Agrarian law. Fundamentals of economic relations in the market of agricultural products, raw materials and food (the most important)

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Agrarian law. Fundamentals of economic relations in the market of agricultural products, raw materials and food (the most important)

Lecture notes, cheat sheets

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53. Fundamentals of economic relations in the market of agricultural products, raw materials and food

The basis of economic relations in the market of agricultural products, raw materials and food are market (contractual) prices, which are formed under the influence of supply and demand.

Guaranteed prices for agricultural products, raw materials and foodstuffs are applied if the average market prices are lower than guaranteed, as well as when selling agricultural products, raw materials and foodstuffs directly to the state or when making additional payments to producers in the field of agro-industrial production in cases provided for by the Government of the Russian Federation.

The guaranteed price is calculated on the basis of the target price and is set by the public authorities. The guaranteed price should ensure that agricultural producers, taking into account other forms of state support, receive income sufficient for expanded reproduction, in accordance with the goals determined by the economic policy of the state for the coming period.

The list of agricultural products, raw materials and foodstuffs for which guaranteed prices are established, the volumes (quotas) of their sale at guaranteed prices, the level of guaranteed prices and their indexation, as well as the procedure for applying guaranteed prices are established by the Government of the Russian Federation.

Target prices (normative indicators) are established by the Government of the Russian Federation to ensure a parity ratio of prices for industrial and agricultural products, to cover the costs caused by the collection of taxes and other payments, the payment of interest on loans, the receipt by agricultural workers of incomes at the level of the average income of workers in sectors of the economy and profit, sufficient to conduct expanded reproduction.

Target prices (normative indicators) for agricultural products, raw materials and food are used as the basis for establishing guaranteed prices for agricultural products, raw materials and food, collateral rates for collateral from agricultural products, raw materials and food, as well as for calculating subsidies and compensation to agricultural producers provided by the legislation of the Russian Federation.

The procedure for using the target price (normative indicator) to ensure a parity ratio of prices for industrial and agricultural products, cover expenses caused by the collection of taxes and other payments, pay interest on loans, receive agricultural workers income at the level of the average income of workers by economic sectors and make a profit determined by the Government of the Russian Federation.

Author: Zavrazhnykh M.L.

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