An economic mechanism for regulating the activity of an MTS within an agri-firm.

摘要

Machine and technology stations (MTS) are considered to be the most efficient way of concentrating and centralizing the use of agricultural equipment on Russian farms. The MTS owns the machinery and equipment used in the production of agricultural produce, but it does not own the land or the produce that is produced on this land. Because of the potential for conflicts of interest between the MTS and the agricultural enterprises that use its service, there is a need for organizational, economic and legal mechanisms that ensure the close integration of MTSs and the agricultural producers to which they provide services. These mechanisms should be aimed at harmonizing interests and maximizing the end-results of joint production. Such aims cannot be achieved if the MTS is constructed on a commercial basis with the goal of maximizing its profits. The closest agreement of the economic interests and goals of an MTS and the agricultural producers it serves can be achieved if they form an integrated structure, such as an agri-firm or agricultural production cooperative. In Orlovkskaya Oblast', MTSs have been integrated into agri-firms. Within the agri-firm structure, there are three main principles for the activity of an MTS: (1) self-support; (2) production resources and workforces correspond strictly to the requirements of the agri-firm; and (3) charges for services and other outputs are kept to a minimum. While the MTS's main income is derived from charges for the services it provides, funding for replacing machinery and providing bonuses to workers for high-quality work comes from the agri-firm's central funds (in particular amortization and development funds). The way in which the MTS's charges are formulated is explained, together with the nature of contractual relations between the MTS and farming subdivisions of the agri-firm.