-disser.ru/_avtoreferats/01006722636. pdf 7. Sablin KS (2010) The formation of regional development institutions in the Russian economy: formulation of the research problem. Bulletin of Kemgu 2(42):162–166 8. Bogatova EP (2011) Institutes of development—What is it? In the course of legal affairs, 18. Retrieved from http:www.vkursedela.ru/article5129 9. Chashkin VV (2012) New approaches to classification of institutes of development. Bus Eng 33(123):31–38 10. Nabiullina ES (2007) On tasks of institutes of development in the diversification of economics of the Russian Federation: Report of the meeting of the RF Government from October 10, 2007. Retrieved from https://www.economy.gov.ru/minec/activity/sections/instdev/institute 11. Monastyrnyy YA, Saklakov VM (2013) Classification of institutes of development. Innovations 9(179):59–65 12. Faysse N (2006) Troubles on the way: An analysis of the challenges faced by multi-stakeholder platforms. Nat Res Forum 30(3):219–229 13. Kokhno AP, Kokhno A (2013) Technology transfer: meanings and models. Soc Econ 1:97–111 14. Leeuwis C (2000) Reconceptualizing participation for sustainable rural development: towards a negotiation approach. Dev Chang 31(5):931–959

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15. Leeuwis C, Schut M, Waters-Bayer A, Mur R, Atta-Krah K, Douthwaite B (2014) Capacity to Innovate from a System CGIAR research program prospective. https://doi.org/10.13140/2. 1.3802.8808 16. Messely L, Rogge E, Dessein J (2013) Using the rural web in dialogue with regional stakeholders. J Rural Stud 32:400–410 17. Neef A, Neubert D (2011) Stakeholder participation in agricultural research projects: a conceptual framework for reflection and decision-making. Agric Hum Values 28(2):179–194 18. Schut M, van Paassen A, Leeuwis C, Klerkx L (2014) Towards dynamic research configurations. A framework for reflection on the contribution of research to policy and innovation processes. Sci Pub Policy 41:207–218 19. Kappas T, Bournaris T, Economou E, Moulogianni CA (2019) A systematic review of collective awareness platforms. Commun Comput Inf Sci 953:51–63 20. Ngwenya H, Hagmann J (2011) Making innovation systems work in practice: Experiences in integrating innovation, social learning, and knowledge in innovation platforms. Knowl Manag Dev J 7(1):109–124 21. Pamuk H, Bulte E, Adekunle AA (2014) Do decentralized innovation systems promote agricultural technology adoption? Experimental evidence from Africa. Food Policy 44:227–236 22. Pretty J, Toulmin C, Williams S (2011) Sustainable intensification in African agriculture. Int J Agric Sustain 9(1):5–24 23. Ten Berge HFM, Van Ittersum MK, Rossing WAH, Van De Ven GWJ, Schans J (2000) Farming options for The Netherlands explored by multi-objective modeling. Eur J Agron 13(2–3):263– 277 24. Adekunle AA, Fatunbi AO (2012) Approaches for setting-up multi-stakeholder platforms for agricultural research and development. World Appl Sci J 16(7):981–988 25. Paptsov A, Nechaev V, Mikhailushkin PV (2019) Towards to a single innovation space in the agrarian sector of the member states of the Eurasian economic union: a case study. Entrepreneurship Sustain Issues 7(1):637–648. https://doi.org/10.9770/jesi.2019.7.1(45) 26. Kilelu CW, Klerkx L, Leeuwis C (2013) Unraveling the role of innovation platforms in supporting co-evolution of innovation: contributions and tensions in a smallholder dairy development program. Agric Syst 118:65–77 27. Arzhantsev SA (2018) Theories of the development of the Eurasian agricultural technological platform. Econ, Lab, Manage Agric 3:25–30. Retrieved from https://elibrary.ru/item.asp?id= 35252030 28. Arzhantsev SA, Nechaev VI, Mikhailushkin PV (2019) Scientific and technological development of the AIC of EAEU members based on the Eurasian agricultural technological platform. Econ Lab Manage Agric 1:26–34. https://doi.org/10.33938/191-26 29. Nechaev VI, Arzhantsev SA (2018) Concept of the development of the agricultural technological platform of the EAEU member states. Econ Russ Agric 8:85–92. Retrieved from https:// elibrary.ru/item.asp?id=35356066 30. Ayele S, Duncan A, Larbi A, Khanh TT (2012) Enhancing innovation in livestock value chains through networks: Lessons from fodder innovation case studies in developing countries. Sci Publ Policy 39(3):333–346 31. Boogaard B, Klerkx L, Schut M, Leeuwis C, Duncan A, Cullen B (2013) Critical issues of reflection when designing and implementing research for development in innovation platforms. Wageningen University and Research Centre, Wageningen, the Netherlands. Retrieved from https://cgspace.cgiar.org/bitstream/handle/10568/35028/R4D_InnovationPlatforms.pdf 32. Nederlof S, Wongtschowski M, van der Lee F (eds) (2011) Putting heads together: Agricultural innovation platforms in practice. KIT Publishers, Amsterdam, the Netherlands 33. Schut M, Klerkx L, Sartas M, Lamers D, Campbell MMC, Ogbonna I, Leeuwis C et al (2016) Innovation platforms: experiences with their institutional embedding in agricultural research for development. Exp Agric 52(4):537–561 34. Swaans K, Boogaard B, Bendapudi R, Taye H, Hendrickx S, Klerkx L (2014) Operationalizing inclusive innovation: lessons from innovation platforms in livestock value chains in India and Mozambique. Innov Dev 4(2):239–257

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35. Falvey R, Foster N, Memedovic O (2006) The role of intellectual property rights in technology transfer and economic growth: Theory and evidence. Retrieved from https://www. unido.org/sites/default/files/2009-04/Role_of_intellectual_property_rights_in_technology_t ransfer_and_economic_growth_0.pdf 36. Kim L (2003) Technology transfer & intellectual property rights. UNCTAD-ICTSD project on IPRs and sustainable development. The Korean Experience. Retrieved from https://unctad.org/ en/PublicationsLibrary/ictsd2003ipd2_en.pdf 37. Tilman D, Balzer C, Hill J (2011) Global food demand and the sustainable intensification of agriculture. Proc Natl Acad Sci USA 50(108):20260–20264 38. Cullen B, Tucker J, Snyder K, Lema Z, Duncan A (2014) An analysis of power dynamics within innovation platforms for natural resource management. Innov Dev 4(2):259–275 39. Van Mierlo B, Totin E (2014) Between script and improvisation: Institutional conditions and their local operation. Outlook Agric 43(3):157–163 40. Van Paassen A, Klerkx L, Adu-Acheampong R, Adjei-Nsiah S, Zannoue E (2014) Agricultural innovation platforms in West Africa. How does strategic institutional entrepreneurship unfold in different value chain contexts? Outlook Agric 43(3):193–200

Labor Resources in Agricultural Regions of the South of Russia: Assessment, Trends, and Development Patterns Alexey N. Gerasimov , Evgeniy I. Gromov , Yuri S. Skripnichenko , Ekaterina I. Lelikova , and Viktoriya Yu. Skripnichenko

Abstract The study of agricultural labor resources is necessary for the sustainable functioning and development of socio-economic systems. The dynamic innovative development of the agricultural sector, the attraction of highly qualified personnel, and the efficient use of labor resources necessitate continuous monitoring of the existing personnel policy of agricultural organizations and the study of factors affecting its change. Based on the foregoing, we developed an algorithm to identify trends and patterns in the development of agricultural labor resources, the peculiarity of which is a combination of expert and formalized methods. The theoretical and methodological basis of this research consists of fundamental and applied studies of domestic and international scholars, as well as thematic publications in the periodicals devoted to the problems of assessment, formation, and use of labor resources in agriculture. Keywords Agriculture · Labor resources · Average monthly wage · Number of employees · Stavropol Krai

1 Introduction An effective personnel policy is a key condition for positive dynamics and sustainable socio-economic development of agriculture [1]. Many scientific papers are devoted to the state of the labor market, labor resources of regions, and particular economic entities [2]. In this regard, it is necessary to highlight the work of authors who consider labor resources as an integral component of the regional innovation complex [3]. Separate works conduct a detailed study of the features of personnel policy in various regions [4] and reveal the role of human capital in increasing the resource potential of individual sectors of the economy [4]. Organizational and economic approaches to managing human potential are being formed [5]. The infrastructure of the agricultural labor market [4] is studied. A. N. Gerasimov · E. I. Gromov · Y. S. Skripnichenko (B) · E. I. Lelikova · V. Yu. Skripnichenko Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_73

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The staff of agricultural organizations directly depends on age, gender characteristics, and the intensity of migration of rural residents [6]. The listed factors directly determine the trends in the formation and development of labor resources in agricultural organizations [7]. The research objectives are as follows: • To study the composition of workers in agricultural organizations of the Stavropol Krai [8], • To assess the deficit of personnel in mass professions and senior managers of agricultural organizations in the region [9]; • To identify factors affecting the changing economy of labor resources; • To formulate the personnel policy of economic entities to identify the potential needs of certain workers [10], • To build a forecast of staffing of agricultural organizations of the Stavropol Krai [11].

2 Materials and Methods One of the tasks of the State program “Development of agriculture and the regulation of agricultural products, raw materials, and food markets for 2013–2020” is to provide highly skilled personnel for the agricultural sector. At the same time, at the regional level, the issues of personnel policy are not reflected in the tasks of the integrated development of the agricultural sector. One of the objectives of this program is to create a system for the formation and use of labor resources in all sectors of agriculture. The use of new technologies and forms of agricultural production, combined with highly qualified personnel, will significantly increase the efficiency of the agricultural industry. Therefore, the task of staffing the agro-industrial complex [AIC] is included in the category of strategic, key in the activities of all government agencies that manage the production and economic life of the country. An effective personnel policy should include the assessment of forecasts for staffing in agricultural organizations. The forecast for such indicators allows us to consider the future level of provision of agriculture with personnel. Therefore, the effectiveness of personnel policy is increasing [14, 15]. The formation of the forecast of staffing involves the development of an algorithm for conducting predictive research. In our opinion, this requires several stages of forecasting. The first stage is the creation of an information base of indicators in the context of climatic zones. The following groups of indicators formed the information base: – Endogenous variables (Y ); – Exogenous variables (X); – Calculated variables (T ).

Labor Resources in Agricultural Regions of the South of Russia …

Y1 Y 11 Y 111 Y 112 Y 113 Y 114 Y 115 Y 116 Y 12 Y 13 Y 131 Y2 Y 21 Y 211 Y 212 Y 213 Y 214 Y 215 Y 216 Y 22 Y 23 Y 231 T 111 T 112 X 11

The average monthly wage of workers employed in agricultural production (rubles); The average monthly wage of permanent workers (rubles); The average monthly salary of tractor drivers (rubles); The average monthly salary of machine milking operators and milkers (rubles); The average monthly salary of cattle breeding workers (rubles); The average monthly salary of pig breeding workers (rubles); The average monthly salary of sheep and goat breeding workers (rubles); The average monthly wage of poultry workers (rubles); The average monthly wage of seasonal and temporary workers (rubles); The average monthly salary of employees (rubles); The average monthly salary of specialists (rubles); The number of workers employed in agricultural production—total (people); The number of permanent workers (people); The number of tractor drivers (people); The number of machine milking operators and milkers (people); The number of cattle breeding workers (people); The number of pig breeding workers (people); The number of sheep and goat breeding workers (people); The number of poultry workers (people); The number of seasonal and temporary workers (people); The number of employees (people); The number of specialists (people); Revenue (thousand rubles); Labor costs for the main production—total (thousand people-hour); Revenue for one person-hour (rubles):

X11 = T 121 T 122 T 123 X 12

T 132

T111 T112

Own funds of the organization—total (thousand rubles); Attracted funds—total (thousand rubles); Loans from banks attracted by investments (thousand rubles); The share of bank loans in the total investment (%);

X12 = T 131

665

T123 T121 + T122

Construction in progress and unfinished operations for the acquisition and modernization of fixed assets (thousand rubles); Total under section I “Non-current assets” (thousand rubles);

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X 13

The proportion of construction in progress in the value of non-current assets (%);

X13 = T 141 T 142 X 14

Total power capacity (hp); Fixed assets (thousand rubles); Accounted for the energy capacity per 1000 rubles of fixed assets (hp);

X14 = T 151 T 152 X 15

X 17

T151 T152

Return on assets (rubles); Accrued for the year of wages to workers employed in agricultural production—total (thousand rubles); Salary for one person-hour (rubles);

X17 = X 18

T141 T142

Profit (loss) from sales (thousand rubles); Cost of sales (thousand rubles); Return on sales (%);

X15 = X 16 T 171

T131 T132

T171 T112

The coefficient of investment activity.

The information base was formed in the context of climatic zones and an aggregated form as a whole in the Stavropol Krai for 2010–2015. The regression equations as part of a system of recursive equations are of the following general form: 

Y1 = f (X11 ; X12 ; X13 ; X14 ; X15 ; X16 ; X17 ; X18 ); Y2 = f (X11 ; X12 ; X13 ; X14 ; X15 ; X16 ; X17 ; X18 ; Y1 ). 

Note. In the second equation of the system, exogenous variables X 11 − X 18 are included if they are not included in the first equation.

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During the step-by-step selection of variables, the following relationships between the variables for the 1st natural-climatic zone of the Stavropol Krai were identified (Fig. 1). Based on the obtained interconnections between the variables, the models of wages and the number of employees of agricultural organizations were formalized

Y11 – The average monthly wage of permanent workers

X11 – Revenue for one person-hour

X14 – Accounted for energy capacity per 1,000 rubles of fixed assets

X17 – Salary for one person-hour

Y21 – The number of permanent workers

Y12 – The average monthly wage of seasonal and temporary workers

X11 – Revenue for one person-hour

X14 – Accounted for energy capacity per 1,000 rubles of fixed assets

X16 – Return on assets

Y22 – The number of seasonal and temporary workers

Y13 – The average monthly salary of employees

X11 – Revenue for one person-hour

X14 – Accounted for energy capacity per 1,000 rubles of fixed assets

X16 – Return on assets

Y23 – The number of employees

Fig. 1 The block diagram of the relationship between the variables of the staffing model of agricultural organizations of the 1st natural and climatic zone of the Stavropol Krai. Source Developed by the authors

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and differentiated by four climatic zones of the Stavropol Krai. Regression models are represented by systems of recursive equations in linear form. The following systems of linear equations represent the models for the first naturalclimatic zone: – For wages and the number of permanent workers employed in agricultural production: 

Y11 = a10 + a11 X11 + a12 X14 ; Y21 = a20 + a21 Y11 + a22 X17 .

– For wages and seasonal and temporary workers: 

Y12 = b10 + b11 X11 + b12 X14 ; Y22 = b20 + b21 X16 + b22 Y12 .

– For wages and number of employees: 

Y13 = c10 + c11 X11 + c12 X14 ; Y23 = c20 + c21 X16 + c22 Y13 .

The step-by-step selection of variables for regression models of wages and the number of permanent agricultural workers in the Stavropol Krai in the context of mass professions allowed us to identify significant relationships between the variables. The models of wages and the number of permanent agricultural workers in the Stavropol Krai were formalized in the context of mass professions based on the presented relationships between the variables. Regression models are represented by systems of recursive equations in linear form. For the salary and number of tractor drivers of the Stavropol Krai, the models are represented by the following system of linear equations: 

Y111 = a10 + a11 X11 ; Y211 = a20 + a21 X17 + a22 Y111 .

The following system of linear equations represents the models for the salary and number of machine milking operators of the Stavropol Krai: The following system of linear equations 

Y112 = b10 + b11 X11 ; Y212 = b20 + b21 X13 + b22 X17 + b23 Y112 .

represents the models for the salary and number of cattle breeding workers in the Stavropol Krai:

Labor Resources in Agricultural Regions of the South of Russia …

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The following system of linear equations 

Y113 = c10 + c11 X11 ; Y213 = c20 + c21 X113 .

represents the models for the salary and number of pig breeding workers in the Stavropol Krai: The following system of linear equations 

Y114 = d10 + d11 X11 ; Y214 = d20 + d21 X13 + d22 X17 + d23 Y114 .

represents the models for the salary and number of sheep and goat breeding workers in the Stavropol Krai: The following system of linear equations 

Y115 = e10 + e11 X11 ; Y215 = e20 + e21 X13 + e23 Y115 .

represents the models for the salary and number of poultry workers in the Stavropol Krai:  Y116 = g10 + g11 X11 ; Y216 = g20 + g21 X15 + g23 Y116 . The step-by-step selection of variables for regression models of wages and the number of specialists in the category of employed in agriculture in the Stavropol Krai revealed the following significant relationships between the variables. Figure 2 shows a block diagram of the relationship between endogenous and exogenous variables of a system of recursive equations for modeling wages and the number of specialists in the Stavropol Krai.

Y131 – The average monthly salary of specialists

X11 – Revenue for one person-hour

X15 – Return on sales

Y231 – The number of specialists

Fig. 2 Block diagram of the relationship of variables of the wage model and the number of specialists employed in agriculture of the Stavropol Krai. Source Developed by the authors

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3 Results We carried out the parameterization and identification of the presented models. For the first natural-climatic zone, the following results of parameterization and model identification were obtained: – For wages and the number of permanent workers employed in agricultural production: ⎧ ⎪ Y11 = 3042, 41 + 14, 71X11 + 187, 65X14 ⎪ ⎪ ⎨ 2 (R = 0, 997; S = 172, 88; F = 581, 38; Sig. = 0, 000); ⎪ Y21 = 7597, 57 + 1, 25Y11 − 234, 19X17 ⎪ ⎪ ⎩ 2 (R = 0, 931; S = 331, 92; F = 20, 19; Sig. = 0, 018). 



– For wages and the number of seasonal and temporary workers: ⎧ ⎪ Y12 = 254, 77 + 17, 9X11 + 387, 11X14 ⎪ ⎪ ⎨ 2 (R = 0, 971; S = 727, 5; F = 50, 49; Sig. = 0, 005); ⎪ Y22 = 904, 5 − 6, 29X16 − 0, 019Y12 ⎪ ⎪ ⎩ 2 (R = 0, 883; S = 82, 85; F = 11, 37; Sig. = 0, 040). 



– For wages and number of employees: ⎧ ⎪ Y13 = 3295, 33 + 14, 28X11 + 227, 49X14 ⎪ ⎪ ⎨ 2 (R = 0, 995; S = 226, 68; F = 321, 53; Sig. = 0, 000); ⎪ Y23 = 2334, 85 − 2, 979X16 − 0, 056Y13 ⎪ ⎪ ⎩ 2 (R = 0, 984; S = 31, 02; F = 90, 7; Sig. = 0, 002) 



The obtained equations of the third system are of high statistical significance. Thus, the change in the first indicator is explained by a 99.5% variation in the exogenous variables selected in the model. The value of the Fisher F-test for this equation shows that the ratio of factor and residual variance is located at 321.53. The second equation, the number of employees, is explained by 98.4%, and the value of the Fisher F-test for this equation is 90.7. In general, all models were considered statistically significant, which allows us to use them for forecasting purposes. At the next stage, the predicted values of wages and the number of all categories of agricultural workers in the Stavropol Krai were calculated based on the aggregation of the forecast values of these indicators in the context of four climatic zones. The number of agricultural workers in the Stavropol Krai was calculated based on the summation of indicators for each natural and climatic zone. The calculation of the average monthly wage was based on the weighted arithmetic average, where the number of employees was used as the weight.

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Thus, to calculate the average monthly wage of permanent workers in the Stavropol Krai, we used the following calculation methodology: CK = Y11

IV IV I I II II III III · Y21 + Y11 · Y21 + Y11 · Y21 + Y11 · Y21 Y11 . IV I II III Y21 + Y21 + Y21 + Y21

A similar calculation methodology was used for the average monthly wage of seasonal and temporary workers in the Stavropol Krai. The following calculation methodology was used to calculate the average monthly wage of workers in the Stavropol Krai: CK = Y13

IV IV I I II II III III · Y23 + Y13 · Y23 + Y13 · Y23 + Y13 · Y23 Y13 . IV I II III Y23 + Y23 + Y23 + Y23

The total number of workers employed in agricultural production in the Stavropol Krai was determined as follows: Y2CK = Y2I + Y2II + Y2III + Y2I V , where Y2Ck —the total number of workers employed in agricultural production in the Stavropol Krai; Y2I , Y2II , Y2III , Y2I V —the total number of workers employed in agricultural production in the first and fourth climatic zones of the Stavropol Krai, respectively [2]. The results of forecasting the average monthly wage and number of workers of various categories engaged in agricultural production are presented in Table 1. The results of forecasting the average monthly wage and the total number of workers employed in agricultural production are presented in Table 2. Figure 3 presents the forecast of the average monthly wage of permanent workers in the Stavropol Krai. After forecasting the average monthly wage of permanent workers based on structural and logical relationships between groups of effective and factor indicators, we obtained the following results: The average monthly wage of permanent workers in the Stavropol Krai under the inertial scenario from 2018 to 2025 will increase from 22,548.9 to 38,069.8 rubles. That is, there will be an annual increase in revenue by an average of 7.8%. In the optimistic scenario, the average monthly wage of permanent workers from 2018 to 2025 will also increase from 22,548.9 to 41,535.0 rubles. That is, the revenue will grow by 9.1% per year. Figure 4 shows the forecast for the number of permanent workers in the Stavropol Krai. The number of permanent workers in the Stavropol Krai under the inertial scenario from 2018 to 2025 will increase from 33,133 to 35,774 people. That is, annual revenue growth by an average of 1.1% will be observed. The number of permanent workers in the pessimistic scenario from 2018 to 2025 will decrease from 33,133 to 30,413

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Table 1 The forecast of indicators of staffing of agricultural organizations of the Stavropol Krai with permanent and seasonal employees Year Indicators

2019

2020

2021

2022

2023

2024

2025

Scenarios

The number of Inertial 33,498 33,874 34,257 34,643 35,020 35,397 35,774 permanent Optimistic 31,923 31,706 31,440 31,127 30,889 30,651 30,413 workers (people) Pessimistic 35,935 37,267 38,750 40,391 41,802 43,213 44,624 The number of Inertial 1882 seasonal and Optimistic 2344 temporary workers (people) Pessimistic 1390 The number of employees (people)

1873

1860

1844

1831 1819

1806

2380

2420

2466

2507 2547

2588

1416

1391

1334

1315 1297

1278

Inertial

46,008 46,641 47,295 47,966 48,594 49,222 49,850

Optimistic

43,152 42,971 42,683 42,314 42,097 41,880 41,663

Pessimistic 49,490 51,543 53,831 56,368 58,468 60,568 62,668

The average Inertial 25,198 26,732 29,025 31,634 33,168 35,461 38,070 monthly wage of Optimistic 23,550 24,669 26,618 28,924 30,186 32,229 34,605 permanent workers (rubles) Pessimistic 26,847 28,794 31,433 34,344 36,150 38,693 41,535 The average Inertial 18,223 21,276 24,780 28,755 32,266 35,776 39,287 monthly wage of Optimistic 23,781 28,081 33,525 40,292 45,796 51,299 56,803 seasonal and Pessimistic 13,937 15,798 17,704 19,448 21,285 23,122 24,959 temporary workers (rubles) The average monthly salary of employees (rubles)

Inertial

25,661 27,845 30,028 32,211 34,394 36,578 38,761

Optimistic

23,612 25,086 26,707 28,410 30,166 31,960 33,784

Pessimistic 27,711 30,603 33,349 36,013 38,623 41,195 43,738

Source Developed by the authors Table 2 The forecast of indicators of staffing of agricultural organizations of the Stavropol Krai with employees of all categories Year Indicators

2019

2020

2021

2022

2023

2024

2025

Scenarios

The number of Inertial 46,008 46,641 47,295 47,966 48,619 49,271 49,924 permanent Optimistic 49,991 52,043 53,331 56,869 59,162 61,454 63,747 workers (people) Pessimistic 43,152 42,971 42,683 42,314 42,035 41,755 41,476 The average Inertial 26,180 29,240 32,723 36,709 40,219 43,728 47,238 monthly wage of Optimistic 34,369 40,410 48,280 58,464 66,496 74,527 82,559 permanent workers (rubles) Pessimistic 20,586 22,263 23,967 25,715 27,425 29,134 30,844 Source Developed by the authors

Labor Resources in Agricultural Regions of the South of Russia …

673

45,000 40,000 35,000

rubles

30,000 25,000 20,000 15,000 10,000 5,000

Actual levels

Inertial forecast

Fig. 3 Forecast of the average monthly wage of permanent workers in the Stavropol Krai. Source Compiled by the authors

50,000 45,000

people

40,000 35,000 30,000 25,000 20,000

Actual levels

Inertial forecast

Fig. 4 Forecast of the number of permanent workers in the Stavropol Krai. Source Compiled by the authors

people. In this scenario, an annual average increase in production volume of 1.2% will be observed. In the transition to an optimistic scenario, the number of permanent workers from 2018 to 2025 will also increase from 33,133 to 44,623 people, and the revenue will grow annually by 4.3% per year. Figure 5 shows the forecast of the average monthly wage of workers employed in agricultural production in the Stavropol Krai. In the process of forecasting the average monthly wage of workers employed in agricultural production based on structural and logical relationships between groups of effective and factor indicators, we obtained the following results. The average monthly wage of workers employed in agricultural production in the Stavropol Krai under the inertial scenario will increase from 23,456.6 to 38,760.9 rubles from 2018 to 2025. There will be an annual increase in the average monthly wage of workers employed in agricultural production by an average of 7.4%. The forecast of the

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rubles

35,000 30,000 25,000 20,000 15,000 10,000

Actual levels

Inertial forecast

Fig. 5 Forecast of the average monthly wage of workers employed in agricultural production in the Stavropol Krai, rubles. Source Developed by the authors

average monthly wage of workers employed in agricultural production under the pessimistic scenario from 2018 to 2025 will increase from 23,456.6 to 33,784.0 rubles. The average monthly wage of workers employed in agricultural production will increase annually by an average of 5.4%. In the transition to the optimistic scenario, the forecast of the average monthly salary of workers employed in agricultural production from 2018 to 2025 will also increase from 23,456.6 to 43,737.9 rubles. Thus, the average monthly salary of workers employed in agricultural production will grow annually by 9.3% per year. Figure 6 shows the forecast for the total number of workers employed in agricultural production in the Stavropol Krai. When forecasting the number of workers employed in agricultural production based on the structural and logical relationships between effective and factor indicators, we obtained the following results. The number of workers employed in agricultural production in the Stavropol Krai under the inertial scenario will increase from 65,000 60,000 55,000

people

50,000 45,000 40,000 35,000 30,000 25,000 20,000

Actual levels

Inertial forecast

Pessimistic level

Optimistic level

Fig. 6 The forecast of the number of workers employed in agricultural production in the Stavropol Krai. Source Compiled by the authors

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45,451 to 49,850 people from 2018 to 2025. Thus, there will be an increase in the number of workers in agricultural production by an average of 1.3%. According to the pessimistic scenario, the number of workers employed in agricultural production from 2018 to 2025 will decrease from 45,451 to 41,663 people. With the transition to the optimistic scenario, the forecast from 2018 to 2025 will also increase from 45,451 to 62,668 people. That is, annually the number of workers employed in agricultural production will increase by 4.0% per year. For models of wages and the number of permanent agricultural workers in the Stavropol Krai in the context of mass professions, a promising extrapolation of exogenous variables necessary for predictive calculations was carried out. A similar method was used to forecast the average monthly wage and the number of seasonal and temporary workers serving in the Stavropol Krai (Table 3). Table 3 The forecast of staffing indicators of agricultural organizations in the Stavropol Krai with workers of mass occupations of agricultural production Year

2019

2020

2021

2022

2023

2024

2025

Indicators

Scenarios

The number of tractor drivers (people)

Inertial

7702

8087

8491

8916

9321

9725

10,130

Optimistic

9095

10,004

11,005

12,105

13,108

14,112

15,115

Pessimistic

6898

6967

7037

7107

7177

7246

7316

The number of machine milking operators (people)

Inertial

740

777

816

857

896

935

974

Optimistic

933

1026

1128

1241

1344

1446

1549

Pessimistic

592

598

604

610

616

622

628

The number of cattle breeding workers (people)

Inertial

1554

1632

1713

1799

1881

1962

2044

Optimistic

1893

2082

2291

2520

2729

2938

3147

Pessimistic

1364

1377

1391

1405

1419

1432

1446

The number of pig workers (people)

Inertial

569

598

628

659

689

719

749

Optimistic

686

755

830

913

989

1064

1140

Pessimistic

471

476

481

486

491

496

501

The number of sheep and goat breeding workers (people)

Inertial

979

1028

1079

1133

1184

1236

1287

Optimistic

1125

1237

1361

1497

1621

1745

1869

Pessimistic

872

880

889

898

907

915

924

The number of poultry workers (people)

Inertial

3175

3222

3267

3312

3358

3403

3449

Optimistic

3939

3883

3888

9391

11,208

13,026

14,843

Pessimistic

2785

2894

2961

3003

3076

3148

3221

Source Developed by the authors

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4 Discussion The obtained forecasts of indicators characterizing the labor force should be considered an essential tool for developing and implementing effective management decisions in the Stavropol Krai [12]. Therefore, the final stage of the proposed methodology is the development of a set of recommendations for the implementation of various scenarios for changing the labor resources of agricultural organizations in the Stavropol Krai. For these purposes, we propose to use a matrix (Table 4) allowing us to identify specific activities that should be promptly implemented by the governance bodies of the Stavropol Krai if the paths of empirical changes in the indicators correspond to one of the presented forecast scenarios in the short term [13]. According to the authors, the application of these measures will improve the dynamics of economic growth in agriculture of the Stavropol Krai. The increase in the business activity of agricultural producers will significantly increase the availability of highly qualified personnel for agricultural production. The efficiency of the labor resources of agricultural organizations largely depends on the size of the investments made in them. Therefore, part of their profits should be used to improve labor resources, which will strengthen the financial condition of agricultural business structures. The effectiveness of the agrarian regional economy directly depends on the sustainability of the development of individual agricultural organizations, which is associated with the state and degree of the use of labor resources by organizations. Therefore, it requires agricultural organizations to create a flexible and effective personnel management system.

5 Conclusion A considerable number of scientific papers are devoted to studying the state of the labor market, the personnel potential of regions, and individual economic entities. The issues of optimizing personnel policy are key in ensuring positive dynamics and sustainable socio-political and socio-economic development of the agricultural sector. In the agricultural sector of the domestic economy, a traditionally stable tendency is a reduction in labor resources, including the most intelligent ones, due to such reasons as a change in the production structure, the use of the latest technology, and the growth of capital-labor ratio. We formulated the main determinants of the development of the labor potential of the agricultural sector of the Stavropol Krai, capable of changing the personnel policy of agricultural producers. We expertly evaluated the potential opportunities and degree of influence on the personnel policy of economic entities.

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Table 4 The program of adaptation measures to increase the personnel potential of the region Program activities

Scenarios I

II III

Direct and indirect incentives for job creation in the Stavropol Krai

+

+

Improving the quality and accessibility of education, medical services, adapting the structure of training and retraining of personnel following the needs of the economy

+

+

Current activities

The development of the system of state order, leasing in priority industries, and stimulation of import substitution Development and launch of training, retraining, and advanced training programs for specialists in priority areas of scientific and technological development of the AIC based on specialized universities

+ + +

+

Medium-term activities Creation of specialized business incubators for socially-oriented organizations

+ +

Increasing the level of scientific and technological development of various industries and the formation of prerequisites for their early transition to a new technological structure

+ +

The determination of real needs for specialists and workers for rural areas based on data from ongoing monitoring using the standard method and the formation of an order for training

+

+

The determination of the list of departmental professional competencies and + professional standards, the development and implementation of personnel certification procedures for the AIC

+

Long term activities The development of strategic programs for the development of regions for the long term

+

+

Development and implementation of a methodology for planning and forecasting quantitative and qualitative indicators of staffing in rural areas, based on the methodology of multivariate modeling and correlation and regression analysis of the sectoral balance of labor resources and factors affecting its change

+

+ +

Stimulating regional and interregional integration, developing public–private partnerships

+ +

Source Developed by the authors

The formation of the forecast of staffing of agricultural organizations involves developing an algorithm for conducting predictive research. In our opinion, this requires the following stages of forecasting: (1) (2)

The creation of an information base of indicators in the context of climatic zones. The construction of regression equations as part of a system of recursive equations of the following general form:

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(3)

Trending of factor (exogenous) indicators for four natural climatic zones until 2020. 3.1. 3.2.

The calculation of forecast factor indicators; The forecast of effective indicators by regression models.

At the final stage, the predicted values of wages and the numbers of all categories of agricultural workers in general in the Stavropol Krai were calculated based on the aggregation of the forecasted values of these indicators in the context of four natural and climatic zones. A set of recommendations on implementing various scenarios of changing agricultural labor resources of the Stavropol Krai. Acknowledgements The authors would like to express deep gratitude to the rector of the Stavropol State Agrarian University, Professor V. I. Trukhachev, for the opportunity to conduct research in the innovative laboratories of the educational institution.

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13. Trukhachev VI, Kurennaya VV (2016) Methodological aspects of the system and hierarchal analysis of the oilseeds sub-complex of the regional agro-industrial complex: Risks and production and technological specificity. Int J Appl Bus Econ Res 14(14):767–784 14. Tatuev AA, Kiseleva NN, Gukasova NR, Tatuev AA, Rokotyanskaya VV (2015) Features of international cooperation and development of bioeconomics and natural resource economics. Res J Pharm Biol Chem Sci 6(6):1525–1533 15. Tatuev AA, Shash NN, Nagoev AB, Lyapuntsova EV, Rokotyanskaya VV (2015) Analysis of the reasons and consequences of economic differentiation of regions. Int Bus Manag 9(5):928– 934

Managing the Development of Innovative Regional Industries Using Field of Forces Analysis Alexey V. Scherbina

and Mikhail V. Grechko

Abstract This study examines the management tools of innovative industries in the Rostov Region economy, based on force-field analysis. The paper aims to identify the effective mechanisms and tools for managing the development of innovative sectors in the Rostov Region. We assume that producing intellectual factors is a synergetic and dynamic process that requires analyzing the susceptibility of the economic system to innovation. This research is based on the cognitive human capital theory, evolutionary economic theory, and political-economic analysis. The latter allowed us to determine the main forces of innovative development and the critical and key factors for the success of the innovative development within the region. Based on cognitive human capital theory and the expert survey method, we present a “forcefield” model for the innovative development of the region. The paper builds a logical diagram for the dependence of the management strategy on the subject potential. This study can become a foundation for managing complex and unpredictable socioeconomic systems. Keywords Region · Development challenges · Force-field diagram · Development strategy

1 Introduction The problem of managing systems of various levels occupies a major place in modern macroeconomic analysis. Today, regional economic systems are transitioning from traditional growth factors to innovative mechanisms and development tools. The statistics demonstrate that the share of innovative knowledge (technologies, equipment, new mechanisms for economic processes, etc.) accounts for up to 90% of GDP in the most developed countries [1]. In recent years, the problems of managing knowledge, ideas, and other intangible assets have been the focus of many Russian and foreign scholars. For example, A. V. Scherbina · M. V. Grechko (B) Southern Federal University, Rostov-on-Don, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_74

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Akerlof and Shiller [2], Nonaka and Takeuchi [3], North [4] established that economic development is not only connected to traditional factors (capital, natural resources, etc.) but also the morals and values of a nation [5]. In our own research, we produced an econometric model of the influence of intellectual factors on economic growth [6]. However, despite a considerable amount of research, there is currently no unified set of methods and tools for regional system management. As such, the problem of managing the regional development of innovative industries (based on the example of Rostov Region) is relevant, significant, and scientifically justified. This research is based on the cognitive human capital theory, evolutionary economic theory, and political-economic analysis. The latter allowed us to determine the main forces of innovative development, and the critical and key factors for the success of the innovative industry development within the region. The relevance of this research is increased by using the proposed tools to study complex, weakly-structured, and dynamically unbalanced systems. This allowed us to determine the main driving and restraining forces of innovative development, and identify the critical and key factors for the success of the innovative regional development. The results of this study should augment the existing scientific knowledge on managing the sustainable and innovative development of complex socio-economic systems.

2 Materials and Methods There is a contradiction between the urgent need for innovative development of socioeconomic systems and the lack of adequate mechanisms for assessing the balance of driving and restraining forces of innovative development. The study aims to develop a conceptual model for researching the mechanisms and tools for managing innovative regional development. (on the example of Rostov Region). The methodological and theoretical basis of this research includes: cognitive human capital theory, evolutionary economic theory, and force-field analysis. These methods allowed us to identify the main driving and restraining forces of innovative development. The study also relies on an expert survey, which allowed us to rank the forces and key factors of innovative regional development (based on the example of the Rostov Region).

3 Results To assess the economic development potential of the Rostov Region, we will use the “Strategy for Socio-Economic Development of Rostov Oblast until 2030.” The

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Fig. 1 Force-field for innovative regional development. Source Compiled by the authors

Strategy defines the acceleration of economic development via innovative technologies and increasing the quality of the environment as its guidelines. This problem can be solved by analyzing the regional development factors, which form the so-called “force-field” of innovative development (Fig. 1). Force-field analysis derives from physics; it was adapted by K. Lewin to analyze factors determining or inhibiting changes occurring in non-equilibrium systems. Following terminological sorting, it can be stated that the “force-field” is an analysis of factors producing or suppressing the development of knowledge generation and innovation sectors. In other words, force-field analysis will allow us to systematize the restraining and driving forces for innovative development within the region. The balance of forces of limiting and driving factors of knowledge generation and innovation determines the development potential of the identified sectors (if the driving forces are predominant) or their stagnation (if the restraining forces are predominant). To identify and further systematize the restraining and driving forces for the development of innovative industries in the region, we will use the expert survey. It also allows us to determine the critical and key success factors for developing innovative industries in the Rostov Region. We chose the experts for the survey (12 people, the index of expert opinion consistency is more than 0.8 on the Saaty scale). The experts were represented by higher education employees that studied the efficiency management of regional socioeconomic systems. Moreover, we invited the state authorities of the Rostov Region (leading experts of the Ministry of Economic Development of Rostov Region) to take part in the procedure. The expert survey was conducted in two stages. The first stage involved the most significant (according to the experts) driving forces for the development of innovative industries (10 factors) and the most significant restraining forces of their development (10 factors). At the second stage of the survey, experts were asked to evaluate the impact of these forces on a 10-point scale (Table 1). Table 1 presents the most significant driving forces for the development of innovative industries in the region. These are the economic development on an intensive

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Table 1 Systematization of restraining and driving forces for the development of innovative industries in the region Driving forces

Ratings Restraining forces

Ratings

1. International competition

4

Investment attractiveness

6

2. The need for the development of innovative technologies in the region

3

Weak involvement of regional businesses in sectors with a high degree of the final product processing

6

3. Russian digital development strategy

6

Fear of long-term investment risks

5

4. Economic development on an intensive basis

7

Low R&D efficiency

5

5. Challenges of the fourth industrial revolution

3

Gray economy and informal sector

6

6. High level of human capital in the region

5

Low degree of innovation activity of commercial organizations

7

7. The predominant profile of the regional economy

3

The gap between scientific achievement and the needs of the real sector of the regional economy

5

8. The inflow of investments into the regional economy

2

The system of higher education that does not meet the challenges of the Fourth Industrial Revolution

8

9. Cooperation between universities, research organizations, and real production facilities

4

Low effective demand

7

10. Innovative programs for the development of the region

7

Distrust of business structures towards the regional government

5

Total:

44

Total:

60

Source Compiled by the authors

basis (7) and innovative programs for the development of the region (7). The sum of positive ratings amounted to 44 points. According to the experts, the most important forces holding back the development of innovative industries include: (1) the system of higher education that does not meet the challenges of the Fourth Industrial Revolution, (2) the low level of commercial innovation, and (3) low effective demand. The sum of ratings of factors hindering the development amounted to 60 points. As we can see, there is an unbalanced state expressed through the value of 60 > 44, demonstrating the predominance of restraining forces in the innovative industries of the region. Moreover, the ratio of driving and restraining forces estimates amounts to 0.73, which is close to 1 and is a fairly significant indicator. Based on the expert survey results, we built the “force-field” list for the prospective development of innovative and high-tech industries in the region. It includes the following directions: • Increasing the inflow of investment into the regional economy by at least 3 points;

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• Increase the level of cooperation between universities, research organizations, and real industries to 8; • Innovatively transform the heavy and light industry of the region (7); • Create a roadmap for innovative production to meet the challenges of the Fourth Industrial Revolution (8); • Create roadmaps for (1) the development of the higher education system in the Rostov Region (according to the requirements of the knowledge-based economy) and (2) the innovative activity of commercial organizations, thereby reducing the values of restraining forces by at least 3 points. This will practically result in the formation of new driving forces aimed at increasing the driving factors of the innovative regional economy to at least 60 points while reducing the values of restraining forces to 40. We believe that innovative regional enterprises should, first of all, be aimed at implementing a strategy of increasing returns on investment in knowledge generation sectors. There are several reasons for this: (1) the reduction of transformational and transactional external costs; (2) the replication of network effects; (3) the formation of new consumer habits and expert consulting. Thus, the formation and development of innovative industries generate market disequilibrium (in contrast to traditional industries generating stagnation or static competition). Besides, the unique character of innovative industries (the functioning of which can be represented by increasing knowledge returns) allows us to identify their impact on the market, which ultimately leads to the acceleration of supply dynamics in the region.

4 Discussion The process of strategic management of the development of innovative and high-tech industries in the Rostov Region is determined by several factors, including: • The reliance on the existing scientific reserves and knowledge-intensive production of the region. • The existing trends of technical re-equipment of the main industrial funds. • The potential for expanded reproduction in innovative industries of the region. Thus, we can conclude that innovative production in the region is determined by the state of knowledge generation sectors, which redistribute the newly created capital. Therefore, to effectively manage the development of innovative industries, one must first identify its critical and key success factors. For this purpose, we conducted an expert survey involving 12 people with an index of expert opinion consistency of more than 0.8 on the Saaty scale (experts identified the factors based on their own preferences) (Table 2).

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Table 2 The systematization of critical and key factors in the process of managing the development of innovative industries in the region Critical factors

Key factors

1. The awareness of the need for innovative development within the framework of the Fourth Industrial Revolution

1. Technological and institutional opportunities for the production of innovative products

2. An effective strategy for managing the regional economy

2. Availability of new means of production inherent to the V-VI TU

3. High human capital in the region

3. High qualification and creativity of the personnel involved in innovative production

4. The availability of necessary production facilities

4. High level of cooperation between universities, research organizations, and real production facilities

5. Promising financing of innovation

5. High spendings on innovation both on the part of the state and on the part of honest investors

Source Compiled by the authors

Furthermore, if we evaluate these key factors on a five-point scale and set the corresponding weight coefficients, we will get a practical tool for assessing the innovative potential of an economic entity (Fig. 2).

Fig. 2 The logical diagram for the dependence of the managements strategy on the subject potential. Source Compiled by the authors

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Using the diagram presented in Fig. 2, we constructed a formula for identifying the index of innovative potential of a business (Iin):  Iin =

Ki I j N

where: Ij Ki N

A five-point rating of a key factor;  Weight coefficient, 0 ≤ Kj ≤ 1, Kj = 1 (100%); The number of key factors established by the experts.

Using this formula, we can calculate the percentage of key factors that are used by the economic entity and their falling vectors.

5 Conclusion The constructed “force-field” diagram allowed us to assess the driving and restraining forces of the innovative regional development. In this study, we proposed to raise the influence of driving innovative forces to at least 60 points while reducing the restraining forces to 40. The innovative regional enterprises should aim to increase the returns on investment of knowledge-generation sectors. Moreover, we developed a model for assessing the key development factors of an economic entity. Therefore, this research may serve as the basis for managing the development of complex, weakly-structured objects, and systems. The results of this study may be further used for determining the driving and restraining forces, and key and critical factors of innovative Russian development. Acknowledgements We would like to express our sincere gratitude to Alexey Yurevich Arkhipov, Valery Anastasievich Dolyatovsky, and all employees of the Higher School of Business of the Southern Federal University, represented by the head of the University, Sergey Goryainov, for valuable thoughts, alternative ideas, and assistance in the publication process.

References 1. Grechko MV (2018) Research of ontology and assessment of intellectual capital reproduction at the present stage of the national economy development. Nat Interests: Priorities Secur 4(361):658–672 2. Akerlof G, Shiller R (2009) Animal spirits: How human psychology drives the economy and why it matters for global capitalism. Princeton University Press, Princeton, NJ 3. Nonaka I, Takeuchi H (1995) The Knowledge-creating company. How Japanese companies create the dynamics of innovation. Oxford University Press, New York, NY 4. North D (1995) Five propositions about institutional change. University of Michigan Press, Ann Arbor, MI

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5. Inglhart R (1997) Postmodern: Varying values and changing societies. Policy 4:24–35 6. Grechko MV (2019) Management of intellectual factors and economic development of the country and region (on the example of Rostov Region). Nat Interests: Priorities Secur 5(374):897–908

Accounting as a Tool for Achieving Global Sustainable Development Goals Olga E. Sytnik , Natalia V. Kulish , Sergey A. Tunin , Aleksandr V. Frolov , and Viktoria S. Germanova

Abstract In the past two centuries, globalization and industrialization brought many social benefits to society. They have contributed to addressing sustainable development issues, including poverty, hunger, climate change, and other ethical and moral issues. The 17 sustainable development goals adopted by the United Nations represent a universal set of policies aimed at the social and economic development of economic entities. The paper judges the contribution of accounting to achieving these goals. Based on the theoretical analysis, the paper focuses on the essential role of accounting in the economy at all stages of its development and various economic entities worldwide. The study examines the accounting contribution towards achieving eight specific accounting goals defined by the International Federation of Accountants. The study contains information on existing goal-supporting activities and initiatives within accounting. Keywords Accounting · Accountant · Sustainable development · Reporting · Economic entity · Goal

1 Introduction Modern economic entities operate within a new environment marked with unprecedented rates of change, uncertainty, volatility, and pressure from both external and internal stakeholders. The constantly changing external environment forces management teams of economic entities to change quickly and adapt to new business conditions. The pace of such changes and their content, are of great importance for the financial stability of an economic entity. We should expect that in the future, the pace of business environment changes will grow exponentially.

O. E. Sytnik · N. V. Kulish · S. A. Tunin · A. V. Frolov · V. S. Germanova (B) Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_75

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That is why the transformation of economic entities and the transformation of approaches to forming their financial and accounting analytical space remain relevant within a changing business environment. In 2015, the United Nations Sustainable Development Summit in New York defined 17 global sustainable development goals [SDGs], which are intended to be achieved by 2030. “According to the UN definition, the goal of sustainable development is ensuring that the development of the current generation does not contradict the interests of future generations” (RBC n.d.). The content of the proposed program for achieving the set goals contains 169 targets (each with several performance indicators). It aims to address the full range of social and economic development problems facing the world (eliminating poverty and hunger, preserving the natural resources, ensuring well-being, prosperity, and equity). The program provides government agencies, businesses, and civil society with a universal roadmap of solutions to pressing problems and new value creation opportunities. The SDGs apply to both “developed” and “developing” countries and all economic entities. As an entity exerting global influence and possessing economic power, the business community plays an essential role in solving the tasks set by SDGs. Barman and Farrar [1], referring to the research conducted by PricewaterhouseCoopers [PwC] on sustainable development practices, say that “sustainability is fast becoming the lens through which a business is judged by its customers, workforce, society, governments and even its investors.” According to Subhash Gupta [1], “any progress on the SDGs in a given country will have a tremendous impact on the business environment.” This study will discuss what accounting initiatives and activities of the economic entity can contribute to the achievement of SDGs. The study provides a summary of different opinions, points of view, and experience on the subject.

2 Materials and Methods The theoretical basis of the study is presented by scientific research of domestic and foreign scholars in accounting, financial reporting, international financial reporting standards, and Russian and international secondary literature, including research articles, presentations on the role of business in achieving the UN-defined SDGs. The study contains respective annotations and references to the used sources. The research employs general scientific methods such as monographic method, comparison, methods of systematization, generalization of theoretical aspects, and practical recommendations on the designated topic, qualitative and quantitative analysis of the material. In 2017, the Russian Union of Industrialists and Entrepreneurs [RSPP] conducted a survey on SDGs awareness among its members. The survey involved economic entities from almost all Russian regions, various sectors of the economy, as well as large, medium, and small businesses. Of all the participants, 43% gave a positive response.

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PwC conducted a similar study in 2018 [2], which analyzed the corporate reports of more than 700 public companies from 21 countries, including the reports of 42 Russian companies. Only 43% of Russian companies mention the SDGs in their reports (Fig. 1). The private sector accounts for the majority of job opportunities worldwide. Therefore, it must synchronize its business strategies with SDGs and develop businessoriented solutions. The RSPP studies asked economic entities to determine which activities and results contribute to achieving the considered goals (Fig. 2). The study demonstrated that the “introduction of innovations and new energy and resource-saving technologies,” “sustainable economic growth and employment

83%

72%

87% 92%

88%

84%

74%

64% 53%

52%

85% 73%

68%

93% 97% 73% 69%

47% 50% 43%

Fig. 1 The number of companies expressing their commitment to the SDGs. Source [2]

Fig. 2 Directions and results of the company activities contributing to the achievement of the SDGs. Source [3]

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Fig. 3 SDGs where accounting and professional accountants play an essential role. Source Compiled by the authors based on [6]

growth,” “responsible consumption and production” activities are the most attractive to enterprises (more than 50%). Only 33.3% of respondents were interested in reducing the negative environmental impact and impact on climate change. Accounting is the engine of influential, stable economic entities, financial markets, and the economy as a whole. The International Federation of Accountants (IFAC) defined eight sustainable development goals, in which the accountants play an essential role (Fig. 3).

3 Results The nature of accounting suggests that it is a fairly powerful tool for implementing and supporting the relevant SDG programs analyzing its results and generating reporting information. Future-oriented information must be reliable, based on reasonable assumptions, and properly explained in financial and non-financial statements. Many domestic and foreign scholars study the issues of accounting and financial information quality, including their reliability. For example, DeFond [4] draws attention to the fact that the adoption of the International Financial Reporting Standards [IFRS] in 2005 provided researchers in the field of accounting with an opportunity to assess its main qualitative features, which are considered to be quite valuable by information users. According to him, these qualitative features are as follows: reliability and comparability of information, application of the accrual method, the significant expansion of disclosure of information on accounting objects, use of historical cost. By ensuring the quality of the generated information, accountants can meet the interests of society, thereby contributing to economic activity, development, and the adoption of responsible and effective decisions made by the management of state and business structures. Specific professional skills and knowledge of accountants within areas of management, risk analysis, and decision-making (these include measuring, reporting, and ensuring the reliability of financial and non-financial accounting and reporting

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Fig. 4 Target goals of SDGs, in which accounting plays an essential role. Source Compiled by the authors based on (United Nations n.d.)

data) are becoming increasingly sought-after. Using codes of ethics and professional competence, accounting employees maintain the necessary integrity and transparency of information, professional behavior, thereby ensuring that they act in the public interest. It is these competencies of accounting experts that help track progress in achieving the SDGs. Earlier, we noted that IFAC defined 8 SDGs to which the accounting contribution may be the most substantial. Accounting allows one to observe the economic life and the changes in the composition of assets, capital, liabilities, income, and expenses. It also allows us to assess and predict such consequences providing accessible and reliable information to various groups of stakeholders for the best management decisionmaking. Based on this information, we aim to identify several SDGs target goals for further study (Fig. 4). Effective management is vital for achieving SDGs. We will discuss these goals in terms of their ability to present the user with a high-quality accounting and analytical information flow, build confidence in the economic entities of interested parties, identify problems, and determine the values of transformational procedures in the context of digital technologies and artificial intelligence development.

4 Discussion Concerning target goals 4.3 and 4.6, the professional accounting community works to meet the global demand for accountants by developing, expanding, and improving professional education. It maintains the necessary level of continuous professional education for accountants (both private and public sector) throughout their careers, thereby contributing to the achievement of positive results in the implementation of the SDGs. Target 5.5 is particularly relevant for countries with “developing” economies, where the proportion of women in the accounting profession remains low, including

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women who have reached leading positions. It is generally recognized that a profession can realize its greatest potential when it attracts members and leaders from the widest possible range of talented individuals. Accounting must encompass and utilize all talents and abilities. Therefore, it is necessary to create conditions for attracting more accountants and creating proper working conditions for all genders. The accountants are responsible for using their professional skills and competencies in decision-making to form financially stable economic entities when implementing target goals 8.1 and 8.3. Due to the fact that accounting generates reliable and high-quality information, all objects of accounting are subject to assessment and reporting. The users of this information have the opportunity to make decisions related to improving the living standards and well-being of economic entities employees and their family members. Additionally, high-quality financial and nonfinancial information and performance control helps owners and managers create and maintain strong and trustworthy economic entities, which act as the basis for improving population well-being. Goal 9 and the highlighted target goals 9.4 and 9.5 emphasize the interconnectedness of all goals. Transformational changes in infrastructure require large-scale participation of private businesses. This participation requires a favorable investment climate (including partner investment climate). Comfortable partnerships are established due to the possession of the necessary information, in this case, formed and provided by the accounting system. Partners search for the necessary information within financial statements of economic entities or within integrated reporting, which is more complex. Thus, accountants form an “infrastructure” for providing services in the areas of decision analysis, due diligence, business consulting, anti-corruption, money laundering, justification and support for investments (including investments in research and development), as well as identifying and managing business risks and opportunities. The responsibility of the accounting apparatus in solving target task 12.6 involves (1) production costs accounting, (2) choosing accounting methods for tangible and intangible assets, (3) developing new sources of management information, (4) forming the financial and managerial reporting, (5) data interpretation, analysis, and management. As part of this task, economic entities can generate reports on sustainable development or corporate responsibility, strengthening the confidence of people in external financial and non-financial information. Goal 12 sets new requirements for corporate reporting and a new level of transparency that should demonstrate how corporate goals and activities contribute to responsible consumption and production. It should be noted that today individual economic entities form various types of reports. These forms include annual accounting (financial) by the Federal Accounting Standards and IFRS, management, tax, statistical, specialized industry, social, environmental, corporate, integrated accounting, etc. Integrated reporting is an effective mechanism for monitoring the allocation of funds for achieving the SDGs. However, the structure of these reports often differs significantly, making it difficult for users to interpret and compare them. An agreement on the methodology for generating such reports must be achieved. It is also advisable to provide a system for disclosing information on the achievement of the SDGs by domestic companies.

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The Global Reporting Initiative (GRI) is an international standard for sustainable development reporting, intended for voluntary application by entities reporting on the achievement of the SDGs. The complete information on the number of Russian companies issuing nonfinancial reports and chosen approach to reporting is contained in the National Register of Corporate Non-financial Reports and the RSPP Library of Corporate Non-financial Reports (RSPP n.d.). As of January 2019, the National Register of Corporate Non-financial Reports contained 176 companies and 924 reports with 314 reports in the field of sustainable development [5]. The accounting community can be involved in achieving any target goals of Goal 13. Accountants play an important role in supporting their economic agents in responding to climate change and its consequences. Objective data on production helps to control its environmental impact. Professional communication and reporting skills can help develop improved forms of environmental reporting that are later presented to investors and other stakeholders. They can also be used in justifying investment in resources needed to address emerging climate-related issues. The achievement of target goals 16.5 and 16.6 at the level of economic entity requires observing the standards, principles, and rules affecting the business. For example, such standards include IFRS and their instruments, Federal Law No. 402 “On accounting,” the Federal Accounting Standards, regulations governing remuneration, and so on. The ethical, managerial, and professional standards of the accounting profession enable experts to positively influence economic agents in the public and private sectors by following their codes of ethics and supporting general professional initiatives. The ability of accounting to overcome obstacles to sustainable growth, such as poor governance, fraud, and corruption, as well as inadequate accounting and auditing practices, is important because it directly affects economic development, including domestic and foreign investment. The highlighted targets of Goal 17 deserve further study. The employees of accounting and analytical services constantly practice business partnerships provided by working with staff, buyers, suppliers, credit institutions, professional industry associations, government agencies, tax services, and taxpayers, as well as other contractors and interested parties. When working with partners, the accounting staff takes an active part in determining priorities and coordinating the goals of the enterprise strategy. The accounting staff helps determine the ways of increasing value through reliable accounting and reporting systems. It analyzes the implementation of plans and forms collective focus-groups/partnerships focusing on specific results and projects. Thus, the actions of accountants within the framework of partnerships provide additional values.

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5 Conclusion Accounting as a recognized “business communication language” plays a fundamental role in helping the business community maximize its capabilities for drive growth and ensuring long-term benefits. Accounting and analytical services create values of economic entities and play a key role in achieving high results of their activities. Accounting experts shape the long-term development strategy of business units via a deep understanding of financial factors. They make better use of accounting information and financial and non-financial reporting data, meeting the growing demands of capital markets and stakeholders. The experts also help to develop new business models that can take advantage of the opportunities provided by the SDGs. Thus, the accounting profession plays a significant role in supporting a healthy global economy. Acknowledgements The authors respect the theoretical, conceptual, and empirical studies of theoretical and practical scientists who highlight the role of accountants in achieving the goals of sustainable development of society in general and economic entities in particular.

References 1. Barman T, Farrar M (2018) Creating a sustainable future. Retrieved from https://www.cgma. org/content/dam/cgma/resources/reports/downloadabledocuments/cgma-sustainable-dvelop ment-goals-guide-apr-18.pdf 2. PwC (2018) From promise to reality: Does business really care about the SDGs? Retrieved from https://www.pwc.com/sdgreportingchallenge 3. Feoktistova E, Kopylova G, Ozeryanskaya M, Moskvina M, Hofmann N, Purtova D (2018) Russian business and sustainable development goals. Corporate practices collection. RSPP, Moscow, Russia 4. DeFond ML (2019) Why accounting matters: Evidence from accounting’s “Big Bang.” J Int Acc Res Fall 18(3):87–96. https://doi.org/10.2308/jiar-52568 5. Feoktistova EN, Alenisheva LV, Kopylova GA, Ozeryanskaya MN, Purtova DR, Honyakova NV (2019) Analytical review of corporate non-financial reports: 2017–2018. RSPP, Moscow, Russia 6. IFAC (2016) The 2030 Agenda for sustainable development: a snapshot of the accounting contribution. Retrieved from https://www.ifac.org/publications-resources/2030-agenda-sustainabledevelopment-1s 7. RBC (n.d.) 17 sustainable development goals. Retrieved from https://makingsense.rbc.ru/sdgs 8. RSPP (n.d.) Social accountability. Retrieved from https://pcpp.pf/simplepage/157 9. United Nations (n.d.) Take action for the sustainable development goals. Retrieved from https:// www.un.org/sustainabledevelopment/sustainable-development-goals

Financial Market Development Trends Olga N. Uglitskikh , Irina I. Glotova , Yuliya E. Klishina , and Elena P. Tomilina

Abstract The paper is devoted to reviewing trends of financial market development, mainly the use of digital financial technologies. We note that the development of the Russian financial market is one of the priorities of the Central Bank of the Russian Federation, where modern digital activities are is a special factor of the development. The use of new technologies contributes to the decentralization of the financial system, which has both positive aspects and the risks of global financial instability. The content of the paper describes the problems of Russian financial startups, mainly the use of blockchains in banking, Near Field Communication, P2P lending, B2B sales, and big data cloud services. The paper notes that the current financial market is marked with actively functioning “neobanks” established by financial organizations specializing in e-commerce generally operating only through the Internet without offices. The paper concludes that the use of digital financial technologies is the main necessary factor for the development of the financial market. Keywords Financial market · Digital technologies · Financial technologies · Financial technology market

1 Introduction Effective development of the financial market of the Russian Federation is one of the priorities of the Central Bank of the Russian Federation. During the emergence of digital technologies, the financial market is adapting to modern requirements for improving the activities of its participants. Products developed using blockchain, P2P, B2B, Near Field Communication, and other technologies are widely used in financial market segments. Big data cloud services allow experts to work from any country in the world, which is important for the functioning of the financial market. Digital technologies are used for interbank payments, verification, and recognition of accounts

O. N. Uglitskikh (B) · I. I. Glotova · Y. E. Klishina · E. P. Tomilina Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_76

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in trade finance, implementation, and verification of contracts, etc. Digital financial products modify the payment and settlement system, financial infrastructure, investment management, insurance, and raising debt and equity capital.

2 Materials and Methods The research was based on systematic and logical approaches. We used methods of analysis and synthesis, which allowed us to identify modern financial technologies used in certain segments of the financial market, and generalize and link together the main trends in the development of the financial market. The Central Bank of the Russian Federation developed the main directions for the financial market development for the period 2019–2021 [1], approved by the Board of Directors of the Central Bank in February 2019. The implementation of these directions is directly related to the digitalization of the Russian economy.

3 Results The modern Russian economy is distinctively marked with the presence of traditional markets for goods and services and, most notably, a financial market providing the state and economic entities with financial assets that allow them to invest the available cash assets and generate additional income. Thanks to a balanced macroeconomic policy, the financial market situation remained stable this year [2]. Trends of the Russian financial sector development go beyond global trends (Fig. 1).

Fig. 1 Global trends in financial market development. Source [3, 4]

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The peculiarities of modern political relations have affected the activities of Russian financial corporations. Due to the introduction of sanctions, the opportunities to attract foreign investment in Russian corporations and the volume of international lending to the Russian economy are currently decreasing. The introduction of new technologies contributes to the decentralization of the financial system [3, 4]. This brings both positive aspects and risks to global financial stability. Global investment in financial technologies increased to 112 million dollars in 2018. All currently available technologies, such as distributed ledgers, cloud services, big data, and artificial intelligence, are currently used in financial markets. They are used to conduct interbank payments, verification, and recognition of accounts in trade finance, implementation, and verification of contracts. Innovative financial technologies have modified the payment and settlement system, financial infrastructure, investment management, insurance, and raising debt and equity capital [5, 6]. Further development of financial technologies and the decentralized financial system can have a positive impact on the stability of the financial market through increased competition. At the same time, the rapid development of financial technologies brings special risks: (1) concentration of key infrastructure owners, (2) the uncertainty of legal liability and consumer protection, (3) and fluctuations in loan offers. If the risks become apparent, market participants may question the stability of the entire financial system. Thanks to financial technologies, the need for intermediaries and centralized processes intrinsic to the traditional format of these financial services is reduced. This can have a positive impact on financial stability by increasing competition and diversification and reducing the systemic importance of certain management structures. The introduction of new financial technologies also bring new risks: • Systems that appear to be decentralized may generate a concentration of ownership. Many activities in large distributed ledger systems (asset ownership, source code control, mining, and code development) are concentrated in a relatively narrow circle of individuals; • Increasing procyclicality. For example, the loan offers on online peer-to-peer platforms (P2P) fluctuate more rapidly and sharply than in the banks; • Blurred liability. Legal risk is particularly problematic in public or anonymous systems, as well as in smart contracts; • The risk of confrontation in the system of distributed ledgers when individual members will attempt to verify fraudulent transactions; • The complexity of data recovery and problem-solving. Centralized storage provides the identity and location of market participants, while decentralized storage does not. Dealing with such risks will require a special approach from the financial regulatory and supervisory services of financial and credit institutions, especially when dealing with financial services that are difficult to link to specific entities or jurisdictions [7]. It is possible that in the future, this will lead to a further rethinking of the

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regulatory approach used during the reorganization of “OTKRITIE FC” PJSC. This process did not have serious consequences for the financial market. The Central Bank of the Russian Federation managed to rehabilitate one of the country’s largest banks and use the new mechanism of the Fund of Banking Sector Consolidation, which should become an important foothold for the stable functioning of the banking system in the future. Inflation targeting and the current fiscal rule have allowed prices and the exchange rate to remain stable. The Central Bank of the Russian Federation is increasingly paying attention to measures aimed at maintaining financial stability and preventing the formation of “bubbles” in the consumer credit market. A stagnant growth of financial assets in the Russian economy was observed in 2019. In August 2019, the Central Bank of the Russian Federation justified its decision by the continuing slowdown of inflation to 4.6% (in mid-July) and reducing short-term risks, since economic growth remains weak, while external factors, including easing global monetary conditions, support the ruble. According to the regulator, there is a possibility of an additional rate cut at the next three meetings (this may mean a rate cut to 7% in September, October, or December). Thus, in the event of an additional reduction, the key rate may return to 6–7% in the first half of 2020. The implementation of such measures depends on the following factors: • External pressure due to the very high level of uncertainty associated with financial sanctions and Brexit reflected both in global markets and in the Russian domestic market; • The situation in the country’s investment and business climate remains negative; • Strict fiscal policy and increasing tax burden on business. Tax collection is increasing, but it is not accompanied by an increase in expenditures or their efficiency [8].

4 Discussion Currently, digital technologies are the driver of global economic development. The financial sphere market of digital technologies is one of the fastest-growing in the world. According to experts, the number of digital technology users is growing by 15–20% annually, while assessing the functioning of the financial services industry is becoming more and more difficult due to the lack of information on the directions of financial market segments and strong diversification. The prerequisites for the emergence of the digital financial market in Russia are presented by the large-scale spread of the Internet, its accessibility to a wide range of people, low returns on deposit products, high-interest rates on credit offers (due to the entry of micro-entities into the market segments), and the loss of monopoly. The financial and technological services provision and the supply of financial products in the country vary in the range of 40–50%. The largest operations are

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performed in Moscow, Saint Petersburg, and Novosibirsk. Due to the active development of digitalization, the financial technology market is gaining volume. The estimates of the audit company Deloitte demonstrated that in 2018 the financial services market volume of funds amounted to 54 bln. RUB. In 2019, it may reach up to 60 bln. RUB, while the results of 2020 may reach 65 bln. RUB [9]. The direct concentration of technological competencies in the banking sector is a distinctive feature of the Russian financial technology market (the sphere of monetary relations), which is due to the fact that independent financial and technological projects are still poorly developed compared to other foreign markets. Major Russian commercial banks are involved in the active and independent incorporation of financial technologies, the creation of promising startups (or purchase of already existing ones), and their practical implementation. This is due to the lack of interest of Russian and international investors in Russian “startups” in the financial services sector. During the research, we identified the main problems of Russian startups (Fig. 2). The financial technology market is supported by various funds and associations such as the “Fintech” Association for the Development of Financial Technologies, the “Skolkovo” Innovation Center Development Fund, the Internet Initiatives Development Fund, etc. Funding is provided in the form of preferential lending, grants, and participation in the capital formation of companies establishing startup projects. Crowdfunding, crowdlending, and crowdinvesting are the new products aiming to expand the scope of the capital market. After the 2008 crisis, so-called “neobanks” began to appear on the financial market, i.e., banks created by existing banks or large corporations. Neobanks appeared on the Russian market in 2015. Tinkoff Bank, ModulBank, and Tochka Bank are the most famous examples of neobanks. The year of 2018 marked the establishment of small banks mainly focused on the microbusiness segment, such as:

Fig. 2 The main problems of Russian startups in the field of financial technologies. Source [10]

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• “Delobank” was founded on February 26, 2018. It operates under the license of SKB Bank. The bank serves customers online, but if necessary, customers can contact the branches of SKB Bank. • “Bank Sfera” opened on September 18, 2018. It operates under the license of BCS Bank. In addition to classic banking services, the bank offers services in areas of accounting, document management, financial analytics, and legal assistance. • “Prosto Bank” was founded on March 20, 2019, and operates under the license of Credit Ural Bank (part of the Gazprombank group). It is focused on the microbusiness segment with annual revenue of up to 100 mln RUB. At the moment, its geographical coverage is limited to five Russian cities—Moscow, Saint Petersburg, Novosibirsk, Yekaterinburg, and Chelyabinsk. In 2018, financial companies implementing startups and digital technologies in their activities were the primary target of investments. Companies related to electronic payments and e-commerce attracted 38% of investments, while 26% of investments were directed to startups working in the banking sector of the economy. The projects associated with the securities placed third in terms of popularity among investors. Digital blockchain technology is one of the factors of the modern financial market development. Digital blockchain technology is the creation of a continuous chain of data blocks, where each subsequent block is linked to the previous one by means of a set of records contained in it. Blockchain technology was used since 2008. Nevertheless, it became popular only in 2014 due to the spread of Bitcoin digital currency. Currently, more than 500 startups were created using the blockchain technology. When using blockchain technology, financial market participants can conduct transactions without the participation of third parties in financial transactions. The same “chain” allows one to store and transfer funds to each other without the participation of financial companies since the digital code of the blockchain contains all data on the transaction registration, the involved individuals, and established contracts. This technology can offer some protection against the following risks: • The risk connected to managing organizational inventory and assets, as well as transport and logistics processes; • Risks connected to conducting trading operations; • Risks of tracking the origin of goods and materials; • Risks of optimization of supplier identification, transaction tracking, etc. Thus, the blockchain determines the future of financial technologies and, consequently, the functioning of the financial market. Blockchain technology can be used in the financial market and in other sectors of the economy.

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5 Conclusion The research revealed that the trends in the development of the financial market are directly related to financial technologies. We observed an increase in various interactive financial products and services offered in the financial markets over the past ten years. Today, financial companies actively use blockchain technology, including remote identity identification (ID), and introduce mobile banking applications. They work with big data and offer cyber insurance services protecting financial transactions in the Internet environment. Financial technologies have the greatest impact on the banking segment of the financial market. The leaders of this market are actively implementing new digital financial technologies in their business processes to retain their customers and positions in this segment. As a result of combining financial technologies and traditional banking products, a modern model of a commercial bank is formed aimed at the effective operation and satisfaction of each client. It should be noted that digital technologies have covered the banking segment of the financial market and the currency, stock, and insurance markets. The majority of financial corporations offer co-sponsoring financial startups. The research concludes that modern digital financial technologies have a significant impact on the development of individual segments of the financial market, as well as on their overall functioning. Financial companies can support the growing digital and platform economy by developing a variety of efficient, fast, secure, low-cost, and cross-border payment methods. Integration into e-commerce and mobile applications will allow people and businesses to pay conveniently and safely worldwide.

References 1. Central Bank of Russia (2019) Main directions of the Russian Federation financial market development for the period 2019–2021. Retrieved from https://cbr.ru/content/document/file/ 71220/main_directions.pdf 2. Klishina YE, Glotova II, Uglitskikh ON, Tomilina EP, Podkolzina IM (2017) Peculiarities of the financial policy of non-profit organizations in the unstable macroeconomic environment. Espacios 38(34):34 3. Gerasimov AN, Gromov YI Nesterenko AV, Bezdolnaya TY, Klishina JE (2015a) Government control of regional agricultural economic systems under institutional transformations. Mediterr J Soc Sci 6(5):200–208 4. Gerasimov AN, Gromov YI, Uglitskikh ON, Tsyplakova ON, Nevidomskaya IA (2015b) Managing the establishment of effective interaction forms for regional agricultural business entities. Mediterr J Soc Sci 6(5S2):415–424 5. Rusetskiy MG, Agarkova LV, Ulibina LK, Okorokova OA, Aygumov TG (2018) The role of insurance in providing economic safety of business entities. Espacios 39(27):20 6. Sedykh IA (2019) Market for innovative financial technologies and services 2019. Higher School of Economics, Moscow, Russia

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7. Glotova II, Tomilina EP, Klishina YuE, Uglitskikh ON, Agarkova LV (2018) The current state of the state support for agriculture in the region. Res J Pharm, Biol Chem Sci 9(6):1926 8. Kuzmenko VV, Glotova II, Tomilina EP, Kuzmenko IP, Fedorenko IV (2015) Assessment instruments of economic feasibility of tax transformations. Asian Soc Sci 11(19):298–305 9. PwC (2019) FINTECH-2019: annual study of the russian financial technology market. Retrieved from https://www.pwc.com/gx/en/industries/financial-services/assets/pwc-globalfintech-report-2019.pdf 10. Strategic Investment Partners (2018) Startup barometer 2018: research on the market of technological entrepreneurship in Russia. Retrieved from https://stinpart.com/wp-content/uploads/ Startup-Barometer_2018.pdf

Problems of Assessing the Debt Sustainability of Federal Subjects of the Russian Federation Irina I. Glotova , Elena P. Tomilina , Yuliya E. Klishina , and Olga N. Uglitskikh

Abstract The increasing debt burden of the budgets of the Russian federal subjects has increased the relevance of assessing debt sustainability. The paper is devoted to the analysis of the dynamics and structure of Russian regional debt burdens. Financial assistance does not ensure the sustainability of regional budgets. The problem of debt sustainability has a significant impact on the economic security of the region since it requires constant monitoring. An effective way to reduce debt dependency is to issue government securities. The government also needs to implement a stimulative policy within the regions so that most debt obligations are formed due to market borrowing. The use of exchange auctions will help minimize the cost of borrowing in the regions. The levels of debt sustainability indicators stipulated by the budget legislation and the ranking system for Russian Federal subjects will allow monitoring the debt situation and timely applying the relevant restrictions and requirements. These measures are primarily aimed at supporting the regions. The parameters of the Stavropol Krai state debt allow us to conclude the average level of debt sustainability and the effective debt policy pursued by the Ministry of Finance of the Stavropol Krai. Given the current situation, the region could achieve high debt sustainability by the end of 2019. In general, the existing approaches to assessing the debt sustainability of the Russian Federal subjects require further development. Keywords Budget of the Russian subject · Debt burden · Debt sustainability · Regional debt

1 Introduction Currently, the growth of state debt in regional budgets is facilitated by the lack of tax and non-tax revenues, the need for borrowing (in forms of credit organization loans and public budget loans), and the need to provide guarantees and place government securities. I. I. Glotova (B) · E. P. Tomilina · Y. E. Klishina · O. N. Uglitskikh Stavropol State Agrarian University, Stavropol, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_77

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Fig. 1 Budgetary debt burden of the Russian Federal subjects (as a percentage of the tax and non-tax revenues at the end of the year), %. Source (National Rating Agency (Russia) n.d.)

The lack of internal funds for fulfilling the obligations of public authorities significantly increases the risk of failing to achieve the goals of regional budgets. It also stimulates an increase in the level of debt burden while also reducing regional debt sustainability. Issues of public debt management and assessment of the debt sustainability of regional budgets are of primary concern in the context of growing debt burden levels. The Ministry of Finance of the Russian Federation has a significant regulatory impact on the debt policy of Russian subjects and their public borrowing through methods of statutory and economic regulation. The problem of regulating the high debt burden of regional budgets is currently one of the most discussed in the sphere of public finance. Most experts agree that its level has exceeded the safe limit and should be reduced [1]. We cannot fully agree with this statement since the value of this indicator from 2010 to 2018 indicates that the public debt level of regional budgets is not critical (Fig. 1). The maximum value of the debt burden level was observed in 2015 (36.1%). From this point forward, we saw a decrease to 25.3% at the end of 2018. In general, as of January 1, 2019, the total debt burden of the budgets of the Russian Federal subjects amounted to 2206.31 bln. RUB. The structure of regional debt obligations demonstrated the following results: public budget loans amounted to 939.9 bln. RUB (42.6%); borrowings attracted on market terms amounted to 1187 bln. RUB (53.8%). The remaining part of 79.4 bln. RUB consists of state guarantees of the Russian Federal subjects (Fig. 2). The amount of debt accumulated by individual subjects of the Russian Federation began to threaten the financial stability of their budgets and negatively affect their ability to fulfill their obligations. It should be noted that the regions managed to reduce the share of market borrowings from 65.6% in early 2014 to 53.8% by early 2019 due to the recent measures taken by the Government of the Russian Federation. The regions replaced the lost share of market borrowings with public budget loans. However, we need to be aware that the increase in financial aid provided to the Russian Federal subjects in the form of budget loans does not affect the balance of their budgets and only partially reduces the service of the regional debt burden.

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Fig. 2 The structure of debt obligations of the regional budgets in the Russian Federation in 2018, %. Source (National Rating Agency (Russia) n.d.)

The issue of regional securities is one of the most effective ways to reduce the cost of debt obligations. As of August 1, 2016, the debt of Russian subjects expressed in government securities amounted to 551.6 bln. RUB, which is 1.3 times less than the number of debt obligations of the Russian Federal subjects to credit organizations (635.4 bln. RUB). Thus, Russian subjects should expand the practice of raising funds through regional securities, thus financing budget deficits. The procedure for their issuing and purchasing should be clear and accessible (including for citizens). Given the current increase in financial market liquidity, as well as the low pressure of debt obligations of Russian subjects on bank capitals, the bonds of Russian subjects for credit institutions and other market players can become a highly reliable and attractive investment tool which will ensure a high demand for such securities. High demand for bonds of the Russian Federal subjects will allow the regions to borrow on the most favorable interest and circulation period terms [2].

2 Materials and Methods Modern economic conditions call for the study and analysis of existing methods for assessing the debt sustainability of the Russian Federal subjects, despite the existing theoretical and practical aspects of debt policy studies of regional budgets. The study aims to analyze the practical methods of assessing the debt sustainability of the Russian Federal subjects and classify the used assessment indicators. The debt issue has a significant impact on the economic security of the region, its financial stability, and competitiveness. Monitoring of debt sustainability is the main task of the Russian Federation state authorities. The regional debt policy should maintain the volume of public debt at a manageable level that does not exceed the established threshold, i.e., the public debt volume

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must correspond to its settlement sources over a certain period despite the influence of various factors. This is the only condition that will bring the budgetary debt burden to an economically secure level. The study of the problem requires the use of normative and methodological documents such as the Budget Code of the Russian Federation [3], the Main Directions of the State Debt Policy and the Debt Policy of the Russian Federal Subjects [4], as well as information on dynamics and structure of public debt. In this study, we used the methods of dynamics analysis, statistical analysis, and graphical representation of data.

3 Results The implemented debt policy, including loan and debt management policies, is effective. The recent implementation of the resource mobilization mechanism covering budget expenditures demonstrated solid performance in the financial market. The simultaneous volume increase significantly reduces the cost of the resources. Despite the current restrictions, foreign investors are actively participating in the domestic Russian market. The structure of the sovereign debt portfolio also remains balanced in terms of currency and interest rate risks. Currently, the Russian debt market has all the features of a modern developed market. The share of external borrowings of the Russian Federation amounted to about 16% of the total volume of government borrowings in 2019. In terms of debt indicators, Russian is the current leader among both emerging and stable market economies. Despite this, borrowed resources continue to be a tool for stimulating economic growth. To further develop the economy and achieve global average growth rates, Russia should not renounce its borrowing practices. From this point of view, a slight increase in the volume of public debt (no more than 1% of GDP per year) envisaged by the Federal budget for the upcoming threeyear period seems to be a balanced decision. According to the forecasts, the total public debt of the Russian Federation will not exceed 17% GDP by the end of 2022. Most regions favor practices of the bank lending market borrowing, rather than the borrowing practices in the sub-federal bond market. Currently, not a single Russian Federal subject carries out bond loans using the auction format. Only five regions placed their bonds on the market for the ten months of 2019. As of the beginning of November 2019, only 41 entities traded bonds on the market. In general, the volume of the bond market of the Russian Federal subjects amounted to less than 10% of the Federal Loan Obligations market [OFZ] despite the equitable volume of their revenue budgets, which amounts to about 555 bln. RUB. The current conditions facilitate the need to form a stimulation policy for Russian Federal subjects. The debt obligations of the regions should be primarily formed by market borrowing (primarily in the form of security issuing). As such, 2021 will mark the implementation of the policy aiming to simplify the procedure for issuing state securities for the financially stable subjects of the Russian Federation by eliminating

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the need for state registration of issue terms in the Ministry of Finance of the Russian Federation. The same policy applies to municipal securities. As a result, the placement of bonds regularly will provide the Issuer with a public credit history. At the same time, a significant number of investors will be able to lend to the borrower (one lender in banking market borrowing) and, ultimately, will gradually decrease the cost of borrowed funds. The development of the sub-federal debt market with consideration to the experience of the Ministry of Finance of the Russian Federation will be facilitated by the issue of bonds of subjects in the form of regular auctions, rather than through the currently practiced bid book formation. The existing method of bond placement increases the cost of borrowing (the risk of non-market pricing), which generally hinders the development of competitive relations in this market. It is possible to ensure competitive pricing and promote the development of the sub-federal segment of the bond market by placing regional securities in the format of regular exchange auctions. This mechanism is accessible and transparent, and, ultimately, will help to minimize the cost of borrowing in the regions. The Ministry of Finance of the Russian Federation has long recognized the advantages of this mechanism and used it as the main method for placing sovereign debt instruments. In our opinion, the use of exchange auctions by Russian Federal subjects and municipalities as the main method of placing securities ensures that they implement a responsible debt policy.

4 Discussion The amendments to the Budget Code of the Russian Federation adopted in 2019 are intended to encourage regions to improve their loan policy. During the development of criteria for assigning subjects and municipalities to debt sustainability groups, the Ministry of Finance of the Russian Federation paid attention to regulation experience in this area (Table 1). Currently, some regions have debt obligations equal to or exceeding the annual budgets of the subjects. Several regions will not be able to settle their obligations in the future if they continue to increase their borrowings. Several subjects are marked with the high-risk structure of debt obligations that may result in performance failure. At the same time, the budget legislation (before the amendments) limited the influence of the Federal center on the loan policy of the regions. This applies primarily to the entities at risk (according to the budget indicators). The current situation required adjusting the budget legislation to ensure that the subjects conduct a sustainable debt policy. The Budget Code was amended to expand the list of debt sustainability indicators and set their thresholds.

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Table 1 The system of debt sustainability indicators of the Russian Federal subjects Current debt indicators

New debt indicators

1. The ratio of public debt to total budget 1. The ratio of public debt to total budget revenues, excluding uncompensated revenues, excluding uncompensated receipts, does not exceed 100%/50% for receipts, does not exceed 100%/50% for heavily subsidized entities heavily subsidized entities The amount of state debt used for public budget loans is not taken into account until 01.01.2020 as at the beginning of this year (for heavily subsidized entities and entities whose public debt as of 01.01.2017 amounted to more than 100% of budget revenues excluding gratuitous receipts). This indicator does not reflect the real debt burden 2. The share of expenditures on servicing the 2. The annual amount of payments for public debt in the total budget expenditures, settlement and service of the state debt (on excluding expenditures made at the expense the state debt accumulated at the beginning of subventions, does not exceed 15% of the year) to budget revenues (tax, The problems of the public debt area arise non-tax, and subsidies) doest not exceed before these values are reached 20% 3. The share of expenditures on the public debt service in the total budget expenditures (excluding expenditures made at the expense of subvention) does not exceed 10% Source [5]

The establishment of debt sustainability levels indicators relied on the superlative international experience. The regional ranking will allow monitoring the debt situation in the Russian regions and timely classifying the region into the appropriate group in order to tighten requirements and introduce restrictions. These measures are aimed at solving the debt problems of the regions and providing appropriate support, as well as preventing the emergence of a crisis situation. In accordance with the assessment of the debt sustainability of the Russian Federal subjects, conducted by the Ministry of Finance of the Russian Federation using the indicators presented by the Article 107.1 of the Budget Code of the Russian Federation, based on the actual data for 2018 and planned budget indicators for 2019, according to the laws on budgets of subjects as amended on August 1, 2019, the Russian Federal subjects are classified into the following debt sustainability groups: • 37 Russian Federal subjects with high debt sustainability; • 43 Russian Federal subjects with average debt sustainability; • 5 Russian Federal subjects low debt sustainability—Jewish Autonomous Region, Pskov and Oryol Regions, the Mari El Republic, and the Republic of Mordovia.

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Fig. 3 Parameters of the state debt and debt burden of the Stavropol Krai, mln. RUB. Source [4]

To maintain acceptable indicators of budgetary debt sustainability of the Russian Federal subjects, regions will need to establish conditions promoting responsible debt policy. Let us define the parameters of the state debt and debt burden of the Stavropol Krai (Fig. 3). The regional budget for 2020 and the planning period of 2021 and 2022 laid out the gradual reduction of public debt. This trend was maintained for several years. The state debt of the Stavropol Krai in 2018 amounted to 32,950.9 mln. RUB or 50.1% of the amount of regional budget revenues excluding uncompensated receipts for 2018, which is lower than the planned level approved for 2018 (lower by 675.3 mln. RUB). This reduction is driven by the termination of the Stavropol Krai obligations under the state guarantee provided to the Ministry of Finance of the Russian Federation to secure the obligations of “Hydrometallurgichesky zavod” JSC in the amount of 168.7 mln. RUB, as well as early repayment of loans to credit organizations in the amount of 506.6 mln. RUB. It should be noted that the public debt at the end of 2018 decreased by 3,905.2 mln. RUB (compared to this indicator at the end of 2017), while its share in the volume of regional budget revenues excluding uncompensated receipts decreased by 10.9%. The structure of public debt includes only medium-and long-term borrowings in the form of loans from credit organizations, budget loans from the Federal budget, and government bonds of the Stavropol Krai. The reduction of public debt servicing expenses was the main direction in terms of public debt management in 2018. This goal was driven by several events. Interest rates on existing contracts signed in 2017 were reduced from 8.7% to 8.5% in agreement with Gazprombank. Based on the results of electronic auctions conducted to reduce the interest rates on existing loans in the amount of 8.5% per annum, state contracts were signed with Sberbank in the amount of 4000 mln. RUB at an interest rate of 7.8% per annum and in the amount of 3000 mln. RUB at an interest rate of 8.3% per annum (the key rate of the Central Bank of the Russian Federation on the auction date was 7.3% per annum). To temporarily replace commercial borrowings from the Federal budget, short-term budget loans were attracted to replenish the balances on the regional budget account at 0.1% per annum for a total amount of 17,600 mln.

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RUB with the additional temporary borrowings of available assets of budgetary and autonomous institutions in the amount of 11,750 mln. RUB. The allocation of Federal budget for lending to the budgets of Russian subjects serves as an example of the regulatory influence for the replacement of bank loans previously attracted by the regions. The largest savings on service of the Stavropol Krai state debt were obtained by replacing commercial loans with budget loans received from the Federal budget in the amount of 15,729.1 mln. RUB. The loans were restructured for seven years. The total saved cost of the state debt service (compared to the original 2018 plan) amounted to 611.5 mln. RUB. Indicators of debt sustainability of the Stavropol Krai in 2016–2019 are presented in Table 2. Table 2 The debt sustainability of the Stavropol Krai, % Index

Standard The utilization of the budget of the Stavropol Krai 2016

Approved by the law of the Stavropol Krai 2017 2018 “On a budget of the Stavropol Krai for 2019 and the planning period of 2020 and 2021”

The share of public ≤50% debt in the total budget revenue of the region excluding uncompensated receipts

71.8

61.0

50.1

49.6

The share of ≤5% expenditures on the public debt service in the total regional budget expenditures, excluding expenditures made at the expense of Federal budget subventions

2.0

1.3

0.8

0.9

The share of annual ≤13% payments for the settlement and service of public debt in the total amount of tax and non-tax revenues of the regional budget and subsidies from the Federal budget

16.9

7.7

4.9

2.7

Source [4]

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In general, the Stavropol Krai aims to ensure a high level of debt sustainability in 2019.

5 Conclusion Generally, the Ministry of Finance of the Stavropol Krai is consistently working to reduce the share of the “expensive” commercial loans in the structure of the regional public debt and reduce the rate at which they are provided. In addition, the use of a revolving credit line allows raising funds on an “as-needed” basis, while the interest is accrued only for the volume and the actual time of use of borrowed resources. Thus, the main goal of the stable debt policy of the Stavropol Krai is to reduce the level of public debt in order to preserve the position of the region in the group of Russian subjects with a high level of debt stability. It also aims to reduce the regional budget expenditures on its service and to maintain the levels of credit ratings assigned to the region. Assessment of debt sustainability involves the use of the indicator system provided in the Recommendations for the implementation of responsible debt policy by the Russian Federal subjects. Thus, in our opinion, it is necessary to compare the indicators of the Russian Federal subjects with recommended values, as well as to compare the values with each other. These recommendations should be supplemented with indicators reflecting the growth rate of the debt volume, dynamics, and structure. The regulatory measures taken by the Federal center will demonstrate the results for regional budgets no earlier than 2020–2022.

References 1. Kuzmenko VV, Glotova II, Tomilina EP, Kuzmenko IP, Fedorenko IV (2015) Assessment instruments of economic feasibility of tax transformations. Asian Soc Sci 11(19):298–305 2. Gladilin AA, Glotova II, Tomilina EP, Klishina YuE, Uglitskikh ON (2018) Social bonds as a tool for financing higher education. Res J Pharm, Biol Chem Sci 9(3):724–727 3. Russian Federation (1998) Budget code of the Russian Federation (July 31, 1998 No. 145-FZ). Moscow, Russia 4. Government of the Stavropol Krai (2019) Decree “On the approval of the Main Directions of the Stavropol Krai debt policy for 2020 and the planning period of 2021 and 2022” (August 30, 2019 No. 359-RP) 5. Ministry of Finance of the Russian Federation (2016) Recommendations for the implementation of responsible debt policy by the Russian Federal subjects. Retrieved from https://www.minfin.ru 6. National Rating Agency (Russia) (n.d.) The Russian public debt: the results of 2018. Retrieved from https://www.ra-national.ru

Increasing the Availability of Financial Services as a Factor in Ensuring Socio-economic Stability in the Region Elena N. Lapina , Artur A. Orazaliev , Anastasia Y. Kalnaya , Irina N. Kiseleva , and Irina V. Oseledko

Abstract Sustainable regional development is an important issue for all countries. Still, its specifics strongly depend on regional features and many other factors, with close attention given to financial inclusion. This paper aims to determine the role of financial services in the socio-economic stability of Russian regions. We conducted a comprehensive assessment of financial inclusion by methodically supplementing the existing criteria with a banking index system for providing banking, microfinance, insurance, and investment services to the population and enterprises. The paper determines the coverage of banking services in Stavropol Krai. In this study, we developed a set of innovative mechanisms and digital tools for increasing the availability of financial services by expanding their coverage (particularly concerning people with special needs, the elderly population, and people in remote or sparsely populated areas). Keywords Remote service · Index · Indicator · Innovation · Financial inclusion · Financial technologies · Financial services · Digitalization

1 Introduction The world economy currently features an asymmetry of socio-economic stability of territories whose sustainable development is limited by the low availability of financial resources. Despite the enormous scale of the financial market, financial services remain inaccessible to a large part of the global low-income demographic. E. N. Lapina Stavropol State Agrarian University, Stavropol, Russia A. A. Orazaliev · A. Y. Kalnaya North-Caucasus Federal University, Stavropol, Russia I. N. Kiseleva Stavropol State Medical University, Stavropol, Russia I. V. Oseledko (B) Institute of Digital Economics of Ugra State University, Khanty-Mansiysk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_78

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This situation negatively affects the living standards of the population and hinders economic development. In general terms, this problem was raised by the United Nations (UN) at the beginning of the twenty-first century. The term “financial inclusion” refers to activities providing financial services to primarily low-income populations and small businesses, regardless of where they live or operate [1–3]. The Alliance for Financial Inclusion [AFI], established in 2008, helped developing countries include the lowincome population and small businesses in financial market services. Currently, the Alliance members consist of central banks, supervisory and governing institutions, and associations from almost 100 countries. The Alliance activities are supported and coordinated by the World Bank, the G-20, and the UN. The Global Partnership for Financial Inclusion [GPFI] was established in 2010. It became a unifying structure for international organizations in the field of financial inclusion. In 2011, the Global Policy Forum in Mexico adopted the so-called “Maya Declaration,” which outlined the priorities of the world community as a whole and its countries to improve financial inclusion. The Central Bank of the Russian Federation joined the Declaration in 2014 since increasing financial inclusion and identifying the potential of the financial and credit system are important problems for the Russian Federation and its regions.

2 Materials and Methods Since 2015, the Central Bank of the Russian Federation conducted annual measurement of financial inclusion indicators, taking into account international experience and the specifics of the national financial market in terms of infrastructure availability, demand, quality, and usefulness of financial services [4]. In addition to the efforts of the Central Bank of the Russian Federation, the National Agency for Financial Studies measures the level of financial availability using sociological methods (NAFI 2019). Additionally, the applied methods of assessing financial inclusion are the subject of discussion within the Russian and international scientific community [2, 5–8]. The approaches analyzed within this study allowed us to conclude that the existing methods have certain limitations. We propose a distinctive methodological approach to assessing the availability of financial services in Russian regions. It takes the methodology of the Central Bank of the Russian Federation as its foundation [9]. However, the Central Bank methodology calculates the aggregate index of regional coverage only using the institutional and functional components of bank lending and savings services. Therefore, we have further specified the methodology and added the availability indexes of microfinance, insurance, and investment services. The informational background of the research is presented by the data provided by the Central Bank of the Russian Federation [9] and the Federal State Statistical Service (Federal State Statistic Service, n.d.): • The number of credit institutions and its branches in the region (P1 );

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• • • • • • • • • • • • • • • •

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The number of internal divisions of operating credit institutions in the region (P2 ); Personal loan debt (P3 ); Corporate and individual entrepreneur loan debt (P4 ); Private deposits (P5 ); Amount of funds on personal card accounts (P6 ); The number of automated banking devices (P7 ); The number of payment cards issued to individuals (P8 ); The number of accounts without remote access opened to individuals (P9 ); The number of remote access accounts opened to individuals (P10 ); The number of personal money transfers without bank account opening (P11 ); Average annual population (P12 ); Annual population growth rate (P13 ); Gross regional product (P14 ); Annual GRP growth rate (P15 ); Per capita cash income (P16 ); The annual growth rate of per capita cash income (P17 ).

These indicators are used to calculate several indexes and the total index of regional financial inclusion. Each calculation formula is supplemented with correction coefficients that consider the ratio of the regional growth rate value to the growth rate of the national indicator. This was done because with the high rates of GRP, population, and regional income growth (above Russian average) coupled with a modest increase in financial inclusion, these indicators have the opposite effect reducing the final value of the index of financial saturation. The index of the institutional provision of banking services (by population) is proposed to be determined by the formula: I1 = (P1 + P2 )/P12 )/CIR∗ × (P13 /CIR), where CIR is the corresponding index for Russia. Index of the institutional provision of banking services (by gross regional product): I2 = (P1 + P2 )/P14 )/CIR × (P15 /CIR). The methodology is marked with the addition of the institutional component to the index of availability of automated banking devices (I3 ) due to the reduction in the number of structural divisions (replacement with ATMs, terminals): I3 = (P7/ P12 )/CIR × (P13 /CIR). In terms of the functional component, it is methodically correct to divide the overall indicator of credit security into two indices of financial saturation for loans to individuals and businesses. Therefore, the index of financial saturation (in terms of the loan volumes granted to the population) is defined as:

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E. N. Lapina et al.

I4 = (P3/ P12 )/CIR × (P13 /CIR). Financial saturation index (by the loan volumes granted to businesses): I5 = (P4/ P14 )/CIR × (P15 /CIR). We believe that, in order to calculate the index of thrift industry development along with the volume of individual deposit, it is necessary to take into account the balance of funds on card accounts: I6 = (P5 + P6 )/P12 /P16 )/CIR × (P13 /CIR) × (P17 /CIR). The indicator of credit and savings operations availability should be supplemented with an assessment of the payment services development (including through remote access channels) by calculating the following indices: Payment services development index (by the number of payment cards): I7 = (P8/ P12 )/CIR × (P13 /CIR) Payment services development index (by the number of accounts without remote access): I8 = (P9/ P12 )/CIR × (P13 /CIR) Payment services development index (by the number of accounts with remote access): I9 = (P10 / P12 )/CIR × (P13 /CIR). Payment services development index (by the number of money transfers without bank account opening): I10 = (P11/ P12 )/CIR × (P13 /CIR). We propose to determine the aggregate index of the region’s coverage with banking services using the formula: Itotal =

 10

I1 + . . . + I10

Thus, the improved methodology allows us to judge the availability of financial services in Russian regions, build ratings, and determine the potential and growth points of structural elements of the financial market as a factor in ensuring the regional socio-economic stability.

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3 Results We assessed the financial availability of the Stavropol Krai [SK] as related to determining the level of banking services coverage in the region based on the presented methodology. According to Table 1, the number of credit institutions and their internal structural divisions in the Stavropol Krai decreased by 27.1% against the background of a nation-wide decrease of 30.5% during the study period. In terms of the number of installed automated banking devices, Stavropol Krai shows an increase by a factor of 2.1. the North Caucasian Federal District shows an increase by a factor of 2.2. The total number of installed automated banking devices across Russia increased by 77.4%, indicating a further transition to non-cash payments. The national share of credit institutions and their internal divisions functioning in the Stavropol Krai increased from 1.5 to 1.6%, and in the North Caucasian Federal District from 53.2 to 58.1%. The share of automated banking devices installed on the territory of the region to the total number of these devices in Russia increased from 1.1 to 1.3%. In comparison, the North Caucasian Federal District demonstrated a decrease from 67.5 to 65%. Table 1 Indicators of banking services coverage in the Stavropol Krai Indicators

As of January 01 2015

2016

2017

2018

2019

P1 , units

47

35

27

23

23

P2 , units

610

578

520

504

456

P3 , mln. RUB

161.241

151.735

155.199

174.159

213.599

P4 , mln. RUB

167.951

180.021

173.640

180.005

174.651

P5 , mln. RUB

167.490

203.315

220.996

241.482

264.061

P6 , mln. RUB

8.005

11.068

11.075

12.757

14.387

P7 , units

19.033

20.272

27.552

32.807

39.797

P8 , thousand units

2854.0

3095.5

3194.1

3506.1

3465.2

P9 , thousand units

7515.6

7279.4

7191.9

7511.7

7532.3

P10 , thousand units

1576.0

2448.6

2633.7

2863.6

3026.1

P11 , thousand units

16,711.7

17,312.8

15,804.6

6785.5

5693.7

P12 , thousand people

2797.0

2800.6

2803.0

2802.5

2798.0

P13 , %

100.16

100.13

100.09

99.98

99.84

P14 , mln. RUB

540,796.8

621,198.3

642,895.3

665,422.4

713,918.4

P15 , %

112.45

114.87

103.49

103.50

107.29

P16 , RUB per month

20.537

21.244

20.985

22.485

23.408

P17 , %

109.24

103.44

98.78

107.15

104.10

Source ([9]; Federal State Statistic Service, n.d.)

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The identified trends are reflected in changes within the private indices of institutional coverage of Russian regions with banking services and their demand level, presented in Table 2. The demand for banking services is marked with indicators of population and business structure demand for available financial services and products. For example, the analysis revealed an increase in the regional loan portfolio by individuals, organizations, and individual entrepreneurs by 32.5% and 4%, respectively. It also showed an increase in the deposit portfolio (by 57.7%), the population account balances Table 2 Financial availability of banking services in the regions of Russia Index

Region

As of January 01 2015

2016

2017

2018

2019

I1

The Southern Federal district

0.978

0.866

0.972

0.962

0.975

The North Caucasian Federal District

0.420

0.427

0.412

0.406

0.402

I2

I3

I4

I5

I6

I7

I8

Stavropol Krai

0.765

0.818

0.802

0.800

0.818

The Southern Federal district

1.438

1.375

1.539

1.489

1.524

The North Caucasian Federal District

1.083

1.056

1.050

1.050

1.079

Stavropol Krai

1.674

1.715

1.623

1.647

1.757

The Southern Federal district

0.763

0.712

0.749

0.761

0.838

The North Caucasian Federal District

0.248

0.242

0.281

0.287

0.303

Stavropol Krai

0.572

0.562

0.660

0.661

0.688

The Southern Federal district

0.847

0.731

0.733

0.740

0.746

The North Caucasian Federal District

0.412

0.408

0.416

0.420

0.424

Stavropol Krai

0.734

0.745

0.753

0.751

0.753

The Southern Federal district

0.860

0.769

0.797

0.809

0.794

The North Caucasian Federal District

0.465

0.425

0.441

0.438

0.393

Stavropol Krai

0.680

0.659

0.652

0.663

0.610

The Southern Federal district

0.003

0.003

0.004

0.004

0.004

The North Caucasian Federal District

0.002

0.002

0.002

0.002

0.002

Stavropol Krai

0.003

0.003

0.004

0.004

0.004

The Southern Federal district

0.799

0.745

0.768

0.785

0.794

The North Caucasian Federal District

0.384

0.416

0.404

0.434

0.432

Stavropol Krai

0.646

0.666

0.660

0.682

0.674

The Southern Federal district

0.722

0.670

0.647

0.619

0.618

(continued)

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Table 2 (continued) Index

I9

I10

Itotal

Region

As of January 01 2015

2016

2017

2018

2019

The North Caucasian Federal District

0.383

0.374

0.381

0.368

0.359

Stavropol Krai

0.619

0.611

0.628

0.592

0.581

The Southern Federal district

0.698

0.687

0.706

0.732

0.705

The North Caucasian Federal District

0.461

0.525

0.485

0.472

0.458

Stavropol Krai

0.662

0.805

0.735

0.709

0.681

The Southern Federal district

0.797

0.850

0.932

0.946

0.989

The North Caucasian Federal District

0.322

0.360

0.375

0.208

0.185

Stavropol Krai

0.683

0.792

0.798

0.394

0.386

The Southern Federal district

0.871

0.821

0.857

0.859

0.871

The North Caucasian Federal District

0.465

0.473

0.478

0.452

0.442

Stavropol Krai

0.762

0.795

0.796

0.740

0.736

Source Compiled by the authors

(by 79.7%), the number of payment cards (by 21.4%), and the number of accounts opened to individuals (by 16.1%). Albeit, the number of money transfers made by individuals without opening a bank account was reduced by 65.9%. Debt on loans granted to individuals increased by 31.5% for the country as a whole and by 34% in the South of Russia. At the same time, the share of the regional indicator remains relatively stable and, on the national average, amounts to 1.4% (50% in the North Caucasian Federal District). Debt on loans granted to legal entities and individual entrepreneurs increased by 16% across the country as a whole and by 12.2% in the South of Russia. The share of the regional loan portfolio in the overall indicator for the state amounts to 0.5% and 55% for the North Caucasian Federal District. Individual deposits have increased by 53% across the country as a whole and by 67.2% in the South of Russia. However, individual account balances decreased by 25.2% in Russia as a whole, while the North Caucasian Federal District and the Southern Federal District demonstrated simultaneous aggregate growth by a factor of 2.5. In general, the share of all regional savings of the population in the total volume on a nation-wide scale increased from 0.7% to 0.8% (from 59.5% to 60.2% in the North Caucasian Federal District). The number of payment cards issued to individuals increased by 18.8% in the country as a whole and by 35.5% in the South of Russia. The region accounts for about 1.3% of the nation-wide index and 45% among the North Caucasian Federal District subjects. The number of open accounts for individuals in Russia increased by 22.3% (by 23.8% in the South of Russia). At the same time, the share of accounts

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in Stavropol Krai decreased from 12.7% to 11.9% among the southern regions of the country. It amounts to about 1.2% in the national volume on average. There is a nation-wide reduction in the number of money transfers made by individuals without opening a bank account by 38.5%. The South of Russia shows an increase of 23.4%, including the increase earned at the expense of reducing the Krai share in the total values of 1.3% to 0.7% and 13.4% to 6%, respectively. In general, despite the declining trend, the financial inclusion of Stavropol Krai may be considered satisfactory. Its value is above other North Caucasus Federal District subjects but is inferior to several Southern Federal District regions. This facilitates the need to find and implement effective tools to increase the availability of financial services in the region.

4 Discussion Globally, the problem of increasing financial inclusion is being addressed through the development of various digital mechanisms. Thus, the following segments should be considered as innovative technologies that contribute to increasing financial inclusion: • “Cashout”—cash withdrawal from a payment card at the store register; • Remote banking services (RBS) and insurance (“Client-Bank” systems, ATMbanking, TV-banking, RBS using payment terminals and information kiosks, electronic insurance certificates); • Electronic money (e-wallets and cards, cryptocurrencies); • Remote lending on the basis of the remote client authentication; • P2P-lending; • Crowd-technology (crowdsourcing, crowdfunding, crowdinvesting, crowdlending, crowdsurance); • Investment and savings account services (opening deposits and individual investment accounts, participation in mutual funds, the initial placement of tokens (ICO) based on remote client identification). There is a noticeable increase in access to financial services in the countries where various types of innovations are actively introduced to the legal framework of the financial market. The transfer of the positive experience to Russia and its regions will contribute to solving this problem. At the same time, it should be noted that experiments on the use of the new cashout financial service in Sberbank system already show results in improving financial inclusion in remote, sparsely populated, and hard-to-reach areas of the country. The popularity of remote money transfer services continues to grow. In 2018, more than half of the Russian adult population used remote access to bank accounts via Internet banking or mobile banking. Remote access proved to be the most in-demand service in the North Caucasus Federal District (67.5%). More than 1/3 of those obtaining an insurance certificate in 2018 took advantage of the opportunity to issue an electronic Compulsory Motor Third

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723

Party Liability (OSAGO) certificate. The introduction of the biometrics mechanism in June of 2018, has expanded the opportunities for customers of credit institutions to get remote aces to banking services, including loan obtainment. Currently, there are several successful innovative business models in Russia: • “Talkbank” is a virtual service that allows you to manage your finances using a messenger chatbot; • Neobanks, such as “Tinkoff Bank,” focused entirely on remote servicing; • “Alfa Potok” online investment service specializing in P2P lending; • CJSC “Sberbank-AST” electronic platform that provides payment guarantee services for businesses; • “API Bank” service platform; • Crowdtech platforms “Planeta.ru”, “Boomstarter”; • “BestDoctor” medical company which creates technological insurance products; • Private blockchain platform “Waves,” which provides the infrastructure for ICO, services for operations with user tokens, etc. However, the number of innovative business models is relatively small due to the high risk of their activities attributable to the lack of legal regulation [10]. The current legislation needs to be improved to stimulate the innovative development of financial technologies in the face of digitalization. This measure will create a favorable environment for the widespread implementation of successful practices and increase the financial availability of services through innovative distribution, which will ultimately improve the well-being of the population by increasing their satisfaction with more understandable, convenient, and functional solutions for financial services.

5 Conclusion Thus, using the improved methodology, we determined the financial inclusion in the Stavropol Krai and compared it with that of the North Caucasian Federal District and the Southern Federal district. We also identified the effective tools for increasing the availability of financial services within the study framework. This availability may be increased by the widespread development and implementation of various business models and new financial technologies. Innovative digital mechanisms can increase the availability of financial services and ensure socio-economic stability in the region by increasing the coverage of users (particularly of people with special needs, elderly population, and people in remote or sparsely populated areas). They mechanisms can also increase financial literacy of its in terms of consumer understanding of the provided services. They can help the consumers assess the impact of provided services on their quality of life. They can help reduce the cost of provided services and improve the security of transactions and protect consumer rights following the legal framework

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References 1. Arun T, Kamath R (2015) Financial inclusion: Policies and practices. IIMB Manag Rev 27(4):267–287 2. Kabakova O, Plaksenkov E (2018) Analysis of factors affecting financial inclusion: ecosystem view. J Bus Res 89:198–205 3. Marshall JN (2004) Financial institutions in disadvantaged areas: a comparative analysis of policies encouraging financial inclusion in Britain and the United States. Environ Plan A 36(2):241–261 4. Central Bank of the Russian Federation (2019b) Report on financial inclusion in the Russian Federation 2018. Business news agency PRIME, Moscow, Russia 5. De Koker L, Jentzsch N (2013) Financial inclusion and financial integrity: Aligned incentives? World Dev 44:267–280 6. Siddik MNA, Kabiraj S (2018) Does financial inclusion induce financial stability? Evidence from a cross-country analysis. Australas Acc Bus Finance J 12(1):33–46 7. Sklyarova Yu, Sklyarov I, Lapina E, Shamrina S, Skrebtsova T (2019) Features of banking management: a set of principles, technologies, and methods. Indo Am J Pharm Sci 6(3):5611– 5614 8. Zachosova N, Herasymenko O, Shevchenko A (2018) Risks and possibilities of the effect of financial inclusion on managing the financial security at the macro level. Investment Manage Finan Innovations 15(4):304–319 9. Central Bank of the Russian Federation (2019a) Bank of Russia statistical bulletin. Business news agency PRIME, 1. Moscow, Russias 10. Central Bank of the Russian Federation (2019c) Russian financial market development program for 2019–2021. Business news agency PRIME, Moscow, Russias 11. Federal State Statistic Service (n.d.) Official websites. Retrieved from https://eng.gks.ru/ 12. NAFI (n.d.) Official websites. Retrieved from https://nafi.ru/en/

Developing the International Regulation System of Organic Agriculture Tatyana G. Gurnovich , Natalia R. Saifetdinova , and Alexander R. Saifetdinov

Abstract The paper focuses on developing conceptual approaches to improving the mechanisms for regulating organic agricultural production based on the experience of different countries in standardization, accreditation, and certification of products. The authors analyzed (1) the features of the institutional organization and (2) documentary support of the production and marketing of organic production and its delivery to consumers. The paper assesses the formation of the organic farming sector in various countries and provides detailed information on certification schemes. The authors described the joint guarantee system as an alternative for certification that gives access to the world market of organic products to producers from countries with insufficiently developed national legislation. Moreover, they analyzed the prevalence of joint guarantee system in the global economic space. The paper established an imbalance between the location of organic agricultural land and the development of organic raw materials and food markets. The authors identified factors hindering the development of the world market for organic products, eliminating which will help achieve harmonization in organic agriculture. The paper analyzed the indicators of the world market for organic agricultural raw materials and food. The analyzed indicators include the volume of retail sales, consumption per capita in the most developed national markets, etc. The paper systematizes the institutional features of state regulation of organic farming in foreign countries. Keywords Organic agricultural production · Organic food · International · Regional · And national regulation · Certification · Accreditation · Guarantee system

T. G. Gurnovich · N. R. Saifetdinova (B) · A. R. Saifetdinov Kuban State Agrarian University Named After I. T. Trubilin, Krasnodar, Russia T. G. Gurnovich e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_79

725

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1 Introduction Currently, there is a need to develop a unified system for regulating organic production and organic markets. Several factors facilitate this need. First, there are considerable differences in models and management tools used in various countries. Also, there are differences in the development of organic production and marketing systems. Second, there is a noticeable dispersion of land prepared for use in organic production. The third factor is presented by the institutional and regulatory features of the countries. The fourth factor is the growth of consumer demand for quality and safe food products. Moreover, there is a lack of systematic research on the generalization, detail, and systematization of regulatory schemes applied at the national level. There is also no interconnection of legal acts in food production and trade in different countries. The meaningful interpretation of the applied certification and accreditation models is not given. Therefore, we can conclude that the issues raised in this paper are relevant and timely. The development and application of conceptual approaches to regulating organic agricultural production and organic food marketing in various countries will improve the effectiveness of mechanisms for interaction between international and national institutions and refine the regulatory framework in global organic agriculture.

2 Methods and Materials The research purpose is to elaborate on conceptual approaches to developing an international regulation system of organic agricultural production based on summarizing the experience of different countries in standardization, accreditation, and certification. Consideration is given to the features of institutional organization, methodological support of organic production, and the delivery of organic produce to the consumer. The set task defined several challenges: – To clarify the nature of the work of non-governmental organizations responsible for developing international legal mechanisms; – To identify the principles of building national legislation; – To evaluate the results of international task forces; – To conduct a comparative analysis of national state regulation schemes of the organic farming system and organic raw materials and food market. The research methodology is based on determining the research purpose and subject, substantiating theoretical positions and guidelines justifying the need to form a conceptual approach to developing the international regulation system of organic agricultural production. System approach, system and monographic analysis, comparison, analogy, and economic and statistical methods served as the methodological foundation of the research.

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3 Results The development of international food standards dates back to the 1960s. At that time, the governing bodies of the Food and Agriculture Organization of the United Nations [FAO] and the World Health Organization [WHO] decided to establish the Codex Alimentarius Commission (Fig. 1). The standards are approved at annual meetings hosted exclusively for the FAO and WHO members. The executive board consists of representatives of geographical zones, regions, and countries. The board operates during the intervals between meetings of the commission. The primary function of the Codex Committee on Food Labelling is to harmonize requirements for the production and marketing of organic products. The concept of organic production developed by the Committee and presented in the “Guidelines for the Production, Processing, Labelling, and Marketing of Organically Produced Food” (1999) acts as the platform for forming national legislation in organic agriculture. The International Federation of Organic Agriculture Movements [IFOAM] is comprised of more than 100 countries. Its main goal is to promote the development of organic agriculture by modernizing the regulatory framework for accreditation and certification procedures. The organizational structure of IFOAM is represented by: – The General Assembly which approves the standards and developments of the IFOAM executive bodies; International level of regulation of organic agriculture

Codex Alimentarius (FAO)

International Federation of Organic Agriculture International Organization Movements (IFOAM) for Standardization (ISO)

Annual meetings of the

Executive Committee

WHO member countries

Chairman

Vice-Chairman

Chairman of the

The General Assembly of IFOAM

International Council

zones

World Congress

ISO General Assembly ISO Governance

The International Service

Secretary-general International organizations (UNO, FAO)

The regional level of organic agriculture regulation Th e C o d ex co mmittees

Committees and working groups

C o mmittee o f s trateg ic development and technical committees

Implementation of regional legislation in the field of organic agricultural production

Fig. 1 Organizational aspects of organic agricultural production regulation at the international and regional levels. Source Compiled by the authors

728

T. G. Gurnovich et al.

– The Council, its committees, and working groups focused on improving the system of guarantees for organic production [1]. The guarantee system for the production and processing of organic products includes: – IFOAM standard; – Databases of organic production standards recognized as equivalent to the IFOAM standard; – International organic seal for product marking by a certified manufacturer in an IFOAM-accredited certifying organization. In order to become IFOAM-accredited, the certifying organizations must adopt a certification program meeting the IFOAM standard. The International Organization for Standardization [ISO] is the primary developer of technical standards. Most world countries can become members of the ISO. Their representatives participate in committees and other structures of the organization. The development of the world market for organic products is constrained mainly by cross-country differences in existing standards, technical regulations, and certification requirements. The work of the International Task Force on Harmonization and Equivalence in organic agriculture under the leadership of FAO, UNCTAD, and IFOAM in developing practical and methodological recommendations and establishing a mechanism for assessing the equivalence of technical regulations and standards for organic production, contribute to the solution of constantly emerging trade barriers in the market. The following WTO agreements regulate international trade in raw organic materials and food: – The General Agreement on Tariffs and Trade [GATT] establishes no discriminatory conditions for imported organic products; – The Agreement on Technical Barriers to Trade [TBT] details the requirements for trade, development, and application of standards and technical regulations for individual product groups. The world organic farming saw active development over the last 20 years [2, 3]. From 1998 to 2017, the total world organic land annually grew by 8% at the beginning of the period and by 35% at the end of the period. Half of the world’s organic agricultural land is located in Oceania. In Europe, the average annual growth in organic agricultural land amounted to 680 thousand hectares during the same period. In 2017, 21% of the organic agricultural land in the world was located in Europe. During 2007–2017, Africa and Asia increased its organic agricultural land by 130 and 82%. In 2017, these regions accounted for 9 and 3% of the world’s organic agricultural land. The area of organic agricultural land in North America and Latin America slightly changed throughout 2007–2017 [4–6]. The global market for organic products is constantly becoming more available. The volume of the global organic food market in 2017 amounted to 92 billion EUR. Retail sales of organic food in the national markets of North America and Europe

Developing the International Regulation System of Organic …

729

form about 90% of the world market. Per capita consumption of organic products amounts to about 120 euros in North America and 47 euros in Europe. The US and EU countries account for more than 90% of the total retail turnover of organic raw materials and food markets in North America and Europe. There is a territorial asymmetry between the location of organic agricultural land and the development of markets for organic raw materials and food. Despite a relatively small amount of certified and conversed agricultural land in the US, their sales and consumption are the highest in the world. The average land-use area of an organic farm in the world is 25 hectares. In the US, this figure is five times higher than the global average. The EU exceeds the global average two times. The EU is significantly ahead of other countries regarding the share of organic land in the land fund. Liechtenstein heads the list with its share of 37.9%. Canada and Japan actively participate in the import and export of organic raw materials and food. The development of trade relations between them is provided by bilateral agreements and direct recognition of the certifying authority of the exporting country by the controlling authority of the importing country. As of the 1990s, national and regional systems for regulating organic production began its formation. They were developed on the provisions of voluntary acts of the existing international regulation in this sphere.

4 Discussion There are several models for regulating organic production. The first model is the most progressive one. It involves legislative regulation at the national and international levels. As of early 2019, this model was used in 93 countries around the world. The second model is related to disseminating alternative certification schemes for organic producers in countries with an emerging organic farming sector and undeveloped national legislation. IFOAM initiated the dissemination of this model. The system of joint guarantees [SJG] became one of the most developed alternative certification schemes. The SJG is represented by an association of stakeholders (agricultural producers, processors, representatives of local authorities, and consumers) marked with common organic agriculture standards and procedures, a common coordinating council, and a uniform logo for marking organic products. The establishment of an SJG is a complex process in which manufacturers can obtain certification only after several years of participation [7]. Another model is common in India and Tunisia. It uses tools for group certification of small producers, which contributes to forming a system of national state supervision and organic agriculture regulation. The largest number of producers of organic raw materials and food involved in an SJG are located in Asia and Latin America. Similar initiatives did not get widespread use in North America and Europe due to strict legislation on the production and circulation of organic food.

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The analysis of legislation in the production and circulation of organic agricultural raw materials and food in countries with developed organic agriculture showed that the content and structure of the main national laws and regulations in this field were similar [8]. For example, the Ministry of Agriculture acts as the controlling body of the production and sale of organic products in all analyzed countries, except for Canada. In Canada, this authority is given to the Canadian Food Inspection Agency. The national executive authority is responsible for accrediting certifying agents in national markets in all countries except Canada. The Canadian Food Inspection Agency cooperates with a private company in organizing accreditation for certification bodies in this area. All countries established institutions coordinating industry development. These institutions are open platforms for discussing and improving legislation, standards, and technical regulations to produce and sell organic food. During the development of the world market for organic products, countries importing organic products supplemented their national legislation with provisions requiring certification bodies of countries exporting organic agricultural produce to confirm that their competencies meet international standards in this field (i.e., the requirements of ISO 17,065 “Requirements for bodies certifying products, processes, and services”). Several countries developed and implemented government measures to support the production of organic raw materials and food. In European countries, the practice of applying certain state regulations (support for producers during conversion, subsidies to certified organic farms, incentives for innovation and investment) evolved into national and union programs for the development of the organic agriculture sector [9, 10]. The United States Department of Agriculture uses supporting and regulating measures that do not distort trade. These measures include research funding, government participation in the insurance of organic crops, and reimbursement of partial annual expenses of farmers on organic certification. The system of regional regulation and support for the development of organic agriculture in Oceania was established in 2008 due to financial and technical support from IFOAM and the International Fund for Agricultural Development. A Pacific Regional Organic Task Force was created to develop regional organic standards approved and established by the Pacific Community. The Pacific Organic and Ethical Trade Community was established as a body that guarantees the legal marking of organic products by regional producers. These initiatives turned Oceania into the most rapidly developing sector of organic farming.

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5 Conclusion International legal mechanisms for the production and sale of organic food were developed by non–governmental organizations—the Codex Alimentarius Commission and the International Federation of Organic Agriculture Movements. The organizations are marked with a branched transnational structure. Their committees are represented in many countries. The international system of guarantees for organic production, including voluntary guidelines and standards recommended for use in the development of similar systems at the national level, was formed due to the activities of these organizations. Legally binding instruments (i.e., the Convention on Biological Diversity, the United Nations Convention to Combat Desertification, etc.) provide guidelines for the development of national legislation in the field of organic production. National legislation on organic production should be consistent with the provisions of international trade law, the sources of which are represented by the “General Agreement on Tariffs and Trade” and the “Agreement on Technical Barriers to Trade.” According to the provisions of these documents, the state system for regulating the internal organic food market should be based on the principle of providing imported organic food from all WTO countries with an identical comfortable trade regime. The initiatives of IFOAM and other international organizations allow for the solution of many problems related to the development of organic farming. The developed mechanism for assessing the equivalence of different national technical rules and standards for organic production stimulated foreign trade between the main participants of the world market. The SJG allowed producers from countries with undeveloped national legislation to obtain certification and enter the world market for organic products. The provisions of the national schemes for state regulation of the organic farming system and the market for organic raw materials and food in the world are similar. The existing differences are driven by the need to adapt the content of the standards to local features of agricultural production. Acknowledgements The research was carried out with the financial support of the RFBR and the Krasnodar Krai in the framework of the scientific project No. 18-410-230030 r_a.

References 1. Morgera E, Caro CB, Duran GM (2015) Organic agriculture and the law. The Food and Agriculture Organization of the United Nations, Rome, Italy 2. Goded SA, Ekroos JB, Azcárate JG, Smith HGB (2019) Effects of organic farming on plant and butterfly functional diversity in mosaic landscapes. Agr Ecosyst Environ 284:106600 3. Mota VC, Andrade ET, Pinto SM, de Abreu LR, Leite DF (2019) Utilization of bedded cattle confinement for organic manure of maize crop. Revista Brasileira De Engenharia Agricola 23(8):620–624

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4. Willer H, Lernoud J (eds) (2017) The world of organic agriculture. Statistics and emerging trends 2017. Research Institute of Organic Agriculture FiBL; Bonn, Germany: IFOAM, Frick, Switzerland 5. Willer H, Lernoud J (eds) (2018) The World of organic agriculture. Statistics and emerging trends 2018. Research Institute of Organic Agriculture FiBL; Bonn, Germany: IFOAM, Frick, Switzerland 6. Willer H, Lernoud J (eds) (2019) The world of organic agriculture. Statistics and emerging trends 2019. Research Institute of Organic Agriculture FiBL; Bonn, Germany: IFOAM, Frick, Switzerland 7. Katto-Andrighetto J, Kirchner C, Castro FM, Varini F (2019) Participatory guarantee system in 2018. In: Willer H, Lernoud J (eds) The world of organic agriculture. Statistics and emerging trends 2019. Research Institute of Organic Agriculture FiBL; Bonn, Germany: IFOAM, Frick, Switzerland 8. European Commission (2008) Regulation (EC) No. 889/2008 of September 5, 2008, laying down detailed rules for the implementation of Council Regulation (EC) No. 834/2007 on organic production and labeling of organic products concerning organic production, labeling, and control. Retrieved from https://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri= CELEX:32008R0889&from=DE 9. Huber B, Schmid O, Batlogg, Castro FM (2019) Standards and regulations. In: Willer H, Lernoud J (eds) The world of organic agriculture. statistics and emerging trends 2019. Research Institute of Organic Agriculture FiBL; Bonn, Germany: IFOAM, Frick, Switzerland 10. Varini F, Katto-Andrighetto J (2019) Policies supporting the organic sector. In: Willer H, Lernoud J (Eds) The World of Organic Agriculture. Statistics and Emerging Trends 2019. Research Institute of Organic Agriculture FiBL; Bonn, Germany: IFOAM, Frick, Switzerland

Farming Systems

The Influence of Concentration of Nutrients on the Productivity of Red Beet with Inner Jet Intra-soil Irrigation of Seeds During Sowing Alexander N. Babichev , German A. Senchukov , and Dmitry V. Martynov Abstract The study aimed to determine the effect of the concentration of nutrients on field germination and yield of red beet during jet intra-soil irrigation of seeds when sowing. The studies were conducted in the Central irrigated zone of the Rostov region on meadow chernozem soils in 2016–2018. The generally accepted methods developed by B. A. Dospekhov, V. F. Moiseichenko, V. N. Pleshakov, M. K. Kayumov, and Federal State Budget Science Institution “Federal Williams Research Centre of Forage Production and Agroecology” were applied. During the research, we used the device, technology, and irrigation standards for this method of irrigation developed by employees of the Federal State Budget Scientific Institution “Russian Research Institute of Land Reclamation Problems.” The studies showed that the most rational concentration of nutrients is 5%, where the highest rates of plant growth and development were obtained: field germination—86.6%, plant height—73.7 cm, leaf surface area—58.9 thousand square meters per hectare, yield—67,300 tons per hectare. The obtained results made it possible to establish the effect of the concentration of nutrients on the field germination and on the yield of beet during jet intra-soil irrigation of beet seeds when sowing. Keywords Jet intra-soil irrigation of seeds during sowing · Beet · Concentration of nutrients

1 Introduction Currently, further development of agriculture is impossible without land reclamation. Reclaimed lands can receive up to five times more productivity and, thereby, guarantee food security [1–5]. The cultivation of vegetables, especially in the south of Russia, is often impossible without irrigation. Most crops not only reduce the yield on dry land but also do not even germinate. A. N. Babichev (B) · G. A. Senchukov · D. V. Martynov Russian Scientific Research Institute of Land Improvement Problems, Novocherkassk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_80

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Red beet is one of the most common vegetable crops because of its versatility. It can be cultivated in most Russian regions. It has a short growing season and is neutral to the length of daylight. Based on this, the timing of sowing beets in the south of Russia is extended from late April to early July. The summer sowing season is of particular interest since it is harvested in the middle-late autumn. The beet harvest of the beet obtained during this period is well stored until the end of spring. However, in the summer sowing season, when the air temperature is maximum, atmospheric and soil drought is observed, the seeds of beet are stressed even when irrigated. Often, sprouted seeds die. Thus, obtaining simultaneous and uniform seedlings is a big problem when cultivating red beets for summer sowing. In this regard, many scholars have developed technologies and technical means [6, 7], proposed watering methods [8], including advanced ones [9–11] allowing, along with increasing the productivity of the irrigated area, to reduce water consumption and increase soil fertility of irrigated lands [12]. Employees of the Federal State Budgetary Scientific Institution “Russian Research Institute of Reclamation Problems” (RRIRP) developed a device and technology for subsurface irrigation of seeds during sowing, proposed irrigation standards for this method of irrigation [13], and determined the concentration of liquid mineral micronutrients (Mikromak A) [14]. However, no studies were conducted on the concentration of such nutrients as nitrogen, phosphorus, and potassium in a solution of irrigation water for improving seed germination and red beet productivity.

2 Materials and Methods Studies on the concentration of nutrients in a solution of irrigation water were carried out in the Central irrigated zone of the Rostov region on meadow-chernozem soils of heavy loam in 2016–2018. The arable soil layer (0–25 cm) was characterized by a shallow content of nitrate nitrogen, which varied from 17.6 to 18.2 mg/kg of soil over the years of research, with an average content of mobile phosphorus (25.4– 29.2 mg/kg of soil) and increased content of exchange potassium (365–378 mg/kg of soil). The subsoil layer of the soil (25–60 cm) was characterized by a shallow content of nitrate-nitrogen and phosphorus (15.1–18.4 and 9.5–11.4 mg/kg of soil, respectively), and average potassium content (254–285 mg/kg of soil). According to precipitation, 2016 and 2017 were dry, and 2018—average. The experimental scheme for studying the effect of the concentration of nutrients in a solution for field germination of seeds and productivity of red beet is as follows: • • • • •

Option 1—the concentration of the nutrient solution is 1%; Option 2—the concentration of the nutrient solution is 3%; Option 3—the concentration of the nutrient solution is 5%; Option 4—the concentration of the nutrient solution is 10%; Option 5—without treatment (control).

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To obtain the given concentrations of the solution (from 1 to 10%), it was calculated for the active substance. The content of nutrients in 100 L of water was N5 P10 K5 (5 kg of nitrogen, 10 kg of phosphorus, and 5 kg of potassium). The solution for jet intra-soil watering of seeds was prepared immediately before sowing, following the calculations shown in Table 1. The predecessor of red beet was winter rye after corn for silage harvested for green fodder in the second decade of May. After harvesting winter rye for green fodder, two-track peeling was carried out with the BDT-7-disc harrow, followed by cultivation at a depth of 10–12 cm and pre-sowing cultivation with 6–8 cm harrowing. Red beet was planted in the period from July 1 to July 4. The “Klen” seeder equipped with a device for intra-soil jet irrigation of seeds during sowing was used (Fig. 1). The norm for jet subsoil irrigation was 1.2 m3 /ha. After germination, the irrigation was carried out by a front-acting irrigation machine with an irrigation norm Table 1 Estimated doses of liquid complex fertilizers for the creation of a given concentration of the nutrient solution Type of fertilizer

Liquid Complex Fertilizer (N5 P10 K5 )

The content of NPK in fertilizers, kg d. in 1 L of liquid complex fertilizers

0.2

The dose of liquid complex fertilizers for the creation of a given concentration of the solution according to the options of experiment 2, based on 100 l of the solution in a liter of liquid complex fertilizers 1%

3%

5%

10%

5

15

25

50

Source Developed by the authors

Fig. 1 The process of sowing red beet. Source A. N. Babichev

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of 400 m3 /ha. Fertilizers were calculated for the planned yield of 60 t/ha according to the method of Kayumov [15]. The studies were conducted on a variety of red beet “Crimean Borschevaya 1”. The generally accepted methods developesd by B. A. Dospekhov, V. F. Moiseichenko, V. N. Pleshakov, M. K. Kayumov, and Federal State Budget Science Institution “Federal Williams Research Centre of Forage Production and Agroecology” were used [16–20]. The size of the experimental plot is 30 × 35 m; the accounting area for all options is 240 m2 ; the repetition is three times. The total area under the experiment is 0.9 ha.

3 Results and Discussion Jet intra-soil irrigation had a beneficial effect on the field germination of red beet, especially with a lack of moisture in the summer (Table 2). The conducted studies made it possible to establish that the highest rates of field germination of red beet were obtained in experiment 3, where the concentration of nutrients in the solution was maintained at 5% and amounted to 86.6% on average over three years. In the control variant of the experiment, where the treatment with a solution of mineral fertilizers was not carried out, field germination was the smallest and varied from 77.9% in 2018, to 81.6% in 2016. An increase in the concentration of nutrients up to 10% led to a decrease in field germination, which allows us to conclude that the optimal concentration of nutrients in the solution is 5%. The dependence of the concentration of the solution on the field germination of red beet is shown in Fig. 2. Furthermore, we studied the dependence of the height of the red beet on the concentration of the solution. The results of studying the plant height according to the experimental options for each year and an average of 3 years are given in Table 3. Table 2 Field germination of red beet plants, 2016–2018 Option

Field germination, % 2016

2017

2018

Average

1

85.0

82.3

87.5

84.9

2

85.8

83.5

89.9

86.4

3

86.0

84.7

89.1

86.6

4

84.6

83.2

87.8

85.2

5 (c)

81.6

79.1

77.9

79.5

HCP0.5 , t/ha

0.18

HCP0.5 , %

0.20

Source Calculated by the authors

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Fig. 2 The effect of the concentration of the solution on the field germination of red beet. Source Developed by the authors

Table 3 The height of red beet plants, 2016–2018 Option

Plant height, cm 2016

2017

2018

Average

1

67.00

66.10

69.30

67.50

2

71.40

70.50

73.80

71.90

3

73.20

72.30

75.60

73.70

4

69.50

68.40

72.10

70.00

5 (c)

62.60

61.60

64.90

63.00

HCP0.5 , t/ha

0.11

HCP0.5 , %

0.20

Source Calculated by the authors

Our observations showed that the maximum height of the red beet was obtained when a solution of a concentration of 5% was used and averaged to 73.7 cm over three years. Without jet intra-soil irrigation, the plant height was the smallest and equaled to 63 cm. Table 4 presents the area of the leaf surface of red beet plants according to the experimental options. The analysis of Table 4 allows us to conclude that the highest plant height allowed us to obtain a large leaf surface area. In the experiment option, where the concentration of the solution was 5%, the average leaf surface area equaled 58.9 thousand m2 /ha for over three years. The highest rates of growth and development of red beet plants allowed to form a high yield. The research results are presented in Table 5. Thus, in the experiment with a concentration of 5%, the annual yield varied from 65.2 t/ha in 2017 to 69.8 t/ha in 2018. The average yield over the years of research equaled to 67.3 t/ha.

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Table 4 The leaf surface area of beetroot, 2016–2018 Option

Leaf surface area, thousand m2 /ha 2016

2017

2018

Average

1

53.50

52.30

55.80

53.90

2

57.00

55.10

60.10

57.40

3

58.50

57.40

60.80

58.90

4

55.50

54.60

57.60

55.90

5 (c)

50.00

49.10

52.00

50.40

HCP0.5 , t/ha

0.54

HCP0.5 , %

1.00

Source Calculated by the authors

Table 5 The yield of root crops of red beet, 2016–2018 Option

Yield, t/ha 2016

2017

2018

Average

1

61.10

60.00

63.5

61.5

2

65.10

64.30

67.3

65.6

3

66.80

65.20

69.8

67.3

4

63.30

62.40

65.5

63.7

5 (c)

57.10

56.40

59.0

57.5

HCP0.5 , t/ha

0.48

HCP0.5 , %

0.80

Source Calculated by the authors

After analyzing the data of Table 5, the dependence of the concentration of the nutrient solution on yield was established. It is presented in Fig. 3. The obtained dependence has a high approximation coefficient (R2 = 0.87), which indicates a high convergence of the results. This dependence will allow us to establish a rational concentration of the soil solution.

4 Conclusion The studies conducted in the Central irrigated zone of the Rostov Region on meadow chernozem soils made it possible to establish a rational concentration of the soil solution during jet intra-soil irrigation of beet seeds during sowing. The best indicators of growth and development of beetroot plants were obtained at a soil solution with a concentration of 5%; field germination averaged to 86.6% over three years of research, plant height is 73.7 cm, leaf surface area is 58.9 thousand m2 /ha, and yield

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Fig. 3 The effect of the concentration of the solution on the yield of red beet

67.3 t/ha. The dependences of the effect of the concentration of nutrients on the field germination and yield of beetroot in jet intra-soil irrigation of seeds during sowing were obtained. They are expressed by the following expressions: y = -−0.1788x2 + 2.1928x + 80.976; y = −0.2725x2 + 3.2913x + 57.99 relatively. The approximation coefficients were R2 = 0.55, R2 = 0.87.

References 1. Kolganov AV (1997) Irrigation in Russia: natural resources and development opportunities. Irrig Water Manag 5:2–5 2. Kulygin VA, Ilyinskaya IN (2015) The efficiency of irrigation water use in the growing of crops. Sci J Russ Res Institute Land Improv Probl 2(18). Retrieved from https://www.rosniipm-sm. ru/en/archive?n=324&id=325 3. Olgarenko VI (2009) Environmentally sustainable reclamation systems. Sci J KubSAU 6(21):205–209 4. Shchedrin VN, Balakay GT (2014) State and prospects for the development of land reclamation in the south of Russia. Sci J Russ Res Inst Land Improv Probl 3(15). Retrieved from https:// www.rosniipm-sm.ru/en/archive?n=265&id=266 5. Shchedrin VN, Senchukov GA (2012) Prospects for melioration and water industry development in the Russian Federation. Sci J Russ Res Inst Land Improv Probl 1(05). Retrieved from https://www.rosniipm-sm.ru/en/archive?n=82&id=83 6. Semenenko SY, Litov MN, Chushkina EI, Chushkin AN (2018) Creation of effective, environmentally safe technologies and technical means of irrigation of a new generation. Proc Nizhnevolzskiy Agrouniversity Complex: Sci High Vocat Educ 2(50):64–71 7. Vasiliev SM, Akopian AV, Andreeva TP (2011) Cyclic irrigation and technical resources for its implementation. Irrig Water Manag 1:34–36 8. Vasiliev SM (2006) Improving the environmental safety of irrigation methods for the formation of sustainable agro landscapes in the arid zone (Dissertation of Doctor of Technical Sciences). Volgograd State Agrarian University, Volgograd, Russia 9. Korsak VV, Pronko NA, Nasirov NN (2014) Usage of gis-analysis for assessing the natural conditions of irrigated cropping. Sci Life 2:18–24

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10. Kurbanov SA, Borodichev VV, Litov MN (2017) Approaches to the organization of information and industrial complexes of monitoring and irrigation management in real-time. Dev Probl Reg Agroindustrial Complex 3:131–136 11. Shchedrin VN, Vasilyev SM, Churaev AA (2016) Optimization of instrumentation structure of agrometeorological parameters control as a stage of precision irrigation process development. Sci J Russ Res Inst Land Improv Probl 3(23). Retrieved from https://www.rosniipm-sm.ru/en/ archive?n=413&id=414 12. Shchedrin VN, Dokuchaeva LM, Yurkova RY (2018) Negative soil processes at continuous flow irrigation of various types of soils. Sci J Russ Res Inst Land Improv Probl 2(30). Retrieved from https://www.rosniipm-sm.ru/en/archive?n=531&id=532 13. Balakay GT, Babichev AN, Monastyrskiy VA, Olgarenko VI, Chertov VI, Martynov DV (2018) Device and technology of subsoil trickle seeds watering during the sowing. Int J Adv Biotechnol Res 9:167–179 14. Babichev AN, Monastyrsky VA, Olgarenko VI, Martynov DV (2019) The influence of the concentration of liquid mineral micro fertilities (micro mac A) on the table beet field germination and productivity during sowing with subsoil jet irrigation. Sci J Russ Res Institute Land Improv Probl 3(35):18–30. https://doi.org/10.31774/2222-1816-2019-3-18-30 15. Kayumov MK (1989) Field crop productivity programming. Rosagropromizdat, Moscow, Russia 16. Bondarenko SG (ed) (2013) Zonal farming system of the Rostov region for 2013–2020, vol 1–2. Don Publishing House, Rostov-on-Don, Russia 17. Dospehov BA (1985) Field experiment methodology. Agropromizdat, Moscow, Russia 18. Dospehov BA, Vasilyev IP, Tulikov AM (1977) Agriculture workshop. Kolos, Moscow, Russia 19. Moiseychenko VF (1996) Fundamentals of scientific research in agronomy. Kolos, Moscow, Russia 20. Pleshakov VN (1983) Field experiment technique under irrigation conditions. VNIIOZ, Volgograd, Russia

Obtaining a Fast and Reliable Diagnostic Result of Acidovorax Citrulli with the Sample Enrichment Method Olga Y. Slovareva , Konstantin P. Kornev , and Galina N. Bondarenko

Abstract The diagnostics of pathogens of bacterial diseases of plants, in particular, Acidovorax citrulli, need to develop methods for obtaining fast and reliable results. When used separately, existing diagnostic methods are not sensitive enough to guarantee confidence in the presence or absence of a phytopathogen in a sample. The reliability of the results is achieved by applying a set of methods. This process is marked with high costs of cash, labor, and time resources. Increasing sensitivity is possible using the method of sample enrichment. However, the technique of this procedure for routine diagnostics is not described. The purpose of this study is to develop a method for enriching a sample of cucurbit crops for the diagnosis of Acidovorax citrulli. The paper presents the results of artificial inoculation of plants and parts of the fruits of cucurbit crops with a suspension containing the target bacteria in viable and non-viable states in known concentrations. During the study, an incubation step was carried out, followed by an assessment of the change in the concentration of phytopathogen cells in plant tissues. The number of copies of the target bacterial cells in the sample was determined by counting colonies of Acidovorax citrulli on an agarized nutrient medium, as well as using real-time polymerase chain reaction analysis (PCR-RA). As a result of the study, the authors developed a sample enrichment method that will allow obtaining reliable data for the detection of Acidovorax citrulli rather quickly and economically. Keywords Diagnostics of phytopathogens acidovorax citrulli · Sample enrichment method · Inoculation agricultural microbiology · Bacterial spotting of cucurbits crops · Plant quarantine · PCR

O. Y. Slovareva (B) Russian State Agrarian University—Moscow Agricultural Academy named after K.A. Timiryazev, Moscow, Russia O. Y. Slovareva · K. P. Kornev · G. N. Bondarenko Federal State Organization “All-Russian Plant Quarantine Center,” Bykovo settlement, Moscow Region, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_81

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1 Introduction Recently, there was an increase in the aggressiveness of phytopathogenic bacteria against host plants [1–3]. In this regard, the relevance of developing a set of measures to control the spread of plant pathogens is increasing [4]. An essential component of this complex is laboratory diagnostics [5]. The causative agent of bacterial spotting of cucurbits, Acidovorax citrulli [6], causes damage to the crop of melons and watermelons in the areas of distribution [7], and is subject to external quarantine for several countries [8]. The presence of a phytopathogen was first observed in the fields of melons in the United States, but soon, the bacterium spread to other countries. The reason for the spread is associated with international seed trading [9]. In the absence of a mandatory check of the phytosanitary state of cucurbits, the phytopathogen will probably spread to new territories, especially quickly and unhindered. Phytosanitary testing laboratories in the countries of the Eurasian Economic Union (EAEU) regularly conduct phytopathogen diagnostics in batches of cucurbits crops, especially in seeds. The applied diagnostic scheme allows one to quickly install samples in which there is no causative agent of the disease. However, when obtaining positive results of screening tests, which are not the final determining test for identifying a pathogen, several additional studies are carried out to ensure the reliability of the diagnosis [10]. The need for further tests may arise due to the following reasons: • The relatively low specificity of existing screening tests; • Insufficient sensitivity of highly specific tests, not allowing them to be used as qualifying tests; • Low concentration of phytopathogen for its precise identification in the sample. The diagnostic, including various tests based on polymerase chain reaction (PCR), immunofluorescence analysis, sequencing, and isolation of a pure Acidovorax citrulli culture, is time-consuming and resource-intensive [11]. Laboratories do not always have all the necessary equipment and reagents. If only the genetic material of the target object is present in the sample, the isolation of a pure culture is impossible. Therefore, it is impossible to conduct a series of confirmatory tests, adequately evaluate the results, and make an unambiguous decision on their basis. In this regard, it became necessary to develop a method that allows obtaining reliable diagnostic results of the pathogen of bacterial spotting of pumpkin crops quickly and economically. This problem can be solved using the sample enrichment method, although there is currently no detailed description of it. Our study aims to develop a sample enrichment method for the diagnosis of Acidovorax citrulli.

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745

2 Materials and Methods The research used a 48-h pure culture of Acidovorax citrulli. It was isolated from a watermelon in the USA, later brought to Spain, and laid at number 51 in the collection of plant pathogens of the Institute for Agricultural Research of Spain (IVIA), Valencia, from where it was obtained for our study. A series of ten-fold dilutions of the suspension of the bacterial culture from the first to the seventh was performed in microtubes with sterile phosphate-buffered saline buffer, PBS [12]. They were sown with a Drigalski spatula, 100 µl (µl) of the fifth, sixth, and seventh dilutions in duplicate on Petri dishes with King B medium (in 1 L: bacteriological peptone—20.0 g, glycerol—10.0 ml, K2 HPO4 —1.5 g, MgSO4 —0.75 g, bacteriological agar—18.0 g, the remaining volume—distilled water, with pH 7.0–7.2). The cups were tightly wrapped with a Parafilm sealing film and incubated at +37 °C. Colony counting and determination of the number of colony-forming units in 1 ml of suspension (CFU/ml) was carried out after 48 h. Three hundred µl were taken from the second dilution microtube and incubated at 96 °C for 10 min to inactivate the bacteria. The sample enrichment method was tested using an extract of seeds of cucurbit crops, which was prepared similarly to the extract in the preparation of an analytical sample in the laboratory analysis process. PBS buffer was added to the air-dry seeds in a ratio of 1:2, shacked for 20–24 h at a temperature of 18–22 °C and a mode of 90 revolutions per minute (rpm). The resulting macerate was centrifuged for 10 min using a 1200 g mode at +4 °C. Then, the supernatant was centrifuged for 10 min using 10,000 g at +4 °C. After removing the supernatant, the pellet was resuspended with 1 ml PBS [10]. All obtained suspensions were pooled to ensure uniformity, and then the culture of Acidovorax citrulli was added. For the infection of the seed extract, we used bacterial culture dilutions obtained in preparation for sowing in a nutrient medium. From 100 hundred µl to 900 µl of the extract was transferred from a 2-ml microtube, then shaken on a vortex. From the obtained third dilution in the extract, 100 µl was transferred to the next tube with 900 µl of extract, and so on. Thus, a series of ten-fold dilutions in the extract from the third to the eighth was obtained. Similarly, a series of ten-fold dilutions of the inactivated Acidovorax citrulli in the extract was prepared. The inactivation process is described above. All prepared infected extracts were then used to inoculate plants and parts of the fruits of cucurbit crops. The preparation scheme for all dilutions is shown in Fig. 1. It should be noted that the number of copies of living culture cells in the infected extracts coincided with this indicator in the corresponding dilutions of the inactivated culture in the extract. For each cultivation of living and inactivated Acidovorax citrulli culture, two cucumber plants in the extract in a phase of 2–3 real leaves were used, as well as two parts of the marrow squash, each weighing 12–14 g. Each plant or part of the fetus was inoculated with 200 µl of the infected extract of one of the dilutions using sterile disposable syringes. An extract free of Acidovorax citrulli was used as a negative control.

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Fig. 1 The scheme of preparation of Acidovorax citrulli culture breeding. Source Developed by the authors

To inoculate plants, the stem and base of leaf petioles were pierced, followed by the introduction of drops of the extract at the puncture sites. Plants inoculated with extracts with varying degrees of infection, containing a living and inactivated Acidovorax citrulli culture, were spatially isolated. Plants were kept at a temperature of + 27 °C, relative humidity of 55%, and daylight of 14 h. Parts of the marrow squash were inoculated in the following way: parts of the fetus were placed in sterile Petri dishes with the bottom of the cups covered with filter paper to absorb excess moisture. The infected extract was injected with a syringe into 5–7 different parts of the squash (Fig. 2). For each repetition, a separate Petri dish was used. Then, the cups were covered with lids and placed in an incubator MIR-254 (Panasonic (Sanyo), Japan) with a set temperature of +37 °C, without lighting. The remaining infected extracts were stored at a temperature of −18 to −22 °C. After 68 h (less than three days), samples from inoculated plants and parts of the fruits were taken, as well as the preparation of their analytical samples. Each crushed plant and each part of the fetus were placed in separate containers for sampling, avoiding contamination. Thirty ml of PBS was added to each sample and shacked at a temperature of 18–22 °C. For plants, the regime was set to 200 rpm for 30 min, for fruits—130 rpm for 5 min. This difference is caused by the fact that the fruits of the squash are very soft after incubation. Thus, the samples do not need long and intensive shaking. The next stage of sample preparation was the filtration of macerate using paper filters with a pore size of 3–5 µm. Then, the macerate was centrifuged for 10 min using

Obtaining a Fast and Reliable Diagnostic Result …

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Fig. 2 Inoculation of part of the squash fetus with the infected extract. Source Developed by the authors

a 10,000 g at +4 °C. The supernatant was removed, and the pellet was resuspended in 1 ml of PBS. The obtained suspensions were used as analytical samples. Two hundred µl was taken from all analytical samples, as well as from all infected extracts, for DNA isolation using the Tecan Freedom Evo automated station and AmpliTub-RV kits (Syntol LLC, Russia). Phytopathogen DNA was identified by PCR-RA using a ready-made kit of reagents to identify Acidovorax citrulli, the causative agent of bacterial spotting of cucurbit crops (Syntol LLC, Russia). This method allows us to quantify the content of the target DNA in the sample. For PCR-RA, a DTprim detecting amplifier was used (DNA-Technology LLC, Russia). It should be noted that the experiment described above was repeated several times.

3 Results Counting Acidovorax citrulli colonies on Petri dishes showed that the seventh dilution was 101 CFU/ml, the sixth dilution was 102 CFU/ml, and the sixth dilution was 103 CFU/ml. During PCR-RA, the values of threshold cycles (Ct) were obtained. They characterize the concentration of the target DNA matrix in the samples. The Ct values are presented in Table 1 and show that:

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Table 1 Ct values for DNA samples isolated from infected extracts, plants, and parts of the fruits of cucurbit crops after inoculation with these extracts A variant of the bacterial suspension in the extract for inoculation

The concentration of cells of Acidovorax citrulli, CFU/ml

Ct value The initial suspension in the extract

After inoculation of plants 1

2

1

2

8th breeding, inactivated culture

10°

–

–

–

–

–

7th breeding, inactivated culture

101

–

–

–

–

–

6th breeding, inactivated culture

102

–

–

–

–

–

5th breeding, inactivated culture

103

30.1

–

–

–

–

4th breeding, inactivated culture

104

28.2

–

–

–

–

3rd breeding, inactivated culture

105

24.8

–

–

–

–

8th breeding, activated culture

100

–

–

–

30.0

24.1

7th breeding, activated culture

101

–

–

–

22.7

23.0

6th breeding, activated culture

102

–

–

–

21.4

23.3

5th breeding, activated culture

103

29.5

–

–

18.3

19.2

4th breeding, activated culture

104

27.5

–

–

18.2

18.0

3rd breeding, activated culture

105

24.6

29.0

29.1

17.7

17.4

Uninfected extract

–

–

–

–

–

–

Source Developed by the authors

After inoculation of parts of the fruit

Repetitions

Obtaining a Fast and Reliable Diagnostic Result …

749

• The result of PCR is positive with DNA samples isolated from the initial extracts containing the target DNA target of 103 genetic copies per 1 ml (or 103 CFU/ml) and higher; • For DNA samples isolated from the starting extracts with both live and inactivated cultures of Acidovorax citrulli, the result of PCR is similar; • Obtaining a positive PCR result with DNA samples extracted from plants only after inoculation with an extract containing a living culture of Acidovorax citrulli at a concentration of 105 CFU/ml. In this case, the Ct value is at the limit of the sensitivity threshold of this test based on PCR-RA; • PCR is negative with DNA samples from parts of the fruit inoculated with a non-viable Acidovorax citrulli culture; • PCR is positive with all DNA samples from parts of the fruit inoculated with the live culture of Acidovorax citrulli. The Ct values show an increase in the concentration of the target DNA target by several degrees. Similar data were obtained in each of the repetitions of this experiment.

4 Discussion Based on the obtained data, it can be concluded that parts of cucurbit crops are more suitable for applying the sample enrichment method for the diagnosis of Acidovorax citrulli. Perhaps this is due to the incubation of parts of the fruits at a higher temperature than plants. Additionally, the use of fruits is less labor-intensive. PCR-RA results showed that the cells of an inactivated Acidovorax citrulli culture were eliminated during incubation for three days at + 37 °C in parts of the fruits of cucurbit crops, followed by the destruction of DNA molecules. At the same time, under similar conditions, the living culture of the pathogen actively multiplies, which allows further identification by any method available in the testing laboratory. To apply the enrichment method, it is sufficient to use 200 µl of an analytical sample. Therefore, additional sample preparation is not required. The proposed method is at least 3–4 times faster than similar methods that require the expectation of symptoms on the tissues of an inoculated plant or fetus.

5 Conclusion In practice, the proposed enrichment method will provide reliable information on the presence or absence of a living culture of Acidovorax citrulli in the test sample. This method is recommended to be used in case of obtaining doubtful results of screening tests when identifying Acidovorax citrulli, the causative agent of bacterial spotting of cucurbits cultures [6].

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The method of enrichment of the sample involves inoculation of a part of a marrow squash, each weighing 12–14 g and free of Acidovorax citrulli, with 200 µl of analytical sample, which showed dubious results of screening tests. The inoculated part of the fetus should be incubated at + 37 °C for three days. After that, the sample preparation and screening tests are repeated. Using this method, in the absence of living cells of the target phytopathogen in the sample, will make it possible to obtain a reliable negative result. In the case of the presence of Acidovorax citrulli in the sample, the application of the enrichment method will increase bacterial cells’ concentration by 3–4 degrees, which will allow for any confirmatory tests.

References 1. Cai L, Chen J, Liu Z, Wang H, Yang H, Ding W (2018) Magnesium oxide nanoparticles: effective agricultural antibacterial agent against Ralstonia solanacearum. Front Microbiol 9:790. https://doi.org/10.3389/fmicb.2018.00790 2. Masum MMI, Siddiqa MM, Ali KA, Zhang Y, Abdallah Y, Ibrahim E, Qiu W, Li B et al (2019) Biogenic synthesis of silver nanoparticles using phyllanthus emblica fruit extract and its inhibitory action against the pathogen acidovorax oryzae strain RS-2 of rice bacterial brown stripe. Front Microbiol 10:820. https://doi.org/10.3389/fmicb.2019.00820 3. Zarco-Tejada PJ, Camino C, Beck PSA, Calderon R, Hornero A, Hernández-Clemente R, Navas-Cortes JA et al. (2018) Previsual symptoms of Xylella fastidiosa infection revealed in spectral plant-trait alterations. Nat Plants 4(7):432–439. https://doi.org/10.1038/s41477-0180189-7 4. Kruse A, Fleites LA, Heck M (2019) Lessons from one fastidious bacterium to another: What can we learn about Liberibacter species from Xylella fastidiosa. Insects 10(9):300. https://doi. org/10.3390/insects10090300 5. Boykin LM, Sseruwagi P, Alicai T, Ateka E, Mohammed IU, Stanton JL, Ndunguru J et al (2019) Tree lab: portable genomics for Early detection of plant viruses and pests in Sub-Saharan Africa. Genes 10(9):632. https://doi.org/10.3390/genes10090632 6. Schaad NW, Postnikova E, Sechler A, Claflin LE, Vidaver AK, Jones JB, Agarkova I, Ignatov A, Dickstein E, Ramundo BA (2008) Reclassifification of subspecies of Acidovorax avenae as A. Avenae (Manns 1905) emend., A. cattleyae (Pavarino, 1911) comb.nov., A. citrulli Schaad et al., 1978) comb.nov., and proposal of A. oryzae sp. nov. Syst Appl Microbiol 31:434–446 7. Isla MR, Hossain MR, Kim HT, Jesse DMI, Abuyusuf M, Jong HJ, Nou IS et al (2019) Development of molecular markers for detection of Acidovorax citrulli strains causing bacterial fruit blotch disease in melon. Int J Mol Sci 20(11):2715. https://doi.org/10.3390/ijms20112715 8. European and Mediterranean Plant Protection Organization (2018) EPPO A1 List of pests recommended for regulation as quarantine pests. France, Paris 9. Yang R, Garcia DS, Pérez Montaño F, Mateus da Silva G, Zhao M, Jiménez Guerrero, I, Burdman S (2019) Complete assembly of the genome of an Acidovorax citrulli strain reveals a naturally occurring plasmid in this species. Front Microbiol 10:1400. https://doi.org/10.3389/ fmicb.2019.01400 10. Slovareva OY, Kornev KP, Matyashova GN, Stakheev AA, Prikhodko SI (2019) The recommended procedure for detection and identification Acidovorax citrulli in seeds. AIP Conf Proc 2063:030020. https://doi.org/10.1063/1.5087328

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11. Lee H, Kim MS, Song YR, Oh CS, Lim HS, Lee WH, Cho BK et al (2017) Non-destructive evaluation of bacteria-infected watermelon seeds using visible/near-infrared hyperspectral imaging. J Sci Food Agric 97(4):1084–1092. https://doi.org/10.1002/jsfa.7832 12. Giovanardi D, Sutton SA, Stefani E, Walcott RR (2018) Factors influencing the detection of Acidovorax citrulli in naturally contaminated cucurbitaceous seeds by PCR-based assays. Seed Sci Technol 46(1):93–106. https://doi.org/10.15258/sst.2018.46.1.09

The Productivity of Spring-Planted Potatoes Depending on Doses of Mineral Fertilizers Used on Irrigated Land in the South of Russia Sergey M. Vasilyev , Valeriy A. Monastyrskiy , and Vyacheslav D. Gostishchev Abstract The paper aims to study the effect of different doses of mineral fertilizers on the productivity of spring-planted potatoes under irrigation conditions in the south of Russia. The studies were conducted at the test site of the Biryuchekutskaya vegetable breeding experimental station. This station is a branch of the FSBIS “Federal Scientific Center for Vegetable Growing” of the Bagayevsky district of the Rostov Region on ordinary medium chernozem. We used the methods of B. A. Dosphekhov, V. F. Moiseichenko, and M. K. Kayumov. Doses of mineral fertilizers were calculated using the program for electronic computers No. 2018663750 “Calculation of doses of mineral fertilizers” for the planned yield. The results allowed us to establish that during the increase in the dose of mineral fertilizers, the yield gain of tubers was reduced from 92.5 to 77.1 (kilograms per kilogram of the active substance of mineral fertilizers). The conducted studies allowed us to establish the effectiveness of irrigation water depending on the doses of mineral fertilizers, described by the coefficient of water consumption. According to the experiment variants, the coefficient varied from 100.1 to 202.6 cubic meters per hectare. As a result, the yield dependencies on total water consumption and water consumption coefficient were established with different availability levels of mineral fertilizers. Keywords Spring-planted potatoes · Doses of mineral fertilizers · Irrigation · Crop increase

1 Introduction Recently, innovative methods of cultivating crops based on modern technologies for monitoring agrocenosis became popular among agricultural producers [1–3]. Practices based on resource-saving methods [4–6] and increasing fertility of irrigated land [7] also started to gain traction [8].

S. M. Vasilyev · V. A. Monastyrskiy (B) · V. D. Gostishchev Russian Scientific Research Institute of Land Improvement Problems, Novocherkassk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_82

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Potatoes are currently one of the most promising crops cultivated on irrigated land in the south of Russia. The highest costs within the intensive cultivation technology of spring-planted potatoes are incurred for mineral fertilizers. This is also the case for most of the existing crops [4, 5]. Therefore, the determination of rational doses of mineral fertilizer is one of the primary tasks of modern agricultural production. Currently, due to the undergoing digitalization of the economy, the implementation of scientific and technological achievements acts as a highly prioritized objective for agricultural production. Thus, employees of the FSBIS “Russian Research Institute of Problems of Land Reclamation” developed a computer program for calculating the doses of mineral fertilizers, which allows determining the doses of nitrogen, phosphorus, and potassium, depending on the planned yield and the content of these elements in the soil.

2 Materials and Methods Studies on the doses of mineral fertilizers were carried out in irrigation conditions of the village of Yasny of Bagayevsky district of the Rostov Region (Biryuchekutskaya vegetable breeding experimental station—branch of FSBIS “Federal Scientific Center for Vegetable Growing”) in 2018–2019. The soil cover consisted of ordinary medium chernozem. The clay content in the 0–1.0 m layer of soil is more than 55%. Biryuchekutskaya vegetable breeding experimental station is located in the central irrigated zone of the Rostov Region. This area is marked with a hot and arid climate. Selyaninov’s hydrothermal index amounts to less than 0.7. The humidity factor of the territory amounts to 0.33–0.44. The sum of positive temperatures for the vegetational season is 3200–3400 °C. The transition of temperature through a 10 °C mark occurs in the middle of April. With 500 mm of precipitation per year, about 200–250 mm accrue to the vegetational season. During the year, precipitation is uneven with a heavy shower character. The agrochemical characteristics of the soil cover at the experimental site are shown in Table 1. Table 1 The agrochemical characteristics of soil cover from the experimental plot of Biryuchekutskaya vegetable breeding experimental station—branch of the FSBIS “Federal Scientific Center for Vegetable Growing.” Soil layer, m

Organic matter, %

Content, mg/kg of soil

0–0.3

3.7

33

19

390

2.56–2.88

0.3–0.6

2.4

21

23

270

2.11–2.64

Nitrate nitrogen Labile phosphorus

Source Developed by the authors

Exchange potassium

Base exchange capacity, mg/eq per kg of soil

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Table 2 Doses of mineral fertilizers for the planned yield of spring-planted potatoes Experiment variant

Planned yield, t/ha

The dose of mineral fertilizers, kg/ha

1

20

78.8

87.8

72.2

238.8

2

25

98.8

109.8

92.2

300.8

3

30

118.8

131.8

112.2

362.8

N

P

K

Total fertilizer dose, kg/ha

4

35

138.8

153.8

132.2

424.8

5 (c)

40

158.8

175.8

152.2

486.8

6

45

178.8

197.8

172.2

548.8

7

50

198.8

219.8

192.2

610.8

Source Developed by the authors

The agricultural technology of crop cultivation is generally accepted in the south of Russia. We planted the zoned potato variety “Zhukovsky ranniy.” The study used the methods of B. A. Dosphekhov, V. F. Moiseichenko, and M. K. Kayumov [9–11]. We calculated the doses of fertilizers using computer software for the planned yield of potato root crops from 20 to 50 t/ha. The results are presented in Table 2.

3 Results and Discussion In the south of Russia, the biological yield of spring-planted potatoes is higher than 40 t/ha, taken as a control indicator. The planned yield is calculated from the lowest indicators to the highest ever obtained when growing this variety in increments of 5 t/ha. Table 3 shows the studies’ results and includes the planned and actual yield, the total dose of fertilizers, and the increase in the yield of spring-planted potato tubers for 1 kg of the active substance of mineral fertilizers. The analysis of the obtained results allowed us to draw the following conclusion. When applying mineral fertilizers, the actual yield exceeded the planned yield by 4.8–10.6% for variants 1–5. For variants with a planned yield of 45–50 t/ha, the actual yield was less by 1.8–6.1%. The conducted research allowed us to establish the dependence of the yield on the total dose of mineral fertilizers (Fig. 1) and the increase in yield per 1 kg of the active substance of mineral fertilizers. The observed dependence shows that if the total dose of mineral fertilizers increases, the yield also increases. Nevertheless, a further increase in the doses of mineral fertilizers is impractical due to environmental restrictions (Fig. 2). The dependence of the yield of spring-planted potato on the increase in tuber yield per 1 kg of the active substance of mineral fertilizer shows a steady trend towards a decrease in the yield gain, depending on the resources spent on obtaining a unit of production.

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Table 3 Yield and yield gain depending on the doses of mineral fertilizers of spring, planted potatoes Experiment variant

Planned yield, t/ha

Real yield, t/ha

Total fertilizer dose, kg/ha

Increase in the yield of tubers, kg per 1 kg of the active substance of mineral fertilizers

1

20

22.1

238.8

92.5

2

25

27.6

300.8

91.8

3

30

33.2

362.8

91.5

4

35

36.7

424.8

86.4

5 (k)

40

41.3

486.8

84.8

6

45

44.2

548.8

80.5

7

50

47.1

610.8

77.1

Source Developed by the authors

Fig. 1 The dependence of spring-planted potato yield on the total dose of fertilizers. Source Developed by the authors

In irrigated agriculture, the total water consumption and the coefficient of water consumption act as one of the effectiveness indicators for the implementation of new technologies. These indicators classified according to experiment variants (Table 4). During the research, the irrigation rate for the cultivation of spring-planted potatoes on all variants of the experiment did not exceed 2.100 m3 /ha. At the same time, the total water consumption, depending on the received yield of root crops, varied in the range of 4.477–4.715 m3 /ha. The analysis of the obtained data showed that the total water consumption between the variants does not differ significantly. However, the yield differs two times. Thus, 4.477 m3 /ha of available moisture was used to produce 22.1 t/ha of products. The irrigation norm amounted to 44.5%. High potato yields are directly proportional to

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Fig. 2 The dependence of the spring-planted potato yield on the increase in the yield of tubers per 1 kg of the active substance of mineral fertilizers. Source Developed by the authors

Table 4 Water consumption of spring-planted potatoes depending on the doses of mineral fertilizers Experiment variant

Total water consumption, m3 /ha

Including irrigation norm, m3 /ha

Yield capacity, t/ha

Water consumption coefficient, m3 /t

1

4.477

2.100

22.1

202.6

2

4.518

2.100

27.6

163.7

3

4.552

2.100

33.2

137.1

4

4.569

2.100

36.7

124.5

5 (c)

4.613

2.100

41.3

111.7

6

4.650

2.100

44.2

105.2

7

4.715

2.100

47.1

100.1

Source Developed by the authors

the change in the water consumption coefficient. Thus, in the variants 5–7, no more than 120 m3 /t was spent to produce 1 ton of products, while in variant 1, with the lowest dose of used mineral fertilizers, the water consumption coefficient amounted to 202.6 m3 /t. The dependences of the crops of spring-planted potato on the total water consumption and the coefficient of water consumption are shown in Figs. 3 and 4. The obtained dependencies show that an increase in total water consumption increases productivity. As a result, the coefficient of water consumption decreases.

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Fig. 3 Dependence of yield on the total water consumption of spring-planted potato root crops. Source Developed by the authors

Fig. 4 The dependence of yield on the coefficient of water consumption of spring-planted potato root crops. Source Developed by the authors

4 Conclusion Thus, the studies conducted in the Rostov region’s central irrigated region on springplanted potatoes show that with the increase in the total dose of mineral fertilizers, the yield also increases, while the yield gain per 1 kg of the active substance of mineral fertilizers decreases. It should be noted that a further increase in doses of mineral fertilizers is impossible due to environmental restrictions.

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According to the results of the research, we established the following dependencies: • Yield by the total dose of fertilizers: y = −0.00008x2 + 0.1309x − 4.8534, R2 = 0.99; • Yields by the gain in the tuber yield per 1 kg of active substance of mineral fertilizers: y = −0.0715x2 + 10.785x − 359.89, R2 = 0.91; • Yield by total water consumption of spring-planted potato root crops: • y = −0.0003x2 + 3.2461x − 7670, R2 = 0.99; • Yield by the coefficient of water consumption: y = 0.0018x2 − 0.7899x + 107.12, R2 = 0.99.

References 1. Korsak VV, Pronko NA, Nasirov NN (2014) Usage of gis-analysis for assessing the natural conditions of irrigated cropping. Sci Life 2:18–24 2. Kurbanov SA, Borodichev VV, Litov MN (2017) Approaches to the organization of information and technical complexes of monitoring and irrigation management in real-time. Dev Probl Reg Agro-Industrial Complex 3:131–136 3. Podlipnov VV, Shchedrin VN, Babichev AN, Vasilyev SM, Blank VA (2018) Experimental determination of soil moisture on hyperspectral images. Comput Opt 42:5. https://doi.org/10. 18287/2412-6179-2017-42-5-877-884 4. Babichev AN (2016) Agromeliorative system of increase of efficiency of use of irrigated lands in the south of Russia (Dissertation of Doctor of Agricultural Sciences). Saratov State Agrarian University named after N. I. Vavilov, Saratov, Russia 5. Babichev AN, Olgarenko VI (2016) Technological approaches to irrigation regimes, rationing, and prediction apparatus of potatoes water consumption in conditions of the Lower Don. Sci J Russ Res Inst Land Improv Probl 2(22):148–165 6. Balakay GT, Babichev AN, Monastyrskiy VA, Olgarenko VI, Chertov VI, Martynov DV (2018) Device and technology of subsoil trickle seeds watering during sowing. Int J Adv Biotechnol Res 9:167–179 7. Shchedrin VN, Dokuchaeva LM, Yurkova RY (2018) Negative soil processes at continuous flow irrigation of various types of soils. Sci J Russ Res Inst Land Improv Probl 2(30). Retrieved from https://www.rosniipm-sm.ru/en/archive?n=531&id=532 8. Kayumov MK (1989) Field crop productivity programming. Rosagropromizdat, Moscow, Russsia 9. Dospehov BA (1985) Field experiment methodology. Agropromizdat, Moscow, Russia 10. Dospehov BA, Vasilyev IP, Tulikov AM (1977) Agriculture workshop. Kolos, Moscow, Russia 11. Moiseychenko VF (1996) Fundamentals of scientific research in agronomy. Kolos, Moscow, Russia

The Adaptation of In Vitro Potato Materials Applying Microbiologic Substances Julia N. Fedorova , Nadezhda V. Lebedeva , and Larisa N. Fedorova

Abstract The use of growth-regulating chemicals in its cultivation technology acts as a significant factor in increasing the crop of original potatoes. The paper assessed the studied growth regulators and determined their influence on plant performance. The midseason potato varieties “Zagadka Pitera,” “Sirenevy Tuman,” “Maiysky Tsvetok,” and “Gusar” are the object of our research. The research was conducted in 2018 in the laboratory of clonal micropropagation in plants and at the experimental site of the Velikolukskaya State Agricultural Academy. Data on the development of plants in natural conditions was obtained as a result of the research. It was found that the use of phytoregulators increases the productivity of potato plants. The most effective chemicals are Vitanolla and Mival-Agro, used in combination with amino acids. The analysis shows that processing stimulates tuberization and leads to an increase in the reproduction rate. Keywords Potatoes · Microbiologic substances · Meristem · Culture in vitro

1 Introduction Potatoes are one of the most important crops in Russia. A significant part of the population refers to it as their favorite food. The lack of high-quality domestic seeds is an acute problem not only within the regions of the country but also within its entire territory. This severely hinders the growth of potato crop productivity in Russia, as well as effective renovation and change of the varieties. The diversity of natural conditions and the abundance of potato producers have a significant impact on the goals and objectives of selection. The development of adaptive resource-saving technologies for growing high-quality seeds is one of the most urgent tasks of potato production [1, 2]. J. N. Fedorova · N. V. Lebedeva (B) · L. N. Fedorova Velikiye Luki State Agricultural Academy, Velikiye Luki, Russia J. N. Fedorova e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_83

761

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The use of growth-regulating substances in modern technologies of potato cultivation is a significant factor in increasing crop yield. This is especially true in deteriorating environmental situations. In order to increase the resistance of potato plants to pathogens and environmental stress factors, it is necessary to treat tubers and vegetate plants with microelements and growth regulators, which have a positive effect on increasing the crop of standard seed fraction and improving the quality of potato seeds [3, 4]. During the processing of vegetating plants, growth regulators serve as a biological catalyst, immunomodulator, and adaptogen at the same time. They activate vital physiological processes of plants, providing an increase in their productivity, as well as resistance to diseases and adverse factors. Vitanoll, Mival-Agro, and amino acids (aspartic and glutamic) are currently used. Amino acids are essential for growth. They act as spare compounds necessary for biological processes. The record shows that the plant spends a large amount of energy on their formation. Chemicals based on amino acids provide plants with preformed compounds. This way, they are not required to spend energy on their synthesis using macro and microelements, immediately including them in the composition of proteins and enzymes. Amino acids can act as plant growth stimulators [5].

2 Materials and Methods The research was conducted in 2018 in the laboratory of the clonal micro-propagation of plants of the Velikolukskaya State Agricultural Academy. The midseason potato varieties “Zagadka Pitera,” “Sirenevy Tuman,” “Maiysky Tsvetok,” and “Gusar” served as objects of the research. Their planting was carried out in the first third of May within a protected ground. In vitro crops were planted in the greenhouse ground in the 30 × 20 cm pattern. The number of registered plants −25, plot area −1.5 m2 in four repetitions. The feeding area of one plant is 60 cm2 . The number of registered plants per 1–17 m2 . Plant acclimatization was assessed every 3–4 days for the first two weeks after planting. The handling of plants in the protected ground consisted of systematic watering (top watering), row spacing bursting (after each watering), treatment with plant protection products and fertilizers. Mini-tuber harvesting was carried out in the first third of August with preliminary mowing of the tops two weeks before harvesting. The structure of the crop was determined according to the existing requirements for the nursery of mini-tubers. Observations and records in field experiments were carried out according to the generally accepted research method on potato culture. They included phenological observations, biometric indicators of plant growth and development, the prevalence of diseases among plants during growth, and tubers during harvesting. The study also accounts for the number and weight of tubers in the potato crop.

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1.

2.

3. 4.

5.

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Phenological observations: the beginning (10%) and mass (75%) emergence of sprouting; the first single buds (10%) and full budding (75%); the beginning (10%) and full anthesis (75%) of plants; top necrosis. Biometric studies (the number of stems, the number, and fractional composition of tubers) were performed by taking plant samples from each variant of the experiment for five plants at an interval of 10 days. Disease prevalence—a visual assessment of the pathology manifestation on a 9-point scale. Repeated leaf sampling aimed to assess the hidden viral infections of plants through the ELISA test. Leaf samples were used to evaluate 200 plants for each variety during the mowing of tops at the end of flowering. The tuber crops were accounted for by fractionation along the largest crosssection diameter, followed by counting and weighing the yield.

The field plot is based on sod-podzolic medium loam soil. The content of endo humus in the soil is 2.5%, pH-6.5. The content of the main nutrient elements: N— 50 mg/kg; P2 O5 —180 mg/kg; K2 O—200 mg/kg. The plow layer amounted to 25– 30 cm. To ensure under winter plowing, we applied 15 t/ha of manure. The fore crop is presented with pure steam. Background dose of mineral fertilizers N90 P180 K180 kg/ha. Repeatability in field experiments is fourfold, the registered area of the plot is 1.54 m2 . The plating pattern is 70 × 25 cm. Tubers were planted in the first third of May. Soil treatment was carried out in the following pattern: Fall—fall plowing, spring—scarifying, and ridge tillage. Handling consisted of one inter-row cultivation, hilling, late blight control spraying during top closing using Ridomil Gold MC (2.5 kg/ha), and Ditan M-45 (1.5 kg/ha), UNIFORM, SE after ten days. Vegetative plants were dressed in the following schemes: Vitanoll + L-glutamic acid, Vitanoll + L-aspartic acid, Mival-Agro + L-glutamic acid, Mival-Agro + Laspartic acid, with the solution consumption 1 l/10 m2 . Plants were dressed two times in the phases of budding and flowering. Potatoes were harvested manually. The crop was counted for every land plot. The obtained data were processed statistically. The research was conducted following generally accepted methods [6, 7] (Fig. 1).

Variety

Environmental conditions

Concentration l/m2

Control without processing Vitanoll + L-glutamic acid Vitanoll + L-aspartic acid Mival-Agro + L-glutamic acid Mival-Agro + L-aspartic acid

Fig. 1 The scheme of field experience. Source Developed by the authors

0 1 1 1 1

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3 Experiment The transplantation of potato mini-plants from in vitro culture to in vivo culture is one of the stress-factors leading to a decrease in resistance to pathogens and productivity. As plants fall into more rigorous conditions, their root system and stomatal apparatus are temporarily disrupted. Therefore, to achieve a stable result in changing environmental conditions, it is crucial not only to choose the right variety but also to apply cultivation techniques that can maximize the potential protective forces of the plant’s body. In our research, we studied the most promising domestic varieties for the North-West region. During the experiment, we used healthy in vitro potato crops planted on an isolated site in vivo and were treated with chemicals in the budding phase [8]. The vegetation of plants did not stretch and amounted to 108–113 days due to the favorable weather conditions. The planting–budding period ranged from 48 to 51 days; the budding-flowering period of plants occurred in a compressed period of 12–14 days. Not all varieties provided berries. Top withering and necrosis occurred almost simultaneously since the studied varieties belong to the same group. Biometric indicators of potatoes are essential for monitoring when getting the maximum yield. Biometrics data is presented in Table 1. The most significant number of roots per plant was formed when treated with Miwal-Agro and Vitanoll combined with L-glutamic acid for all the studied varieties. The maximum number of roots was recorded among the “Sirenevy tuman” variety using Mival-agro + L-glutamic acid 5.1 pcs/plant and Vitanoll + L-glutamic acid 4.8 pcs/plant. When studying the influence of factors on the number of stems per plant, the average degree of dependence on changes in factors was revealed (v = 19.62). Studying the influence of factors on the number of stems per plant using multivariate analysis of variance, we obtained the following statistically reliable results: • The environment factor has statistically significant influence (p = 0); • The variety factor has statistically significant influence (p = 0); • The combined influence of the environment and variety factors have a statistically significant influence (p = 0). Studying the influence of factors on changes in the indicator, the height of the stem, the average degree of dependence on changes in factors was revealed (v = 14.44). Studying the influence of factors on the height of the stem using multivariate dispersion analysis, the following statistically reliable results were obtained: • The environment factor has statistically significant influence (p = 0); • The variety factor has statistically significant influence (p = 0); • The combined influence of the environment and variety factors has statistically significant influence (p = 0).

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Table 1 Phytoregulator effect on biometric indicators of potato Variant

Number of stems per plant, pcs

Stem height, cm

Assimilative leaf surface m2 per plant

Thousand m2 /ha

Root weight, g per plant

2.8

50.1

0.54

21.8

25.8

Vitanoll + L-glutamic acid

3.2

66.2

0.65

23.2

27.9

Vitanoll + L-aspartic acid

2.9

58.3

0.61

22.1

26.4

Mival-Agro + L-glutamic acid

3.6

71.5

0.72

25.9

28.8

Mival-Agro + L-aspartic acid

2.9

60.3

0.56

22.0

25.9

2.9

76.2

0.62

22.5

26.8

Vitanoll + L-glutamic acid

4.2

83.3

0.80

30.3

30.8

Vitanoll + L-aspartic acid

3.7

75.5

0.75

26.2

28.9

Mival-Agro + L-glutamic acid

4.4

85.4

0.83

31.1

31.7

Mival-Agro + L-aspartic acid

3.0

82.3

0.68

23.7

22.6

3.6

77.6

0.70

25.3

24.8

Vitanoll + L-glutamic acid

4.8

87.4

0.89

33.1

32.2

Vitanoll + L-aspartic acid

4.0

85.2

0.71

25.5

28.6

Mival-Agro + L-glutamic acid

5.1

92.3

0.92

34.6

32.9

Mival-Agro + L-aspartic acid

4.2

86.4

0.79

27.3

30.3

2.5

69.2

0.53

21.2

24.2

Control, without processing

Control, without processing

Control, without processing

Control, without processing

Variety

Zagadka Pitera

Gusar

Sirenevy Tuman

Maiysky Tsvetok

(continued)

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Table 1 (continued) Variant

Variety

Number of stems per plant, pcs

Stem height, cm

Assimilative leaf surface m2 per plant

Thousand m2 /ha

Root weight, g per plant

Vitanoll + L-glutamic acid

3.8

73.3

0.69

24.9

28.1

Vitanoll + L-aspartic acid

3.3

70.1

0.65

23.1

27.7

Mival-Agro + L-glutamic acid

4.1

76.5

0.76

26.9

29.9

Mival-Agro + L-aspartic acid

3.2

65.1

0.67

23.5

28.0

Source Compiled by the authors

Studying the influence of factors on the root weight changes, we revealed a low degree of dependence on changes in factors (v = 9.64). The “Gusar” variety takes the second place within these variants with 4.4 pcs/plant and 4.2 pcs/plant, respectively. When treated with the same substances combined with L-aspartic acid, it showed better results than the control variant. The plants also differed in height among all the studied variants. The tallest plants were of the “Sirenevy tuman” variety when processed with Mival-agro and L-glutamic acid. The height of such plants amounted to 92.3 cm. Positive results were also observed in “Gusar” (85.4 cm) and “Maiysky tsvetok” varieties (76.5 cm). Treatment with Vitanol and L-glutamic acid provided similar favorable results. The worst results were obtained from the variety “Zagadka Pitera.” It showed the lowest indicators in the number of stems (2.8 pcs), and the stem height (50.1 cm). The development of the number and height of stems has a direct impact on the formation of the assimilation surface of leaves and root weight. The use of Vitanoll + L-glutamic acid and Mival-Agro + L-glutamic acid contributed to a 37% increase in the aboveground mass of plants compared to the control indicators. Along with the increase in the aboveground mass of plants, the experimental samples showed an increase in root growth, which later showed a positive trend in the formation of the yield. The analysis of the obtained data on the influence of phytoregulators on potato productivity shows that all variants with phytoregulators contributed to an increase in its productivity. The use of biological products is one of the solutions that can help to improve the adaptive properties of potatoes, providing stable yields in different weather conditions. It also reduces the anthropogenic load on the agroecosystem by reducing the fungicide in years with the highest disease development. The yield structure acts as one of the most important indicators of marketability. The maximum yield increase

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in the “Sirenevy Tuman” variety (74.1%) compared to the control indicators was observed in the variant with Mival-agro + L-glutamic acid treatment (Table 2). The effectiveness of Mival-Agro + L-glutamic acid is significantly lower in terms of yield increase (44.3%). The phytoregulator Vitanoll + L-glutamic acid also showed a positive effect with an increase in the yield amounting to 63.9%. Studying the influence of factors on changes in the indicator of productivity, the average degree of dependence on changes in factors was revealed (v = 20.71). Table 2 Crop structure depending on the use of phytoregulators on potatoes Variant

Control, without processing

Variety

Tuber weight, g/plant

Total tubers, pcs/plant

Number of tubers by a fraction, mm < 30

30–60

> 60

17.4

531.7

8

2

5

1

Vitanoll + L-glutamic acid

17.7

530.1

8

4

2

2

Vitanoll + L-aspartic acid

24.7

790.3

12

2

7

3

Mival-Agro + L-glutamic acid

25.3

801.2

10

4

5

1

Mival-Agro + L-aspartic acid

21.3

652.9

11

4

4

3

20.4

603.4

10

3

5

2

Vitanoll + L-glutamic acid

31.6

904.8

18

6

8

4

Vitanoll + L-aspartic acid

29.5

883.1

18

5

6

7

Mival-Agro + L-glutamic acid

33.2

982.6

19

4

9

6

Mival-Agro + L-aspartic acid

28.8

814.5

17

5

7

5

20.5

598.3

11

2

6

3

Control, without processing

Control, without processing

Zagadka Pitera

Yield capacity, t/ha

Gusar

Sirenevy Tuman

(continued)

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Table 2 (continued) Variant

Yield capacity, t/ha

Tuber weight, g/plant

Total tubers, pcs/plant

Number of tubers by a fraction, mm < 30

30–60

> 60

Vitanoll + L-glutamic acid

33.6

1032.6

19

4

10

5

Vitanoll + L-aspartic acid

30.1

854.7

18

3

7

8

Mival-Agro + L-glutamic acid

35.7

1436.8

21

2

13

6

Mival-Agro + L-aspartic acid

29.6

836.7

17

4

8

5

19.5

657.4

13

3

7

3

Vitanoll + L-glutamic acid

27.1

793.6

16

5

7

4

Vitanoll + L-aspartic acid

22.6

681.5

15

3

8

4

Mival-Agro + L-glutamic acid

28.4

803.6

17

4

10

3

Mival-Agro + L-aspartic acid

24.6

708.2

16

4

6

6

Control, without processing

Variety

Maiysky Tsvetok

Source Compiled by the authors

Studying the influence of factors on productivity using multivariate analysis of variance, the following statistically reliable results were obtained: • The environment factor has statistically significant influence (p = 0); • The variety factor has statistically significant influence (p = 0); • The combined influence of the environment and variety factors has statistically significant influence (p = 0). Studying the influence of factors on changes in the indicator of total tubers, a high degree of dependence on changes in factors was revealed (v = 25.85). Studying the influence of factors on the total number of tubers using multivariate analysis of variance, we obtained the following statistically reliable results: • The environment factor has statistically significant influence (p = 0);

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• The variety factor has statistically significant influence (p = 0); • The combined influence of the environment and variety factors has statistically significant influence (p = 0). No significant redistribution of fractions under the influence of phytoregulators was detected in the process of the study. However, when using Vitanoll and MivalAgro, there is a tendency to reduce the fine and increase the average fraction of tubers, although there are no significant differences between the use of these substances.

4 Conclusion The obtained data allow us to conclude that the use of phytoregulators increases the productivity of potato plants up to 50.6%. Vitanolla and Mival-Agro, in combination with amino acids, showed the most effective results. The increase gained through their use amounted to 23–51% compared to the control indicators. Processing stimulates tuber formation and leads to an increase in the reproduction rate, which is instrumental in the field of seed production. The highest reproduction rate was observed in the “Sirenevy Tuman” variety in the variant involving Mival-Agro + L-glutamic acid, which exceeds the control indicators by 40.1%. The biostimulator Mival-Agro increases the endurance of plants to adverse weather conditions, stimulates the development of the root system, increases the number of tubers (essential for potato production), reduces the vegetational season, increases the yield to 15% or more, and increases the starchiness of tubers. The use of Mival-Agro accelerated the maturation period by an average of 6–8 days, while the harvested crops show better preservation rates and are less affected by diseases. Acknowledgements Research is carried out with the grant support of the Foundation for Assistance to Small Innovative Enterprises in Science and Technology (Innovation Promotion Fund).

References 1. Simakov EA, Anisimov BV, Yurlova SM, Oves EV, Chugunov VS, Zeiruk VN, Uskov AI et al. (2011) Technological process of production of original, elite, and reproductive potato seed material. State Scientific Institution Lorch Potato Research Institute, Moscow, Russia 2. Starovoitov VI (2006) Modern technologies of potato cultivation: State, prospects of development. In: Potato growing in the regions of Russia. Topical problems of science and practice, pp 48–58 3. Morozov VV, Fedorova YN, Telpuk MB, Fedorova LN (2018). Factors of increasing the yield of potato in vitro. In: International scientific and practical conference “AgroSMART—Smart solutions for agriculture”. https://doi.org/10.2991/agrosmart-18.2018.133 4. Shevelukha VS (2016) Plant growth and its regulation in ontogenesis. Selected works. ITRK, Moscow, Russia

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5. Rebrova OY (2002) Statistical analysis of medical data. Application of the STATISTICA application software package. MediaSfera, Moscow, Russia 6. Dospekhov BA (1985) Methods of field experience. Agropromizdat, Moscow, Russia 7. Melnikov NN, Novozhilov KV, Belan SR (1995) Reference book. Pesticides and plant growth regulators. Chemistry, Moscow, Russia 8. Amelyushkina TA (2016) Application of organomineral fertilizers and microbiological substances to potatoes. In: Amelyushkina TA, Kislovskaya TV (eds) Current problems of development of the agro-industrial complex of the region in modern conditions: Materials of the scientific and practical conference with international participation. FSBSI Kaluga Research Institute of Agriculture, Kaluga, Russia, pp 158–164

Potato Selection and Seed Production as a Sustained Unified Process of Accelerated Development in the Potato-Product Subcomplex of the Russian Agro-Industrial Complex Sergey V. Zhevora , Vladimir V. Tulcheev , and Elena V. Oves Abstract Currently, 83–95% of open field vegetables in Russia are produced in personal subsidiary plots, farms, and small agricultural companies. These products are in demand among Russian citizens. However, large trading organizations refuse to distribute the products of these farms due to the alleged low economically valuable qualities of root crops. Due to the limited distribution channels of their products, small agricultural organizations cannot increase their production. We propose solving this problem by implementing a set of measures aimed at reorienting the breeding and seed production areas of potatoes and other vegetables for the needs of small agricultural producers. At the same time, it is necessary to produce specialized agricultural products, organize trade cooperatives, construct seed and food storage facilities accessible to farmers. The implementation of these measures will provide an opportunity to meet the needs of the Russian population and partner states. Keywords Breeding · Seed production · Varieties · Small forms of management · Seed production cooperatives

1 Introduction Genetics allows for creating new plant forms, including varieties of potatoes and vegetables of a competitive (compared to Western) agronomic character. These varieties give the maximum output (with 1 ton of raw materials or 1 hectare of crops) of different potato products (vacuum processed, frozen, roasted, dried, canned, etc.). Furthermore, the processors expand their lists of quality requirements for potato crops demanding potatoes of a particular shape, eye bedding, potatoes resistant to

S. V. Zhevora · V. V. Tulcheev (B) · E. V. Oves Lorch Potato Research Institute, Kraskovo, Russia e-mail: [email protected] E. V. Oves e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_84

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biotic and abiotic stress, scurf, late blight, and other qualities necessary within the conditions of resource-saving production of semi-finished and ready to eat potato and vegetable products.

2 Materials and Methods The methodological basis of the study is a systematic, integrated approach linking the genetics, breeding, and seed production of potatoes and vegetables of the “borscht set” with the final processed products. Statistical, abstract-logical, and modeling methods were used in the study.

3 Results In the EU, EAEC, and other countries of the world, there prevails bread-and-potato nutrition; in many regions, bread-and-potato nutrition is becoming more common. The Volga, Far Eastern, and Siberian Federal districts consume potato above the recommended level (about 95–100 kg), with an average consumption amounting to 112 kg/person/year. The bread and bread products show an average consumption rate of 117 kg/person per year [1]. In a message to the Federal Assembly, V. Putin, the President of the Russian Federation, made a statement that Russia ensured the independence of the wheat seed-stock. The first subprogram “The Development of Potato Breeding and Seed Production in the Russian Federation” of the Federal scientific and technical program for agricultural development for 2017–2025, was adopted in May 2018. It provides for the development of comprehensive measures for the implementation of import substitution [2]. According to the framework of the “Science” national project, 35 breeding and seed-growing centers and five agricultural and biological parks will be suspended to carry out extensive remedial work on existing equipment to change the current unfavorable state within the AIC. The inefficient state must be changed to strengthen cooperation within the triad of “education – science – business.” This topic became a priority in the Federation Council and the State Duma in recent years. The significant part of Putin’s report is dedicated to the open-ground potato and vegetable breeding, in which small farms in the country make up 93–95% of all sown areas. For example, private-owned and personal farms in 2015–2017, on average, cultivated 87% of potatoes (8% and 79.0%, respectively) and 79.5% of vegetables (15.1% and 64.4%, respectively) of the total gross harvest of Russia (Table 1). The data presented in the table indicates that industrial technologies (up to 96.6%) are only used to produce profitable and exporting crops with mostly guaranteed sale markets (grain, sugarbeet, and sunflower seeds) within environments equipped with grain elevators, warehouses, and storage facilities. At the same time, small agricultural organizations

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Table 1 The production structure for the main types of agricultural products by farm categories for the period 2015–2017, % Farm category

Grains (in bulk after adjustments)

Sugarbeet (factory)

Sunflower seeds

Potato

Vegetables

Small agricultural 72.5 organizations

88.9

69.7

13.0

18.5

Private-owned farms

26.6

10.7

29.9

8.0

16.1

Personal farms

0.9

0.4

0.4

79.0

65.4

Including 99.1 industrial technology (small agricultural organizations + private-owned farms)

99.6

99.6

21.0

34.6

Source: Compiled by the authors

and private-owned farms sorely lack storage for the most labor-intensive crops in the world (after rice), namely, potatoes and open-ground vegetables. Meanwhile, the quality of seed potatoes is increasing very slowly due to the destructed planned state system of seed production, insufficient funding for a single seed-breeding process, the integration of basic science, breeding, and seed production (including the cultivation of pre-base (original) seeds in scientific and industrial cooperation). Other factors include the lack of mass production of seeds of the elite potato and its subsequent reproduction (these are in high demand among consumers in specialized cooperatives with their own developed wholesale and retail network), the lack of domestic and international marketing, and the lack of a clear mechanism for collecting royalties to stimulate the development of breeding and original production. There is also no optimal combination of federal and regional management of potato seed production as an independent and highly profitable industry. Besides, there is no coherent seed certification system that guarantees quality control at all stages of the path to the consumer. There are not enough trained personnel for the work in the new conditions. In market conditions, all structures operating in the seed production system (breeding, variety testing, a certification system, production licensing, sale of seeds, and marketing) should be interested in the guaranteed provision of seed material to consumers of all forms of management. Since breeding is not one of the fundamental sciences, its success (through a variety or hybrid) can only reach the consumer through an established system of industrial varietal seed production, which is engaged in the production of original, elite, and reproductive seeds. Thanks to the mass creation of elite potato-seed production centers in favorable climatic and phytosanitary zones, regions, and districts, it is possible to provide the following:

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• The convergence of breeders of regional research establishments and seed growers with seed companies and their requirements; • A close link between breeders, seed growers, and wholesale and retail trade ensures the quality of seeds at all stages of their path to the consumer; • A quicker return of pledged funds invested in a single selection and seed-growing process; All seed material entering the trade must be subject to certification. The accompanying documents, containers, packages, or barcode labels must reflect the name of the variety, its origin, varietal and sowing quality, the manufacturer’s details, and other modern requirements, including international ones. The Russian Federal Law “On selection achievements” opens up the possibility of joining the International Union for the Protection of New Varieties of Plants, the Organization for Economic Co-operation and Development (OECD engaged in cooperation in the field of varietal seed certification in international trade), the International Federation on seed trade (promotes the use of seeds with a goal of an increase in food production), especially in developing countries [3]. The yield from 1 ha (or 1 ton of raw materials) of starch, alcohol, potato products, canned vegetables, etc. directly depends on the selection and seed production of promising varieties of potatoes and open ground vegetables. The cost of production, profitability, and profit of agro-industrial formations and, ultimately, the food and national security also depend on this factor. The biological combination of the creation of new zoned potato and vegetable varieties is the least expensive and the most effective factor in increasing field productivity. It also helps to establish the rational use of regional natural, climatic, soil, and economic conditions for the production of specific agricultural and its derivative products, while also using all known areas of intensification. These include bonification, complex mechanization, automatization, and digitalization of a single manufacturing process, storage, processing, pre-packaging, packaging, and sale (both on domestic and world markets) of potato products practiced within agro-industrial formations. Under these conditions, up to 90% of all labor and resource costs of production will end up under consolidated guidance within existing storage systems. The introduction of recognized, recyclable, drought, heat, diseases, pests, and mechanical harvesting resistant, processable long-life varieties of open ground potatoes and vegetables contributes to the development of the Russian potato and vegetable product subcomplex. It also reduces the losses in the system “from field to consumer” and the cost of production of fresh and processed products. In turn, waste-free processing of potatoes and vegetables eliminates the risk of contamination of the environment with organic waste, which will be used immediately on the spot for livestock feed. For example, targeted selection and seed production of “industrial” potato varieties suitable for the production of cheap potato products (frozen, fried, dried, canned, etc.) makes it possible to successfully compete with modern agro-industrial formations with highly mechanized and automated storage complexes (including rail side complexes) on the world market.

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The efficiency of the potato and vegetable seed production system at the federal, regional, district, and local levels and the accelerated promotion of new varieties in production depends on several factors: • Full implementation of the genetic potential of new varieties and achievements of domestic breeding; • The functional efficiency of agro-industrial enterprises and associations, as well as the entire potato and vegetable product subcomplex of the Russian agricultural sector in the world market; • Innovative development of potato and vegetable production and the fieldconsumer system as a whole in a single technological (product) chain; • Mass creation of highly profitable seed-oriented agro-industrial enterprises, other associations (including scientific production), and competition between them. This factor will reduce the cost of seeds, leading to the increase in the purchasing power of small agricultural entities and other individual potato and vegetable growers, which act as an integral component of the Russian potato and vegetable product subcomplex. Each of them contributes to the food and national security of Russia; • The participation of government, commercial banks, and various credit institutions in the creation of highly efficient seed and product manufacturing facilities. • Timely provision of agricultural manufacturers of all forms of management with a sufficient number of certified high-quality potato seeds and vegetable tubers of different maturation periods and required economic and biological indicators at economically reasonable prices. To increase the competitiveness of the Russian seed market and the economic efficiency of the AIC and its crop subcomplexes, it is necessary to establish the following: • The subsidization of the purchasing cost for Russian elite seeds of domestic selection; • The development of regional programs for the upgrowth of seed production in favourable areas of Russia, allocation of the necessary funds for their implementation, and the development of the technological base of selection and primary seed production; • The implementation of an accelerated pattern of breeding for new varieties with the use of specialized enterprises is customary throughout the world; • The allocation of additional funds for the practical implementation of the achievements of domestic breeding and seed production in research and production cooperatives, associations, and companies under the following scheme: the necessary demand for seeds within commercial farm organizations such as elite seed growers, private-owned farms, and research establishments (producers of original seeds of new varieties and hybrids). The selection and seed production are the most expensive means of biological intensification of the AIC and production of environmentally friendly agricultural

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products. However, without the development of the system of industrial varietal potato seed production, it is impossible to obtain cheap, high-quality seed materials that can provide high yields (not inferior to developed Western countries) and ensure high-quality potato products that will be competitive on the world market. A promising system of potato seed production should include high-tech breeding centers located within regional research establishments, combined with specialized seed farms and other elite farms, as well as regional unions (associations) of breeders and seed growers at the federal level. They should strengthen the coordinating and controlling functions of the state, including the protection of the achievements of domestic breeding and the interests of Russian seed consumers in conditions of high competition with foreign seed firms and companies. For example, the intensive growth of the global seed market was observed in the last few decades. The volume of international seed trade transactions (controlled by 15 multinational companies) increased tenfold and reached $10 billion [4]. In Russia, potato varieties and seeds are an essential market product with the inherent demand, supply, price, and competition inherent in any product. Since the material and technical base of industrial potato and vegetable production was seriously reduced during the reform period, there is often not enough money for the purchase of expensive fertilizers and protection products. Thus, soils, varieties, and high-quality seeds come to the fore to increase the yield of tubers and improve their quality (among other factors of intensification, including irrigation). To reach that goal, it is necessary to create a new and modernize the old material and technical base of the selection and seed-growing process, tying it to the final product of a single technological chain reproduction of elite and higher reproductions seeds. Furthermore, it is necessary to improve economic relations within the industry and between the creators of varieties and primary seed production, producers of elite seeds, and seeds of high reproduction, including the relations with producers of marketable products of all forms of ownership and management. At the same time, potato breeding and seed production should be developed as a single research and production complex at the regional and interregional levels on a long-term contractual basis, providing equal benefits to seed production in all parts of the unified seed chain with income depending on the quantity and quality of labor invested in the joint business. Besides, potato seed production is currently transformed into a structure of independent seedbreeding or seed-growing domestic and foreign firms, companies, and associations competing for their consumers, stepping away from a centrally managed unified structure of the Soviet period. Seed farms and cooperatives independently choose their areas of activity (early varieties, varieties of different ripeness, including those suitable for processing, etc.). In contrast, commodity farms and associations buy seed material of necessary reproduction in the volume necessary for their goals and objectives. In turn, the state is moving away from administrative and regulatory measures and turns to primarily supervisory, economic, regulatory, and coordinating measures practiced within the developed countries. The attempts to transform the selection and seed production into a single unified structure (selection, original and elite seed-growing, on-farm seed production in commercial farms) were already observed during the Soviet period.

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These attempts involved the creation of research and manufacturing associations for potatoes, vegetables, etc. based on experimental production farms, which are currently unable to compete with agricultural production and trade cooperatives, which annually produce 7 thousand tonnes of potato seeds of higher reproduction with the marketability of 80–90%. Meanwhile, in the West, farmers who produce seed potatoes are prohibited from growing ware potatoes. Lorch Potato Research Institute and the potato variates developed to contribute to the food security of the country and the constant growth of crop yields within private-owned farms and small agricultural organizations, due to their influence on the development of domestic seed production. The development work conducted within the Lorch Potato Research Institute and the enforcement of science-based standards and recommendations on varietal and sowing qualities of seed potatoes is one of the essential conditions for the increase in potato yield, which felt an overall decrease in all categories of farms with 159.1 kg/ha in 2015 to 156.0 kg/ha in 2017 while reducing the total yield of tubers in the country from 33.7 to 29.6 million tonnes (lower by 4.1 million tonnes). On average, from 1995 to 2000, the profitability of production of seed and ware potatoes across the entire system of small agricultural organizations under the supervision of the Lorch Potato Research Institute amounted to 62.2%, while Russian agricultural enterprises, on average, showed indicators of 35.5% (27% less) [5].

4 Discussion Nowadays, the task is to recreate the selection and seed-growing structure of potato production on a new market contractual basis and mutual economic interest for achieving high final results of the joint work of all partners in cooperation. New structures can have different finality of the selection and seed-growing process, integrating selection and original and elite seed production and implementing high-reproduction seeds. The best option is the closed selection and seed-growing process led by the research establishments, which combines the sales of elite and subsequent reproductions in each Russian region while taking into account the diversity of natural, climatic, soil, and economic conditions. It should also consider the availability of the recognized varieties, other regional features of seeds, production of potatoes of the required volume, assortment, and quality of seeds, especially suitable for processing into highly profitable potato products. When it comes to the questions of improvement within the economic mechanism of management in scientific-production or other associations, an important role belongs to the employees of a single seed-growing process, which should promptly and competently defend their interests, while negotiating the issues of the definition of seed policies at the regional level, including the pricing and sales fields. It is possible to force employees of a single selection and seed-growing process to produce varieties in demand among consumers by improving the royalty mechanism. One of the primary sources of the effective work of the association is the production

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of high-performance varieties of high-quality potatoes, which, in any case, will find their consumers in the country and abroad, as they are effective and high-yielding. The reproduction of original seeds is usually carried out by the originators of varieties, which are mainly Russian scientific institutions, and exist in almost all regions of the country. Under long-term agreements with seed organizations, they control the process. The experience of the Krasnodar Research Institute of Agriculture named after P. Lukyanenko (contracts with 200 farms), the Research Institute of Agriculture of Central Nonchernozem Belt Areas, and the Dutch seed companies “Agrico” and “HZRC,” which unite 800–1200 seed farmers as part of private highly qualified breeders, serve as an example of the process mentioned above [6]. To ensure an effective process of seed production of promising open ground potato and vegetable varieties in the country, it is necessary to equip it with modern material and technical base of production, storage, branded packaging of seed under its brand in each region rich with potato and vegetable with the necessary highly qualified personnel, including personnel dealing with crop survey, determination of varietal and sowing qualities, seed certification, etc. Under these circumstances, the share of promising varieties in the crop of potatoes and vegetables can reach 30%–50%. Other factors include agricultural equipment, fertilizers, chemicals, timely treatment for diseases and pests, watering, cleaning, and laying for 24 h, storage with the inclusion of ventilation to heal the damage and increase the layers of the periderm while bearing in mind that diseases cannot penetrate undamaged potatoes and vegetables. The establishment of modern seed production equipped with highly mechanized and automated seed and food storage systems in potato-growing regions of the country within specialized agro-industrial enterprises and associations based on public and private investment will provide a powerful breakthrough in the development of all potato and vegetable grocery subcomplexes of the Russian Federation which will allow the domestic potatoes and vegetables to return to the leading position in the world.

5 Conclusion Currently, only 20% of vegetables are grown from domestic varieties and hybrids and up to 50% of potato varieties in the state register of the Russian Federation, which indicates the weak competitiveness of Russian breeding and seed research organizations [7]. Genetics became the scientific basis of breeding and now leads to several changes in order not only to achieve high yields of potatoes and vegetables but also to reach high quality of the final (including processed) products. Consumers choose the “borsch set” and the products of its processing according to their taste and quality. The plant breeders, seed growers, and producers of such products base their choice on dozens of criteria (resistance to heat and drought, productivity, sugar, dry matter, and micronutrient content, resistance to mechanical damage, long shelf life, minimal waste during processing, etc.). All these criteria help to reach the highest quality of potato and vegetable products accessible for the consumer. Seed breeders

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need to increase the share of domestic varieties and hybrids on the Russian market and enter the world market with environmentally friendly potato and vegetable products that are in high demand both in Russia and abroad.

References 1. Ministry of Agriculture of the Russian Federation (2018) Agriculture of Russia. FSBI Rosinformagroteh, Moscow, Russia 2. Prudnikov AG, Gorpinchenko KN (2016) Improving the system of seed production of grain crops in the Krasnodar Krai. Sci J Kuban State Agrarian Univ 115(01):12–16 3. Berezkin AN, Malko AM (1998) Crop seed organization in Canada. Publishing House of the Moscow Artists Academy, Moscow, Russia 4. Panarina VI (2018) Development of seed production as a basic aspect of import substitution. In: Parity of relations in the agricultural sector of the economy: scientific and practical support and implementation mechanisms. Polygraphist, Moscow, Russia, pp 268–269 5. Tulcheev VV, Pryamov SB, Lukin ND, Mindrin AS, Yagfarov OM (2014) Innovative organizational, economic, technical, and technological scientific developments implemented in practice in the field of production, storage, processing, commodity preparation, and sale of potatoes in the conditions of cooperation and integration. Russian Agricultural Academy, Moscow, Russia 6. Medvedev AM (2009) On improving the system of seed production of agricultural plants. In: The state and prospects in seed production of the Russian Federation in the framework of the state program for the development of agriculture and regulation of the market for agricultural products, raw materials, and food for 2008–2012. Kurgan, Russia, pp 21–28 7. Klimenko NN, Karkov GI (2019) Vegetable selection: From laboratory to field. Newsl Ministry Agric Russ Fed 6:37–39

New Canned Products for Dietetic Nutrition Based on Animal Hearts Olga A. Mitryashkina , Lidija V. Shulgina , and Yuriy P. Shulgin

Abstract To improve the regeneration of elastic tissues, a person needs to consume at least 5 g of amino acids producing collagen on an everyday basis. The products made from collagen-containing raw materials can serve as the source of this element. The destruction of collagen-containing raw materials occurs under the influence of high temperatures used when manufacturing canned products. During sterilization, the triple helices of collagen are disaggregated, forming peptides that are well absorbed by the human body. Hearts of farm animals are promising raw materials. Their collagen content in the total amount of proteins is 4.5–4.8%, which significantly exceeds its amount in the proteins of beef and pork. The technology and recipes for new types of canned food made of hearts of pigs and cattle were developed. Beans and vegetables are served as additional ingredients. Combined canned food based on animal hearts and vegetable raw materials is marked with high organoleptic characteristics. Its protein content amounted to 10.7–12.6%, fat content −7.6–9.1%. The content of collagen-forming amino acids, proline, and hydroxyproline, per 100 g of canned food amounted to 0.85±0.5 g, which provides the human body with 16.5±0.5% of the daily consumption norm. New types of canned food additionally serve as a source of iron. Its amount is equal to 2.9±0.3 g/100 g of product. Canned food based on the animal heart is recommended as a specialized product for the dietetic nutrition of older people and people with reduced elastic tissue regeneration. Keywords Animal hearts · Collagen · Canned food · Composition · Dietetic nutrition

O. A. Mitryashkina (B) · L. V. Shulgina · Y. P. Shulgin Far Eastern Federal University, Vladivostok, Russia L. V. Shulgina Pacific Branch of the Federssal State Budget Scientific Institution Russian Federal Research Institute of Fisheries and Oceanography, Vladivostok, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_85

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1 Introduction Rational processing and maximum use of all meat resources in obtaining high-quality products, including the development of technologies for new types of products with a given composition and properties, is one of the current directions of the meat processing industry [1]. In the production of ready-to-eat products, farm animal byproducts, and hearts, in particular, remain in low demand. They act as a secondary by-product, while its cost is significantly lower than that of animal meat. In terms of nutritional and energy value, hearts are somewhat inferior to animal muscle tissue, but they contain significantly less fat and exceed meat in terms of specific vitamins, minerals, and collagen [2–4]. The quality of animal protein contained in the heart is similar to that of animal muscle tissue [5]. Products and dietary supplements with increased content of digestible collagen normalize metabolism in the human body, slow down the aging process, and prevent many diseases among older people and people with reduced regeneration of elastic tissue [6–10]. Thermal preservation is a rational method of processing collagen-containing raw materials. Under the influence of high temperature, collagen molecules disintegrate as a result of disaggregating its triple helices into smaller subunits—peptides, which significantly increases its availability to the human body [1, 11, 12]. It is possible to combine animal and vegetable raw materials to manufacture canned food, which allows balancing the product by the composition of nutrients and supplementing it with food or biologically active substances.

2 Materials and Methods Canned food made from the hearts of farm animals, beans, vegetables, and other components served as the main objects of the research. Metal cans No. 6 were used to produce canned food. Organoleptic evaluation of ready canned food determined the appearance, smell, taste, and consistency of the product. The mass fraction of water was determined by drying the bulk of the crushed sample at a temperature of 105 °C at a constant weight. Mass fraction of proteins was determined by the Kjeldahl method using the automatic device Kjeltec Auto Analyser 2300 (Sweden). The mass fraction of fat was determined by the Soxhlet method. The level of minerals was determined by the method of dose by weight cinefaction at a constant weight in a muffle furnace at 550 °C. The amino acid composition of proteins was determined using an amino acid analyzer “Hitachi L-8800” (Japan). The amino acid score was calculated through the ratio of the amount of each essential amino acid in the test protein to the amount of that in the FAO/WHO amino acid sample [13]. The content of collagen, tryptophan, and oxyproline amino acids was determined according to the recommended methods

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[3]. The relative biological value was determined by accelerated biological evaluation using Tetrahymena pyriformis infusoria as an indicator object [14]. The elemental composition was determined by atomic absorption spectrometry using a flame atomic absorption spectrometer “Nippon Jarrel Ash AA-855” (Japan). During the development of canned food sterilization modes ensuring industrial sterility of products, the temperature, and the actual sterilizing effect measurements were controlled using a device produced by ELLAB (Denmark). The duration of the heat treatment, the temperature of the heating medium, and the pressure in the autoclave during sterilization and cooling were taken into account.

3 Results The total chemical composition and energy value of farm animal hearts compared with muscle tissue are shown in Table 1. The content of collagen in the total amount of proteins in beef hearts is 4.8±0.5%, in pork hearts—4.5±0.4%, which is significantly higher than its amount in the proteins in beef (2.2±0.2%) and pork (1.8±0.2%). To assess the quality of proteins in animal hearts, we studied their amino acid composition and compared them with the standard amino acid sample (according to FAO/WHO) (Table 2). The proteins of beef and pork hearts do not contain limiting amino acids, while the ratio of essential acids is close to that of the standard sample. The sum of collagen-forming amino acids (proline and oxyproline) in beef hearts is 7.3 g/100 g of protein, pig hearts −6.4 g/100 g of protein. When converted to 100 g of raw beef hearts, the number amounted to 1.2 g, pig hearts −1.05 g. This amount allows one to meet the daily consumption norm by 21.0–24.0%. In contrast, the amount of proline and oxyproline in animal muscle tissue is two times less and amounted to not more than 0.5/100 g. While studying the elemental composition of animal hearts, we found that they are marked with very high iron content. In raw pork hearts, the amount of iron reached Table 1 Nutritional and energy value of animal hearts and meat Value

Content (g/100 g) in Beef heart

Beef

Pig heart

Pork

Water

77.8±2.1

67.0±2.5

76.8±1.9

54.4±1.7

Protein

14.3±2.1

16.0±1.1

19.2±1.0

16.2±1.0

Fat

3.7±0.5

12.9±2.1

3.2±0.3

30.4±2.8

Carbohydrates

2.0±0.3

–

2.3±0.2

–

Mineral substances Calorific value, kcal

1.1±0.1 100.8±8.3

Source Developed by the authors

0.9±0.1 192.9±23.3

1.0±0.2 107.3±9.3

0.9±0.1 330.8±34.0

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Table 2 Amino acid composition of animal heart proteins Amino acid

FAO/WHO amino acid sample, g/100 g of protein

The content in hearts Beef g/100 g of protein

Pig AC

g/100 g of protein

AC

Valine

5.0

5.6

112.0

6.1

122.0

Isoleucine

4.0

5.1

127.5

4.4

110.0

Leucine

7.0

8.6

122.8

8.3

118.5

Lysine

5.5

8.6

156.3

8.3

105.1

Methionine + cystine

3.5

4.0

133.3

3.5

100.0

Threonine

4.0

4.5

112.5

4.5

112.5

Phenylalanine + tyrosine

6.0

7.1

118.3

7.6

126.6

130.0

1.2

120.0

Tryptophan

1.0

1.3

 essential amino acids

36.0

44.8

43.9

Aspartic

9.7

10.0

Serine

4.0

4.2

Glutamic

13.5

14.5

Alanine

6.3

5.9

Glycine

5.5

5.3

Histidine

2.8

3.0

Arginine

5.3

5.8

Proline

6.0

5.7

Oxyproline  non-essential amino acids

1.3

1.0

54.4

55.4

Source Developed by the authors

4.1±0.2 mg/100 g, beef hearts −4.7±0.3 mg/100 g, which is 27.3–30.3% of the daily norm of its consumption for humans. We made several compositions of canned food based on farm animal hearts and raw vegetables. The variants with the best organoleptic characteristics are presented in Table 3. To assess the quality of canned food, we simultaneously produced control samples in which the animal hearts were replaced by beef and pork. Beans were used as one of the main components. They were chosen due to the high content of proteins of balanced amino acid composition (20.6±1.1%), as well as carbohydrates (46.9±2.1%), and minerals (3.5±0.5%). It also contains enough collagen-forming amino acids −1.0/100 g.

New Canned Products for Dietetic Nutrition Based on Animal Hearts Table 3 Mix formulation for obtaining canned food

Components

785 Option 1 %

Option 2 %

Animal hearts

60.0

Beans

12.0

65 –

Saute carrot

6.0

9.0

Saute onion

7.0

10.0

Vegetable oil

5.0

7.0

Table salt

1.5

1.5

Ground black pepper

0.05

0.05

Ground allspice

0.05

0.05

Water

7.5

Total, factoring the losses (2.0%)

100.0

5.5 100.0

Source Developed by the authors

The introduction of saute onions and carrots into the recipe will help to enrich the product with carbohydrates, dietary fibers, and provide specific taste and aroma [11]. Frozen animal hearts were thawed, cleaned, washed, and cut into pieces measuring 0.5 × 1.5 cm. Beans were inspected (substandard impurities were removed) and soaked for 4 h in water at 50–60 °C at a mass ratio of 1:3. The beans were then thoroughly washed and dewatered. Vegetables were cleaned, washed, cut into pieces no larger than 1.0 × 1.5 cm, onions were sauteed in vegetable oil to a light golden color. Carrots were sauteed until the removal of free water. The mixtures prepared according to the recipes, were thoroughly mixed. For option 2, the mixture was crushed on a cutter to a paste mass. The mixtures were packed in tin cans No. 6 (net weight 245 g) and rolled up on a vacuum transfer machine. Canned food was sterilized in an AB-type autoclave by steam at a temperature of 120 °C and cooled with water with back pressure (0.20 MPa). The duration of the sterilization of canned food in cans No. 6 amounted to 50 min. The value of the sterilizing effect reached 10.6±0.2 conditional minutes providing industrial sterility of the canned food. Sterilized canned food samples were characterized by high organoleptic characteristics (good appearance, taste, and smell, juicy and soft consistency), and were suitable for use as a second course when heated or as a cold snack. The canned food of control samples (precisely option 2) showed less juiciness with noticeable lumps of frozen animal fat. Comparative characteristics of the food and energy value of canned food based on heart and animal meat are shown in Table 4. In terms of protein content, canned food based on animal hearts did not significantly differ from products based on muscle tissue. The fat content was significantly lower than that of the control samples, which defined the reduced energy value of the product. The relative biological value of canned food (relative to casein) before sterilization amounted to 78.5±3.6%, with 89.0±3.8% after sterilization.

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Table 4 Food and energy value of canned food Values

Option 1 Experimental (with an animal heart)

Option 2 Control (with animal meat)

Experimental (with an animal heart)

Control (with animal meat)

Water, %

72.4±1.9

66.9±1.2

77.0±1.7

69.4±1.3

Protein, %

12.6±0.4

12.5±0.9

10.7±0.4

11.3±1.6

Fat, %

7.6±0.3

14.7±1.6

9.1±0.2

17.5±2.1

Carbohydrates, %

5.6±0.6

4.2±0.4

1.8±0.2

0.5±0.1

Mineral substance, %

1.8±0.2

1.7±0.1

1.4±0.2

1.3±0.1

Energy value, kcal

141.2±6.7

199.1±19.6

131.9±5.8

204.7±25.7

Source Developed by the authors

Table 5 The content of functional ingredients in canned food samples Canned food based on

Recommended the daily level of consumption

Content in canned food per 100 g of product

The proportion of the recommended consumption level, %

Amino acids involved in the synthesis of collagen, g Animal hearts

5.0

Animal meat

0.85±0.5

16.5±0.5

0.53±0.3

10.9±0.3

2.9±0.3

19.3±2.0

1.5±0.4

10.0±2.7

Iron, mg Animal hearts

15.0

Animal meat Source Developed by the authors

Table 5 shows data on the content of functional ingredients in various versions of canned food. The content of amino acids involved in the synthesis of collagen in canned meat-based on beef and pig hearts amounted to 0.85±0.5 in 100 g, which covers the human body need by 16.5±0.5%. Their content is significantly lower in products where animal hearts were replaced by beef and pork. The iron content in experimental versions of canned food is almost two times higher than in samples of products based on animal meat.

4 Discussion The content of essential nutrients and the energy value of the hearts of cattle and pork are not significantly different. The amount of protein in animal hearts is slightly lower than that in beef. Compared with animal meat, their energy value is significantly lower

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due to lower fat content. In this regard, animal hearts are promising raw material for obtaining meat products with reduced energy value. There are no limiting amino acids in animal heart proteins. The ratio of essential amino acids is close to that in a standard sample, which indicates their usefulness. The high content of proline and oxyproline necessary for the formation of the primary collagen structure determines the possibility of using animal hearts to produce products for a group of people with reduced processes of elastic tissue regeneration. The new assortment of canned food containing farm animal hearts, legumes, and vegetables was represented by such combined products as solyanka and pate. Canned food is as a source for functional ingredients like amino acids involved in the synthesis of collagen (proline and oxyproline) and iron. Similar products based on pork and beef are significantly inferior to the developed types of canned food in terms of the content of collagen-forming amino acids and iron. After sterilization of canned food based on animal hearts at a temperature of 120 °C for 50 min, an 11.8% increase in the relative biological value was observed. Increased protein uptake by the indicator object (Tetrahymena pyriformis infusoria) is caused by the thermohydrolysis of collagen in the product during high-temperature processing and the breakdown of its molecules into components more accessible to the living organism.

5 Conclusion Farm animal hearts are a promising raw material for the production of canned food with increased content of amino acids involved in the production of collagen in the human body. Legumes (including beans) are recommended as additional components for the production of combined canned food from animal hearts with increased collagenforming amino acids. The study developed the technology for the production of canned food based on animal hearts as a source of iron and amino acids involved in the formation of collagen. Canned food based on animal hearts is recommended as a specialized product for the dietetic nutrition of older people and people with reduced elastic tissue regeneration.

References 1. Lisitsyn AB (2007) Modern aspects of the thermal preservation of meat products. Republic, Moscow, Russia 2. Antipova LV, Glotova IA (2006) The use of secondary collagen-containing raw materials in the meat industry. GIORD, Moscow, Russia

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3. Antipova LV, Glotova IA, Rogov IA (2001) Methods for researching meat and meat products. Ear, Moscow, Russia 4. Pavlovsky PE, Palmin VV (1975) Biochemistry of meat. Food Industry, Moscow, Russia 5. Nikitina MA, Zverev SV (2018) Assessment of the quality of animal protein. All About Meat 1:50–55 6. Bello AE, Oesser S (2006) Collagen hydrolysate for the treatment of osteoarthritis and other joint disorders: a review of the literature. Curr Med Res Opin 22(11):2221–2232 7. Daneault A, Prawitt J, Fabien SV, Coxam V, Wittrant Y (2015) The biological effect of hydrolyzed collagen on bone metabolism. Crit Rev Food Sci Nutr 10:1040–8398 8. Ismailov DY, Zinoviev SV, Erokhina ON, Volik VG (2015) Rational methods of processing collagen-containing raw materials. Poul Poul Prod 6:55–57 9. Jaksic T, Wagner DA, Burke JF, Young VR (1991) Proline metabolism in adult male burned patients and healthy control subjects. Am J Clin Nutr 54:408–413 10. Porfírio E, Fanaro GB (2016) Collagen supplementation as a complementary therapy for osteoporosis prevention and osteoarthritis: A systematic review. Rev Bras Geriatr Gerontol 19:153–164 11. Roshchina AD, Shulgina LV (2015) The technology of new canned products of functional orientation based on chicken offal. Food Ind 8:51–54 12. Shulgina LV, Dolbnina NV, Shvidkaja ZP, Davletshina TA, Solodova EA (2010) New types of canned food based on Japanese cucumber. Technol Technol Food Prod 3:56–60 13. WHO/FAO/UNU Expert Consultation (2002) Protein and amino acid requirements for human nutrition. World Health Organization, Geneva, Switzerland 14. Shulgin YP, Shulgina LV, Petrov VA (2006) Accelerated bisotic evaluation of the quality and safety of raw materials and products from aquatic biological resources. Pacific State University of Economics, Vladivostok, Russia

Applying the Precision Irrigation Technology to Address the Deficit of Water Resources in the South of Russia Sergey M. Vasilyev , Alexander N. Babichev , and Vladimir I. Olgarenko

Abstract The development of precision irrigation is caused by the need to account for soil, climate, water, organizational, and economic specifics of the fields and plots. Precision irrigation reduces the consumption of water, energy, and other resources. It increases the effectiveness of tending to crops, raises the productivity of plants, and maintains even soil moisture on all plots. In 2019, we conducted a two-factor field test on the territory of the “Biryuchekut Olericulture Experimental Station”—a branch of the “Federal Research Centre of Vegetable Production.” In the test, we planted spring potatoes. As a result, we established the following technical characteristics: crop yield, total water consumption, irrigation norm, and water balance coefficients. We established the dependency of spring potato yield on the total dose of fertilizers and water consumption in precision irrigation. We analyzed the field experiment results and concluded that precision mineral fertilization and precision irrigation are the most effective methods of growing spring potatoes. Keywords Precision irrigation · Mineral fertilizers · South of Russia · Natural moisture deficit · Technology · Spring potatoes

1 Introduction The development of new technologies and software increased the efficiency of conventional farming methods and presupposed the appearance of new ones. One of the new farming methods is precision irrigation. Precision irrigation allows receiving stable and high yields, conserving limited water resources, and following sustainable development principles [1]. Precision irrigation is mainly implemented by constant monitoring of nutrients and moisture in soils of micro-plots [2]. Currently, agricultural operations do not account for the small-scale changes and variability of soils. Therefore, the yields of

S. M. Vasilyev · A. N. Babichev · V. I. Olgarenko (B) Russian Scientific Research Institute of Land Improvement Problems, Novocherkassk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_86

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specific crops fluctuate significantly. This method also leads to increased resource consumption, soil degradation, and reduced efficiency of irrigated agriculture [3, 4]. Precision agriculture controls the water distribution per unit of land, thus leveling the soil moisture content and reducing the anthropogenic stress on limited water resources. Conserving water is a top priority in Russia and the entire world [5]. Smart sprinklers are currently being developed in Russia and abroad. They allow monitoring water consumption on each segment of the irrigated area, thus leveling soil moisture and decreasing loss of productive moisture. This allows improving the productivity and efficiency of crops while conserving water [6, 7]. Plot-specific application (i.e., considering all specific features of crops and soils) of nutrients, fertilizers, pesticides, and other agrochemicals is more economically efficient. It increases the productivity of crops and reduces impractical resource use. This technology is the most conducive to precision irrigation. It allows saving resources, increasing agricultural production profitability, and maintaining soil fertility [8].

2 Materials and Methods We propose developing an information management system. This system is based on remote sensing data and governs plant growing, irrigation, and other activities. The model of the information management system and its functional structure is presented below (Fig. 1). In this study, we conducted a field experiment on experimental field plots. The experiment was repeated three times [9]. The main objective of the experiment is to establish the impact of precision irrigation and mineral fertilizers on the productivity of spring potatoes. The experiment is two-factor. Factor 1 “Irrigation method”: (1) (2) (3)

No irrigation (control group); Dosage recommended by the zonal cropping systems [ZCS] [10]; Precision irrigation. Factor 2 “Mineral nutrition”:

(1) (2) (3)

No fertilizers (control group); Dosage recommended by the ZCS; Precision dosage.

The experiment was conducted on the territory of the “Biryuchekut Olericulture Experimental Station” (Yasny village, Bagaevsky district of the Rostov Region). The predominant type of soil is ordinary chernozem with medium humus content. The boiling line (from the increased content of hydrochloric acid) is at a depth of 40–50 cm; the clay content in the 0–1.0 m soil layer is more than 55%. The experiment site is in the center of the irrigated agriculture zone of the Rostov region. The climate is hot and arid. The Hydro-thermal Coefficient of Selyaninov

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791

Fig. 1 Functional structure of the information management system

(HTC) is less than 0.7; the Territorial Moisture Coefficient of N. N. Ivanov (TMC) is 0.33–0.44. The sum of positive temperatures in the growing season is 3200–3400 °C. The temperatures reach the mark of 10 °C in mid-April. The annual precipitation is 500 mm, only around 250 mm in the growing season. In the experiment, precise irrigation was implemented by using hyperspectral imaging data (remote sensing).

3 Results and Discussion The experiment allowed us to establish the influence of various cultivation technologies on the yield, productivity, sum water consumption, irrigation norms, and water consumption coefficient of spring potatoes. The results are presented in Tables 1 and 2. The productivity of spring potatoes changed significantly: • From 12.2 to 22.1 t/ha in non-irrigated plots; • From 25.2 to 43.7 t/ha in plots irrigated according to ZCS recommendations; • From 28.1 to 45.2 t/ha in plots with precise irrigation. The fertilizer-caused increases in productivity were 9.9, 18.5, and 17.1 t/ha (more by 0.7, 2.3, and 3.5 t/ha, respectively, compared to ZCS recommendations). The irrigation-caused increases in productivity on the plots with precision fertilizer

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Table 1 The productivity of spring potatoes depending on the irrigation technologies and fertilizer dosage Productivity, t/ha

Increase From irrigation

From fertilizers

t/ha

%

t/ha

%

No irrigation No fertilizers

12.2

–

–

–

–

N160 P180 K160 (recommended by ZCS)

21.4

–

–

9.2

75.4

N160 P175 K150 (precision dosage) 22.1

–

–

9.9

81.1

80% lowest soil moisture in 0.6 m horizon (recommended by ZCS) No fertilizers

25.2

13.0

106.6

–

–

N160 P180 K160 (recommended by ZCS)

41.4

20.0

93.4

16.2

64.3

N160 P175 K150 (precision dosage) 43.7

21.6

97.7

18.5

73.4

Precision irrigation No fertilizers

28.1

15.9

130.3

–

–

N160 P180 K160 (recommended by ZCS)

41.7

20.3

94.9

13.6

48.4

N160 P175 K150 (precision dosage) 45.2

23.1

104.5

17.1

60.9

HCP05

2.43

dosage were 20 and 21.6 t/ha (more by 1.6 and 2.8 t/ha, respectively, compared to ZCS recommendations). By analyzing the experiment data, we established the empirical dependency of productivity dynamics on fertilizer application. We compared two dynamic curves: with ZCS-recommended irrigation and with precise irrigation (Fig. 2). The curve equations (quadratic equations with corresponding approximation coefficients) are presented in Formulas 1 and 2: Y = −0.43 ·



Y = −0.29 ·

NPK2 + 7.26 ·





NPK2 + 5.63 ·

NPK + 14.11, R 2 = 0.85



NPK + 19.6, R 2 = 0.88

(1) (2)

where Y 

NPK

Is productivity, t/ha, Is sum fertilizer dosage, kg/ha.

Depending on fertilizer dosage, the water consumption of spring potatoes changed in non-irrigated plots from 2996 to 3343 m3 /ha; in plots irrigated according to ZCS recommendations from 4365 to 4562 m3 /ha; and in precision-irrigated-plots from

Applying the Precision Irrigation Technology to Address …

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Table 2 Water consumption depending on fertilizer application and irrigation method Sum water consumption, mm

Irrigation norm, m3 /ha

Water balance deficit coefficient, m3 /t

Water consumption coefficient, m3 /t

No fertilizers

296.6

–

–

243.1

N160 P180 K160 (recommended by ZCS)

334.3

–

–

156.2

N160 P175 K150 (precision dosage) 320.7

–

–

145.1

No irrigation

80% lowest soil moisture in 0.4 m horizon (recommended by ZCS) No fertilizers

436.5

2.100

83.3

173.2

N160 P180 K160 (recommended by ZCS)

462.4

2.100

50.7

111.7

N160 P175 K150 (precision dosage) 456.2

2.100

48.1

104.4

Precision irrigation No fertilizers

444.5

2.012

71.6

158.2

N160 P180 K160 (recommended by ZCS)

459.5

2.012

48.2

110.2

N160 P175 K150 (precision dosage) 452.5

2.012

44.5

100.1

Fig. 2 Dynamics of productivity, depending on the sum fertilizer dose with ZCS-recommended and precise irrigation

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Fig. 3 The dependency of potato productivity on fertilizer application and water consumption in precision irrigation

4445 to 4525 m3 /ha. The irrigation norm was 2100 m3 /ha in ZCS-recommended irrigation, and 2012 m3 /ha in precise irrigation. The empirical dependency of potato productivity on fertilizer application and water consumption in precision irrigation is presented in Fig. 3. The equation of the dependency is presented in Formula 3:  2  NPK Y = −885.15 − 0.04 · NPK + 4.46 · E T − 1 · 10−4 ·  + 4 · 10−4 · E T · NPK − 0.05 · E T 2

(3)

where Y  ET

N PK

Is productivity, t/ha, Is sum fertilizer dosage, kg/ha. Is water consumption, mm.

4 Conclusion We concluded that the precision application of fertilizer is highly effective, both in terms of productivity (45.2 t/ha) and water balance coefficients (44.5 and 101.1 m3 /ha). The indexes of water balance and potato productivity can be to calculate

Applying the Precision Irrigation Technology to Address …

795

and forecast the use of natural resources in the irrigated floodplain of the Lower Don. Precision irrigation can only be implemented by using the modern systems of crop and field monitoring. These technologies provide data on soil moisture and soil nutrient content. Precision irrigation allows leveling the soil moisture and nutrient content in all plots, providing higher crop productivity, and conserving natural resources.

References 1. Olgarenko VI (2009) Environmentally sustainable reclamation systems. Sci J KubSAU 6(21):205–209 2. Korsak VV, Pronko NA, Nasirov NN (2014) The use of GIS-analysis for assessing the natural conditions of irrigated cropping. Sci Life 2:18–24 3. Grigorov MS, Grigorov SM, Vinnikov DS (2016) Proceedings from MSKCSC’16: Current scientific knowledge in the context of systemic changes. Russia 4. Shchedrin VN, Balakay GT (2014) State and prospects for the development of land reclamation in the south of Russia. Sci J Russ RDI Melioration Probl 3(15):1–15 5. Borodychev VV, Lytov MN (2015) Algorithm for solving control problems of soil water regime for irrigation of crops. Irrig Water Manage 1:8–11 6. Olgarenko GV (2010) Problems and prospects of technical support for irrigation. Irrig Water Manage 2:8–10 7. Olgarenko GV, Olgarenko DG (2012) National economic efficiency of the federal target program for the development of land reclamation in Russia. Irrig Water Manage 5:2–5 8. Olgarenko VI, Babichev AN, Monastyrskiy VA (2018) Scientific concept and implementation algorithm of precision farming elements under irrigated agricultural reclamation. J Russ RDI Melioration Probl 1(29):160–169 9. Dospehov BA (1985) Field experiment methodology. Agropromizdat, Moscow, Russia 10. Bondarenko SG (ed) (2013) Zonal farming system of the Rostov region for 2013–2020. Don Publishing House, Rostov-on-Don, Russia

The Effectiveness of Plant Growth Regulators with Fungicidal and Antibacterial Properties Used on Soybean Olga A. Shapowal, Irina P. Mozharova , and Maria T. Muhina

Abstract Silver and its compounds occupy a unique place among biologically active substances. Silver does not belong to the list of vital elements, but in a controlled dosage, it can have a noticeable positive effect on the course of the plant’s physiological processes. Thus, silver can be used as an active substance of plant protection products. Growth regulator “Zerebra Agro” (500 mg/l colloidal silver and 100 mg/l polyhexamethylene biguanide hydrochloride), provided practical confirmation of silver’s biological effectiveness on higher plants. It is the world’s first officially registered pesticide based on chemically modified silver particles. The substance was tested on soybean in the Krasnodar Krai. The study proves that the use of growth regulators with mineral fertilizers provided a significant economic effect—the best economic indicators were obtained when “Zerebra Agro” was used in a dose of 75 ml/t + 120 ml/ha + 120 ml/ha; the cost of seeds decreased by 179 rubles, while the level of profitability increased by 39.0%. Keywords Zerebra Agro · Colloidal silver · Plant growth regulators · Soybean · Biological efficiency · Yield capacity · Economic efficiency

1 Introduction Food security is becoming globally relevant due to continuing population growth [1]. The availability of high-quality food products is becoming the main factor in determining the health, living standards, and life expectancy of the population. It is currently one of the central state priorities [2]. This determines the global interest in innovative technologies in agriculture, including technologies for applying plant growth and development regulators [PGDR] [3]. Traditionally, growth regulators include plant hormones (phytohormones) and their synthetic analogs. Nowadays, classical phytohormones are divided into five O. A. Shapowal (B) · I. P. Mozharova · M. T. Muhina All-Russian Research Institute of Agrochemistry Named After D.N. Pryanishnikova, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_87

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separate groups: auxins, gibberellins, their antagonists in the control of most ontogenetic processes—cytokinins, ethylene, and abscisic acid [4]. Phytohormones also include brassinosteroid, jasmonate, polypeptide hormones, strigolactone, and others. However, this division is very conditional, since there are many compounds of other classes that can affect growth, development, flowering, nutrition, and other processes. Metal compounds are a very extensive and diverse group of physiologically active substances. Silver compounds occupy a unique place among this group. Their primarily antibacterial and fungicidal biological activity was known since ancient times [5, 6]. It was found that the treatment of plants with silver compounds in low and medium concentrations often causes accelerated growth of roots and stems, active accumulation of biomass and photosynthetic pigments, and slowed aging processes body [7, 8]. With the advent of a fundamentally new class of silver-containing substances (colloidal solutions containing particles of metallic silver), it was possible to overcome the difficulties associated with the dose accuracy and the negative effect of large doses of silver [9, 10]. Such particles serve as a unique container that gradually, under the influence of atmospheric oxygen or as a result of oxidation by endogenous reactive oxygen species (hydrogen peroxide, superoxide radicals), oxidize silver and allow its ions to enter the solution. The slow release of silver ions allows us to maintain the required concentration of ions easily and effectively protect plants from high phytotoxic concentrations of silver. The rapid development of methods for obtaining these disperse systems made them one of the most used among all new commercially available materials [11, 12]. However, many aspects of the biological action of colloidal silver particles on higher plants were not sufficiently studied, although it is primarily determined by the presence of silver ions in the dispersion medium. “Zerebra Agro” is a plant growth regulator that contains 500 mg/l of colloidal silver and 100 mg/l of polyhexamethylene biguanide hydrochloride acting as a metal dispersion stabilizer. “Zerebra Agro” was developed at the Faculty of Chemistry of the Moscow State University and registered in the Russian Federation under No. 130(256, 257)-07–369-1 in 2014. “Zerebra Agro” is the world’s first pesticide based on chemically modified colloidal silver that passed the entire complex of biological, toxicological, ecotoxicological, and hygienic tests, which confirmed its effectiveness and safety so that it can be legally used in agriculture. Moreover, “Zerebra Agro” is registered as a pesticide in many neighboring and non-neighboring countries. Increasing the efficiency of agricultural production is one of the most important aspects of modern technologies. Economic efficiency shows the final effect of applying new agricultural techniques, means of production, and labor, demonstrating the return on total investment.

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2 Materials and Methods The testing of “Zerebra Agro” was carried out on soybean variety “Vilana” in the field in 2013–2015. The experiment was carried out in the Krasnodar Krai at the experimental field of the Kuban State Agrarian University (instructional farm “Kuban,” department 1). Plant growth regulator “Avibif” (150 g/l poly-diallyl dimethylammonium chloride) was used as a reference compound marked with a pronounced growth-stimulating, anti-stress, fungicidal, and bactericidal effect. The leached chernozem was used as the soil for the experimental site. The experimental design is as follows: • • • • • • • •

Control—N0 P0 , without PGDR processing; Control—ground N30 P40 , without PGDR processing; Ground, “Avibif”—(0.15 l/t + 0.15 l/ha); Ground, “Avibif”—(0.30 l/t + 0.30 l/ha); Ground, “Avibif”—(0.45 l/t + 0.45 l/ha); Ground, “Zerebra Agro”—(25 ml/t + 40 ml/ha), Ground; “Zerebra Agro”—(50 ml/t + 80 ml/ha); Ground, “Zerebra Agro”—(75 ml/t + 120 ML/ha).

Soybean seeds were treated with growth regulators before sowing. Soy plants were processed two-times in the phase of full sprouting and budding. During the research, the temperature and humidification significantly varied. In 2013, the distribution of precipitation by month was uniform and slightly exceeded the long-term average. Soybean maturation began earlier than the average year terms. August of 2014 was marked with dry and hot weather, which turned out to be extremely unfavorable for the crop formation. In 2015, the weather also turned out to be unfavorable for soybean due to frequent rains in early summer and dry, hot weather during the last third of July and all of August.

3 Results Studies conducted in the Krasnodar Krai showed that seed treatment and doubled treatment of soybean plants with growth regulators had a significant influence on the formation of the yield’s main structural elements (number of branches, beans, seeds, and seed weight per plant). Simultaneously, the degree of influence of substances on the formation of elements of the crop structure largely depends on its type and concentration level. Indicators of crop structure elements demonstrate that the use of growth regulators intensifies the branching process by 8–40%. The number of seeds and beans per plant in variants using “Zerebra Agro” at a dose of 75 ml/t + 120 ml/ha exceeded the control by 50 and 46%, while “Avibif” used at a dose of 0.45 l/t + 0.45 l/ha exceeded it by 37 and 35%. Experimental variants provided larger seeds with a larger grain mass per

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plant compared to control values. The maximum values of the considered indicators were noted when “Zerebra Agro” was used in the maximum dose (increased by 85 and 70%), as well as “Avibif” in the maximum dose exceeding the control (N0P0) and Ground (N30 P40 ), without treatment (increased by 67 and 54%). During the experiment, assimilation proceeded more actively; the accumulated assimilates were more rationally redistributed into seeds. The use of growth regulators in maximum doses during soybean cultivation stimulated the formation of all crop components, which had a positive effect on the yield. The data in Table 1 demonstrates that seed treatment and doubled treatment of soybean plants with growth regulators with concurrent nitrogen-phosphorus nutrition had a significant effect on soybean yields over the entire study period, which were marked with different weather conditions. The most favorable weather conditions for soybean sowing, growing, and harvesting was observed in 2013, and, accordingly, the soybean yield was higher than in 2014–2015. The maximum yield was observed when the growth regulator “Zerebra Agro” (75 ml/t + 120 ml/ha) and “Avibif” (0.45 l/t + 0.45 l/ha) were added in the amounts exceeding the control (30.4 and 32.4%) and ground values (18.8 and 17.1%). The economic efficiency of using growth regulators in soybean cultivation technology depends on the ratio of the stored crop values, factoring in its quality, and their cost. To determine the economic efficiency of the studied growth regulators in soybean cultivation, we used several main indicators: yield, cost of production, net income, and profitability. The results are provided in Table 2. When applying the maximum dose of the growth regulator “Zerebra Agro,” production costs rose by 600 rubles compared to control values, and by 496 rubles compared to ground values—N30 P40 values, without treatment. The usage of Zerebra Agro showed the highest profitability (156.4%) at a dose of 75 ml/t + 120 ml/ha.

4 Discussion In 2015, unstable weather conditions, sharp changes in temperature, and humidity undoubtedly affected soybean productivity. It was the least favorable year for the experiment. However, even under adverse conditions, the maximum yield was observed when treated with “Zerebra Agro” (75 ml/t + 120 ml/ha) and “Avibif” (0.45 l/t + 0.45 l/ha) and amounted to 24.1 c/ha and 23.5 c/ha, respectively. The most moderate year for soybean cultivation was 2014. Similarly to 2013 and 2015, the yield of soybean increased concerning both the control and ground variants when using growth regulators, The maximum yield of 26.8 and 26.1 c/ha (similar to 2013 and 2015) was obtained using growth regulators “Zerebra Agro” and “Avibif” in doses of 75 ml/t + 120 ml/ha and 0.45 l/t + 0.45 l/ha.

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Table 1 The yield of soybean “Vilana,” field experiment Variant

Increase in control

Increase in ground

2013

2014

2015

avg

c/ha

%

c/ha

%

Control − N0 P0 , no treatment

21.0

20.3

18.6

20.0

–

–

–

–

Ground − N30 P40, no treatment

23.4

22.2

19.7

21.8

1.8

9.0

–

–

Ground + “Avibif” (0.15 l/t + 0.15 l/ha)

26.5

23.4

21.3

23.7

3.7

18.5

1.9

8.7

Ground + 27.0 “Avibif “(0.30 l/t + 0.30 l/ha)

24.3

22.7

24.7

4.7

23.5

2.9

13.3

Ground + “Avibif” (0.45 l/t + 0.45 l/ha)

27.4

26.1

23.5

25.7

5.7

28.5

3.9

17.8

Ground + “Zerebra Agro” (25 ml/t + 40 ml/ha)

26.6

25.1

21.5

24.4

4.4

22.0

2.6

11.9

Ground + “Zerebra Agro” (50 ml/t + 80 ml/ha)

27.3

26.0

22.6

25.3

5.3

26.5

3.5

16.1

Ground + “Zerebra Agro” (75 ml/t + 120 ml/ha)

27.8

26.8

24.1

26.2

6.2

31.0

4.4

20.1

–

–

–

–

LSD05

Yield capacity by year, c/ha

1.41

1.38

1.51

1.43

Source Developed by the authors

In the course of the research, the introduction of nitrogen-phosphorus fertilizers (N30 P40 ) and the use of growth regulators (“Zerebra Agro” and “Avibif”), enhancing growth and shaping processes (including the formation of nodules) had a positive impact on productivity, compared to the control variant without fertilization. Moreover, the introduction of N30 P40 contributed to a three-year increase in productivity by 9%. The use of plant growth regulators with concurrent use of nitrogen-phosphorus

1.8

–

51,224.0

–

–

25,570.0

–

– Including an increase in ground

The value of gross output, rub

– Including an increase in control

– Including an increase in ground

Production costs, rub/ha

Including additional

104.0

25,674.0

–

4610.0

55,834.0

–

21.8

–

Ground, no treatment

Ground − N30 P40

– Including an increase in control

Control − N0 P0 , no treatment

Yield capacity, c/ha 20.0

Value

296.0

25,866.0

192.0

9476.0

60,700.0

1.9

3.7

23.7

“Avibif” 0.15 l/t + 0.15 l/ha

414.0

25,984.0

310.0

12,038.0

63,262.0

2.9

4.7

24.7

“Avibif” 0.30 l/t + 0.30 l/ha

Table 2 Economic efficiency (average data for 2013–2015, field experiment)

544.0

26,114.0

440.0

14,599.0

65,823.0

3.9

5.7

25.7

“Avibif” 0.45 l/t + 0.45 l/ha

306.0

25,876.0

202.0

11,269.0

62,493.0

2.6

4.4

24.4

446.0

26,016.0

342.0

13,574.0

64,798.0

3.5

5.3

25.3

(continued)

600.0

26,170.0

496.0

15,879.0

67,103.0

4.4

6.2

26.2

“Zerebra Agro” “Zerebra Agro” “Zerebra Agro” 25 ml/t + 50 ml/t + 75 ml/t + 40 ml/ha 80 ml/ha 120 ml/ha

802 O. A. Shapowal et al.

1279.0

25,654.0

100.3

The cost price per 1 centner, rub

Conditional net income, thousand rubles/ha

Profitability, %

Source Compiled by the authors

Control − N0 P0 , no treatment

Value

Table 2 (continued)

117.4

30,160.0

1178.0

Ground, no treatment

Ground − N30 P40

134.6

34,834.0

1091.0

“Avibif” 0.15 l/t + 0.15 l/ha

143.4

37,278.0

1052.0

“Avibif” 0.30 l/t + 0.30 l/ha

152.1

39,709.0

1016.0

“Avibif” 0.45 l/t + 0.45 l/ha

141.5

36,617.0

1061.0

149.1

38,782.0

1028.0

156.4

40,933.0

999.0

“Zerebra Agro” “Zerebra Agro” “Zerebra Agro” 25 ml/t + 50 ml/t + 75 ml/t + 40 ml/ha 80 ml/ha 120 ml/ha

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fertilizers increased productivity by 18.5–31% compared to the control and by 8.7– 20.1% compared to the ground variants. At the same time, the amount of yield increase (3.7–6.2 c/ha compared to the control and 1.9–4.4 c/ha compared to the ground) largely depended on the nature of the studied substances and their application dosage. The most significant increase of 31.0% to the control and 20.1% to the ground values were obtained using “Zerebra Agro” at a maximum dose of 75 ml/t + 120 ml/ha. Since the experiment variants involving the use of growth regulators “Avibif” and “Zerebra Agro” with maximum doses obtained the highest yield compared with other treatments and control variants, their production costs were also higher. Namely, the production costs for treatment with “Avibif” (0.45 l/t + 0.45 l/ha) amounted to 26,114.0 rubles, which is 544 rubles more expensive compared to control and 440 rubles more expensive compared to Ground (N30 P40 , no treatment). Maximum production costs were reached using “Zerebra Agro” (75 ml/t + 120 ml/ha). They amounted to 26,170.0 rubles, which are 600 rubles more expensive than control, and 496 rubles more expensive than the ground (N30 P40 , no treatment). At the same time, these variants demonstrated the lowest cost price for 100 kg of production compared to the rest. The control values of variants without treatment reached the highest cost for 100 kg of production and amounted to 1279.0 rubles, which is 263 and 280 rubles higher than for “Avibif” (0.45 l/t + 0.45 l/ha) and “Zerebra Agro” (75 ml/t + 120 ml/ha). The highest net income was observed when using “Avibif” at a dose of 0.45 l/t + 0.45 l/ha and “Zerebra Agro” at a dose of 75 ml/t + 120 ml/ha. They amounted to 39,709.0 and 40,933.0 rubles, respectively. The net income indicators of the control and ground (N30 P40 , no treatment) variants amounted to 25,654.0 and 30,160.0 rubles, which are 14,055.0 and 15,279.0 rubles, and 9549 and 10,773 rubles less than when using growth regulators in maximum concentrations. The profitability of our technology was also the highest when using growth regulators at the maximum concentration and amounted to 152.1% (“Avibif” at a dose of 0.45 l/t + 0.45 l/ha) and 156.4% (“Zerebra agro” at a dose of 75 ml/t + 120 ml/ha). This is since the ratio of net income and production costs showed the most effective results in these variants.

5 Conclusion Nowadays, we can see a significant paradigm shift in plant protection and nutrition technologies. This is caused by the emergence of new global problems in the world AIC, where plant growth regulators sometimes become necessary for their solution. The feasibility of using growth regulators is dictated by the need to increase the efficiency of technologies for applying mineral fertilizers and plant protection, as well as mobile precision management of growth processes aimed at improving the productivity and quality of crops and the reduction of the environmental burden.

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References 1. Khanal AR, Mishra AK (2017) Enhancing food security: Food crop portfolio choice in response to climatic risk in India. Glob Food Sec 12:22–30 2. Asfaw S, Mithöfer D, Waibel H (2009) EU food safety standards, pesticide use, and farm-level productivity: the case of high-value crops in Kenya. J Agric Econ 60(3):645–667 3. Prajapati S, Jamkar T, Singh OP, Raypuriya N, Mandloi R, Jain PK (2015) Plant growth regulators in vegetable production: an overview. Plant Arch 2:619–626 4. Polevoy VV (1989) Plant physiology. Higher school, Moscow, USSR 5. Krutyakov YA (2008) Synthesis and properties of silver nanoparticles: achievements and prospects. Usp Khim 77(3):242–269 6. Ratsch HC (1983) Interlaboratory root elongation testing of toxic substances on selected plant species. US Environmental Protection Agency, Environmental Research Laboratory, Corvallis, OR 7. Beyer EM (1976) A potent inhibitor of ethylene action in plants. Plant Physiol 3:268–271 8. Qin YA, Zhang S, Zhang L, Zhu D, Syed A (2005) The response of In Vitro Strawberry to Silver Nitrate (AgNO3 ). HortScience 40(3):747–751 9. Gusev AA, Kudrinsky AA, Zakharova OV, Klimov AI, Zherebin PM, Lisichkin GV, Krutyakov YA et al (2016) Versatile synthesis of PHMB-stabilized silver nanoparticles and their significant stimulating effect on fodder beet (Beta vulgaris l.). Mater Sci Eng 62:152–159 10. Krutyakov Y, Kudrinskiy A, Zherebin P, Yapryntsev A, Pobedinskaya M, Elansky S, Lisichkin G (2016) Tallow amphopolycarboxyglycinate-stabilized silver nanoparticles: new frontiers in the development of plant protection products with a broad spectrum of action against phytopathogens. Mater Res Express 3:1–9 11. Lima R, Seabra AB, Durán N (2012) Silver nanoparticles: a brief review of the cytotoxicity and genotoxicity of chemically and biogenically synthesized nanoparticles. J Appl Toxicol 11:867–879 12. Lowry GV, Casman EA (2009) Nanomaterial transport, transformation, and fate in the environment. In: Linkov I, Steevens J (eds) Nanomaterials: risks and benefits. Springer, Netherlands, pp 125–137

Numerical Analytical Study of Hydroturbines with Flexible Blades Aleksey G. Terentyev , Ivan I. Maksimov , and Nikolay A. Fedorov

Abstract It is possible to use hydro turbines with a sufficiently high coefficient of water energy use and low costs compared to other hydro turbines to supply power to agricultural facilities remote from the source of electricity and located along rivers with low flow rates. The authors propose to apply in agriculture a hydro turbine with flexible blades that convert the stream energy. The study aims to develop a methodology for calculating the parameters of such a hydro turbine. It is shown that it is possible to perform numerical calculations of the flow around such a hydro turbine and find the power characteristics in real flows. Concerning the annular section of a flexible blade, the problem of flow around a flexible arc with an ideal flow for finding the shape of the arc is considered. The problem is solved numerically, with the additional fulfillment of the Laplace condition along the arc. The shape of the arc is found during the iteration process. In relation to a hydro turbine, the problem of the numerical solution of the flow around a grid of flexible arcs is considered. The problem uses the green integral equation for a grid of rigid profiles of arbitrary shape. The power characteristics of a hydro turbine are found, taking into account the viscosity of a real medium. The results of field experiments are presented, and numerical calculations and field experiments are compared. The developed methodology for calculating hydro turbines with flexible blades is consistent with the experimental results and allows developing such hydro turbines for given parameters. Keywords Power supply · Hydroturbine · Flexible arc · Grid flow · River flows · Hydroturbine power

A. G. Terentyev · N. A. Fedorov (B) Ulyanov Chuvash State University, Cheboksary, Russia I. I. Maksimov Chuvash State Agricultural Academy, Cheboksary, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_88

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1 Introduction The use of river energy for agricultural needs is relevant. Of particular interest are rivers with low speeds since they prevail in Russia. The flow rates in them are insignificant. Therefore, the use of these rivers to convert the kinetic energy of the flow by traditional methods is insufficient. Damless hydropower is the most promising technology for energy supply to agriculture due to its cost-effectiveness and environmental friendliness [8, 12]. Countries facing a shortage of electricity find methods of converting flow energy (including hybrid methods) especially relevant [1, 2, 4]. The plants taking the kinetic energy of the flow, which are offered by various manufacturers, are usually effective only at high speeds (2 m/s and higher) and have a high cost due to the complexity of manufacturing hydro turbines with special twisting blades and using all kinds of hubs. The connection of remote agricultural facilities to power sources can also often become expensive. Therefore, the use of the energy of river flows for generating electricity is becoming relevant for domestic needs. This work proposes hydro turbines with flexible blades, gives a numerical and analytical justification, and compares the experimental results. A flexible blade with a fabric base is proposed as one of the simplest blades of hydro turbines, which, depending on the tension, takes a curved shape that increases the torque of the hydro turbine. Such hydro turbines should not require high costs in their manufacture and should have a sufficiently high efficiency when converting the energy of a water stream into mechanical energy or electrical energy.

2 Materials and Methods 2.1 Flexible Profile Let us consider a flexible profile (Fig. 1). Let the canvas be fixed at two points A and B. The width of the canvas is slightly less than the chord of the arc d. Instead of the width of the canvas, we assume that the tension T is known. Without loss of generality of the problem, we can set the density of the liquid ρ = 1, the velocity of the incident flow V 1 = 1, the chord of the arc d = 1, i.e., all dimensional variables are referred to the mentioned dimensional parameters. Then, the problem of the flow around an arc reduces to determining an Fig. 1 The flow of flexible profile. Source Developed by the authors

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Fig. 2 Arc shape for various tensions T. Source Developed by the authors

analytic function with the kinematic condition (ψ = 0) on both sides of the arc with the additional fulfillment of the Laplace condition:  3 T f  (x) = − 1 + f  (x)2 ( p − p∞ )

(1)

where T —tension, y = f (x)—arc equation (dashes mean derivatives), p—fluid pressure. If the attack angle α 1 is small (α 1 < 1), and the tension T is sufficiently large, then the problem can be linearized and solved analytically. Omitting the theoretical calculations, we give some results of the analytical solution. Figure 2 shows the configuration of arcs for tension T = 1, 2, 5, 10. The tension of the arc T at its ends A and B should be balanced with the resulting force R. The chord of the arc d is located on the horizontal axis. If the angles β1 and β2 are small angles of inclination of the tangents at the ends of the arc, then the following equality must be fulfilled: T (sin β1 − sin β2 ) = R y

(2)

For an arbitrary angle of attack α1, the problem of flowing around an isolated flexible arc can be solved numerically by the boundary element method [11]. Successive iterations calculate the configuration of the arc. The results of numerical calculations of the flow around a flexible arc and an analytical solution are presented in Fig. 3.

Fig. 3 Arc shape from numerical iteration and analytical solution (dashed curve). Developed by the authors

Source

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2.2 The Flow of Fluid Through the Grate We apply the method of the cylindrical cross-section of the screw proposed by V. L. Pozdyunin [9]. In each section r, the flow is considered equivalent to a plane flowing through the grid. In this case, all the characteristics of the grating will depend only on the radius r. The resulting torque of the hydro turbine will be found as an integral over the radius (over the variable r). Figure 4 shows a scan of the annular cross-section of a hydro turbine in radius r and the forces acting on the arc in the grid. The main designations can be seen from the figure. In the case of a gird of flexible arcs, the Green integral equation is applied, obtained for a grid of arbitrary shape profiles. 

     V (s  )G(z  , z)ds  + c + Γ Im e−βi z 2L = Im V1 e−α1 i z

(3)

C

where G(z  , z)—the Green integral equation, V (s  )—the function of profile velocity distribution, L—the grid period. The Green function for the profile in the grid is presented as [11]:  βi  π   Le 1  sin (τ − z)  G = − Re ln 2π π Leβi

(4)

The problem is solved numerically by the boundary element method. It allows us to find the hydrodynamic force on the arc in the grid, the velocity distribution along the arc from below and above. Moreover, in the condition of the problem, the arc was replaced by a thin Zhukovsky profile. The validity of such a replacement was verified by comparing the numerical solution of the flow through the grid of thin symmetric Zhukovsky profiles with the exact analytical solution of the flow through the grid of plates (Kochin 1949; [10]). The shape of the arc was searched by the iterative method. Initially, a thin symmetric Zhukovsky profile was set, then the distribution of velocity and pressure along the thin arc was found, the shape of the midline of

Fig. 4 The grid of flexible arcs. Source Developed by the authors

Numerical Analytical Study of Hydroturbines with Flexible Blades

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the profile was searched with the additional fulfillment of the Laplace condition (1). A thin Zhukovsky profile was reconstructed at the midline, and a new distribution of velocity and pressure over the profile was found for the obtained thin Zhukovsky profile. The iterative process continues until the specified accuracy is achieved.

2.3 The Calculation of Hydro Turbines Let us consider a hydro turbine of radius R (Fig. 5) that consists of n blades and has a depth S. The blades of a hydro turbine are formed by rods fixed radially to the axis of rotation of the hydro turbine. The rods form the leading and trailing edges of the blade. Inextensible fabric is stretched between the rods. The rear shaft is fixed relative to the front shaft at a certain distance (depth) S and rotated relative to the front shaft by an angle θ. Figure 5 shows the geometrical parameters of a hydro turbine. We assume that initially, the fabric on the hydro turbine is stretched. In this case, we can, without taking into account small curvatures, obtain a grid of plates in the scan of the annular section. Moving the rear rod of the hydro turbine to a small angle dθ, we obtain a grid of arcs in the scan. Using the geometrical parameters of the hydro turbine R, S, n, θ and the free-stream velocity U, the parameters for the grid in section r are determined as follows:grid angle

β = π − ar ctg

S θ ·r

 (5)

grid period

Fig. 5 Cross-section of the turbine blade and the grid of flexible arcs. Source Developed by the authors

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A. G. Terentyev et al.

L = π − ar ctg

S θ ·r

 (6)

grid chord d=



S 2 + (θ · r )2

(7)

speed in front of the grid V1 =



V 2 + U2

(8)

the angle of attack in front of the grid    α1 = β − π/2 − arctan 2 · π · r U · τ

(9)

where τ —the time of one rotation of a hydro turbine. The remaining grid parameters, such as the speed and angle of the grid V 2 , and A2 , circulation Γ , are found when solving the problem. The remaining lattice parameters, such as the velocity and angle of the lattice V 2 , and A2 , circulation G, are found when solving the problem. The resulting force vector is determined from the momentum change equation [5] P = X − iY = −iρ

 Γ  iα1 V1 e + V2 eiα2 2

(10)

In relation to hydro turbines, it is essential to know the projection of the hydrodynamic force on the plane of rotation:   Y = Re P · eiβ

(11)

Turbine powers: R N =n·

dY · ω · r

(12)

0

where n—the number of blades, dY —the projection of the hydrodynamic force on the grid line, ω—the dimensionless angular velocity of a hydro turbine, related to U and R, in an annular radius section r. When the bodies are flown around with a real liquid, it is necessary to take the flow viscosity into account. The calculation of hydrodynamic characteristics during disruption is a difficult task [6]. Therefore, in this calculation model, we restrict ourselves to the condition of flow disruption at angles of attack α1 greater than 10°, as when viscous fluid flows around a plate. Thus, to account for the stall of the flow in formula (12), the integration is performed along the radius within the variation of the angle of attack α1, not exceeding 10°.

Numerical Analytical Study of Hydroturbines with Flexible Blades

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3 Results To perform the tests, we assembled a machine (Fig. 6) and installed on it a turbine of radius R. To measure the torque M of the hydro turbine, a system with suspended weights secured with a thread with a spring dynamometer was used. The thread is thrown over a pulley and a brake disk of radius r 0 , which, in turn, is rigidly connected with the axis of the hydro turbine. When a hydro turbine was operating in a water stream, the mass of cargo m1, dynamometer readings m2, time of one rotation t, and the flow rate determined by the flooded float method U were recorded. Tests were conducted on the Bolshaya Kokshaga River, Mari-El Republic. With the help of the obtained measurement results, the dependence of the efficiency of the turbine η on the dimensionless angular velocity ω was constructed using the following dependencies: N = M · ω = (m 1 − m 2 ) · g · r0 ·

2πU τ·R

(13)

where N is the power of the installation. The power of the stream flowing through the swept area: NU = π · R 2 · ρ ·

U3 2

(14)

Turbine efficiency: η=

Fig. 6 General view of the base stand with a hydro turbine with fabric-based blades. Source Developed by the authors

N NU

(15)

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A. G. Terentyev et al.

Fig. 7 a General view of the four-blade hydro turbine, b turbine blade in flow. Source Developed by the authors

Fig. 8 The experimental results and the results of numerical calculations. Source Developed by the authors

Tests were conducted for a hydro turbine consisting of 4 flexible blades on a fabric basis (Fig. 7), radius R = 0.5 m, angle θ = 450, and depth of the turbine S = 0.21 m. The dependence of the efficiency of the turbine η on the dimensionless angular velocity is constructed. Figure 8 presents the test results.

4 Discussion The methodology proposed above for determining the force of a hydro turbine with flexible blades is based on finding the hydrodynamic forces when solving the problem of flow through a grid of flexible arcs. The solution to this problem is associated with several difficulties. Firstly, finding the hydrodynamic force on a flexible arc in a grid is complicated because the shape of the flexible arc is not initially known. To find the shape of a flexible arc, it is necessary to know the pressure distribution in the contour. It was proposed to find such a distribution initially by a numerical method for a solid profile with a sufficiently small thickness, for example, a Zhukovsky symmetric thin profile. Solutions to such problems, flow through a grid of arbitrary

Numerical Analytical Study of Hydroturbines with Flexible Blades

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rigid profiles, are well known. [3, 10]. The verification of the correctness of the solution of the problem when flowing through a very thin symmetric profile by a numerical method was carried out by comparing the exact analytical solution of the flow through the plate grid [10]. The comparison showed that with a relative thickness of the symmetrical profile b = 0.0001, the accuracy was 0.07%. Using the known pressure distribution over the thin profile, the shape of the middle line was found from the condition (1). A new, not symmetrical profile was restored, and the pressure distribution for it was found again. Then, the desired arc shape and hydrodynamic force were found using the method of successive iterations for the given accuracy. Secondly, for a flexible arc, the tension T is not initially known. The tension T is set initially. When the shape of the arc is found during the iteration, a new tension T is found from the condition (2). Thus, the problem of flowing of flexible arcs around a grid requires a double iterative process for finding the shape of an unknown arc and for finding an unknown T. Therefore, additional verification of the correctness of the solution of the problem by a numerical method was performed. For this, the analytical problem of flowing an ideal stream around an isolated flexible arc was considered. A comparison of the solution of the flow through the grid of flexible arcs by the numerical method for a sufficiently large period L with the analytical solution is shown in Fig. 3. In general, the shapes of the arcs are similar, but near the trailing edge, there is some discrepancy between the results calculated by the two methods. This is explained by the fact that in the linear theory, quantities of the order O(A21 ) are neglected, and in the numerical method, all quantities are taken into account. Therefore, in the future, all calculations are carried out only numerically. Under real conditions, considering the flow around a hydro turbine, it is necessary to take into account the viscosity of the medium, since, at large angles of attack A1, there is a flow stall. The magnitude of the angle of attack at which a stall occurs behind the blade depends on the shape of the arc. In the proposed calculation model, the assumption is made that flow stall occurs at angles of attack A1 = 100, which corresponds to a small curvature of the arc or an arc that differs little from the plate. In fact, with greater curvature, flow stall can occur at large angles A1. For this, it is necessary to additionally take into account the flow stall, depending on the shape of the arc. Additionally, there are other losses [7], which, in this problem, can be assumed to be relatively small compared with losses due to viscous fluid flow since the flow around a hydro turbine occurs at low speeds. In confirmation of the above, let us turn to the results of our experiments. The results of the experiment are presented for a hydro turbine consisting of four blades, while the fabric that forms the blade is stretched to the front and rear edges, and, under the influence of the oncoming flow, receives a slight curvature (Fig. 6b). The obtained experimental data are comparable with the results of numerical calculations taking into account viscosity. The difference in the scale of the dimensionless angular velocity indicates that the numerical calculation results do not take into account the losses mentioned above when a stream flows around a real liquid. We would also like to note that a rather large number of factors influence the result of the experiment

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(non-stationary flow, uneven distribution of the flow velocity over the depth of the channel, wind, etc.). To obtain more accurate results, it is necessary to perform experiments in the laboratory.

5 Conclusion The simplicity in the manufacturing of a low-cost hydro turbine in the face of decreasing requirements for the maximum power of alternative energy sources will make such a design of hydro turbine competitive in comparison with other similar devices. Hydro turbines can be used for the power supply of agricultural facilities remote from the main energy source, located along low-speed rivers. It is possible to use a system of hydro turbines connected by cardan grids located along rivers if it is necessary to cover large loads. The developed numerical solution of the flow through a hydro turbine with flexible blades allows us to design a hydro turbine with specified characteristics. The results of the numerical solution are comparable with the results of field tests. Acknowledgements This work was financially supported by the Russian Federal Property Fund and the Cabinet of Ministers of the Chuvash Republic in the framework of scientific project No. 17-48-210286.

References 1. Berrada A, Bouhssine Z, Arechkik A (2019) Optimization and economic modeling of microhydropower plants integrated into the water distribution system. J Clean Prod 232:877–887 2. Choudhury S, Parida A, Pant RM, Chatterjee S (2019) GIS augmented the computational intelligence technique for rural cluster electrification through prioritized site selection of the micro-hydro power generation system. Renew Energy 142:487–496 3. Cochin NE (1949) Hydrodynamic theory of grids. Gostekhizdat, Moscow, Russia 4. Kamran M, Asghar R, Mudassar M, Abid MI (2019) Designing and economic aspects of runof-canal based micro-hydro system on Balloki-Sulaimanki Link Canal-I for remote villages in Punjab, Pakistan. Renew Energy 141:76–87 5. Kochin NE, Kibel IA, Rose NV (1963) Theoretical hydrodynamics. Fizmatgiz, Moscow, Russia 6. Kurzin VB, Yudin VA (2009) Aerodynamic characteristics of a lattice of thin profiles streamlined by an ideal incompressible fluid with flow separation from the leading edges. Bull Rus Acad Sci Fluid Gas Mech 2:6–7 7. Langston LS (2001) Secondary flows in axial turbines—a review. Heat Transf Gas Turbine Syst 934:11–26 8. Paish O (2002) Small hydropower: technology and current status. Renew Sustain Energy Rev 6(6):537–556 9. Pozdyunin VL (1941) Ship screw problems. Sov Sci 2 10. Sedov LI (1950) Plane problems of hydrodynamics and aerodynamics. Nauka, Moscow, Russia

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11. Terentiev AG, Kirschner IN, Uhlman JS (2011) The hydrodynamics of cavitating flows. Backbone Publishing Company, New York, NY 12. Vermaak HJ, Kusakana K, Koko SLP (2014) Status of micro-hydrokinetic river technology in rural applications: a review of the literature. Renew Sustain Energy Rev 29:625–633

The Effect of Fertilizers on the Formation of the Symbiotic Apparatus and the Productivity of Sowing Peas Matvei A. Alyoshin

Abstract The results of an experimental study carried out as part of a cultivation test on the effect of increasing doses of nitrogen (factor C—N0 (control); N0,05 ; N0,10 ; N0,15 ; N0,20 ; N0,25 ) and pre-sowing seed inoculation with bio preparation “Rizotorfin” (factor B—without inoculation; with inoculation) for the formation of the symbiotic apparatus and the yield of sowing peas. The cultivation of the experimental culture was carried out under conditions of sod-podzolic soil of different levels of cultivation (factor A—poorly cultivated; medium cultivated). The effectiveness of the joint use of the bio preparation “Rizotorfin” for the pre-sowing inoculation of seeds and the introduction of mineral nitrogen into the soil was noted. The use of inoculation contributed to a more intensive manifestation of symbiotic activity. As a result, plants used soil nitrogen reserves less actively. The optimal dose of nitrogen when cultivating peas for green mass on medium and poorly cultivated sod-podzolic soil was 0.05 g/kg of absolutely dry soil. When cultivating peas for grain, the effectiveness of the use of mineral nitrogen was noted only in medium cultivated soil—the maximum increase of 0.96 g/vessel was obtained by adding nitrogen at a dose of 0.20 g/kg of absolutely dry soil. The introduction of mineral nitrogen above 0.05 and 0.10 g/kg of absolutely dry soil, respectively, has a depressing effect on the formation of the symbiotic apparatus of peas in weakly and medium-cultivated sod-podzolic soil. Keywords Cultivation degree · Peas · Seed inoculation · Doses of nitrogen · Yield of green mass and grain · Number and weight of nodules

1 Introduction At the present stage of agricultural production, the optimal production volumes of grain and leguminous crops were determined for the conditions of the Middle CisUrals. Based on these parameters, we established the need to optimize the structure of sown areas. It is associated with a low level of agricultural production per capita in M. A. Alyoshin (B) Perm State Agro-Technological University Named After Academician D.N. Pryanishnikov, Perm, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_89

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the Perm region. For the selected region, it is 17.4 thousand rubles, while on average for Russia and the Volga Federal District, this indicator is 34.4 and 38.7 thousand rubles, respectively. At the initial stage, the optimization is seen in increasing the area under winter crops (by 12%), as well as mixed and single-species crops of legumes, peas, and vetch (by 8%), for the production of grain-fodder feed containing balanced, digestible protein (105–110 g/feed unit) [9]. The deficient proportion of leguminous crops in crop rotation and the difficulty of increasing their wedge are traditionally associated with the difficulties of their cultivation and low adaptability of harvesting processes relative to grain crops. Due to this aspect, there is no truly adapted technology for the cultivation of peas for sod-podzolic soils, where the central place is given to the fertilizer system based on the principles of biologization [10]. The main feature of the mineral nutrition of seed peas and other leguminous crops (vetch, lupine, fodder beans) is the fixation of air nitrogen caused by the symbiosis with nodule bacteria, which reduces their need for nitrogen fertilizers [24]. The effective symbiosis of leguminous crops with nitrogen-fixing bacteria is a necessary and primary condition for the full development of the vegetative mass, obtaining high and stable yields of pea grains. The proportion of symbiotic nitrogen in pea nutrition is 30–40% of its total consumption [4, 8, 9]. However, with low efficiency of nitrogen fixation, legumes get nitrogen from the soil and fertilizers [22]. These provisions determine the relevance of studying the effectiveness of the joint use of mineral fertilizer, nitrogen, and bacterial preparation to increase the nitrogenfixing ability of the rhizobial apparatus of peas in conditions of different levels of soil cultivation. The relevance of this issue is emphasized by numerous works of domestic and foreign authors, whose work is devoted to the influence of individual factors on the formation of the symbiotic apparatus of legumes [2, 3, 6, 12, 14, 20]. Nitrogen compounds affect the symbiotic apparatus at all stages of its formation and the functioning of the symbiosis itself, which starts with the formation of the rhizosphere and nodules and ends with the process of active nitrogen fixation [1]. Most researchers contrast the effects of minerals and biologically bound nitrogen. Therefore, opinions about the need to add mineral nitrogen to peas and other legumes are extremely contradictory. Several scholars consider the introduction of mineral nitrogen under legumes as an economically and environmentally unreasonable reception [7, 15, 25]. In contrast to this opinion, other researchers [11, 16, 18, 19, 27] recommend the use of nitrogen fertilizers. In addition to providing the soil with elements of mineral nutrition, where nitrogen occupies a special place, the most significant factor influencing the formation of the symbiotic apparatus of peas is the use of biological products based on strains of nitrogen-fixing bacteria [13, 26]. Currently, scholars have not formed a consensus on the combined effect of nitrogen fertilizers and bacterial preparations on the development of the symbiotic apparatus and the productivity of new varieties of peas.

The Effect of Fertilizers on the Formation …

821

The proposed hypothesis is that pea plants should show lower responsiveness to doses of nitrogen fertilizers when processing seed material with “Rizotorfin” bio preparation. Simultaneously, sharper responsiveness should be noted with a lower supply of soil with nutrients and the degree of cultivation. The relevance and insufficient development of the problem determined the purpose of the study - to study the effect of increasing doses of nitrogen and pre-sowing seed inoculation with the “Rizotorfin” bio preparation on the formation of the symbiotic apparatus and the productivity of sowing peas when cultivated on sod-podzolic soils of different levels of cultivation.

2 Materials and Methods The studies were carried out in the growing test according to the following scheme: Factor A—the degree of cultivation of sod-podzolic soil: A0 —poorly cultivated, A1 —medium cultivated. Factor B—inoculation of seed with a microorganism strain: B0 —without inoculation, B1 —with inoculation. Factor C—the doses of nitrogen, g/kg of absolutely dry soil: C0 —N0 (control), C1 − N0,05 ; C2 − N0,10 ; C3 − N0,15 ; C4 − N0,20 ; C5 − N0,25 . The repetition of variants is 16 times. Mitcherlich vessels (20 × 20) containing 5 kg of absolutely dry soil were used to set up the experiment. Soil moisture was maintained at 60% of the total moisture capacity, which was 55%. The research object is pea (Pisum sativum L.) in the seedless form of the zoned cultivar “Agrointel.” In the experiment, ammonium nitrate was used as a nitrogen-containing fertilizer (34.4%). In the experiment, we used the arable layer of sod-podzolic soil from different parts of the Perm State Technical University experimental field, differing in the degree of cultivation. This indicator was expressed through such criteria as the thickness of the arable horizon, the value of metabolic acidity, and the content of mobile phosphorus, the degree of saturation of the soil with bases. Agrochemical indicators of the arable layer of the soil are presented in Table 1. The arable layer of poorly cultivated soil was characterized by a strongly acidic reaction of the environment (pHKCl 4.4, Ng 5.7 mmol/100 g of soil), the number of exchange bases (12.5 mmol/100 g of soil) and the degree of saturation with bases (70%). The availability of mobile phosphorus (44 mg/kg of soil) and exchange potassium (72 mg/kg of soil) is low. The arable layer of medium cultivated soil was characterized by a slightly acid reaction (pHKCl 5.1, Ng 4.1 mmol/100 g of soil). The number of exchange bases (17.5 mmol/100 g of soil) and the degree of saturation with bases (81%) are increased. The availability of mobile phosphorus (59 mg/kg of soil) and exchange potassium (92 mg/kg of soil) is average.

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Table 1 Agrochemical characteristics of the arable soil Horizon, sampling depth

Humus, %

Ng

S

ECO

V, %

pHKCl

mmol/100 g

Mobile forms of nutrients, mg/kg of soil P2 O5

K2 O

Poorly cultivated soil Aar , 0-22

2.10

5.7

12.5

17.8

70

4.4

44

72

4.1

17.5

21.6

81

5.1

59

92

Medium cultivated soil Aar , 0-25

2.05

Source Calculated by the authors

Physico-chemical and agrochemical indicators are determined by generally accepted formulations of modern methods for this type of soil. The content of nitratenitrogen (N-NO3 ) was determined by the Grandval-Lyazh modification with disulfophenolic acid, ammonium nitrogen (N-NH4 ) was determined colorimetrically with Nessler’s reagent. The indicator (Nmin ) is the mathematical sum of two terms (N-NO3 + N-NH4 ). Immediately before sowing, pea seeds, following the attached instructions, were processed with the “Rizotorfin” bio preparation. Sowing was carried out by sprouted seeds of 25 pieces per vessel. After thinning, 12 plants were left per vessel. The plants were harvested in 3 terms, which were associated with separate phases: branching of the stem, budding (the beginning of flowering), and full ripeness. The statistical analysis of the data was carried out using the MS Excel software package.

3 Results and Discussion The nitrogen content of the soil is an essential feature of its fertility. The behavior of easily accessible, mineral forms of nitrogen (nitrate, ammonium) in the soil is primarily associated with its biochemical activity, absorption, and excretory activity of plants and microorganisms. This makes it difficult to identify common patterns in the behavior of soil nitrogen compounds [5]. The provision of legume plants with nitrogen is necessary for the formation and subsequent functioning of active legume-rhizobial symbiosis [21]. To determine the nitrogen supply of plants, the total content of mineral nitrogen in the arable horizon of the soil was taken into account (Fig. 1). The research showed that the availability of mineral nitrogen in soils is deficient (less than 60 mg/kg of soil). The low content of mineral nitrogen may partly be caused by the high nitrification of the soil and the intensive involvement of ammonia nitrogen in the oxidation processes. The most contrasting data, according to the degree of cultivation of the soil, was obtained during stem branching—for poorly

The Effect of Fertilizers on the Formation … Fig. 1 The dynamics of the content of mineral nitrogen (Nmin , mg/kg) according to the phases of peas development. Source Developed by the authors

823

N0,25

50 40 30 20 10 0

N0

N0,05

N0,20

N0,10

N0,15 Stalk branching

N0,25

50 40 30 20 10 0

N0 N0,05

N0,20

N0,10 N0,15

Budding – the beginning of flowering

N0,25

50 40 30 20 10 0

N0

N0,20

N0,05

N0,10

N0,15 Full ripeness poorly cultivated; medium cultivated sod-podzolic soil

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cultivated soil, the content of mineral nitrogen varies from 12.30 to 20.94 mg/kg of soil, on medium cultivated soil—from 29.7 to 45.83 mg/kg of soil. The use of inoculation contributed to a more intensive manifestation of symbiotic activity, as a result of which, plants used soil reserves of nitrogen less actively. A stronger correlation (r = 0.79 … 0.86) between the doses of nitrogen and the content of its mineral form in the soil was noted during the complete ripeness. On poorly cultivated soil, at the level of the trend, a lower content of mineral nitrogen should be recorded compared to the average cultivated soil difference. The issue of nitrogen nutrition of leguminous plants is one of the most complex and still debatable. Therefore, it is necessary to generalize domestic and foreign experience on this issue. This will allow us to identify a rational combination of the use of nitrogen fertilizers accumulated due to fixation from the atmosphere. When studying the effect of nitrogen doses on the yield of green mass of peas, the following data were obtained (Table 2). Based on the data, it can be noted that, when harvesting pea plants for green mass during the phase of stem branching, the yield on weakly and medium-cultivated sod-podzolic soil amounted to 16.7–23.3, and 25.1–40.0 g/vessel of dry substances, respectively. In a later harvesting period (budding phase), the plant yield, according to the experimental variants, increased to 45.7–58.9 and 52.4–78.8 g/vessel, respectively. The plant productivity on medium cultivated soil (on average) was 1.7–1.3 times higher than similar values obtained on poorly cultivated soil. A similar regularity in the level of green mass yield, in terms of harvesting, within the framework of one degree of cultivation of sod-podzolic soil, was noted relative to the doses of nitrogen studied in the experiment. Thus, on poorly cultivated soil, there is a tendency to increase the productivity of pea plants at doses of nitrogen in Table 2 The effect of nitrogen fertilizers on the productivity of the green mass of peas when cultivated on sod-podzolic soil, g/vessel The dose of nitrogen, g/kg of soil

Harvest time (development phase) Branching of the stem

Budding—the beginning of flowering

1

2

1

2

N0

16.7

25.1

49.4

52.4

N0,05

20.9

35.4

52.8

69.7

N0,10

21.1

40.0

58.6

78.8

N0,15

23.3

34.1

58.9

67.9

N0,20

20.9

35.5

55.1

64.0

N0,25

18.9

33.5

45.7

73.4

Average

20.3

33.9

53.4

67.7

HCP05

2.36

5.18

Note 1—poorly cultivated soil; 2—medium cultivated soil Source Developed by the authors

7.32

13.10

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825

Table 3 The effect of doses of nitrogen and pre-sowing inoculation of seeds with the bio preparation “Rizotorfin” on the productivity of pea grain, g/vessel Variant

Sod-podzolic poorly cultivated soil Without inoculation

With inoculation

N0

6.87

7.92

N0,05

6.67

7.18

N0,10

4.68

N0,15

4.29

N0,20

5.21

Average value

Sod-podzolic medium cultivated soil

Average value

Without inoculation

With inoculation

7.40

6.60

8.26

7.43

6.93

7.01

8.77

7.89

5.44

5.06

6.63

8.30

7.47

5.91

5.10

7.06

8.85

7.97

7.19

6.20

7.37

9.22

8.30

7.34

6.76

8.46

7.61

6.91

8.64

N0,25

6.38

8.29

Average

5.86

6.65

HCP05

1.10

0.45

Source Developed by the authors

the range from N0 to N0,15 . In more cultivated soil, the range of an increase in plant productivity decreased and amounted from N0 to N0,10 . A further increase in the doses of nitrogen in the studied interval led to a systematic decrease in the intensity of plant development and yield of green mass. An exception was the variant with the introduction of nitrogen at a dose of 0.25 g/kg of absolutely dry soil on medium cultivated soil during harvesting during the budding phase. It can be concluded that the simultaneous application of higher doses of nitrogen fertilizers has a depressing effect on the development of the assimilating surface of planting pea plants on weakly and medium-cultivated soil. The effectiveness of the doses of nitrogen and biological products for the presowing inoculation of seeds when harvesting peas for grain is shown in Table 3. According to the obtained data, pea productivity on more cultivated soil in the experiment was 6.91–8.64 g/vessel, which is 1.22–1.24 times higher than under less cultivated soil. The yield increase from the treatment of pea seeds with the microbial preparation “Rizotorfin” before sowing was more stable in some variants (1.66–1.85 g/vessel) and more significant on average in the experiment (1.74 g/vessel) on medium cultivated sod-podzolic soil. In poorly cultivated soil, a significant increase from seed inoculation (1.15–1.98 g/vessel) was obtained only when using higher doses of nitrogen (N0,10 –N0,25 ). The effect of nitrogen doses on the grain productivity of pea plants under conditions of poorly cultivated sod-podzolic soil was ambiguous. There is a tendency to a decrease in grain yield in the dose range from N0 to N0,15 without inoculation and from N0 to N0,10 —with inoculation. A subsequent increase in doses to 0.25 g/kg of soil, in both cases, contributes to the systematic increase in the grain productivity of peas to 6.38 and 8.29 g/vessel, respectively. There is every reason to assume that, under these conditions, plants of sown peas switch to nitrogen-fed fertilizers.

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Based on crop data, it should be said about the effectiveness of the joint use of inoculation of seed and mineral nitrogen in poorly cultivated soil and the cultivation of peas in green mass. When cultivating peas for grain, one-sided use of inoculation of the seed material with the bio preparation “Rizotorfin” is effective. On medium cultivated soil, already when introducing N0,05 , an increase in productivity is noted. However, only the amount (0.51 g/vessel) obtained using inoculation can be considered a significant increase, which emphasizes the need for this technique, even in old plowed areas. The introduction of nitrogen fertilizers increases the responsiveness of sowing peas to the use of inoculation in conditions of medium cultivation of the soil to the level of 1.70–1.87 g/vessel. The minimum level of grain productivity was noted when introducing mineral nitrogen at a dose of 0.10 g/kg of soil. A subsequent increase in dose to 0.20 g/kg of soil contributes to an increase in pea productivity to 7.37 g/vessel—without inoculation and 9.22 g/vessel—with inoculation. A further increase in the dose of nitrogen to 0.25 g/kg of soil leads to an increase in the total productivity of plants to the detriment of the formation of a grain crop. Thus, in medium cultivated soil, the optimal dose of nitrogen when using inoculation of seeds and cultivating peas for green mass was 0.10 g/kg of soil while cultivating on grain—0.20 g/kg of soil. The nitrogen-fixing ability of legumes largely depends on the development of nodule bacteria. The use of biological products based on strains of nodule bacteria to infect the root systems of leguminous plants during the growing season is an obligatory technique for modern agricultural technologies. The most acceptable parameters for consideration and subsequent assessment of the influence of the studied factors are the total number of active equine blisters (nodules) and their total weight in terms of one plant (Table 4). Table 4 The dynamics of the formation of the symbiotic apparatus in various phases of the development of pea plants during seed inoculation The degree of cultivation of the soil

Sod-podzolic, poorly cultivated

The dose of nitrogen, g/kg of soil

Harvest time (development phase) Branching of the stem

Budding—the beginning of flowering

Full ripeness

pcs.

g.

pcs.

g.

pcs.

g.

N0

8

0.03

15

0.20

4

0.01

N0,05

0

0

43

0.12

5

0.01

Sod-podzolic medium N0 cultivated N0,05

32

0.15

36

0.74

0

0

11

0.10

21

0.59

3

0.02

N0,10

13

0.10

68

0.38

5

0.07

Note Root nodules at a dose of 0.10 g/kg of soil on poorly cultivated soil and 0.15 g/kg on medium cultivated soil were completely absent Source Developed by the authors

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According to Table 4, on weakly cultivated sod-podzolic soil, the formation of a symbiotic apparatus in the phase of branching of the stem is noted only in the absence of additional mineral nitrogen application. The formation of a symbiotic apparatus with the addition of mineral nitrogen also occurs in conditions of medium cultivated soil. However, the number of nodules and their mass is much less. The indicators of mass and number of nodules, regardless of the degree of cultivation of the soil, reach a maximum in the phase of budding. By the phase of complete ripeness of plants, the number and mass of nodules significantly decrease or disappear altogether. This phenomenon is associated with the cessation of vegetative development, active functioning, and subsequent death of the root systems, with a decrease in the assimilative ability of the leaf apparatus and the outflow of nutrients to the roots, the aging of the plant. The main factor limiting the activity of symbiosis of legumes and nitrogen-fixing soil microorganisms in the Perm region is the increased acidity of the soil. In acidic soils, plants form fewer root hairs, absorption capacity decreases, and metabolic processes in the plant slow down. According to our research, there is a decrease in the mass and number of nodules on strongly acidic, poorly cultivated soil compared with slightly acidic, more cultivated soil. This factor, with a high probability, leads to a lower yield on poorly cultivated soil during harvest periods (Tables 2, 3). According to several authors [17, 23], acidic soil nodule bacteria reduce their virulence and activity. It should be noted that there is different responsiveness of pea plants under conditions of different soil cultivation to doses of mineral nitrogen. On poorly cultivated soil, the formation of the symbiotic apparatus does not occur properly with an increase in the dose of nitrogen above 0.05 g/kg of soil. On medium cultivated soil, this level is doubled—more than 0.10 g/kg. The use of higher doses of nitrogen completely inhibits the formation of the symbiotic apparatus. The root system is more conducive to soil nitrogen consumption and subsequent accumulation in the composition of the vegetative mass and grains. The following data were obtained when studying the effect of nitrogen fertilizers and seed presowing on the nitrogen content in pea root residues during stem branching, budding, and full ripeness (Table 5). During branching, the nitrogen content in the root system for poorly cultivated soil varies from 1.68% to 2.40%, on the medium cultivated—from 1.50% to 2.45%. On more cultivated soil, the highest amount of nitrogen is observed in the variant at a nitrogen dose of 0.25 g/kg of soil. The smallest amount (1.50% and 1.68%) is observed at a dose of 0.05 g/kg of soil and in the variant without fertilizers. During budding and the beginning of flowering, the nitrogen content in the plants with the introduction of mineral nitrogen decreased compared to the stem phase. A significant increase in the root system of poorly cultivated soil was obtained at nitrogen doses of 0.10 and 0.20 g/kg of soil on medium cultivated soil—at a dose of 0.15 g/kg of soil. In the phase of complete ripeness, higher nitrogen content in the composition of the pea root residues was recorded for more cultivated soil on seeds treated with the “Rizotorfin” preparation.

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Table 5 The content of nitrogen in the root residues of pea plants by developmental phases, % The dose of nitrogen, g/kg of soil

Harvest time (development phase) Branching of the Budding, the stem beginning of flowering

Full ripeness

With inoculation

Without inoculation

With inoculation

1

2

1

2

1

2

1

2

N0

1.68

1.68

1.12

1.27

0.97

0.91

1.11

1.51

N0,05

2.18

1.50

1.45

1.29

1.13

1.10

1.30

1.10

N0,10

2.40

2.06

1.60

1.22

1.00

0.99

1.65

1.41

N0,15

1.99

2.21

1.33

1.38

0.88

1.01

1.21

1.37

N0,20

2.34

2.18

1.56

1.25

1.14

0.89

0.99

1.92

N0,25

1.81

2.45

1.21

1.29

0.75

1.42

1.31

1.50

Average

2.07

2.01

1.38

1.28

0.98

1.05

1.26

1.47

HCP05

0.39

0.27

0.26

0.09

0.52

0.61

0.52

0.61

Note 1—poorly cultivated soil, 2—medium cultivated soil Source Developed by the authors

According to our experiment, the highest nitrogen content in the root residues of pea (2.01–2.07%), regardless of the time of harvesting the experimental crop, is observed during stem branching and coincides with the most active period of symbiotic apparatus formation. Significant differences in the nitrogen content in the composition of root residues, depending on the level of cultivation of sod-podzolic soil and the used dose of nitrogen in the experiment, were not noted.

4 Conclusion A study to establish the effectiveness of the use of mineral nitrogen and bacterial fertilizers, carried out on sod-podzolic soils of varying degrees of cultivation, taking into account the development of the rhizobial symbiotic apparatus and the aerial mass of sowing peas in different ripeness phases, allows us to draw the following conclusions. When cultivating peas for green mass on poorly and medium-cultivated soil, the effectiveness of using mineral nitrogen only at a dose of 0.05 g/kg of soil was noted. A lower degree of cultivation of sod-podzolic soil contributes to a clearer response of peas to nitrogen of mineral fertilizers and the subsequent transition of plants to nutrition with this form of nitrogen when more than 0.15 g/kg of soil is applied— without inoculation and 0.10 g/kg of soil—during inoculation of seed material with the preparation “Rizotorfin.”

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It is sufficient to inoculate the seed to increase the grain productivity of pea plants significantly on poorly cultivated soil. The use of mineral nitrogen in doses of 0.05–0.25 g/kg of soil does not provide a reliable increase in grains. On medium cultivated soil, the use of seed inoculation is also effective. In the absence of mineral nitrogen, the responsiveness to this technique is about 1.66 g/vessel. The introduction of nitrogen fertilizers increases the responsiveness of sowing peas to the use of inoculation to a level of 1.70–1.87 g/vessel. The introduction of nitrogen at a dose of 0.20 g/kg of soil ensures the maximum and reliable increase in grains in the experiment at the level of 0.77–0.96 g/vessel. The inoculation of seeds with the “Rizotorfin” preparation, when increasing doses of nitrogen are applied on weakly and medium-cultivated sod-podzolic soil, promotes an earlier and “less painful” transition of pea plants to nitrogen nutrition of mineral fertilizers. A closer relationship (r = 0.79–0.86) between the used doses of nitrogen and the content of its mineral form in the soil was noted in the phase of full ripeness of peas. The use of inoculation contributed to a more intensive manifestation of symbiotic activity. As a result, plants used soil nitrogen reserves less actively. There is a reason to believe that preparative bacterial strains, having a certain competitive advantage during the infection of the root systems of host plants, are subsequently more easily inhibited by the introduction of nitrogen fertilizers. The studies in this direction open up the possibility of joint use of mineral and bacterial fertilizers in the cultivation of sowing peas in sod-podzolic soils of different degrees of cultivation, which creates a definite prospect and, subsequently, will increase the sown area of legumes and the level of agricultural production per capita in the region.

References 1. Agafonov EV, Stukalov MYu, Agafonova LN (2001) The effect of mineral and bacterial fertilizers on the productivity of peas on ordinary chernozem. Agrochemistry 8:42–46 2. Alyoshin MA (2018) The effect of inoculation and doses of nitrogen fertilizers on the cereal properties and yield of sowing peas in the conditions of sod-podzolic heavy loamy soil of the Urals. Perm Agrar Bull 1(21):48–53 3. Baba Z, Asif M, Sheikh T, Sheikh F, Bhat Z, Khan S, Saher T, Hamid B (2015) Studies on soil health and potential of Rhizobium isolates for promoting plant growth. Emirates J Food Agric 27(5):423–9. https://doi.org/10.9755/ejfa.2015.04.043 4. Begun SA (1978) On the development of nodules in soybean roots depending on soil moisture and mineral nutrition conditions. Grain Farm 12:21–22 5. Belousova EN (2014) The influence of perennial grasses and steam on the structural composition and mobilization of mineral forms of nitrogen of chernozem of the Krasnoyarsk forest-steppe. Bull Tomsk State Univ Biol 1(25):7–25 6. Brki´c S, Milakovi´c Z, Kristek A, Antunovi´c M (2004) Pea yield and its quality depending on inoculation, nitrogen, and molybdenum fertilization. Plant Soil Environ 50:39–45. https://doi. org/10.17221/3640-PSE 7. Derzhavin LM, Sedova EV, Khlystova EF (1982) The use of mineral fertilizers and the environment. Agrochemistry 1:121–133

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8. Dozorov AV (2000) The role of symbiotic nitrogen in solving the protein problem. Int Agric J 2:58–59 9. Eliseev SL (2014a) The optimization of the structure of sown areas of grain crops in the Middle Urals: recommendations. Perm State Agricultural Academy, Perm, Russia 10. Eliseev SL (2014b) Ways to increase the production of legumes in the Urals. Perm Agrar Bull 3(7):11–18 11. Geht PV, Pestrikova ES (2015) The method of applying nitrogen fertilizers as an element of the technology of cultivating corn for grain. Top Prob Agrochem Soil Sci Res Young Sci 7(19):8–15 12. Geneva M, Zehirov G, Djonova E, Kaloyanova N, Georgiev G, Stancheva I (2006 The effect of inoculation of pea plants with mycorrhizal fungi and Rhizobium on nitrogen and phosphorus assimilation. Plant Soil Environ 52:435–440. https://doi.org/10.17221/3463-PSE 13. Guryev GP (2014) Some aspects of the formation of the symbiotic apparatus in peas. Legum Cereals 1(9):11–16 14. Habete A, Buraka T (2016) The effect of Rhizobium inoculation and nitrogen fertilization on nodulation and yield response of common bean (Phaseolus Vulgaris L.) at Boloso Sore, Southern Ethiopia. J Biol Agric Healthc 6(13):72–75 15. Hamokov HA (2018) The dynamics of the consumption of nitrogen, phosphorus, and potassium by crops of leguminous plants using nitrogen fertilizers. Bull Altai State Agrar Univ 160:11–16 16. Hamokov HA (2018) The influence of mineral fertilizers on indicators of photosynthetic and symbiotic activity of soybean, pea, and vetch crops. Bull Altai State Agrar Univ 1(159):30–34 17. Khakimova LR, Serbaeva ER, Lavina AM, Vershinina ZR, Baimiev AKh (2017) The growth-stimulating activity of the nodule bacterium Rhizobium leguminosarum isolated from leguminous plants of the Southern Urals. Bull Orenburg State Univ 9(209):96–99 18. Kukresh LV, Lukashevich NP (1996) Peas: biology, agricultural technology, use. Urajay, Minsk, Belarus 19. Lapinskas EB (2006) On the effect of starting nitrogen on symbiotic nitrogen fixation in leguminous plants. Agrochemistry 10:56–63 20. Mfilinge A, Mtei K, Ndakidemi P (2014) Effect of rhizobium inoculation and supplementation with phosphorus and potassium on growth and total leaf chlorophyll (chl) content of bush bean Phaseolus vulgaris, L. Agric Sci 5(14):1413–1426. https://doi.org/10.4236/as.2014.514152 21. Oldroyd GE, Dixon RD (2014) Biotechnological solutions to the nitrogen problem. Curr Opin Biotechnol 26:19–24. https://doi.org/10.1016/j.copbio.2013.08.006 22. Otieno PE, Muthomi JW, Chemining‘wa GN, Nderitu JH (2009) Effect of rhizobia inoculation, farm yard manure, and nitrogen fertilizer on nodulation and yield of food grain legumes. J Biol Sci 9:326–332. https://doi.org/10.3923/jbs.2009.326.332 23. Roumiantseva ML, Muntyan VS (2015) Root nodule bacteria Sinorhizobiummeliloti: tolerance to salinity and bacterial genetic determinants. Microbiology (Mikrobiologiya) 84(3):303–318. https://doi.org/10.1134/S0026261715030170 24. Shabaev VP (2006) Nitrogen nutrition and productivity of pea and oat plants when inoculated with the bacterium Pseudomonas fluorescens 20. Agrochemistry 10:28–32 25. Stark OY, Avdeeva GS, Puzansky RK, Klyukova MS, Yurkov AP, Zhukov VA, Shishova MF, Tikhonovich IA (2018) Changes in physiological and biochemical parameters in plants of planting peas in response to inoculation with the arbuscular-mycorrhizal fungus Rhizophagus irregularis. In: Pashtetskiy VS (ed) Proceedings from III international scientific conference: current state, problems, and prospects for the development of agricultural science (pp 60–61). Publisher “Arial”, Simferopol, Russia 26. Telekalo NV (2014) The effect of inoculation and foliar top dressing on the productivity of pea varieties. Legum Cereals 1(9):16–22 27. Zavalin AA, Pasynkov AV, Lekomtsev PV (2003) The effect of doses of nitrogen and nitrogenfixing drugs on the yield and grain quality of spring wheat and peas in clean and mixed crops. Agrochemistry 9:20–29

Changing Compositions of Sourdough with Prolonged Fermentation Vadim K. Khlestkin

Abstract Sourdough is an intermediate product, the result of microbiological processing of wheat, rye, and other flour. During the long-term fermentation of dough in both small bakeries and large industrial enterprises, several vital changes take place in the composition of biopolymers, low molecular weight metabolome, and the microbial community. Therefore, it leads to a change in the properties of the final bakery products. It is shown that the changes that occur depend both on the primary components and the environmental parameters. The dynamics of these changes is poorly studied. However, in some cases, it was possible to isolate new strains of lactic acid bacteria and biologically active substances from the sourdough of long-term fermentation. In Russia, a project to study the dynamics of rye sourdough changes during long-term fermentation is carried out by the project team, which includes employees of the St. Petersburg branch of the Research Institute of the Baking Industry and the All-Russian Research Institute of Genetics and Breeding of Farm Animals. Keywords Sourdough · Microbiome · Metabolome · Lactic acid bacteria · Yeast · Bakery products

V. K. Khlestkin (B) Russia Research Institute of Farm Animal Genetics and Breeding—Branch of the L. K. Ernst Federal Science Center for Animal Husbandry, St. Petersburg, Russia e-mail: [email protected] St. Petersburg Branch of the Federal State Autonomous Scientific Institution “Scientific Research Institute for the Baking Industry, St. Petersburg, Russia The Federal Research Center “Institute of Cytology and Genetics” of Siberian Branch, Russian Academy of Sciences, Novosibirsk, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_90

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1 Introduction One of the main directions of grain processing in the world is the production of flour. In Russia, more than 42% of grain is processed into flour and cereals [6]. Flour is a product that forms the basis of the food culture of most ethnic groups. The production of flour is one of the oldest processing technologies known to humanity. It consists, as a rule, in grinding grain and is sometimes a little modified with dispersion and introduction of additives. Flour is the primary raw material for baking, the production of pasta, and confectionery products. The main types of flour are wheat and rye. Due to its accessibility and unique composition, grain (less often from leguminous and other crops) processed flour provides the body with energy generated by the breakdown of starch and glucose, as well as amino acids, trace elements, and vitamins [5]. One of the essential foods made from flour is bread. Bread is a bakery product without a filling, with certain moisture and a certain mass (GOST 32677-2014), obtained by baking dough from flour and water, loosened with yeast or sourdough [9]. Sourdough bread is undergoing a certain renaissance, gaining popularity in numerous private bakeries that strive for the unique organoleptic properties of their products. At the same time, large manufacturers of bakery products do not forget about fermentation technologies, using proven microbiological compositions to ensure stability and predictability of products, which are essential for a high degree of production automation, despite the more complex technological process for the production of sourdough bread. GOST 32677-2014 defines sourdough for bakery production as a semi-finished bakery product obtained by fermenting a nutrient mixture with lactic acid bacteria, lactic acid bacteria, and baking yeast or other microorganisms used in the baking industry. That is, the sourdough contains a complex microbiological community that functions in a hydrocolloid matrix of polysaccharides and proteins, and varies depending on several factors: the seediness of the primary components (especially flour), the nature of the flour, artificially introduced yeast and bacteria, the method of its removal and maintenance, and other factors. Accordingly, the metabolome of sourdough produced under different conditions is unique, which explains the rich palette of taste and texture of bakery products obtained on their basis. If the so-called “spontaneous” sourdough derived from the original microbiome of flour are widespread in non-professional, amateur bakery, industrial sourdoughs are prepared using pure cultures of microorganisms, for example, from the bioresource collection of the St. Petersburg branch of the Research Institute of the Baking Industry. The microbiological composition of the sourdough depends on the type of sourdough and its availability, in particular: thick rye sourdough, liquid rye sourdough (with and without tea leaves), concentrated lactic acid sourdough (both rye and wheat), thermophilic fermented tea leaves [3]. As a microbial community, the sourdough must first be brought to a particular condition (distribution cycle), when it becomes optimal for introduction into the technological process. Then, it can be maintained in a more or less suitable form for

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833

the process (production cycle) if the storage and feeding regime is observed [11]. As it turned out, during the production cycles, the sourdough microbiological composition underwent significant changes. In domestic practice, there is no deep understanding of these changes, their impact on product quality, and even basic research in this area is lacking. Therefore, this paper aims to collect and study data on the dynamics of changes occurring with sourdough in production cycles.

2 Materials and Methods In the course of the work, the author used open databases and sources of information on the composition of microbiological communities in sourdough. The search for relevant information was carried out in the Scopus and Web of Science databases and the RSCI system. In the Baking Industry, practical research on the microbiome of sourdough is being carried out based on the St. Petersburg branch of the State Research Institute of the Baking Industry. Samples of wheat and rye sourdough were collected during an automobile expedition to remote monasteries and courtyards of the North of Russia (the Republic of Karelia, the Leningrad, Arkhangelsk, and Vologda regions). The model sourdough (thick and liquid rye sourdough) was obtained based on microorganisms from the museum collection of the St. Petersburg branch of the Research Institute of the Baking Industry. Industrial samples of sourdough were obtained from industrial enterprises.

3 Results The production cycle of sourdough in small private production is often referred to as “sourdough fermentation.” It consists of periodically selecting a part of the sourdough and replenishing this part with a certain amount of flour, water, and, sometimes, additional ingredients. The essence of this process is that the microbiological community receives new portions of nutrients that help it to remain in optimal condition and maintain an optimal environment for itself. There are different recommendations about the specified number of cycles, after which it is necessary to stop updating the sourdough and make a new one. Recommendations are most often related to the composition of the sourdough and are economically justified. Thus, many commercial companies offer sourdough with a limited life cycle, which allows increasing sales. Recipes of sourdough developed in the Soviet era are, on the contrary, aimed at long-term reproduction without loss of quality, for example, they are recommended for updating once a quarter or six months. Changes in the microbial communities of sourdough during their fermentation in the production cycle significantly affect the quality of the final products. Worldwide,

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interest in this topic is also on the rise due to the advent of the latest methods of metabolomic, transcriptomic, and genomic analysis. Thus, Ray and Montet [7] consider microecosystems of spontaneous sourdough and emphasize the complexity of metabolic interactions between the members of the ecosystem. It was shown that the four main sugars (glucose, fructose, sucrose, and maltose) are catabolized by the sourdough lactic acid bacteria, both homofermentative and heterofermentative during the daily fermentation of the sourdough, giving a complex combination of products. The biosynthesis of exopolysaccharides is also typical for bacteria, in particular, lactic acid bacteria of sourdough communities. For some of them, beneficial prebiotic properties are indicated. With prolonged management, sourdough can accumulate appreciable amounts of phenolic compounds. As a rule, their concentration remains lower than the inhibitory concentration for lactobacilli. However, in some cases, for example, for sorghum-based sourdough, the concentration of phenolic compounds exceeds the inhibitory concentration for sensitive lactobacilli, such as Lactobacillus sanfranciscensis, which, accordingly, do not develop on sorghum sourdough. At the same time, L.casei and L.parabuchneri feel great in this environment. That is, the antimicrobial activity of phenolic compounds in sorghum allows us to selectively cultivate a microbiota resistant to phenolic compounds, in particular, phenolic acids [4]. In some cases, it was possible to isolate new strains of microorganisms responsible for the synthesis of specific metabolites from the sourdough, stabilized by several cycles of refreshment, and thus affecting the organoleptic and other properties of the sourdough and the target bakery product. Thus, it was possible to obtain, isolate in laboratory conditions, and describe the strain Lactobacillus fermentum IMDO 130101, which showed the ability to ferment maltose, convert fructose to mannitol, metabolize arginine along the path of arginine deiminase, and function normally at an acidity of the medium to pH 3.0. It was sequenced and annotated by the genome of a new strain to assess its metabolic and adaptive potential at the genetic level [12]. Five new strains of lactic acid bacteria (Lactobacillus sakei KTU05-06, Pediococcus acidilactici KTU05-7, Pediococcus pentosaceus KTU05-8, KTU05-9, and KTU05-10), which have antibacterial and antifungal properties, were isolated from rye sourdough. Supernatant solutions of these strains inhibited the growth of 15 of 25 indicator strains of various bacteria and 25 of 56 strains of lactobacilli. Moreover, they turned out to be active against the potato bacillus Bacillus subtilis and the primary fungi causing moldy bread Aspergillus, Fusarium, Mucor, and Penicillium. Lactobacillus sakei KTU05-6 turned out not only to have antibacterial properties but also to be resistant to heat treatment and withstand a temperature of 100 °C for 60 min. Using the methods of comparative genetics, it was possible to identify both DNA sequences and bacterio-like new substances produced by these strains that could potentially be used in industry as new bactericidal components of sourdough [2]. In total, about 50 species of lactic acid bacteria are known. As a rule, the same species are found in sourdough in the microbial community; it is not always possible to find new ones. Thus, the study of rye sourdough taken from four bakeries conducted for a long time (5–28 months) showed that, when administered at a constant, elevated temperature (32 and 42–44 °C), there prevail Lactobacillus amylovorus, L. frumenti,

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L. helveticus, L. pontis, and L. panis. The fermentation at room temperature leads to the stabilization of L. sanfranciscensis, L. pontis, and L. zymae, or L. helveticus, L. pontis, and L. zymae. The ratio of these species is subject to seasonal fluctuations. With careful monitoring of conditions (increased fermentation temperature, reduced seed volume, and increased fermentation time), the microbial community consistently contained the prevailing amount of L. helveticus and L. pontis [13]. The evolution of the bacterial community was studied by the example of six thick rye sourdough at 20 and 30 °C with daily renewal for 56 days. Changes were monitored by denaturing gradient gel electrophoresis and partial sequencing of the 16S ribosomal RNA gene. Four types of lactic acid bacteria Lactobacillus (brevis, crustorum, plantarum, and paralimentarius) in various combinations were found in all sourdough after 56 cycles of renewal. Heterozymatic lactic acid bacteria dominated in the sourdough at 30 °C, and the obligate and optional heterozymatic lactic acid bacteria dominated at 20 °C. Kazachstania unispora (earlier—Saccharomyces unisporus) was identified as the only yeast representative that dominated in the sourdough fermented at 20 °C. In contrast, the combination of four types of sourdough was found when it was kept at elevated temperature (30 °C) (Kazachstania unispora, Saccharomyces cerevisiae, Candida krusei, and Candida glabrata). At the same time, the evolution of bacterial communities in the sourdough, at the same temperatures, did not necessarily follow the same path, and changes in the dominant and subdominant bacterial communities occurred even after six weeks of renewal [1]. The sourdough microbial community prepared with the addition of extraneous seeds other than flour (apple meal, pomegranate, flowers, or berries), stabilizing after about ten cycles of renewal, slightly differs from the traditional ones and is slightly dependent on the seed. However, it is shown that Acetobacter spp. is found when using only apple flowers or oil meal as seeds. Moreover, such bacteria as Lactobacillus sanfranciscensis, L. plantarum, L. graminis, L. rossiae, and S. cerevisiae remain dominant. Competitive experiments showed that L. sanfranciscensis in wheat and rye sourdough is more likely to survive than L. plantarum, L. graminis, and L. rossiae. This means that the zone of their distribution limits the presence of these lactic acid bacteria in spontaneous sourdough. Such observation brings a certain scientific basis for established practices to spontaneous sourdough with seeds, flowers, berries, and other similar materials [8].

4 Discussion A systematic review shows that during the prolonged fermentation of sourdough, biopolymers making up the hydrocolloid matrix, low molecular weight metabolites, and the microbial community itself can change (Table 1). These changes widely vary depending on the used components and the conditions of the wiring and production cycle. In some cases, it is possible to isolate new strains of bacteria or new biologically active substances, to identify and annotate new genes. In Russia, the dynamics of

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Table 1 The examples of changes in sourdough bread of prolonged fermentation The changing components of the sourdough

Components

Ongoing processes

References

Biopolymers

Starch

Starch breakdown to glucose and maltose

(Spotlight Resources, n.d.)

Proteins

Gluten breakdown

[10]

Other polysaccharides

Synthesis of exopolysaccharides

[7]

Phenolic compounds

Accumulation of phenolic [4] compounds, including acids

Acids

Lactic acid bacteria

(Spotlight Resources, n.d.)

Sugars

Maltose fermentation, conversion of fructose to mannitol

[12]

Amino acids

Arginine conversion along – the path of arginine deiminase

Strains of lactobacillus

The isolation of Lactobacillus fermentum IMDO 130101

–

The activation of Lactobacillus sakei KTU05-06, Pediococcus acidilactici KTU05-7, Pediococcus pentosaceus KTU05-8, KTU05-9 or KTU05-10

[2]

Yeast

The change in the ratio of yeast types in sourdough

[1]

Other microorganisms

The death of Bacillus subtilis and mold mildew fungi, Aspergillus, Fusarium, Mucor, and Penicillium

[2]

Low molecular weight compounds

Microbial community

Source Developed by the authors

changes occurring in sourdough in the microbial community is practically not studied, despite the industrial scale of production and the stable popularity of bakery products, including those prepared with sourdough. This study will identify the changes occurring in liquid and thick rye sourdough during long-term fermentation (up to 100 refreshment cycles) to search for new strains or biologically active metabolites. It is also planned to study the sourdough collected during the expedition to the remote monasteries and courtyards of the Russian North.

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5 Conclusion Bread sourdough is a complex intermediate product with the dynamic equilibrium of biopolymers (polysaccharides and proteins), low molecular weight products, and microbiological objects (fungi and bacteria (usually yeast and lactic acid bacteria)). During the technological cycle of fermentation, there are changes in sourdough associated with the modification of biopolymers, the metabolism and enzymatic transformation of low-molecular-weight compounds, and the competition of microorganisms. Their ratio may vary depending on the conditions of sourdough and the used components (the main components, as a rule, are water and flour). The dynamics of these changes are currently not well understood, especially for the sourdough used in Russia. Currently, the project team, which includes employees of the St. Petersburg branch of the “Scientific Research Institute for the Baking Industry” and the All-Russian Scientific Research Institute of Genetics and Farm Animal Breeding, is working on long-term management of sourdough to study metabolic and metagenomic changes and the sourdough obtained during the expedition on remote monasteries and courtyards of the Russian North. Acknowledgements The project is supported by the Russian Foundation for Basic Research (project No. 19-016-00085).

References 1. Bessmeltseva M, Viiard E, Simm J, Paalme T, Sarand I (2014) The evolution of bacterial consortia in spontaneously started rye sourdoughs during two months of daily propagation. PLoS ONE 9(4): 2. Digaitiene A, Hansen AS, Juodeikiene G, Eidukonyte D, Josephsen J (2012) Lactic acid bacteria isolated from rye sourdoughs produce bacteriocin-like inhibitory substances active against Bacillus subtilis and fungi. J Appl Microbiol 112:732–742 3. Federal State Autonomous Scientific Institution “Scientific Research Institute for the Baking Industry” (2008) The collection of modern technologies of bakery products. Scientific Research Institute for the Baking Industry, Moscow, Russia 4. Gänzle MG (2014) Enzymatic and bacterial conversions during sourdough fermentation. Food Microbiol 37:2–10 5. Kazakov ED, Kretovich VL (1989) Biochemistry of grain and products of its processing. Agropromizdat, Moscow, Russia 6. Krestyanskiye Vedomosti (2017) How much does Russia lose on exporting grain instead of flour and bread? Retrieved from https://kvedomosti.ru/pressa/skolko-teryaet-rossiya-na-tomchto-eksportiruet-zerno-a-ne-muku-i-xleb-2.html 7. Ray C, Montet D (2017) Fermented foods, part II technological interventions. CRC Press, Boca Raton, US 8. Ripari V, Gänzle MG, Berardi E (2016) The evolution of sourdough microbiota in spontaneous sourdoughs started with different plant materials. Int J Food Microbiol 232:35–42 9. Russian Federation (2014) GOST 32677-2014. Interstate standard. Bakery products. Terms and definitions (as amended). Federal Agency for Technical Regulation and Metrology, Moscow, Russia

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10. Scherf KA, Wieser H, Koehler P (2018) Novel approaches for enzymatic gluten degradation to create high-quality gluten-free products. Food Res Int 110:62–72 11. St. Petersburg Branch of Federal State Autonomous Scientific Institution “Scientific Research Institute for the Baking Industry” (2007) The collection of recipes and technological instructions for the preparation of bakery products using rye flour. Beresta, St. Petersburg, Russia 12. Verce M, De Vuyst L, Weckx S (2018) Complete and annotated genome sequence of the sourdough lactic acid bacterium Lactobacillus fermentum IMDO 130101. Genome Announc 6:e00256 13. Viiard E, Bessmeltseva M, Simm J, Talve T, Aaspõllu A, Paalme T et al (2016) Diversity and stability of lactic acid bacteria in rye sourdoughs of four bakeries with different propagation parameters. PLoS ONE 11(2):

Using Non-traditional Organic Waste During Vermicomposting in Closed Ground and Humic Formation in the Northern Cities Nikolay V. Nakonechnyy , Marina V. Ptukha , and Dinara V. Ibragimova Abstract The paper discusses the use of non-traditional types of organic waste, beer pellets, and sewage sludge in vermicomposting in the territory of the middle taiga forest zone of Western Siberia in the closed ground. Two series of experiments were carried out in 2018–2019. They showed positive results in an increase in humus. Keywords Vermicompost · Humus · Sewage sludge · Beer pellet

1 Introduction The city of Surgut is located on the West Siberian Plain territory on the right bank of the River Ob. The length of the city from north to south is 14.96 km, from east to west—22.2 km. The area of the city is 210 km2 . The territory of the city is located in the soil province of the Middle Taiga subzone of podzolic soils of the Central taigaforest region of the boreal belt. The parent rocks have different genesis (alluvial, lake-alluvial, lake, water-glacial, and aeolian). These factors depend on the location of the site and determine the direction of soil formation: sod, podzolic, and marsh. The land fund of the city, as of January 1, 2002, was 21,292 ha. Since 2002, the area of agricultural land remains unchanged and equals to 2139 ha [1–3]. The land fund of the Khanty-Mansi Autonomous Okrug is 53,480.1 thousand ha. The lands of the forest fund prevail in the land (91% of the total area). In 2016, the category of lands of the forest fund amounted to 48,662.3 thousand ha. The main feature of this area is that the district has a low percentage of agricultural land (1.1% of the total land fund). This is due to a vast swamp and a large number of rivers and lakes [4]. In addition to these factors, it is also worth noting that the presence of podzols causes a low content of humus in the soils of the city and the region. The average humus content in the city’s soils (1.0%) was low in the upper layer and sharply decreased in the horizons in subsequent samples. Therefore, on the territory of the city, due to natural factors and anthropogenic load, we see low values of the N. V. Nakonechnyy (B) · M. V. Ptukha · D. V. Ibragimova Institute of Natural and Technical Sciences, Surgut State University, Surgut, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_91

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agrochemical complex [11]. This can be confirmed by previous works in the KhantyMansi Autonomous Okrug and the Tyumen region, where the average humus values are 1.69 and 1.93% [10]. Nevertheless, the city has had a botanical garden for many years and continues to develop it. Commercial activities for the cultivation of ornamental plant crops are carried out in the city and in the region. There are garden farms and several industrial companies in need of remediation work in soil pollution. It is difficult to overestimate the importance of humus in the soil. Its natural renewal is a long multi-composition process that is formed from several biotic and abiotic factors. Humus enhances the biological activity of soils, prevents the entry of heavy metals into groundwater and plants, performs a sanitary-hygienic role [17]. In urban conditions, there is always a risk of both destruction and soil degradation due to negative impacts, which does not contribute to improving the environmental situation. In this case, there is a need to recreate a full soil layer and improve the properties of the existing one. For this purpose, we introduce organic matter in the form of leaf litter of urban tree planting, sow cereal-clover grass mixtures with inoculating seeds with nitrogen-fixing bacteria and treatment with a growth stimulator [5]. Among such biotechnological activities, vermicomposting continues to develop, involving increasingly advanced technologies for composting liquid and solid wastes. At the final stage, we receive humification of compost of different forms (mull, raw, durable, nutritious humus, and moder) [13, 14]. Among these wastes, we focused on the use of beer grains and sewage sludge. In vermicomposting with bio activators, the use of beer grains opens up prospects for solving the problem of environmental protection and the creation of clean food products. Raw fresh beer grains are toxic to earthworms. Preliminary preparation of pellets as a complex compost becomes a suitable substrate for earthworms, and bio humus from it is an excellent fertilizer. One of the critical issues is finding a way to ferment beer grains for vermicompost quickly. Vermicomposting of sewage sludge from urban wastewater treatment plants is also promising. Such sediments consist of up to 80% of organic and 20% mineral impurities. They have general toxic, toxicogenic, embryotoxic, carcinogenic, and other harmful properties. Precipitation often contains high concentrations of heavy metals, pathogenic microflora, and helminth eggs [9, 12]. Most sediment is stored at silt sites and dumps, creating technological problems during the treatment of wastewater. The conditions of storage lead to pollution of surface and groundwater, soil, and vegetation [5]. The presence of sewage sludge in atmospheric exposure for a long time leads to the mineralization and humification of organic matter, the formation of soil with distinguished genetic horizons [15]. At the same time, worms, absorbing sewage sludge, together with coprolites, secrete a large amount of their microflora, enzymes, and other biologically active substances that have antiseptic properties. They prevent the development of pathogenic flora, the release of fetid gases, and disinfect the soil. Worms can accumulate heavy metals in the body and translate them into bound forms, inaccessible to plants, which allows us to expand the range of applications of the final processing product.

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Nowadays, various types and hybrids of earthworms are used as vermiculture. One of them is the “Staratel” earthworm operating in a much wider temperature range— from 8 to 29 °C. It continues to lay cocoons at a temperature of 8–10 °C. One worm “Staratel” produces offspring of 1500 individuals and 100 kg of bio humus per year. From 1 ton of compost, an average of 600 kg of vermicompost and 10–15 kg of worms is obtained. The most crucial difference is that “Staratel” earthworms switch from one type of feed to another relatively easy. They are adapted to a wide variety of food substrates: manure (cow, horse, etc.), kitchen waste, sewage sludge, foliage, paper, etc. They retain high viability and productivity at a high population density per unit volume of substrate [6, 7]. Thus, the problem of the lack of humus and several agrochemical indicators of soils of the Khanty-Mansi Autonomous Okrug in the field of agricultural work can be solved by using traditional and non-traditional types of organic waste in composting and vermicomposting.

2 Materials and Methods Experimental studies were carried out in the laboratories of the scientific and educational center and the collective use center of the Institute of Natural and Technical Sciences of the Surgut State University in the period 2018–2019. The main objects of research were beer grains, waste from the production of the “Krishtal” brewing company located in Surgut, and sewage sludge from the treatment facilities of the SGMPU “Gorvodokanal” in Surgut. The composition of complex composts included sand, office waste paper, waste coffee, food waste, leaf and grass litter, bird manure, and “Tamir” microbiological supplement. Compost worms of the species Eisenia foetida “Staratel” were used as vermiculture. In the first series of experiments, we added ten young worms, and 50 immature worms were added in the second series. In some samples, a microbiological preparation “Tamir” was used as an additive that accelerates the composting process by decomposing organic matter. It is a liquid of light yellow to dark yellow color with a kefir-strong odor consisting of nitrogen-fixing, lactic acid, photosynthetic, cellulose-destroying bacteria, and unicellular fungi. The experiments were carried out in plastic containers with a volume of 750 cm3 . The first series of experiments consisted of five multi-composite substrates: 1. 2. 3. 4. 5.

Sand 500 g., OSB 120 ml. without E.f .; Sand 500 g., OSB 120 ml., “Tamir” 100 ml., with E.f. 10 pieces; Pellet 300 g., OSB 120 ml., “Tamir” 100 ml., with E.f . 10 pieces; Sawdust 100 g., OSB 120 ml., “Tamir” 100 ml., with E.f . 10 pieces; Sand 200 g., sawdust 50 g., pellet 100 g., OSB 120 ml., with E.f . 10 pieces.

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The second series of experiments consisted of six multi-composite substrates with two control substrates: with the absence of earthworms and microbiological additives. 1a. 1b. 1c. 2a. 2b. 2c. 3a. 3b. 3c. 4a. 4b. 4c. 5a. 5b. 5c. 6a. 6b. 6c.

Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., plants 50 g., waste 100 g., “Tamir” 100 ml., E.f. 50 pieces; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., plants 50 g., waste 100 g., “Tamir” 100 ml.; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., plants 50 g., waste 100 g.; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., plants 50 g., “Tamir”100 ml., E.f. 50 pieces; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., plants 50 g., “Tamir”100 ml.; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., plants 50 g.; Soil 250 g., plants 50 g., waste 100 g., “Tamir” 100 ml., E.f. 50 pieces; Soil 250 g., plants 50 g., waste 100 g., “Tamir”100 ml.; Soil 250 g., plants 50 g., waste 100 g.; Soil 250 g., OSB 100 g., plants 50 g., “Tamir”100 ml., E.f. 50 pieces; Soil 250 g., OSB 100 g., plants 50 g., “Tamir”100 ml.; Soil 250 g., OSB 100 g., plants 50 g.; Soil 250 g., OSB 100 g., paper100 g., “Tamir”100 ml., E.f. 50 pieces; Soil 250 g., OSB 100 g., paper 100 g., “Tamir”100 ml.; Soil 250 g., OSB 100 g., paper 100 g.; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., bird manure 100 g., waste 100 g., paper 100 g., “Tamir”100 ml., E.f. 50 pieces; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., bird manure 100 g., waste 100 g., paper 100 g., “Tamir” 100 ml.; Coffee 100 g., soil 250 g., OSB 100 g., pellet 100 g., bird manure 100 g., waste 100 g., paper 100 g.

The processing of the statistical data was performed using Friedman’s rank analysis of variance (for groups of equal volume) and Kruskell-Wallis (for groups of unequal volume), and the Mann-Whitney test [8, 16].

3 Results and Discussion In the first series of experiments, the third and fourth substrates were excluded due to the death of the worms in the first weeks of the experiment. After 30 days, the humus content in the second substrate was an average value with a standard error M ± m at n = 4 – 1.79% ± 0.62%/100 g. of soil with the maximum of 3.48% and the minimum 0.62%; in the fifth substrate it equaled to 2.47% ± 1.1%/100 g. of soil with the maximum of 5.57% and the minimum of 0.89%; in control (without worms and the microbiological supplement “Tamir”) –3.1% ± 1.0%/100 g. of soil with the maximum of 5.42% and the minimum of 0.67%. After 60 days of the experiment, the

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average humus content in the second substrate was at n = 4 – 3.45% ± 2.68%/100 g. of soil at the maximum of 11.45% and the minimum of 0.43%; in the fifth substrate it equaled to –4.1% ± 1.66%/100 g. of soil at the maximum of 8.74% and the minimum of 1.1; in control –2.25% ± 1.25%/100 g. of soil at the maximum of 5.89% and the minimum 0.49%. At the last stage, after 90 days of the experiment, the average humus content in the second substrate was n = 4 – 1.83% ± 0.88%/100 g. of soil at the maximum of 4.34% and the minimum of 0.34%; in the fifth substrate it equaled to 4.62% ± 2.49%/100 g. of soil at the maximum of 11.38% and the minimum of 0.79%; in control –2.25% ± 1.12%/100 g. of soil at the maximum of 4.48% and the minimum of 0.25%. In the second series of experiments, after 90 days, the indicators of the humus content were as follows at n = 3: in the first substrate, there was an average value with a standard error M ± m – 9.23% ± 2.2%/100 g. at the maximum of 11.69% and the minimum of 4.81%; in control 1zc (with the microbiological supplement “Tamir”) –2.97%, and in 1 cc (without worms and the microbiological supplement “Tamir”) –3.06%; in the second substrate –7.59% ± 3.19%/100 g. at the maximum of 13.6% and the minimum of 2.71%; in control 2zc – 13.38%, and in 2 cc – 9.62%; in the third substrate 9.32% ± 1.91%/100 g. at a maximum of 11.29% and a minimum of 5.5%; in control 3zc – 3.1%, and in 3 cc – 6.18%; in the fourth substrate –3.19% ± 0.04%/100 g. at the maximum of 3.25% and minimum 3.12%; the control 4zc – 3.14%, and 4 cc – 3.04%; in the fifth substrate –3.88% ± 0.96%/100 g. at a maximum of 5.81% and a minimum of 2.91%; the control 5zc – 3.3%; in the sixth substrate –5.7 ± 0.16%/100 g. at a maximum of 5.99 and a minimum of 5.45%; the control 6zc – 2.89%, and 6 cc – 6.38%. The experimental data obtained from laboratory experiments indicate that the components used to prepare the substrate had an ambiguous effect on the increase in humus in the finished vermicomposts. However, these indicators were higher than previously obtained data to the Khanty-Mansi Autonomous Okrug and the city of Surgut. The studies of agrochemical parameters of soils in the southern territory of the Khanty-Mansi Autonomous Okrug amounted to an average value with a standard error of 1.69% ± 0.16%/100 g. with a maximum of 3.62% and a minimum of 0.23% (n = 32). In the northern part of the Tyumen region, the humus values were as follows 1.93% ± 0.16%/100 g. with a maximum of 4.68% and a minimum of 0.18% (n = 37) [10]. In the city of Surgut, the average value of humus was the following 1.0% ± 0.05%/100 g. with a maximum of 2.81% and a minimum of 0.03% (n = 145) [11]. It should be noted that the use of the microbiological additive “Tamir” contributed to an increase in humus indicators. According to the results of statistical analysis, the following results were obtained. When comparing the average humus content in the samples of the second series of experiments with the “ZC” control according to the Kraskell-Wales method, its significantly higher content in the samples was established (value χ2 = 107, at α = 0.01). The same was observed when comparing with the control “CC” (value χ2 = 67.75, with α = 0.01).

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The values of the Frindman test of the first series of experiments, when comparing the amount of humus in the samples over time, were as follows, in samples A and B, Hr = 1.56, in samples C Hr = 2.0, in D Hr = 0.22. Due to the scattered values of the amount of humus in the samples over time, statistically significant indicators of an increase in its quantity were not established (Hr = 4.667, at p = 0.194). The value of the Frindman test when comparing the amount of humus in different samples for an equal period, after 30 days, was Hr = 10.17, by 60 days Hr = 9.17, and by 90 days Hr = 8.17. However, statistically, significant differences were found in the amount of humus in the samples at regular intervals (Hr = 8, at p = 0.005). The influence of the composition of the sample on the amount of humus (according to the Mann-Whitney test) with α = 0.01, the compared sample between A-B was U = 3.590, between A-C – U = 0.548, between A-D – U = 0.669, between B-C – U = 2.373, between B-C – U = 4.686, and between C-D – U = 3.104. It was found that the composition of the soil in the samples did not significantly affect the amount of humus (Utab = 56, at α = 0.01, n1 = 9, n2 = 9).

4 Conclusion Thus, vermicomposts are more effective in quality than the initial substrates. The compost worms “Staratel” can be effectively used in the disposal of non-traditional organic waste. Complex composts are formed more effectively when microbiological additives are added. The use of beer grains and sewage sludge together with other organic wastes suitable for vermicomposting in the middle taiga subzone of Western Siberia could reduce the load on solid domestic waste landfills and solve the problem of increasing the humus content in soils used for landscaping in settlements.

References 1. Administration of the municipality of Surgut (2003) The survey on the environmental state of Surgut 1993–2003. Defis, Surgut, Russia 2. Administration of the municipality of Surgut (2006) The survey on the environmental state of Surgut 2002–2006. Defis, Surgut, Russia 3. Administration of the municipality of Surgut (2011) The survey on the environmental state of Surgut 2002–2006. Defis, Surgut, Russia 4. Bogdanov VL, Moshkov IV, Garmanov VV (2018) Features and problems of land use in the oil and gas producing region—Khanty-Mansi Autonomous Okrug. Bull St. Petersb State Agrar Univ 1(50):182–188 5. Gorbunov VV (2012) Earthworms to increase yield. Astrel, Moscow, Russia 6. Igonin AM (2002) How to increase soil fertility dozens of times using earthworms. Marketing, Moscow, Russia 7. Igonin AM, Titov IN, Elin EN (2002) Recycling of organic waste with the help of a new industrial line of earthworm (compost worms) “Vladimirsky Hybrid” (Staratel). In: Proceedings

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from the 1st International conference “Earthworms and soil fertility” (pp 24–26). Vladimir, Russia Korosov AV (2007) Special methods of biometrics: textbook. Allowance. Petrozavodsk State University, Petrozavodsk, Russia Mukhortov DI, Uskova VV (2008) The optimization of vermicomposting parameters of sewage sludge varying in toxicity. Bull Volga State Technol Univ Ser For Ecol Nat Manag 2:60–71 Nakonechny NV, Fakhrutdinov AI (2010) Characteristics of habitats of an ordinary mole in the forest zone of Western Siberia. Bull Samara Sci Cent Russ Acad Sci 12(1):1325–1330 Nakonechny NV, Fakhrutdinov AI (2012) Agrochemical monitoring of soils of the city of Surgut. Bull Samara Sci Cent Russ Acad Sci 14(1–8):2054–2060 Sevostyanova SM, Aladin DY, Demin DV (2007) The adaptation of Eisenia Florida to sewage sludge and soil contaminated with organochlorine compounds. In: Vermicomposting and vermiculation as the basis of ecological farming in the XXI century: prospects, problems, achievements. Minsk, Belarus, pp 84–85 Soil and compost (2001) EKSMO, Moscow, Russia Stadnik BG, Zimina LM, Golikov GV (1997) Vermiculture—a new technology. Biol Agric 4:17–21 Tatarkin IV, Demin DV, Sevostyanov SM (2013) Features of the formation of humic substances in urban soils formed from sewage sludge during prolonged atmospheric exposure. In: Vermicomposting and vermiculation as the basis of ecological farming in the XXI century: achievements, problems, prospects, pp 70–74 Terentyev PV, Rostov NS (1977) Biometrics workshop. USSR, Leningrad Vaskov AS (2007) Non-traditional organic fertilizers in the formation of crop and soil fertility. In: Vermicomposting and vermiculation as the basis of ecological farming in the XXI century: prospects, problems, achievements. Minsk, Belarus, pp 53–60

Problems and Prospects of Using Artificial Intelligence to Monitor Phytosanitary Conditions of Crops Elena V. Khudyakova , Irina V. Slastya , and Victoria S. Semenyuk

Abstract Recently, there was an increase in the incidence of crops by diseases. It led to crop shortages of up to 30% or more. An urgent task is the timely detection of diseases to take measures on plant protection and prevent the spread of harmful organisms. Due to the complexity and large scale of the ongoing work to identify and account for diseases of crops, the use of modern digital technologies and AI in this area looks promising. For this purpose, most often, algorithms of the neural network are used, namely, the convolutional neural network algorithm, which has multi-layer and most accurate output information. However, the use of these technologies is also fraught with several difficulties, in particular with the differentiated diagnosis of infectious and non-infectious plant diseases that require different protective measures, the inability to diagnose diseases of the plant root system, and the high cost of creating a database of affected plants. However, these problems can be solved. AI has great prospects in monitoring the phytosanitary state of crops. Keywords Artificial intelligence · Agriculture · Agricultural crops

1 Introduction The shortage of crop yields due to external and internal stress factors, including the defeat of harmful organisms, leads to significant economic losses. In recent decades, there was an increase in the incidence of crops by diseases due to climatic changes leading to the movement of pests to northern areas, frequent adverse weather events, and the violation of agricultural technologies, including the illiterate use of organic and mineral fertilizers and plant protection products. The most common cereal diseases causing the most damage to the crop are snow mold, root gili, rust and smut diseases, typhulosis, septoria, powdery mildew, rhinchosporiasis, mesh, striped and dark brown leaf spots, fragility of stems, and others. Thus, septoria leads to wheat yield loss from 31% to 53% [5]. Therefore, it is now increasingly crucial for E. V. Khudyakova (B) · I. V. Slastya · V. S. Semenyuk Russian State Agrarian University—Moscow Timiryazev Agricultural Academy, Moscow, Russia © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_92

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the development of national agriculture, ensuring the food security of the country, and reviving its export potential to timely and most completely monitor the phytosanitary state of crops, identify and account for crop diseases, and establish the results of the impact on plants of various stress factors. Currently, studies of crop contamination are conducted in 78 constituent entities of Russia by specialists of the Federal State Institution “Rosselkhoztsentr.” In 2016, diseases of grain crops were identified at 7866.39 thousand ha, with a defeat of the economic threshold of harmfulness above the set level (by 3011.05 thousand ha). Treatment with plant protection products was carried out at 14,462.76 thousand ha [9]. These data indicate the widespread development of diseases of grain crops in Russia and the potential scope of work for their examination and identification. This is a rather complicated and labor-consuming process. Therefore, monitoring does cover only the most common varieties placed on different predecessors and sown at different times. In this regard, information technologies are being increasingly introduced in agriculture. To monitor the condition of crops, GPS and GLONASS systems are used, as well as such technical means as navigators, portable minicomputers with Internet access, special microscopes, etc. These devices are installed on a vehicle processing arable land (crops). Mobile microscopes with integrated cameras with a resolution of 3–8 megapixels are also used. Currently, ground-based sensor systems are being developed for monitoring the state of crops. Usually, these methods are based on spectral analysis and data visualization. The use of information systems, which include software based on AI, the use of neural network algorithms, and deep learning, is playing an increasingly important role.

2 Materials and Methods The traditional method for determining the degree of disease in plants involves a rather large amount of manual labor. Therefore, ten samples of 10–15 plants in each are taken after 25–50 steps in crops to determine the spread and intensity of the disease. For example, to determine such types of diseases like rust, septoria, helminthosporious, and other types of leaf spots, 2–3 fields with an area of at least 5–10 hectares are selected and counted for the main phases of plant development. Phytosanitary examination of crops determines two indicators: the prevalence of the disease (%) and the intensity or degree of development, determined by the formula [4]:  b·n · 100%, S= N·B where S—the development of the disease, %; b—the score of plant damage; n—the number of plants with an appropriate damage score;

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Fig. 1 The assessment of cerebral affection with septoria, %. Source Developed by the authors

N—the number of examined plants; B—the maximum score of the metering scale. To determine the degree of infection of plants with diseases, special scales showing the intensity of development of a particular disease are used. Figure 1 shows the most common scales in the assessment [4]. According to paragraph 2.19 of Sanitary and epidemiological requirements [SanPin] 1.2.2584-10, protective measures can be carried out only after a preliminary examination of agricultural land. After the examination, enterprises receive operational information on the spread of pests and diseases regularly and recommendations on the necessary protective measures. Given the large scale of implementation and the provided effect, the introduction of technologies based on AI into the monitoring system is promising. The primary AI method beginning to be applied in agriculture is image recognition based on neural networks. Various mobile applications for the recognition of plant diseases are currently being created. The algorithm for recognizing plant diseases based on the use of a neural network involves three stages: 1. 2. 3.

Image pre-processing; The extraction of features; The detection and classification of the disease.

The pre-processing of the plant image serves to remove noise from the image, that is, some non-specific signs for the given plant disease, which are not clearly expressed and are relatively rare. For that purpose, the Harra transform wavelet is often used. It converts the image to gray, taking into account its shades [11]. An essential role in the identification of an object (in this case, plant diseases) is played by the extraction of features typical for this phenomenon. For a plant affected by the disease, such signs are color, plant texture (color distribution over the leaf surface), and morphological features of the disease. The revealed features are compared with a set trained with the help of a neural network. The method of deep learning is widely applied [2].

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Of all the neural network algorithms, a biologically convolutional neural network (CNN) is most often used for image recognition in biology. It gives the most objective characteristics of the surface of leaves, regardless of changes in the scale, color, and shooting angle. Moreover, a two-dimensional convolutional neural network is most often used as the simplest one. The convolutional neural network consists of several layers (including hidden) and connections between them [10]. The CNN architecture assumes an input layer oriented to a 2D image. The main advantage of these technologies is their ability to train individual visual functions directly from the resulting image without using an exponential function when the dimensionality of the model and the complexity of its implementation are significant. It is a matrix of weights that “slides” over a two-dimensional image and performs the multiplication of weights by the part of the input data over which it currently “slides.” The output is weighted amounts. The size of the convolutional network core determines the number of features combined to produce a new feature at the output. When classifying images of plant leaves, the input layer is a color image of the leaf. As a rule, the recommended image size is 48 × 48 pixels. The input layer of the convolutional neural network is the so-called “map.” As a rule, each image is a combination of three maps (channels) – red, blue, and green. Then, each pixel is normalized in the range from zero to one [3]. The identification scheme for plant diseases based on a neural network is shown in Fig. 2. In the next part of the study, we identify the prospects and problems of using neural networks in recognizing the state of crops. Fig. 2 The identification scheme for plant diseases based on a neural network. Source Developed by the authors

Unknown function Learning a set of affected leaves

Update of

Loss Learning

The optimal function h: X

Y

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3 Results Possible crop losses can be predicted from the degree of development of crop diseases. Thus, with the intensity of damage to the leaves of cereal crops in the heading phase by 10%–20%, it will lead to a yield loss of 10%–15%, etc. (Table 1). In this regard, agronomists and economists determine the economic threshold of harmfulness (ETH). It is the minimum density of pests or diseases, at which the cost of the “fight” pays off with the additional income from the stored crop. If the level of infection of crops is higher than these values, it is necessary to carry out the processing of crops with plant protection products (Table 2). Some countries already implement image recognition projects based on a neural network in the field of plant protection. For example, the xPLNet is based on deep learning algorithms, in particular convolutional neural networks. This application was developed at the Iowa State University. The basis for the development was 25 thousand photographs of soybean leaves affected by diseases [7]. In China, experts from Table 1 The loss of crop from leaf-stem infections of crops The intensity of leaf damage in different phases of development (per plant on average), % Tillering

Exit to the pipe

Heading

Crop loss, %

Ripening

Crop reduction, c/ha (with a yield of 30–40 c/ha)

5

>20

>50

20

6.0–8.0

Source [8]

Table 2 The economic thresholds of harmfulness depending on the stage of development of plants (crops) Disease

Affected organ

Term of manifestation

ETH depending on the stage of plant development 31–39*

49–60*

Hard smut of wheat (Tilletia caries)

Spike and grain

Wax ripeness of grain

–

Up to 0.1

Powdery Mildew (Blumeria graminis f.sp. tritici)

Leaves, stems, spike

Shoots, milk wax ripeness of grain

1

5–10

Brown rust of wheat (Puccinia recondita)

Leaves

Exit to the pipe, milky wax ripeness of grain

1–5

5–10

*—the stages of plant development according to Zadoks Source [8]

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the Northeast Agricultural University of Heilongjiang Province conducted similar studies on soybean. They used 1470 raw images of soybean leaves and 200 images of soybean leaves with bacterial diseases [12]. Databases with thousands of images of affected plants for their individual species were also created in Germany, Australia, and India. In Russia, these projects are also being created. In particular, Smart Technologies Invest (STI) is currently compiling a catalog of plant diseases in Russia [1]. Given the complexity and high cost of collecting factual material on plant diseases, it is possible to propose using digitized images of affected plants presented in numerous printed publications with illustrations. Similar work was already carried out in 2004–2007 by employees of the All-Russian Institute for Plant Protection [6]. In carrying out this work, it should be borne in mind that plant diseases can be noninfectious. The cause of non-infectious diseases of plants is, as a rule, a combination of genetic factors and weather conditions, as well as a set of other unfavorable factors that cause oxidative stress in plants, leading to cell death. Visually, this manifests itself in the formation of whitish spots on the leaves. Both internal and external stress factors influence this process. External factors include light stress, drought, malnutrition, pathogenic, and toxic substances. Diseases of mineral starvation of cereals are common, associated with a lack of a particular nutrition element, which appears on the leaves in the form of whitish spots, deprivation of chlorophyll, and drying out. Visually, this is manifested in the fact that the leaves are painted in colors from light green to yellowish-green. As a result of the destruction of chloroplasts, the redistribution of nitrogen, and its transfer to the younger parts of the plant, aging leaves turn yellow and dry. Due to a lack of nitrogen, part of the leaves thickens and becomes stiff due to the thickening of cell walls. In crops with a lack of nitrogen, the growth activity of young shoots also decreases. Red-violet staining occurs due to the formation of anthocyanin. The lack of sulfur can also be a cause of discoloration of the leaves due to inhibition of chlorophyll formation. Leaves become light green; leaf veins may remain green longer. The lack of sulfur leads to low growth at the tillering stage, a slowdown in the formation of flowers, heads, and panicles. With magnesium starvation, light bead-like spots appear on old leaves; leaves turn yellow, starting at the tip of the leaf and along the edges. Symptoms of manganese starvation are dry leaf spotting; old leaves break in a particular way. Copper starvation, along with the manifestation of wilting of young leaves of a light green color, is manifested in the fact that the tops of the leaves are curled.

4 Discussion It should be noted that, along with great prospects, the use of AI in assessing plant damage by diseases is also fraught with several difficulties. One of the problems of using neural algorithms in monitoring the phytosanitary state of crops is a differentiated diagnosis of plant diseases, which would allow the separation of infectious diseases and non-infectious plant diseases associated with the presence of other stress

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factors since their external manifestations are similar. They require various protective measures, as, if the diseases are non-infectious, treatment with pesticides will be ineffective. Therefore, given the current level of development of AI, computer technology, and sensors, this task is still challenging to achieve for information technology. Neural network algorithms cannot yet distinguish, for example, a deficiency in nitrogen plants from a lack of sulfur, which is visually similar. So far, the ability to diagnose diseases of the root system of plants and underground internodes is beyond the reach of AI. An important problem of using neural network algorithms is the problem of forming a training population—a database that should contain thousands of images of affected plants. It is also important to note that the typical signs of plant disease have specific characteristics determined by the natural and climatic zone, which leads to the need to form a plant bank tied to specific natural and climatic conditions.

5 Conclusion The study showed that, with the current development of computer technology and software, the solution to the food security problem and the strengthening of its export food potential could be significantly influenced by AI technology. With an increased incidence of crops due to the development of communications and climate warming, convolutional neural networks can be used to control the phytosanitary state of crops. However, when using them, the main problems so far are the insufficient number of databases of diseased plants by species for training the neural network, as well as the need for conducting a differential diagnosis of plant diseases and its complexity. However, these problems can be solved shortly.

References 1. Agrooko (n.d.) The catalog of plant diseases. Retrieved from http://agrooko.ru/ 2. Astonkar SR, Shandilya VK (2017) A review on detection of plant diseases using image processing technique. Int J Trend Sci Res Develop 2(1):760–763. https://doi.org/10.31142/ijt srd7085 3. Benjio I, Courville A, Goodfellow I (2018) Deep-learning. DMC-Press, Moscow, Russia 4. Chumakov AE, Zakharova TI (1990) Harmfulness of crop diseases. Agropromizdat, Moscow, Russia 5. Gavrilova OP, Gagkaeva TYu (2010) Fusarium grain in the north of the Non-Chernozem region and the Kaliningrad region in 2007–2008. Plant Prot Quar 2:23–25 6. Grechanov IY (2008) Information and diagnostic complexes for phytosanitary monitoring. In: Information systems for the diagnosis, monitoring, and forecasting of the essential weeds, pests, and diseases of crops. The reports of the international conference. St. Petersburg, Russia, pp 29–31 7. IKS Media (2018) The mobile application will detect plant diseases. Retrieved from http:// www.iksmedia.ru/news/5496332-Mobilnoe-prilozhenie-opredelit-bole.html

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8. Koyshybaev M, Muminjanov H (2016) Guidelines for monitoring diseases, pests, and weeds in crops of grain. Retrieved from http://www.fao.org/3/a-i5550r.pdf 9. Russian Agricultural Center (2016) The results of the work of FSBI “Rosselkhoztsentr” in the field of assessing the quality of grain and its products for 9 months in 2016. Retrieved from https://rosselhoscenter.com/index.php/zerno-i-produkty-ego-pererabotki/7695-itogi-rab oty-fgbu-rosselkhoztsentr-v-oblasti-otsenki-kachestva-zerna-i-produktov-ego-pererabotki-za9-mesyatsev-2016-goda 10. Toda Y, Okura F (2019) How convolutional neural networks diagnose plant disease. Plant Phenomics, 2019. Retrieved from https://spj.sciencemag.org/plantphenomics/2019/9237136/ 11. Visilter YV, Gorbatsevich VS, Zheltov SY, Rubis AY, Vorotnikov AV (2015) Image processing, pattern recognition. Comput Optics 39(1):101–108. Retrieved from http://www.mathnet.ru/ php/archive.phtml?jrnid=co&option_lang=rus&paperid=63&wshow=paper 12. Wu Q, Zang K, Meng J (2019) Identification of soybean leaf diseases via deep learning. J Inst Eng (India) Ser A Civil Agric Environ Agric Eng. Retrieved from https://www.researchgate. net/publication/334725094_Identification_of_Soybean_Leaf_Diseases_via_Deep_Learning

Productive Use of Cows in Dairy Cattle Breeding Nikolay N. Shumeiko

Abstract The paper studies the productive use of dairy cattle. It analyzes the indicators of cow use by breeding organizations for four dairy breeds (Brown Swiss, Holstein, Sychevskaya, and Russian Black Pied) commonly used in the Smolensk Region. As a result of the holsteinization of graded domestic breeds, the number of Holstein cows increased. The productive use is marked with a decrease in calving age and the reduction in dairy herd cost recovery during herd replenishment. Keywords Dairy cattle breeding · Productive use · Breeds

1 Introduction A reduction in the number of cattle and an increase in cattle productivity are the current leading trends in the development of dairy cattle breeding. The development of dairy cattle breeding in Russia is marked with the following features: • • • • •

High weights of cattle in small business entities; The positive dynamics of production growth; The variation of milk productions in constituent entities of the Russian Federation; High-level of state support of the industry; The increasing number of newly built and reconstructed farms and the introduction of new animal maintenance technologies; • The diverse composition of species and the complexity of breeding aiming to preserve the breed features and genetic diversity. The National Report [3] notes the availability of significant reserves for the growth of dairy production due to regional differences. The dairy productivity stays within the range of 3 thousand kg in 7 regions, varies from 3 thousand to 5 thousand kilograms in 11 regions, exceeds 5 thousand kg in 56 regions, and 6 thousand kg in 35 regions. N. N. Shumeiko (B) JSC Smolenskoye, Smolensk, Russia e-mail: [email protected] © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 A. V. Bogoviz (ed.), The Challenge of Sustainability in Agricultural Systems, Lecture Notes in Networks and Systems 206, https://doi.org/10.1007/978-3-030-72110-7_93

855

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The variety of Russian natural conditions shaped the differences in animal welfare conditions and the diversity of the animal breed composition. The need for animal adaptation to regional welfare conditions brings relevance to a comprehensive assessment of the breeds used in dairy farming. The questions of comparative evaluation of domestic breeds in dairy cattle breeding are discussed by Strekozov et al. [8]. Shumeyko [7] studied the indicated issues within the framework of the Smolensk Region. Many foreign authors considered the comparative evaluation of different breeds of dairy cows. Leotta [5] conducted a comparative analysis of 14 indicators of milk productivity on milk samples from 199 cows of different breeds (127 Italian Friesian, 62 German Friesian, and 10 Jersey) taken from one breeding farm in Tuscany. Haas et al. [4] evaluated three breeds (Simmental, Brown Swiss, and HolsteinFriesian) in Slovenia. The scholars factored in the differences between various production systems (flat land compared to hilly or mountainous areas, traditional and organic farming). They calculated economic indicators for milk, fat, and protein productivity (e/cow/year/kg), survival rate (e/cow/year/% of survival rate), calving interval (e/cow/year/day), and daily beef growth (e/cow/year/kg). Norwegian scholars Bele et al. [2] revealed a difference between old and modern dairy breeds of cattle and their impact on vegetation and the use of feed resources in a summer mountain agricultural landscape. The milk productivity of cows determines the efficiency of dairy farming, the cost of feed, and herd replenishment. The period of productive use of cows acts as one of the indicators of the economic efficiency of dairy cattle breeding, which affects the cost of herd replenishment and the profitability of the industry. To increase the efficiency of dairy cattle breeding, it is necessary to boost the lifetime milk yield and use cows with maximum longevity. Animal longevity is influenced by several factors, including biological life expectancy, individual heredity, duration of the productive period, feeding, and managing conditions, disease resistance, etc.

2 Materials and Methods For this research, we selected four breeds of dairy cattle (Brown Swiss, Holstein, Sychevskaya, and Russian Black Pied) commonly used in the Smolensk Region. The study uses the data acquired from the “Yearbook on breeding in dairy cattle farming on the farms of the Russian Federation for 2011 and 2018” [1]. The paper compares the indicators of cows used in Russia and the Smolensk Region.

3 Results Figure 1 shows the overtime prevalence of dairy cow breeds for 2011 and 2018. The cows of the Russian Black Pied breed are the most prevalent (49.95%). In the dynamics, we can observe the numerical reduction of cows of all breeds. This reduc-

Productive Use of Cows in Dairy Cattle Breeding

857

Fig. 1 Overtime prevalence of dairy cows in Russia for 2010 and 2018. Source Compiled by the authors

tion ensured the growth of the Holstein breed by 16.29% due to the holsteinization of graded domestic breeds and the import of this breed. The number of Ayrshire cows also increased slightly by 0.1%. The increase in cows in the dairy herd was reflected in the growth of dairy productivity (Table 1). Milk productivity for all breeds increased 1.4 times, including higher rates for the Brown Swiss (1.43 times) and lower rates for the Holstein (1.3 times). The quality indicators of milk also improved. Comparing the indicators of productive use of cows with optimal and problematic criteria (Table 2), we can note that, in general, for all categories of farms, for the Holstein breed, the calf yield per 100 cows is low both in Russia (77.9%) and in the Smolensk Region (61.9%) and does not correspond to this breed (85–95%). The service period does not correspond to its optimal duration. The average age of first calving exceeds the optimal one, especially for the Sychevsky breed. We can observe a meager ratio of calving and cow disposal age. Reproduction indicators do not correspond with optimal indicators not only within conventional farms but also in breeding-oriented organizations. The age of cow disposal in farms of all categories amounts to 3.26 calves, i.e. before the point of their maximum productivity, since the productivity of cows increases to about six lactations. In Russia, during the replenishment of a herd, the return on costs for a dairy herd occurs after three lactations for the domestic first-calf heifer, and four lactations for the imported firstcalf heifer. Intensive culling allows us to achieve high productivity. However, it disrupts the optimal fertility and requires additional costs for the formation of the underlying stock and its replenishment due to the increasing import of heifers. It increases production costs and reduces the efficiency of dairy cattle. Thus, compared with 2013, the National Report for 2018 indicated an increase of 5.4% in the share of imports of pedigree young animals in dairy cattle breeding against the background of the increased demand of agricultural producers.

5,177

3,791

3,559

Russian Black Pied

Brown Swiss

Sychevskaya

Source Developed by the authors

6,799

Holstein

3.75

3.81

3.81

3.88

3.24

3.24

3.12

3.23

3.14

Protein, %

4,551

4,831

6,006

7,990

5,990

Milk yield, kg

3.84

Fat, %

Milk yield, kg

4,951

2015

2010

Milk productivity for 305 days of lactation

All breeds

Breed

3.88

3.86

3.84

3.85

3.87

Fat, %

3.22

3.17

3.13

3.22

3.16

Protein, %

4,736

5,454

6,853

8,905

6,971

Milk yield, kg

2018

Table 1 Dairy productivity of cows in the Russian Federation by individual breeds commonly used in the Smolensk Region

3.93

3.98

3.87

3.89

3.91

Fat, %

3.31

3.30

3.16

3.24

3.20

Protein, %

858 N. N. Shumeiko

Cow disposal, calvings disposal

age

Cow disposal, calvings disposal

>6 3.24

2.43

6

Calve output per 100 cows

85–95

Interlactation 50–60 period

duration, Service days period

Cow disposal, calvings disposal

140

83.5

60

127

3.30

2.57