scholarly journals Development of the bank lending system of agricultural business

2021 ◽  
Vol 2 (99) ◽  
pp. 7-17
Author(s):  
O.O. Nepochatenko ◽  
◽  
P.K. Bechko ◽  
S. O. Ptashnyk ◽  
V. I. Nagorny
Keyword(s):  
National Economy ◽  
Production Efficiency ◽  
Agricultural Sector ◽  
Bank Lending ◽  
Legal Framework ◽  
Bank Loans ◽  
Theory And Practice ◽  
Credit System ◽  
Agricultural Producers ◽  
Increase Production Efficiency

A factor in ensuring reproduction in agriculture is the development of a bank lending system. Currently, the need for credit resources in agriculture requires further development of a specialized system that would meet the requirements and conditions of a modern market economy. Issues of formation and development of the credit system in agriculture are considered both by domestic economic theory and practice and by countries with developed market relations, which are based on the development of the infrastructure of modern credit relations, forms and methods of lending. The sphere of agricultural lending is in the process of formation due to imperfect legislative provision, underdevelopment of the credit products market, and the absence of the vast majority of market infrastructure entities. Solving these problems will help expand the availability of agricultural producers to credit resources, as well as ensure the stabilization and development of the industry. Agricultural production is a strategically important sector of the national economy, the development of which depends on the level of food and national security of the country. The development of the modern agricultural sector as the most important component of the national economy largely depends on external sources of financing, the main of which is bank lending. State support for lending to farmers is an objective necessity. At the same time, limited access of farmers to credit resources of banks makes it impossible to increase production efficiency. Increasing the availability of farmers to credit resources is one of the priority areas for ensuring the dynamic development of agriculture, their functioning on self-financing and self-sufficiency. A well-established lending system plays an important role in lending to agricultural producers. Studies on the development of the bank lending system for agricultural producers indicate the lack of a developed legal framework for providing farmers with bank loans for both operating and investment activities. Preferential lending regime introduced in the practice of lending to farmers in modern conditions does not work due to lack of budget funds.

scholarly journals MODERN PROBLEMS OF BANK LENDING OF ENTERPRISES OF THE AGRICULTURAL COMPLEX OF UKRAINE

2021 ◽  
Vol 4 (39) ◽  
pp. 50-57
Author(s):  
S. Arzhevitin ◽  
B. Stetsenko ◽  
I. Okhrymenko ◽  
A. Bilochenko ◽  
V. Biloshapka
Keyword(s):  
Interest Rates ◽  
Agricultural Sector ◽  
Positive Impact ◽  
Bank Lending ◽  
Jel Classification ◽  
Bank Loans ◽  
Industrial Complex ◽  
Agricultural Producers ◽  
Analysis And Synthesis ◽  
Credit Programs

Abstract. The purpose of the article is to identify the main factors that constrain lending to enterprises of the agro-industrial complex of Ukraine, to suggest ways to improve their lending system. A systematic approach was chosen as the methodological basis of the study, which provides for a comprehensive study of the bank lending system of the agro-industrial complex. Historical and structural-functional approaches were also used in its analysis. Methods of comparative analysis were used to consider some problems of bank lending to the agro-industrial complex. Of the general scientific methods in this study, methods of analysis and synthesis, induction and deduction were used. The article examines the dynamics and structure of loans to the agro-industrial complex in Ukraine for 2015-2020; the dynamics of interest rates on loans to the agro-industrial complex and the dynamics of agricultural production by UAH 1. credit provision of the agro-industrial complex in Ukraine for 2015-2020. During the analyzed period, these indicators increase or decrease proportionally, as evidenced by the importance of the efficiency of credit support of the agar sector. In 2020, the efficiency of credit provision of the agricultural sector amounted to UAH 11.64, which is UAH 0.4 more than in 2015. The analysis revealed that the agro-industrial complex today has a high need for financial resources. The characteristic of the main problems of the mechanism of crediting of an agro-industrial complex is given. The need to ensure the availability of bank loans has been identified. Stimulating investment lending to agricultural enterprises will have a positive impact on the development of the industry, as well as improve the existing economic situation of rural residents. High demand for credit resources from agricultural producers, the current state and dynamics of lending to the agro-industrial complex in Ukraine allow us to conclude that it is necessary to improve the mechanism of bank loans, develop effective credit products for the agro-industrial complex and strengthen state support for agricultural lending. Keywords: credit, banks, enterprises of the agro-industrial complex, credit programs for the agro-industrial complex. JEL classification G21, Q14 Formulas: 0; fig.:3; tabl.: 1; bibl.: 15.

scholarly journals THEORETICAL FUNDAMENTALS OF INNOVATIVE ENTREPRENEURSHIP DEVELOPMENT IN THE NATIONAL ECONOMY

2020 ◽  
pp. 104-110
Author(s):  
Artur Zhavoronok ◽  
Alina Marych
Keyword(s):  
National Economy ◽  
Financial Incentives ◽  
Production Efficiency ◽  
System Analysis ◽  
Modern Science ◽  
Legal Framework ◽  
Increase Production Efficiency ◽  
The World ◽  
General Scientific ◽  
Business Entities

Introduction. Today, the world economy is gradually globalizing. No country in the world can escape its influence on certain spheres of public life. The process of «globalization» affects the development of innovative entrepreneurship. Today, the driving force of the functioning of innovative entrepreneurship in ensuring economic growth is its development and this is one of the main prerequisites for the successful functioning of entrepreneurship in various sectors of the economy, an incentive to increase production efficiency. Innovative entrepreneurship is a special innovative process of creating a new, a kind of management, aimed at finding new ideas and opportunities for commercial use of innovations. Methods. The study uses the fundamental provisions of economic theory. General scientific principles of conducting complex scientific researches were used to solve the set tasks. In the process of research a number of general scientific methods were used, in particular: analogies, logical generalization and system analysis. Results. Innovative entrepreneurship is considered as a new way of small business development, using the achievements of modern science. The study of innovative entrepreneurship allowed to understand the modern directions of development of the market and enter new paths of economic development, in particular, highlighting the problems and prospects for its development. Discussion. In order to solve the problems of development of innovative entrepreneurship it is necessary to: develop a legal framework that includes the definition of «innovation»; create competition that is possible only with good financial incentives; to train qualified personnel, and for this purpose the opening of innovation and technological centers at the university will be effective; develop new venture financing programs (creation of a large number of innovation and technology centers, technology parks and business incubators); organize exhibitions and product presentations in the regions. Prospects for further research into innovative entrepreneurship may be to strengthen the financial support for the development of innovative entrepreneurship by improving the fiscal policy of support for business entities. Keywords: innovations, innovative development of entrepreneurship, national economy.

scholarly journals Tools of Financial Support for Agriculture Lending in Ukraine

2020 ◽  
pp. 59-67
Author(s):  
Nataliya Trusova ◽  
◽  
Nataliia Radchenko ◽  
Keyword(s):  
Financial Support ◽  
Financial Stability ◽  
Production Efficiency ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Bank Lending ◽  
Increase Production Efficiency ◽  
Agricultural Enterprises ◽  
Study Results ◽  
European Investment

In the course of their activities, almost every business entity faces the problem of lack of own funds. This problem is especially acute in the agricultural sector. The constraining factor in the development of bank lending to agricultural enterprises, as always, is the high cost of credit resources and significant collateral requirements, which are often not enough to cover the credit obligations of borrowers. The purpose of the article is to analyze the current state of lending to agricultural enterprises in Ukraine and to substantiate the modern instruments of financial support of crediting of agrarian sphere. The authors conducted a comparative analysis of the efficiency of agricultural enterprises, depending on their size; the structure of financial resources is analyzed and the dependence on external sources of financing is proved; an assessment of the dynamics of the volume of credit investments in the agricultural sector. Study results show that the price factor has a negative impact on the formation of credit relations of agricultural enterprises with banking institutions. According to the authors, the promising instruments of financial support for lending to agricultural enterprises include programs of cooperation with international financial organizations, including the European Investment Bank and the German-Ukrainian Fund. It was established that in Ukraine agricultural enterprises are given ample opportunities to attract credit resources. In order to intensify the lending process, it is important to continue the process of improving the mechanism of forming the value of credit resources and to start work on solving the problematic issues of securing credit obligations by agricultural enterprises. On the other hand, agricultural enterprises must work to increase their own investment attractiveness – to form a positive image; to maintain the financial stability of enterprises at the appropriate level; to develop the organizational and financial culture of the enterprise; increase production efficiency; to improve methodological approaches to drawing up business plans taking into account the requirements of international financial organizations, etc.

TREND INSTRUMENTS OF AGRICULTURAL ENTERPRISE FINANCING UNDER MODERN ECONOMIC CONDITIONS

2018 ◽  
Author(s):  
Nadiia Hryshchuk ◽  
Keyword(s):  
Small Businesses ◽  
Agricultural Sector ◽  
Theory And Practice ◽  
Financial Security ◽  
Innovative Development ◽  
Credit System ◽  
Educational Work ◽  
Agricultural Enterprises ◽  
Long Run ◽  
Modern Economic

The article considers the views of scientists on the problems of financial security of the agricultural sector of the economy, their significant contribution to the creation and development of theory and practice of financial security of small and medium-sized agribusiness. It is noted that financial security is one of the most important factors influencing the efficiency of agricultural enterprises. The credit instruments of financial support of development of the enterprises of agrarian business in the modern economic environment are characterized. Agrarian receipts are singled out as a direction of financing small and medium agrarian enterprises. The importance of agrarian receipts as one of the most dynamic ways to attract financial resources and development of small and medium agrarian business of Ukraine is substantiated. Other promising instruments of financial and credit support have been identified, which allow small businesses in the agricultural sector to function effectively, to improve the efficiency of agricultural production. It is determined that the use of effective credit instruments provides innovative development of agricultural enterprises. In order to form an effective policy of financing agricultural enterprises, measures aimed at increasing the transparency of agribusiness are needed; development of support infrastructure and educational work among small businesses; unconventional but effective methods of lending to agricultural producers. It is proposed to introduce new, effective financial and credit instruments in the agricultural sector of Ukraine in modern conditions, which in the long run will ensure the innovative development of the national credit system, taking into account the experience of countries with developed competitive economies.

scholarly journals ACTIVITY RESULTS OF LOAN PARTNERSHIPS AND AGRICULTURAL PRODUCERS

2020 ◽  
Vol 1 (383) ◽  
pp. 199-206
Author(s):  
А. К. Zhussupova ◽  
B. S. Utibayev ◽  
G. B. Utibayeva ◽  
D. Т. Ahmetova ◽  
R. М. Zhunusova ◽  
...  
Keyword(s):  
Interest Rates ◽  
Production Efficiency ◽  
Limited Liability ◽  
Point Of View ◽  
Bank Loans ◽  
Financial Resources ◽  
Agricultural Producers ◽  
Financial Condition ◽  
Agricultural Enterprise ◽  
Agricultural Business

The article outlines the issues of financial support provided to agricultural producers through a lending system. The results of the activities of credit partnerships were analyzed using the example of Credit Partnership (СP) Tselinogradskoye Limited Liability Partnership (LLP) in Akmola region and the agricultural enterprise Aktyk Agrofirm JSC. CP Tselinogradskoye LLP provides soft loans and subsidies at interest rates that are much lower than market rates. The performance of the credit partnership, which is ensured by annual monitoring by the CP of the targeted use of bank loans and borrowings, the financial condition of the business entity, as well as their collateral. The relationship of the results of production and financial activities of agricultural business entity and credit unions, reasonable given the specific data of participants who received loans due to improved their operational and financial performance. It is noted that the effectiveness of the use of financial resources, regardless of their structuring and affiliation, is expressed through indicators of productive production activities of the enterprise. It is substantiated that, based on the principles of a systematic approach, the optimization of the structure of the formation of financial resources should be considered from the point of view of interdependence and interaction with production efficiency.

scholarly journals The effects of credit financing in agriculture on the domestic product in agriculture in the Republic of Serbia

2021 ◽  
Vol 14 (3) ◽  
pp. 1-21
Author(s):  
Duško Ranisavljević
Keyword(s):  
Banking Sector ◽  
Agricultural Sector ◽  
Statistical Correlation ◽  
Bank Loans ◽  
Domestic Product ◽  
Agricultural Producers ◽  
Noticeable Increase ◽  
Positive Effects ◽  
The Republic ◽  
The Impact

In recent years, the banking sector has increasingly turned to the agricultural sector. There is a noticeable increase in the total claims of the banking sector from registered farms in the period 2012-2020, while the part of the domestic product generated by the agricultural sector also recorded growth, but not in the same percentage as bank loans to agriculture. The aim of this paper is to examine the interdependence of the increase in total claims of banks on registered agricultural producers with the increase in the domestic product generated by the agricultural sector. The method of statistical correlation was used in this paper. The impact and changes of investment loans in agriculture, loans for working capital, but also the change in bank claims from agricultural producers based on interest and fees have been analyzed. The conclusion is that there is a connection between loans and the domestic product of the agricultural sector, but that there are other factors that have an impact, too. Although in recent years the banking sector has been more open to the agricultural sector and although loans have become more affordable, it is necessary to create conditions for even greater availability of loans to agricultural producers, which would create positive effects on agriculture.

THE ECONOMIC COMPONENT EVALUATION OF AGRICULTURAL PRODUCTION SUSTAINABLE DEVELOPMENT IN CONDITIONS OF NATIONAL ECONOMY OPENNESS

2019 ◽  
Vol 4 (4) ◽  
pp. 265-281
Author(s):  
Nataliya LAGODIIENKO ◽  
Vladyslav LAGODIIENKO
Keyword(s):  
Sustainable Development ◽  
National Economy ◽  
Agricultural Production ◽  
Capital Investment ◽  
Production Efficiency ◽  
Agricultural Sector ◽  
Economic Life ◽  
Poultry Meat ◽  
Meat Production ◽  
The Real

Introduction. The article assesses the importance of economic efficiency of agricultural production sustainable development in the conditions of the national economy openness. It is noted that sustainable development as a new form of social dynamics, applies to all spheres of socio-economic life and requires scientific and methodological development of models and mechanisms for its implementation in the practice of management. The least developed aspects of it now remain the problem of assessing the economic component of the agricultural production sustainable development in the conditions of the national economy openness. The purpose of the article is to assess the economic component of sustainable development of agricultural production in the conditions of the national economy openness. Within the achieve-ment of the goal, the following tasks were identified: research into the dynamics of the main indicators of the agricultural production level; estimation of indicators of agricultural enterprises economic activity; research of the self-sufficiency level in Ukraine by the main types of food. Results. It has been researched that in the agricultural sector of agrarian production of Ukraine there are positive changes – yields of all included in the analysis crops tend to increase. However, the indicators of the stability level of such growth (coefficient of variation) show significant differentiation. Despite the low values of the variation coefficients in agricultural productivity (excluding the average daily growth of pigs), the current state of the domestic livestock industry cannot be called satisfactory – because the number of cattle and pigs that are not compensated for the growth of animals continues to decline. As a result, production of milk, beef and pork decreases. In livestock farming, the decrease in production can only be compensated by the increase in poultry meat production. Conclusions. There is an extremely unstable dynamics of agricultural production. In our opinion, the main reason for the sharp fluctuations in production downward was: 1) rapid devaluation of the hryvnia; 2) the loss of traditional markets. The real flow of investment into agriculture demonstrates extremely volatile dynamics. The real dynamics of capital investment in Ukraine’s agriculture, not distorted by inflationary influence, has a low level of stability. Keywords: agricultural production, sustainable development, social infrastructure, rural territories, food security, economic component of sustainable development, production efficiency.

Orientation to Sustainable and Climate Adapted Agriculture with Advanced Technology in Industry 4.0 in Vietnam

2021 ◽  
Vol 37 (1) ◽  
Author(s):  
Do Thi Dung ◽  
Nguyen Hung Cuong ◽  
Do Khanh Duy ◽  
Do Thi Huong
Keyword(s):  
Rural Areas ◽  
Industry 4.0 ◽  
Production Efficiency ◽  
Agricultural Sector ◽  
Global Climate ◽  
Advanced Technology ◽  
Added Value ◽  
Global Integration ◽  
Increase Production Efficiency ◽  
Agricultural Economy

In recent years, the rural agricultural economy in Vietnam has experienced outstanding shifting progress. The paper focuses on analyzing and evaluating an overview of the agricultural economy in Vietnam in the context of global climate change and global integration during industry 4.0. The results show that many advanced and modern models of association and cooperation which are effective in agriculture and rural areas have been applied to increase production efficiency. Science and technology applied to agriculture will increase the value of the agricultural sector in Vietnam. The innovations and prosperity of agricultural infrastructure combined with the implementation of the national scheme on restructuring agricultural sectors oriented to added value increase and sustainabe development will lead to a sustainable and climate adapted agriculture.

scholarly journals The Relationship between Bank Lending to Agricultural Sector and Agricultural Earnings in Nigeria

2021 ◽  
pp. 25-34
Author(s):  
Lyndon M. Etale ◽  
Amaka, P. T. Bailey
Keyword(s):  
Positive Relationship ◽  
Agricultural Sector ◽  
Computer Software ◽  
Secondary Data ◽  
Bank Lending ◽  
Bank Loans ◽  
Coefficient Of Determination ◽  
State Of Emergency ◽  
Independent Variables ◽  
The Relationship

This study examined the relationship between bank lending to agricultural sector and agricultural earnings in Nigeria using secondary data obtained from various editions of the Central Bank of Nigeria Statistical Bulletins. Secondary data collected for the selected study variables covered ten years period from 2009 to 2018. The study adopted bank loans and advances to agriculture, interest rate, and inflation as independent variables, while agricultural earnings representing gross national agricultural output was used as dependent variable. The study employed descriptive statistics and multiple regression analysis based on the OLS technique assisted by the E-view 10 computer software as the statistical tools for data analysis. The results revealed that all the independent variables had positive relationship with agricultural earnings. Specifically, bank loans and advances to agriculture had statistically significant effect on agricultural earnings. The regression results also showed that the coefficient of determination (R-squared) value of 0.86 indicates that 86% of changes in the dependent variable (AGE) were explained by the combined effect of changes in the independent variables. The study concluded that bank lending to the agricultural sector has a significant positive relationship with agricultural earnings in Nigeria. The study recommended among others that the CBN should step-up policy making, execution and monitoring of bank lending to agriculture; and that the Federal Government through the Federal Ministry of Agriculture should declare a state of emergency on agriculture and make the sector more attractive and viable for investment.

scholarly journals MODERN APPROACHES TO RISK MANAGEMENT OF EXPORT OPERATIONS IN THE AGRICULTURAL SECTOR OF THE NATIONAL ECONOMY

2020 ◽  
Author(s):  
Oleksandr Bondarenko ◽  
Keyword(s):  
Risk Management ◽  
National Economy ◽  
Agricultural Sector ◽  
Management Tool ◽  
Futures Contracts ◽  
Financial Risks ◽  
Economic Activities ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Credit Risks

Agriculture is an industry of strategic importance for Ukraine, the development of which is aimed not only at obtaining commercial profits, but also at ensuring food and national security. Agricultural production and its export activities are subject to the influence of uncertainty factors that lead to the emergence of risks in economic activities. These factors determine are: natural conditions, unstable market conditions, political and economic instability. The purpose of the study is to identify the most significant risks in the export operations of agricultural producers and to study modern approaches to their management. The current practice of managing the export business of industrial and commercial enterprises in the scientific literature is widely spread, at the same time in the context of the Silk spirits of food there is a lack of food. In the statistic, the basic principles of the export-oriented enterprises of the national economy of the Silskoy state gift are grounded: logistic, currency and financial, environmental and credit risks.The role of risks in the formation of export strategies of agricultural producers are shown. Stages of management of export operations in the agricultural sector of the national economys by methodology The World Bank are substantiated ARM. Formation of a risk management strategy for export operations in the agricultural sector of the national economy carried out by minimization of financial risks (futures contracts, swaps and options); reducing the risks of entering into contractual relations with insolvent partners. For reduce risks exporters are used insurance services. An enterprise can create reserves for unforeseen costs, predict sectoral (for suppliers) price dynamics, involve suppliers in the company's activities by concluding participation agreements. It is substantiated that the highest risks for Ukraine's export-oriented agribusiness are logistics, monetary, financial, environmental and credit risks. It is shown that implementation of ARM is a modern comprehensive risk management tool for export-oriented agricultural enterprises. Prospects for further research is development of methods for assessing the export risks of agricultural producers.

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