Support for Small-Scale Farming: Impact on the Institutional Subsystem of Rural Areas

The activities of small-scale farming in rural areas are closely interlinked with the life of local communities. The institutional subsystem of rural areas, due to its characteristics, may show less responsiveness to state stimulus policies. This research aims to devise strategies for enhancing the effectiveness of governmental support policies for small-scale farming as constituents of the institutional subsystem of rural areas. Findings indicate that the effectiveness of state support tools is limited by several factors: the subordinate role of municipal development programs to regional initiatives, overlooking the specific characteristics of territories when selecting forms and tools of support, information asymmetry, a fragmented functional support system, and a lack of motivation among the populace. It was determined that the use of social capital of farmers’ associations and network trust of the rural population would prevent the rejection of support policy incentives. Recommendations for improving the information interaction between local administrations, farmers’ associations, and the population are proposed. The scientific novelty of the research consists in supplementing and refining theoretical-methodological approaches to implementing effective management mechanisms of the institutional subsystem of rural territories, including the implementation of state support programs for small businesses.