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Economic assessments of the impact of Covid-19 on farm development

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  • Mamchur, Volodymyr
  • Irkliienko, Ivan

Abstract

The purpose of the article is to evaluate measures to support the activities of farms and family farms in the conditions of David-19 and make a forecast assessment of their development and formation. Research methods. It is based on the active policy concept of entrepreneurial potential realization in the countryside, which includes measures for the farms and family farms development, in particular through the transformational mechanism of household formalization into a market environment. The following scientific methods were used in the research process: dialectical scientific knowledge of processes and phenomena; monographic (analysis of scientific achievements of Ukrainian and foreign scientists, as well as stages of business development); graphic (to obtain a synthesized idea of the object of study, to identify its components, to establish causal relationships); empirical (regarding a comprehensive assessment of the current state of the object of study); comparative analysis (identification of problems and directions of formation and development of farming); comparative analysis (taking into account the specific conditions of agricultural activity and comparing the processes of farming development at the national level); prognostic (formation of conceptual bases of regulation and improvement of the strategy of development of business); abstract-logical (theoretical generalizations and formulation of conclusions). Research results. The situation on minimizing the impact of quarantine measures under the conditions of Covid-19 and their consequences and interaction in the development of farms and family farms in rural areas is analyzed. On the basis of generalization in the development of mechanisms to ensure the efficiency of the agricultural sector of the economy, it is necessary to take into account the features and vulnerabilities of the organizational and legal management form. It was found that the most vulnerable to the introduction of quarantine restrictions are small and medium-sized farms, mostly those engaged in vegetable production, in particular the production of early vegetables and berries. This can directly lead to a reduction in their number. Thus, by 2025, the number of farms may be reduced by 450 units - up to 32639 against 33089 in 2019. However, the introduced measures, including compensation the part of SST for family farms, are able to provide in the near future approximately 200 thousand such farms both through a change in the organizational and legal form of existing small farms and through household formalization into the market environment with the acquisition of the official status of business entities. Scientific novelty. The methodological representation and identification of the category of self-employment as structured and defined by law, institutional and economic criteria, forms of organization of rural management with the appropriate definition of priority contours of possible organizational and economic effectiveness of functioning through employment in non-agricultural enterprises. Practical significance. The basic principles for counteracting the impact of restrictive measures in the context of Covid-19 were revealed, which allowed to assess the prospects for the development of farms, including family farms, as well as to make predictive calculations of the impact of proposed measures on their formation and development. Tabl.: 3. Figs.: 1. Refs.: 24.

Suggested Citation

  • Mamchur, Volodymyr & Irkliienko, Ivan, 2020. "Economic assessments of the impact of Covid-19 on farm development," Ekonomika, Journal for Economic Theory and Practice and Social Issues, Society of Economists Ekonomika, Nis, Serbia, vol. 27(6).
  • Handle: RePEc:ags:sereko:411821
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