Improving the method for setting target, guaranteed, and collateral prices for agricultural products in the Krasnodar Krai

Abstract

Subject. Development of Russia's agricultural market, financial potential of the farming industry. Objectives. Development of an adaptive pricing model that takes into account regional specifics and the volatility of the agricultural market. Methods. A combination of econometric and statistical methods was used. Results. The specifics of the Krasnodar Krai (higher yields, but also higher material costs) require adjusting the standard cost. The regression models developed during the study allow calculating an exact coefficient for each product. The risk discount, which depends on the price variation coefficient, makes collateral operations economically justified: for volatile crops (corn, meat), the collateral price is set lower than the target price, which reduces risks for the government. Conclusions. Taking research results into account in practical activities will make government support for the agricultural sector less costly and more precise. The proposed adaptive model ensures price stability in the region's agro-industrial complex.