The goal of this paper is to provide working recommendations for improving the development of market infrastructure servicing farms, both generally and by particular individual sector.

According to the conclusions of the previous policy paper, an effective infrastructure is one of the major factors ensuring the sustainable operation of farms. The paper explores the concept that contemporary agrarian reforms should envisage both the formation of market-oriented producers (farmers) and the establishment of market and agricultural infrastructure. Without such infrastructure, it is impossible to create a sustainable agricultural sector or to develop agrarian reforms. The existing administrative method of creating the main objects of infrastructure results from farmers’ low financial capacities. Therefore strengthening farmers’ financial stability is a key aspect in evaluating the prospects for developing market infrastructure for farms. Although the financial stability of farms is an important factor in the formation of solvent demand for the services of market infrastructure facilities, the converse also holds true: the development of such establishments and their effective operation significantly affect the ability of farms to sustain this financial stability.

To maintain the effective operation of market infrastructure in villages, the following measures are proposed: to improve the legal basis, to improve market mechanisms of selling resources for agricultural output, to improve mechanized services, to organize a procurement system for agricultural production, to increase the efficiency of mini-banks, to improve the operations of Associations of Water Users and to develop an insurance market.

• Structure of the report 2004/0411 Kb
• Summary of the report 2004/0411 Kb