THE ROLE OF COOPERATION IN THE DEVELOPMENT OF SMALL FARMS

Cooperation plays a critical role in the development of smallholder farming, especially in an environment of global competition and limited resources. It allows farmers to combine efforts, resources and knowledge to achieve common goals. This helps to improve the economic efficiency and sustainability of enterprises, as well as maintain the quality of products and services. The cooperative movement helps small farms overcome difficulties associated with a lack of capital and lack of access to modern technologies and markets. Thus, cooperation is an important tool for ensuring the long-term success and competitiveness of small farms. The work examines the theoretical foundations of cooperation, its historical roots and current state in the context of world and national experience. Particular attention is paid to the analysis of the economic and social benefits that farmers receive by participating in cooperative structures. It is shown that cooperation allows small farms to reduce transaction costs, improve product quality, expand access to markets and increase income levels. In addition, factors influencing the successful functioning of cooperatives, such as the legal framework, government support and internal organizational mechanisms, are examined. The challenges and obstacles faced by cooperatives, especially in developing countries and transition economies, are examined. Based on the data obtained, conclusions were drawn about the importance of cooperation for the sustainable development of rural areas and recommendations were proposed for improving state policy in the field of supporting the cooperative movement among small farms.