Фінансово-кредитна діяльність: проблеми теорії та практики (Jun 2019)

STATE SUPPORT FOR AGRICULTURAL SECTOR AND ITS IMPACT TO FORM RESULTS INDICES OF THE ACTIVITIES AT BRANCH ENTERPRISES

  • R. M. Sheludko,
  • Yu. V. Pashchenko,
  • Yu. L. Filimonov,
  • O. V. Bukhalo

DOI
https://doi.org/10.18371/fcaptp.v2i29.171995
Journal volume & issue
Vol. 2, no. 29

Abstract

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The financial support of agricultural producers at the expense of the state budget according to the of programs and regional peculiarities was analyzed. It was proved that the efficiency of activity at agricultural enterprises under modern conditions of management was impossible without an effective mechanism of state support. In Ukraine, it is implemented through programs financing envisaged by the legislation. The main ones are financial support of measures in the agro-industrial complex by reducing the cost of loans; development of farms; hop growing, laying of young gardens, vineyards and berry plantations and care of them; livestock raising. State support for agricultural producers is not only unstable but also significantly lower than that in Europe. In addition, the complexity and imperfection of the preparation process, the filing of documents and making a decision as to the payment of support led to the fact that not all amounts provided by the Law of Ukraine "About the Budget of Ukraine" are used. Therefore, a very small number of farming entities can use state funds, and farms of population i.e. individuals, are only able to receive a special budget subsidy for young cattle raising. Due to the artificial selection of enterprises that receive budget support, small and medium farms lose the prospect of further development. The above mentioned factors cause distortion in the objectives of state support for agriculture and do not contribute to the dynamic and stable development of the industry. The analysis of the used state support amount in the context of the administrative-territorial regions of Ukraine allowed to reveal a significant variation in its indices value per hectare of agricultural land and one agricultural enterprise that functioned during the research period. In addition, there was an uneven distribution of the state financial support amount concerning the regions with a share ranging from 28,7% to 1,2%. The calculated coefficients of pair correlation allowed us to conclude that the amounts of financial state support and the gross output of agricultural products at constant prices were closely interrelated.

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