ANALYSIS OF THE EFFECTIVENESS OF STATE SUPPORT OF AGRICULTURAL PRODUCTION IN UKRAINE

Abstract

State support for agricultural production is one of the priorities of the state on the path to sustainable economic development. That is why the financing of the agricultural sector, given its resource intensity and dependence on external factors, occupies an important place in the economies of the European Union and the world. This article considers the areas of state support for agricultural producers in Ukraine. On the basis of the comparative analysis the priority spheres of development of functioning of agrarian sphere are defined and the programs of their support from the state are defined. Support of agricultural production by the state is an important mechanism for implementing agricultural policy and should be based on economic, legal, organizational, social and other conditions to ensure financial stability of agricultural enterprises, increase food security, and improve the welfare of the rural population. To do this, agricultural producers need to provide economic conditions in the market that would contribute to the accumulation of sufficient own funds and unimpeded access to credit or investor funds. The main task of state support for agriculture is to promote the development of agricultural producers as a representative of the least protected industry in the market environment. Therefore, the main goal of the state should be to create conditions for the profitable operation of agricultural entities and provide them with a favorable environment compared to producers in other industries. After all, state support for agricultural production should establish a balance between agricultural producers and producers in other sectors of the economy. Therefore, in accordance with the needs of agricultural producers, state support should be provided using the following specific measures: support for producers’ incomes, state regulation of prices, subsidizing producers to purchase means of production, promoting market and production infrastructure, implementing regional programs, macroeconomic policy. In our opinion, at the present stage of functioning of agricultural enterprises are more rational areas of state support that contribute to the recovery of agricultural producers from the economic crisis and the effective functioning of agricultural production in Ukraine in the World Trade Organization.