At the cost of crop production crops about 35%, and in the structure of sown areas, they account for almost 60%. On the production of grain consumed 20% of all labor costs in crop production.
Grain, as agricultural production, in economic terms has several advantages. It is well kept in dry form is easily transported over long distances, has a high degree of flow ability. All these features of the grain are used in the construction of grain elevators, silos, as well as transport and the creation of public stocks of food and feed.
Agriculture is the starting point for grain production and the initial stage of manufacturing the final product. Grain production employs more than 15% of agricultural workers. Implementation of the grain gives agricultural producers about 18% of revenue.
Contemporary situation in grain farming and the grain market of the country, was the result of many internal and external reasons, the main of which includes adverse macroeconomic conditions of grain farming, associated with the deformation of inter-industry relations, costs of ongoing agrarian reform, heightened disparity in prices for grain and industrial products, a sharp reduction in state support for the grain industry and the lack of active management of the grain market, etc. This has greatly contributed to the destruction and degradation of its productive capacity, low susceptibility to the introduction of scientific and technological progress and strengthening de-intensification of the industry, followed by a nearly ubiquitous ongoing reduction in the area of the grain of the wedge and the volume of grain production, the continued deterioration of its territorial and sector structure and grain quality, steady "compression" of the economy the grain industry, reducing its share of world gross harvest of grain crops.
As we know the market is a system of socio-economic relations in the area of exchange, through which products sell. Market is the link between producer and consumer. The market emerged and exacerbated economic and social problems led to a reduction in grain production. Grain on a daily basis, is a biological liquid of complex composition, containing all the nutrients: proteins, fats, carbohydrates, minerals and vitamins.
Grain needed in the country for food needs of 500 thousand tons over the past 10 years produced 1,279.8 thousand tons in the same time, food grain for bread and pasta production is completely insufficient.
Bashkortostan has a large area of arable land of 4.8 million hectares. More than half of that land is black soil of various kinds with good natural fertility. The country has gained great scientific and practical experience in the production of grain, the volume of which in some years reached 6 million tons and more
With the application of modern intensive technologies and the introduction of higher doses of fertilizers and crop protection agricultural enterprises of the republic with the growth in demand for grain could produce it in large quantities. Note that in some periods the area of grain crops in the country amounted to 2.5-3 million hectares. It is also important that the production of grain - the only major sector of agriculture, which has been and remains profitable through the years and in all areas of its cultivation.
Involvement of agricultural land in the major grain production with science-based crop rotations is an effective system, the basis of all agriculture; as well as the base of the most rational use of agricultural land and renewal of its fertility. Bashkortostan is located in the zone of risky agriculture, but despite that in many areas with insufficient moisture supply, a compressed period of growth and the difficulties during harvest grain production is justified. Therefore, in the future of Bashkortostan has to be one of the major regions of the Russian Federation for the production of marketable grain.
In a market where business activity is carried out at your own risk and under own financial liability, the profitability is a particular importance.
Level of profitability, as we know, is influenced by cost and revenue from sales, and the latter in turn depends on crop yields and prices of products sold.
Assuming the accepted among Russian economists - agrarian notions of growth efficiency with increasing scale of enterprise, we can expect increase of profitability. Profitability of production is considered as an effective index. As a rule, this dependence is illustrated by the grouping of agricultural enterprises on farmland and a number of employees, which demonstrates the systematic (from group to group) increase in profitability.
The indicators of the size of the agricultural enterprise can act as values of key factors of production (land, labor, capital) and the effective indexes (volumes of output, revenue, gross profit, profit). In agriculture, the most commonly used two indicators are: area of farmland and number of employees.
The most important condition for improving the efficiency of the complex stands coordination capacity of processing enterprises with production and revenues on processing of grain raw materials from the economic zone and the production of dietary grain products in quantity and range corresponding to the purchasing power of consumers.
Grain is produced once a year, but it can be stored under certain conditions, a longer time than milk. Therefore, grain producers may hold back production to more favorable terms. Grain is produced in almost all agricultural enterprises of the republic. Processing plants can operate effectively only when the capacity utilization, which is the reduction of production, declines. More stable supply of products can achieve higher purchasing prices for grain in the winter months and lower them in summer. Increase in revenues of raw materials to processing plants traditionally causes falling grain prices and products from it. Conversely, the reduction proceeds of grain processing enterprises prices rise. Consequently, manufacturers and processors of grain can work more efficiently only if their mutual interests meet.
The main reasons for the decline of grain production and reduction of its profitability are: