Circular Economy in Agricultural Production: Potential for Implementation in New Institutional Conditions

Introduction. The concept of circular agricultural production is a promising trend for ensuring food security and reducing current negative environmental effects. The aim of the study is to analyse the prospects for the development of a circular economy in the agricultural sector of the Krasnodar Territory in the new institutional environment. Materials and Methods. The research process used the methods of critical analysis of modern literature, analysis of official statistical data, regulatory and programme documents that form the institutional framework for the development of closed-loop economy in agriculture. The main regulatory and program documents influencing the current and future institutional transformations of a circular economy in agriculture and the valorization of generated agricultural waste are analyzed. Results. The differential characteristics of the concept of circular agricultural production are determined; the basic principles and limitations of a circular economy in agriculture are highlighted, as well as the benefits and costs of a circular transition in agriculture. Some specific characteristics of agricultural production in Krasnodar Territory are described, which determine the priority of implementing circular practices. Discussion and Conclusions. It has been revealed that the emerging model for managing the circular transition in agricultural production in our country has a “top-down” character with the determining role of governmental institutions. This model has both undeniable advantages and areas of deficiency. The transformation of the characteristics of this model will occur under the influence of the specific characteristics of Russian regions. The results of the study are important for executive authorities and business structures for the institutional design of the introduction of circular economy in the agricultural sector of the Krasnodar Territory and other agricultural regions.