Management of the development of family farms in the context of economic transformation

Abstract

In the dissertation work, the theoretical and methodological foundations are confirmed, and practical suggestions for managing the development of family farms under conditions of economic transition are formed. China is a country with a large population. Food security has always been a significant concern of the government, and the government must provide enough food. If more than 1.4 billion people cannot achieve the necessary self-sufficiency in food, The consequences are very serious. To ensure that food was plentiful, the country urgently needs to improve its agricultural production management system. The government is unable to effectively coordinate the activities of a large number of small-scale producers. The emergence of family farms led to the gradual concentration of land in the hands of qualified farmers. On the one hand, this reduces the number of small-scale agricultural operators and, on the other hand, increases the control of government agencies over this sector of the economy. An important factor in the formation of family farms is economic factors, which are essential among all drivers. According to official statistics, the average farmer occupies 0.09 hectares of agricultural land in China, and the land use size of the middle peasant family ranges from 0.27 hectares (for a three-member family) to 0.47 hectares (for a five-member family). Assuming ten people work on the family farm, the family has at most 0.87 hectares of land based on the principle of equal distribution. If the average annual net income per hectare is 10,500 yuan, then the yearly agricultural income of a family of 10 is 9,135 yuan, and the per capita income is 914 yuan. Therefore, the scale of agricultural production is too small, inevitably leading to agricultural production workers can not be fully employed. By concentrating agricultural land on farmers and families through land transfer, it can produce products with more excellent added value, grow elite crops (animal varieties), and accelerate the modernization of production processes by using modern agricultural techniques on a larger scale. According to the present situation, the family farm has become an essential part of the agricultural component in the economic development of modern countries. Family farms are playing an increasingly important role in China's agrarian modernization process, contributing to the formation and development of farm production and the increase of farmers' income. The conducted research focuses on the fact that given the unique nature of the production process, there is fierce market competition and certain defects in the operation process of Chinese family farms. Therefore, it is of practical significance to study this subject, namely to formulate and implement the strategy of managing future development under the condition of economic transformation. Based on the developed literature at home and abroad, as the current legislative and regulatory framework, the author expounds on the essence of the concept of a "family farm." Unlike the existing interpretation, it refers to the family as the primary production unit, family members as the primary labor force, and agricultural income as the primary source. Use oneself or transfer land to carry on appropriate scale specialization, commercialization, socialization agriculture production. China's family farm is a new type of agricultural management. The well-developed literature notes that the scientific foundations of management theory began to take shape about 100 years ago and that management did not emerge independently. Typically, control is directed to objects or procedures. Its task is to manage the entire engineering complex, aiming to form and implement management actions, provide the necessary conditions for development, use resources efficiently and optimize the financial results of activities. During the study, we perfect the multi-level management system of the development of a Chinese family farm, considering the world experience and information technology as an important part of the future agricultural production essential features. At the same time, they also need state supervision, social services, rural land transfer, farmer education, to find sources of funds and establish their own brand. As the world experience of managing the development of family farms shows, they are the subject of agricultural activity in many countries. The current legislation stipulates are land ownership parcel circulation procedures (buying, selling, leasing, mortgaging, etc.), and a reliable basis for large-scale work on family farms using modern agricultural production methods. The high level of agricultural technology, the mechanization of the process, the creation of private brands as the orientation, the stable financial environment, and the social service system of the family farm all confirm this. In some areas of China, the development of family farms has functional characteristics and advantages respectively. An example is the government-led family farm model in Songjiang, Shanghai, the family farm market model in Ningbo, Zhejiang, and the government-supported family farm model in Langxi, Anhui. The study results show that the advantages of the development of managed family farms in these leading regions are: high comprehensive quality of farmers, leading management or market, ideal social services, well-regulated land transfer, and focus on finished product market operation and establishment of their brands. With the help of the Family Farm Association, quality management and comprehensive assistance were provided at the " Before production," " In the production process," and " After production" stages. After thinking and analyzing the operation characteristics of domestic and foreign family farms under current market conditions, the platform and guidelines for developping Chinese family farms are formed. To form an information base, the author conducted a field survey on family farms and farmers, obtained data from related family farms, and used logistic regression to analyze the factors affecting family farms development and management empirically. This dissertation analyzes the implementation problems of agricultural informatization in family farm management activities. Need to support the informationization of family farms. The leading role of state agencies is not vital, and the current legislative and regulatory framework needs to be adapted to existing business conditions. The slow construction of information systems and the lack of motivation of information service providers are the factors leading to the lack of management information part of family farm development in the context of economic transformation. Based on foreign experience, the survey results were summarized and analyzed. Processing official statistics and a list of family farm informatization measures was determined: With the participation of the national and local governments, Establish a unified information standard system to create a mature information support system for each family farm, accelerate the application of information technology in financial and economic activities, and accelerate the formation of a professional team of experts to introduce modern management information systems. The land is essential for family development in rural areas. China has a large population and a small per capita area of arable land, so fair, effective, transparent, and lawful distribution is of undeniable significance. This is also a prerequisite for family farms to achieve a reasonable scale of agricultural production. Transferring agrarian land to farmers is considered, and current shortcomings are identified. We determined the form of farmland use strategy. Its implementation will help: according to the land transfer procedures, the current laws and regulations to strengthen the rural land circulation policy and rules of propaganda, establishing and perfecting agricultural land financial service system, strengthen the information service of intermediary organizations, increase the introduction of land circulation market mechanism of competition. According to the survey, the professionalism of farmers plays a significant role in managing the development of family farms. As a typical representative of modern professional farmers, family farmers are an essential part of human resource management. Procedures for advanced training for family farmers are considered. It is found that their knowledge level is not high enough. More than 50 percent of China's working farmers are over 50. This age group is less aware of the importance of active participation in training using modern communication systems. The author believes that the most common reasons for the lack of training effect are the single training form, the training content is not always relevant and targeted, the information flow efficiency of learning objects is low, and the lack of monitoring and evaluation system. Introducing the "double teacher" training system, combining online learning with offline consultation, and implementing the family farmer training system, will help to optimize feedback and improve the educational effect and professional ability of farmers and teaching staff by combining theory with practice in the educational process and production. Marketing is an essential means of increasing the income of any agricultural producer, and the quality of the marketing process is reflected in the management of the entire family farm. Based on the actual data obtained, a regression model is formed to improve the methodological method for the analysis of factors affecting the selection of agricultural product distribution channels in the "Internet +" environment. Based on “Internet+,” producers have many choices for the distribution channels of their agricultural products. The author evaluated the current situation of agrarian product sales channels of family farms in Henan Province, collected and analyzed the data using SPSS 22.0 measurement software, and tested the hypothesis. It is concluded that the brand and certification of family farm produce and the commercial form have a significant impact on its distribution channel. According to statistics, in the distribution channels of family farm agricultural products, the traditional spot trade channels are still dominant. Of all eight implementation areas, Internet channels ranked seventh at 9.40 percent. According to the results, it is determined that based on the "Internet +" environment, the selection and innovation of distribution channels for family farms in Henan Province need to be further improvement. Due to awareness factors, poor equipment quality, and the attitudes of the society around them. As a result, the Internet's potential for use has not been sufficiently developed. At the same time, with the emergence of a large number of high-quality products, people gradually turn "full food" into "good nutrition" and a "healthy diet." Agricultural brands have become trendy, establishing their brands and obtaining certificates to take priority in sales. Family farms still need to strengthen their branding and certify their products. In the past two decades, the rapid development of family farms has led to improved agricultural standards. However, family farms are becoming more demanding and dependent on capital due to high risks, low yields, long cycles, and the need to scale up agricultural production. Because of the nature of farming, it is difficult for family farms to qualify for bank loans, and financing problems limit their development. With the development of society, the Internet plays an essential role in all fields. Internet finance has changed the traditional financial model, broadened the financing channels, and better met the needs of social and economic development. As a new type of agricultural entity, family farm financing is limited by the complexity of access, high financing cost, and lack of adequate collateral. With the development of economy and science and technology, Internet crowdfunding has become popular due to its convenient use, low cost and relatively transparent information content, providing a guarantee for the development of family farms. With the help of the platform, it is suggested that the introduction of the family farm on the Internet and the raise mechanism, this mechanism is composed of different stages: create a professional platform, start-up and demonstration projects, investors interested in the project choice, development investment, financial results, at the same time, and will help to expand the sales channels, to solve agricultural producers financing difficulties. Compared with traditional financing, online crowdfunding is more suitable for providing financial resources for family farms. The implementation of the proposed approach allows the regulation of external funds to be consolidated to ensure the security of investors' resources and to guide family farms to conduct production activities in a standardized manner upon receipt of funds. Combining theory with practice, the strategy of this scientific work was applied to the method of agricultural product distribution channels, and the organizational and practical components of family farm sales of agricultural products were created based on the operation of "WeChat groups" under the conditions of online sales.