The Role of the state Support Mechanism in the Transition of the Agro-Industrial Complex of the Russian Federation to an Innovative Development Model

The paper examines the theoretical foundations of regulation of the agricultural and food market and studies the role of the state in this area. The article considers how the balance in the agricultural market of the Central and Far Eastern Federal Districts could be with a reduction in the impact of non-market forces from 100% satisfaction of the population's need for basic foodstuffs to almost complete removal of control. This study is based on a spatial partial equilibrium model applied to wholesale markets for agricultural products in the regions of Russia. The model was developed at the All-Russian Institute of Agrarian Problems and Informatics named after A.A. Nikonov – a branch of the Federal Scientific Center for Agrarian Economics and Social Development of Rural Areas – All-Russian Research Institute for Agricultural Economics. The model includes various scenarios that differ in the values of the recommended food consumption standards included in the calculations. The simulation gives reliable results provided that, in addition to reducing the permissible level of consumption, all other factors remain unchanged. Based on the identified trends, it is concluded that only a slight weakening of non-market forces can have a positive impact on the situation in the agricultural market of the region. The main results that may arise from such mitigation are indicated.