THE TRANSFORMATION OF AGRICULTURAL ENTERPRISES IN CONDITIONS OF MARKET RELATIONS DEVELOPMENT IN UKRAINE

Abstract

Planning and distribution economy with state ownership of agricultural enterprises, which were dominant in the early 90s the economy of the country, was unable to provide normal functioning of the agricultural land use in the conditions of transition to market relations. To switch to another economic system began a gradual process of transformation of agricultural enterprises. The result of this process was the change in the structure of agrarian enterprises due to privatization and raspaevaniya land, and appearance from small-scale farms to large agricultural enterprises. Today identified market actors (enterprises) in agriculture: business companies, private enterprises, production cooperatives, farmers, public enterprises, other forms of management. The most common kind of private business are farms. They are one of the most promising and effective forms of management with high agriculture, appropriate level of production organization, prudent attitude to the land and best landscaping. However, today the formation of farming in Ukraine has not yet reached the level of development, which is observed in economically developed countries. The overall economic decline and inadequate legislation has forced farmers to rely on themselves. Notes the insufficient level of their competitiveness, making it impossible to provide the expanded reproduction, determines the risk of insolvency and, as a consequence, leads to bankruptcy. Farmers receive government support, but it is weak and temporary, which greatly impedes their development. Practical state support only a few farms that can affect the distribution of funds. Agricultural cooperation is one of the effective forms of management, which aims to unite the producers in the direction of increase of efficiency of use of their resource potential. However, today there are a number of unresolved problems that hinder the effective development of agricultural cooperatives. Since 2000 years, the initiative in the development of the agrarian reform moves from state to agribusiness, a manifestation of which was the emergence of agroholdings. Non-agricultural economic entities have been actively involved in agricultural production and to make significant investments in the agricultural sector of the economy. The main motive of infusion of funds the hope was cheap to buy and expensive to sell, waiting for a quick profit at any cost. However, over time there is a gradual slowdown in the trend to the accumulation of land in the ownership of agricultural holdings and the transition to improve the efficiency of production. Activity of agricultural holdings leads to the displacement of traditional forms of agricultural production of farms. Development of rural areas needs to be addressed through focused public policy and assistance to farms, which are production facilities. Part of the process of formation of the economy is the agricultural enterprises of market type, the development of which depends on the complexity of the implementation of the governance arrangements that should ensure the sustainable use and protection of land.