Multifunctionality of farms: possibilities and limitations

In the context of unfavorable consequences of climate change, aggravation of the geopolitical situation, complication of the macroeconomic situation, the concept of multifunctional development of agricultural enterprises, considering diversification of their activities as option for their adaptation to the existing environmental fluctuations, is of particular importance. Following this approach, farms not only become more sustainable and competitive themselves, but also contribute to the achievement of sustainable development of agriculture and rural areas as a whole. In this regard, this article presents the results of a study of the potential of farms in ensuring economic, environmental and social sustainability in rural regions of the Russian Federation. The main attention is paid to the characteristics of farmers as key participants in the agricultural space, capable of implementing innovative, environmentally friendly practices, introducing high technologies and developing a circular economy. The analysis is based on review and analytical research methods implemented on the basis of meticulous analysis of the results of research undertaken on this topic, published in scientific journals, and analytical reports, as well as examples of successful practices from various regions of Russia. The main research conclusion is that farmers demonstrate a high degree of adaptability if they expand their activities, switching to organic production, connecting to the provision of ecosystem services, using various high-tech techniques and methods, including digital ones. At the same time, financial, institutional, personnel, infrastructure and socio-cultural factors are identified as limitations that impede the full implementation of multifunctionality. In conclusion, the article emphasizes the need for state support (institutional support, development of a system of advisory and information services, implementation of adequate educational programs for farmers). Moreover, proposals are formulated for further promotion of the concept of multifunctionality through the stimulation of eco-saving technologies, organizational and technological innovations, close coordination of the efforts of all participants in rural development.