FINANCIAL SUPPORT OF AGRICULTURAL PRODUCERS
DOI:
https://doi.org/10.15330/apred.1.17.95-105Keywords:
financial provision, agriculture, agricultural producers, state support, bank creditingAbstract
The article analyzes the current state, development trends and features of financial security of agricultural producers. It is proved that the agricultural sector of Ukraine is characterized by constant dynamics, which leads to a change in trends in the financial support of agricultural activities. The financial support of agricultural enterprises through bank lending programs is considered.
The main problems faced by the participants of the market of financial support of agricultural producers are revealed. The problems of crediting and risks in the financial and agricultural sectors of the economy are studied. Statistical data of 2014 - 2020 were used. When analyzing the dynamics of lending to agricultural producers, it was found that the share of long-term loans is only 5%.
Based on the analysis of interest rates on credit resources and profitability of agricultural enterprises, it is established that when the level of profitability is higher than the average annual interest rates on loans, it is advisable to reinvest profits of agricultural producers in their own activities, which will positively affect their further development.
It is studied that despite the state support of agricultural producers, their level remains low compared to other countries.
The interaction of financial institutions and the agricultural sector through the mechanism of state support has been established. The formulated methodology of relations makes it possible to develop a set of measures for active cooperation between the financial and agricultural sectors of the economy.
Such measures include diagnosing the financial condition of agricultural enterprises, which will reduce the risk of non-refund. Also, the expansion of financial support for agricultural producers with the involvement of programs of their state support can be carried out by: lowering interest rates on loans; increase in government allocations for cheaper loans; increase in lending to small and medium-sized agricultural enterprises, etc.
All these actions will provide an opportunity to stimulate the development of agricultural producers and create a favorable climate for investing in the agricultural sector of the economy.
References
2. Information and analytical portal of the AIC of Ukraine, agro.me.gov.ua. Accessed 15 June 2021.
3. “Analysis of the dynamics of the structure of Ukraine's GDP. Forecast for 2020-2022.” Capital-times, www.capital-times.com/ua-ua/analysis-of-ukraines-gdp-dynamics. Accessed 17 June 2021.
4. Portal of the Ukrainian Agrarian Confederation, agroconf.org. Accessed 21 June 2021.
5. “Number of active enterprises by regions of Ukraine and types of economic activity.” State Statistics Service of Ukraine, ukrstat.org/uk/operativ/operativ2014/kap/kap_u/kap_u19.htm. Accessed 21 June 2021.
6. Official portal of the National Bank of Ukraine, bank.gov.ua. Accessed 15 June 2021.
7. “Money for agribusiness: all about credit programs and support programs for farmers.” Focus, focus.ua/uk/economics/476081-dengi-dlya-agrobiznesa-vse-o-kreditnyh-programmah-i-programmah-podderzhki- agrariev. Accessed 21 June 2021.
8. Official portal of the State Statistics Service of Ukraine, www.ukrstat.gov.ua. Accessed 16 June 2021.
9. “About the Fund for partial guarantee of loans in agriculture.” Ligazakon, ips.ligazakon.net/document/view/gi01633a?an=3&ed=2020_03_12. Accessed 15 June 2021.
10. Information and analytical portal of the Ministry of Agrarian Policy and Food of Ukraine, minagro.gov.ua/ua/napryamki/finansova-politika/kredituvannya/stan-kredituvannya-pidpriyemstv-apk/stan-kredituvannya-pidpriyemstv-apk- u-2020-roci. Accessed 21 June 2021.
11. Stepanyuk, O.I., Demchyshyn, M. Ya., and O.V. Turchenyak. “Lending to agriculture of Ukraine: analysis of dynamics.” Scientific Bulletin of Lviv National University of Veterinary Medicine and Biotechnology named after SZ Gzhytsky. Series: Economic Sciences, no. 2, 2016, pp. 155–159.
12. “Report on the review of state budget expenditures in the field of agro-industrial complex in terms of financial support for activities in the agro-industrial complex by reducing the cost of loans.” Pravda dostup.pravda.com.ua/request/60749/response/145021/attach/3/.pdf. Accessed 21 June 2021.
13. Government portal, www.me.gov.ua/News/Detail?lang=uk-UA&id=b24631b3-880b-4a5d-816a-a167149a28b0&title=U2020-RotsiUriadNapravivAgrariiam125-MlnGrnNaChastkovuKompensatsiiuVidsotkivZaKoristuvanniaKreditami. Accessed 15 June 2021.
14. Ministry of Economy of Ukraine, www.me.gov.ua/News/Detail?lang=uk-UA&id=cf48994c-ce63-4a25-8a74-07dc28dccc87&title=Derzhpidtrimka2020-SilgospvirobnikamVzheSpriamovanoMaizhe2 2021). Accessed 26 June 2021.
15. Chigrin, O.Y. “Problems of assessing the investment attractiveness of the enterprise.” Investment and innovation strategy of enterprise development: All-Ukrainian. scientific-practical conf. (with international participation). Zhytomyr, ZhSTU, 2012, pp. 55–56.
16. Kosyk, Ya. V., and O. Yu.Chyhryn. “Globalization as a regularity of development of modern economy of Ukraine.” The mechanism of economic regulation, no. 2, 2011, pp. 191–196.
17. National Academy of Agrarian Sciences of Ukraine Scientific-Methodical and Coordination Center for Scientific Problems of AIC Development of Ukraine, naas.gov.ua/newsall/newsukraine/?ELEMENT_ID=6482. Accessed 15 June 2021.
Downloads
Published
How to Cite
Issue
Section
License
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution NonCommercial NoDerivs 4.0 Unported License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access)