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Are Peasant Households Feasible in Terms of Policy? The Debate on the Future of Semi-Subsistence Households in Ukraine

Author

Listed:
  • Koblianska Inna

    (Associate Professor of Economics Department, Sumy National Agrarian University (Sumy, Ukraine).)

  • Pasko Oleh

    (Associate Professor of Accounting and Taxation Department, Sumy National Agrarian University (Sumy, Ukraine).)

  • Hordiyenko Mykola

    (Professor, Head of Accounting and Taxation Department, Sumy National Agrarian University (Sumy, Ukraine).)

  • Yarova Inessa

    (Associate Professor, Senior Lecturer of the Department of International Economics Relations, Sumy State University (Sumy, Ukraine).)

Abstract
The paper provides an analysis of semi-subsistence farming in Ukraine during the period 2008–2018, with a special focus on policy towards peasant households, and its feasibility.Ukraine currently has several strategic documents that set the vectors for regulating the development of the industry. The current policy on the strategic development of agriculture, rural areas, and support for farming is found to be chaotic and inconsistent.The paper confirms the thesis regarding the low economic efficiency of natural farming, and given the specific weight of households in the production of certain types of food, emphasises that public costs for ensuring the country's food security are thus fairly high. The overall identified trends in the Ukrainian countryside are a) the reduction of land size, naturalisation of economic activity and reduction of market activity (farms, as a rule, keep cattle, poultry and bees, although the safety and quality of livestock products produced in such farms is rather dubious); and b) the enlargement of individual peasant households and their focus on commodity production of agricultural products (mainly crops), with the simultaneous distortion of reported production volumes and, accordingly, tax evasion.Thus, private peasant households (PPHs) appear as economic structures with a special status: on the one hand, they can be considered as full participants in the market of agri-food products (in terms of sales and production), but on the other hand they are not recognised as entrepreneurial structures. This has negative consequences for the local economy as a whole. PPHs are a legalised form of informal employment, an informal entrepreneurial activity. PPHs are, in our opinion, enjoying preferential status in comparison with that of farmers. Furthermore, existing measures (often patchy and haphazard) of political regulation only deepen the problematic functioning of semi-subsistence farms; and taking into account the peculiarities of tax regulation and the obligatory participation of household members in the pension system, in our opinion, they only intensify the crisis in the rural economy and related social problems.We find that PPHs in their present form (we stress the last four words) are manifestly untenable, and policy-wise are not feasible for Ukraine. The long-term strategy of reforming this crucial part of Ukraine's agriculture should not include new innovations, but be wisely tailored to Ukraine's conditions within the EU. PPHs ought to be accommodated within and be part and parcel of the tax system, and then be an element of future balanced and sustainable rural development. To achieve the latter aim, the recalibration of tax and legal regulations, underpinned by solid strategic policy, is desperately needed.

Suggested Citation

  • Koblianska Inna & Pasko Oleh & Hordiyenko Mykola & Yarova Inessa, 2020. "Are Peasant Households Feasible in Terms of Policy? The Debate on the Future of Semi-Subsistence Households in Ukraine," Eastern European Countryside, Sciendo, vol. 26(1), pages 127-179, December.
    • Handle: RePEc:vrs:eaeuco:v:26:y:2020:i:1:p:127-179:n:6
    DOI: 10.12775/eec.2020.006
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    References listed on IDEAS

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    1. Piras, Simone & Vittuari, Matteo & Möllers, Judith & Herzfeld, Thomas, 2018. "Remittance inflow and smallholder farming practices: The case of Moldova," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70, pages 654-665.
    2. World Bank, 2016. "Moldova Poverty Assessment 2016," World Bank Publications - Reports 26041, The World Bank Group.
    3. Sophia Davidova, 2011. "Semi‐Subsistence Farming: An Elusive Concept Posing Thorny Policy Questions," Journal of Agricultural Economics, Wiley Blackwell, vol. 62(3), pages 503-524, September.
    4. Natalia STROCHENKO & Inna KOBLIANSKA & Olena MARKOVA, 2017. "Structural Transformations in Agriculture as Necessary Condition for Sustainable Rural Development in Ukraine," Journal of Advanced Research in Law and Economics, ASERS Publishing, vol. 8(1), pages 237-249.
    5. Vlad, Mihaela Cristina, 2014. "Subsistence and semi subsistence agriculture in Romania," MPRA Paper 61755, University Library of Munich, Germany.
    6. Jana Fritsch & Stefan Wegener & Gertrud Buchenrieder & Jarmila Curtiss & Sergio Gomez y Paloma, 2010. "Economic Prospects for Semi-subsistence Farm Households in EU New Member States," JRC Research Reports JRC58621, Joint Research Centre.
    7. Buchenrieder, Gertrud & Fritzsch, Jana & Wegener, Stefan & Curtiss, Jarmila & Gomez y Paloma, Sergio, 2009. "Semi-subsistence farm households and the non-farm rural economy - Perspectives and challenges," 111th Seminar, June 26-27, 2009, Canterbury, UK 52804, European Association of Agricultural Economists.
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    Cited by:

    1. Koblianska, Inna & Kalachevska, Larysa & Minta, Stanisław & Strochenko, Nataliia & Lukash, Svitlana, 2021. "Modelling and forecasting of potato sales prices in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 7(4), December.
    2. Koblianska, Inna & Seheda, Serhii & Khaietska, Olha & Kalachevska, Larysa & Klochko, Tetiana, 2022. "Determinants of potato producer prices in the peasant-driven market: the Ukrainian case," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(3), June.

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