Efficiency of small farms functioning in Ukraine
Efficiency of small farms functioning in Ukraine

Summary/Abstract: A considerable share of agricultural products in Ukraine is produced by 32.1 thousand farm enterprises, 97.5% of whichare small farms. The domestic legislation does not clearly determine the classification of farms by size into large and small ones.Because of this uncertainty, there are often difficulties in choosing the tax system, forms of accounting and reporting, as well asin identifying efficiency indicators of economic activity. The purpose of the article is to determine an approach to the classificationof farms by size and analyse economic activity indicators of small farms. The authors’ viewpoint is that the farm enterprises thatare reported by the statistical form No.50-agr belong to large farms and those farm enterprises which submit statistical reportingon Form No.2-farm are small ones (with an agricultural area of less than 1 thousand hectares each and a number of employeesless than 50 people). Small farm enterprises are an integral part of the domestic agro-industrial complex of Ukraine and play animportant role in ensuring food security. It has been found out that small farm enterprises cultivate 55.5% of arable land and produce52.2% of gross agricultural output in the structure of domestic farming. More than 93% of the revenue of small farms is formedthrough the sales of crop production. As a result of using the method of grouping we recommend carrying out economic activity forsmall family farms on covering an area of no less than 100 hectares which will ensure the greatest economic efficiency indicators.

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