Abstract:

The purpose of rural development is to improve the harsh conditions of the rural environment, which provide challenging living conditions for its people. The increasing competitiveness of the century have made it necessary for farmers to set up a company to be able to cope with the political and economic bottlenecks, which are more prevalent than ever, to plan, evaluate, effectively market the product of the agricultural producer, to get rid of the intermediaries, to resist against the pressures of big companies and most importantly to institutionalize. Agricultural companies usually have a small land structure and inadequate capital. Small farmers often do not know how to set up and operate a business, not familiar with the laws and regulations and lacked skilled employees. In addition there are too many regulations to comply with procedures tend to change frequently. Therefore, corporatisation levels in agriculture are not at the desired levels. Existing agricultural enterprises are small-scaled to reflect the structural characteristics of the land. They do not have endurance against large companies; also have higher closure rates compared to their larger competitors. These closures are rapidly increasing compared to large companies. Moreover, In addition, the share and profitability ratios of agricultural enterprises from Gross Domestic Product (GDP) are not desirable levels. In order to meet Sustainable Rural Development and the economic and ecological requirements of the century, farmers should be encouraged to engage in private initiatives, as in other sectors, rather than receiving grants, government support and support from non-profit cooperatives. Support programs must be set up to ease incorporation, legal processes should be simplified and investments to R & D should be increased for this purpose. Only in this way some of the barriers to agricultural incorporation can be eliminated. As in other sectors, the company in agriculture can proceed and the rural balance of the city is preserved by providing rural development with the growing agricultural producer.

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