The system of credit guarantees as a tool to increase financing for small and medium-sized agricultural enterprises

Ekonomika APK ◽  
2021 ◽  
Vol 317 (3) ◽  
pp. 6-19
Author(s):  
Yurii Lupenko ◽  
Svitlana Andros
Keyword(s):  
Financial Support ◽  
Agricultural Sector ◽  
International Experience ◽  
State Regulation ◽  
Bank Loan ◽  
Industrial Complex ◽  
Agricultural Enterprises ◽  
Credit Guarantees ◽  
Effective Instrument ◽  
Conceptual Foundations

The purpose of the article is, based on the analysis of the best international experience, to formulate theoretical aspects and offer recommendations aimed at developing an effective system of credit guarantees to increase financial support for small and medium-sized agricultural enterprises. Research methods. In the process of research, depending on the goals and objectives, the following methods of cognition and analysis of economic processes were used: theoretical generalization - when substantiating theoretical provisions on the functioning of the system of credit guarantees; statistical comparisons - in identifying and assessing the effectiveness of state regulation of the system of financing small and medium-sized businesses; analysis of hierarchies - when determining promising ways of financial support for small and medium-sized agricultural enterprises; systemic method - in assessing the effectiveness of government regulation of the system of credit guarantees as one of the key tools widely used with the support of enterprises in the agricultural sector of the economy; expert assessments - when systematizing the main guarantee schemes and types of guarantee products and restrictions on their practical application; analysis and synthesis, induction and deduction, comparison - in the study of international experience in the implementation of guaranteed lending programs and consideration of the existing schemes for organizing this activity. Research results. The main provisions of the development of the system of financial support for small and medium-sized agricultural enterprises are formulated and methodological approaches to its improvement in the context of reforming the national economy are developed. The expediency of the development of programs for providing loans was determined, taking into account their role in reducing the restrictions on lending by banks to small and medium-sized agricultural enterprises. Conceptual foundations for the implementation of guarantee programs carried out with state participation have been developed. It has been established that targeted long-term and medium-term loans and guarantees allow covering the risks associated with agricultural activities by providing financial resources for the development of production. The necessity of developing a system of credit guarantees as the most effective instrument of financial support for enterprises in the agricultural sector of the economy has been proved. It was found that a good result can be achieved through the provision of guarantees that provide a partial amount of credit, when the farmer also bears some responsibility for the return of the funds received. Scientific novelty. Conceptual foundations for the development of a loan guarantee system have been developed The introduction of government measures aimed at increasing the volume of lending to small and medium-sized agricultural enterprises is proposed. The system of credit guarantees was further developed as the most effective instrument capable of alleviating difficulties in obtaining a bank loan for small and medium-sized agribusiness. On the basis of the best international experience, the national system of guaranteeing loans was improved with the formation and functioning of specific financial institutions (funds) specializing in ensuring the provision of commercial loans to enterprises of the agro-industrial complex. Practical significance of the article lies in bringing the theoretical and methodological provisions to the level of practical recommendations in the development of national measures for financial support and stimulation of the development of small and medium-sized agricultural enterprises in Ukraine. The formulated provisions, conclusions and recommendations are of interest to managers and employees of enterprises in the agricultural sector of the economy. The research materials can be used in the activities of guarantee organizations, financial and credit institutions, government bodies. Tabl.: 2. Figs.: 2. Refs.: 19.

scholarly journals FINANCIAL SUPPORT OF AGRICULTURE SECTOR ENTERPRISES

2021 ◽  
Keyword(s):  
Financial Support ◽  
Agricultural Sector ◽  
Animal Husbandry ◽  
Industrial Complex ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Agriculture Sector ◽  
Industrial Enterprises ◽  
Current State ◽  
Holding Back

The development of the agricultural sector, like any other sector of the economy, depends significantly on funding. Insufficient funding is holding back a significant increase in the efficiency of agro-industrial enterprises. Information on the importance of agricultural enterprises in the development of Ukraine's economy is given. The article analyzes the results of the budget program PCECC 1201150 "Financial support of agricultural producers" in 2020, the current state and trends in lending to agricultural enterprises. Analyzing the attraction of soft loans by businesses in the agro-industrial complex in 2020, it was found that most agricultural enterprises need funds to replenish working capital, and long-term loans are in demand due to the need to upgrade fixed assets and construction and reconstruction of production facilities. Some programs confirm that the priority areas of state support for agricultural producers in 2021, as in previous years, are the development of animal husbandry, horticulture, farming, as well as cheaper loans and purchase of agricultural machinery. The results of the state program "Affordable loans 5-7-9%" are presented, according to which agricultural enterprises received almost half of the total amount of loans issued. The specific features of the agro-industrial complex presented in the article are the factors holding back their lending, so we believe that it would be appropriate to consider the creation of a specialized agricultural bank that would lend to small and medium-sized agricultural enterprises. The services of commercial banks that they offer for enterprises in the agricultural sector are analyzed. The variety of services and programs is due to the desire of banks to attract as large a range of enterprises in the agricultural sector to provide them with funds for further development.

ACTUAL PROBLEMS OF STATE SUPPORT OF BUSINESS IN AGRARIAN AND INDUSTRIAL COMPLEX

2015 ◽  
Vol 10 (6) ◽  
pp. 337-344
Author(s):  
Попова ◽  
Olga Popova ◽  
Сидорин ◽  
Aleksandr Sidorin
Keyword(s):  
Agricultural Policy ◽  
Financial Support ◽  
Agricultural Sector ◽  
Industrial Complex ◽  
Business Activity ◽  
State Support ◽  
Agricultural Enterprises ◽  
Russian Economy

The article summarizes the possible effects of anti-Russian and response sanctions in the agricultural sector of the Russian economy. The legislative modernization of national agricultural policy is analyzed, the method of determining the required volume of state financial support to agricultural enterprises is proposed and tested to overcome the disparity in prices and to stimulate business activity.

scholarly journals Rental Income Structure in Economy as a Basis for Sustainable Agrarian Relations in the Agro-Industrial Complex

2020 ◽  
Vol 12 (18) ◽  
pp. 7287
Author(s):  
Andrey Zaytsev
Keyword(s):  
Agricultural Sector ◽  
State Regulation ◽  
Added Value ◽  
Industrial Complex ◽  
Pricing Policy ◽  
Dynamic Regulation ◽  
Agricultural Enterprises ◽  
The Russian Federation ◽  
Methodological Approaches

Modern features of the development of the agro-industrial complex as part of the economy as a whole require changes in the traditional models of state regulation, which do not take into account the structure of rental income in the economy and do not use the capabilities of the relevant instruments. This is reflected in the insufficient efficiency of subsidies provided by the state to agricultural enterprises and the preservation of high social and infrastructural differentiation of the regions, as well as the dependence of the agricultural sector on the pricing policy of other industries. All this is shown by the example of the analysis of statistical data of regions of the Russian Federation for 2011–2019. To eliminate these problems, theoretical and methodological approaches have been developed, which made it possible to substantiate the concept of regulating the sustainability of agricultural relations through the synthesis of the theory of sustainability, the theory of systems, and rental theory. Within the concept the role of the structure of rental income in the formation of sustainability of agrarian relations, in their qualitative content, and in the redistribution of added value from the agrarian sphere in monopolized spheres is revealed. The possibility and necessity of state regulation of the agrarian sphere on the basis of dynamic regulation of the sustainability of agrarian relations with the help of management of the rent mechanism is substantiated.

scholarly journals FINANCING OF THE AGRO-INDUSTRIAL COMPLEX IN THE CONTEXT OF THE IMPLEMENTATION OF INTERNATIONAL EXPERIENCE

2021 ◽  
Vol 3 (38) ◽  
pp. 341-350
Author(s):  
R. Sodoma ◽  
O. Brukh ◽  
T. Shmatkovska ◽  
N. Vavdiiuk ◽  
A. Bilochenko ◽  
...  
Keyword(s):  
Agricultural Sector ◽  
Financial Sector ◽  
Developed Countries ◽  
International Experience ◽  
Research Approach ◽  
Industrial Complex ◽  
Financial Instruments ◽  
Agricultural Enterprises ◽  
Industrial Enterprises ◽  
Low Efficiency

Abstract. The situation on the market of bank crediting of agricultural enterprises is analysed. Have been identified the key reasons for the low efficiency of the current mechanism of lending by banks to the agro-industrial sector. The key shortcomings in the system of financing the enterprises of the agro-industrial complex are revealed. The investment attractiveness in Ukraine is considered and specified in the dynamics by regions. The volumes of financing the activity of agro-industrial enterprises in Ukraine by sources of income are analysed. It is proved that effective financing opens wide opportunities for the development of enterprises in the agricultural sector. In the study general and specific economic methods, as well as a basic research approach, which allowed us to determine the economic nature of the financial sector and the scope of financing of agricultural enterprises are used. The financial instruments of the agricultural enterprise use of which will promote the achievement of the European standards are offered. Scientifically substantiated recommendations on the directions of application in Ukraine of the international experience of stimulation of the financial activity of subjects of the agro-industrial complex are entered. In developed countries, a rich arsenal of support tools is used to support financial activities in the agro-industrial complex. A list of the most common tools for such support used in developed countries is given. It is noted that the solution of problems of financial support for the development of the agro-industrial complex should be carried out on the basis of studying, generalizing, and taking into account the best international experience. The world experience of financing the agricultural sector of the economy and the peculiarities of the distribution of state subventions for the development of agricultural production are studied. The scientific novelty of the obtained results is represented by a set of theoretical and practical aspects of the study, namely proposals for the current state of lending to agriculture and recommendations for the use of new financial instruments in the context of the implementation of international experience. Keywords: crediting, financial sector, agro-industrial complex, international experience. JEL Classification Q14 Formulas: 0; fig.: 5; tabl.: 2; bibl.: 16.

scholarly journals Budget support for technological updating of production and modernization of activity of agricultural enterprises

2019 ◽  
pp. 199-206
Author(s):  
Liudmyla Sas ◽  
Petro Matkovskyi
Keyword(s):  
Financial Support ◽  
Crop Production ◽  
Agricultural Sector ◽  
Animal Husbandry ◽  
Industrial Complex ◽  
State Support ◽  
Agricultural Enterprises ◽  
Budget Support ◽  
The Cost ◽  
Cost Of Construction

Purpose. The aim of the article is to research budget support areas for logistical support of technological updating of production and modernization of activity of agricultural enterprises. Methodology of research. The methods of generalization, systematization, analysis, abstraction are used in the process of research to determine the directions of budget support for technological updating of production and modernization of activities of agricultural enterprises in the context of budget programs. The scientific base of scientific research was composed of scientific works of domestic scientists-economists and legislative and regulatory documents on budget support for the agricultural sector of the economy. Findings. The necessity of state support of technological updating of production and modernization of activity of agricultural enterprises is substantiated. Areas of budget support for material and technical support for technological upgrading of production and modernization of agricultural enterprises are identified and analyzed, in particular within budget programs for: partial reimbursement to the economic entities of the cost of construction and reconstruction of livestock farms and complexes and enterprises for the production of compound feed; budget livestock subsidies and state support for crop production; state support for animal husbandry; providing financial support to agribusiness entities through the mechanism of cheaper loans and offsetting of lease payments; financial support (development) of farms; partial compensation for the cost of sophisticated agricultural machinery of domestic production; partial reimbursement of the cost of construction of new greenhouse complexes; financial support for activities in the agro-industrial complex. Originality. The role of budgetary programs on technological updating of production and modernization of activity of agricultural enterprises are defined, analyzed and substantiated. Practical value. The obtained results of the study can be used to organize the process of technological updating of production and modernization of agricultural enterprises. Key words: technological modernization of production; modernization; agricultural enterprises; state support; budget programs.

scholarly journals Application of the Best International Experience when Developing a Credit Guarantee System for Small and Medium Agricultural Enterprises of Ukraine

2021 ◽  
pp. 147-159
Author(s):  
Yurii LUPENKO ◽  
Svitlana ANDROS
Keyword(s):  
Agricultural Sector ◽  
Arable Land ◽  
Bank Lending ◽  
International Experience ◽  
Production Costs ◽  
Added Value ◽  
Agricultural Enterprises ◽  
Loan Guarantee ◽  
Guarantee System ◽  
Credit Guarantees

The focus of the article is the study of the best international experience in developing the structure and implementation of a loan guarantee system to reduce and distribute risks in financing small and medium-sized agricultural enterprises. Access to finance was identified as the main problem hindering the development of small and medium-sized agricultural enterprises. It has been substantiated that due to its competitive advantages, such as a large area of arable land, low production costs and the possibility of increasing the added value of products, the agricultural sector is a priority sector of the economy. The main obstacles and problems that hinder access to financing and the development of national small and medium agribusiness are identified. It has been substantiated that credit security programs play an important role in reducing restrictions on bank lending to small and medium-sized agricultural enterprises. The basic principles of the implementation of guarantee programs carried out with state participation are given. It has been proven that credit guarantees are one of the tools widely used to support the agricultural sector of the economy. In this case, the most expedient is the issuance of guarantees that provide a partial volume of lending, when the borrowers also bear some responsibility for the return of the funds received. Based on the consideration of international experience, it is concluded that loan guarantee systems are an effective tool that can alleviate the difficulties of entering the credit market for small and medium-sized agricultural enterprises. Key policy directions are proposed that allow correcting the situation with obtaining financing for small and medium-sized agricultural enterprises. The mechanism has been developed to provide state credit guarantees to small agricultural producers. The most effective implementation of the proposed mechanism can be achieved by building a national loan guarantee system with the formation of special institutions specializing in providing investment and innovation projects. The theoretical provisions formulated in the article can serve for further developments in the field of small business support by financial and credit institutions.

STATE SUPPORT OF AGRICULTURE: PROBLEMS, WORLD PRACTICES AND PROSPECTS FOR UKRAINE

2021 ◽  
Vol 298 (5 Part 1) ◽  
pp. 315-323
Author(s):  
IRINA FURMAN ◽  
Keyword(s):  
Agricultural Production ◽  
Agricultural Sector ◽  
Developed Countries ◽  
Industrial Sector ◽  
State Regulation ◽  
Industrial Complex ◽  
State Support ◽  
Agricultural Enterprises ◽  
Economic Significance ◽  
Role Of The State

Ukraine’s adaptation to the modern market system of economic activity is determined by the need to implement a number of urgent reforms aimed at increasing the role of the state in the integrated development of the economic and priority agro-industrial sector. Radical reforms of state regulation of agricultural production are necessary to overcome the existing crisis phenomena and ensure further intensive development of the agro-industrial complex. In the practice of progressive highly developed countries, the agro-industrial complex of which was formed under the influence of state regulation, demonstrates that in market conditions the efficiency of agricultural production largely depends on the level of state incentives and state support. The article examines the main aspects of state support for agriculture in modern conditions, which are regulated by regulations. The economic significance of state support is determined, its current state and main directions for agricultural enterprises are studied. The results of the analysis of preconditions and measures that led to the change of directions and volumes of state support in the budget for 2020 are presented. Ways to develop state support for the country’s agricultural sector have been identified. Some world models of state support are analyzed and prospects for Ukraine are outlined. The obtained results are similar to domestic studies and defend the belief in the need for state support of the competitive environment, and not only certain forms of management and ensuring food security by means of regulatory policy coordinated to support the industry.

STRATEGIC PROSPECTS FOR INNOVATION DEVELOPMENT OF AGRICULTURAL SECTOR OF CHERKASY REGION

2017 ◽  
Author(s):  
Viktoriia Zhmudenko ◽  
◽  
Mykola Diachenko ◽  
Keyword(s):  
Development Strategy ◽  
Agricultural Sector ◽  
Raw Materials ◽  
Industrial Sector ◽  
State Regulation ◽  
Innovative Activity ◽  
Innovative Development ◽  
Agricultural Enterprises ◽  
Industrial Enterprises ◽  
Effective Development

The article analyzes the current state of production activities of the agricultural sector of Cherkasy region economy, its organizational and legal structures and identifies strategic directions for its development. It is proved that the priority solution of urgent problems, such as: redistribution of land and property; restructuring of enterprises and forms of management; development of cooperation; introduction of market management methods - management and marketing; state regulation of the agricultural economy, financial, credit and tax systems; development of markets for agricultural products, material and technical resources and services; intensification and diversification of foreign economic activity will contribute to the development of the agro-industrial sphere of Cherkasy region. It is determined that the years 2021-2027 should be considered the strategic period, during which the provision of the country's population with food at the level of scientifically sound standards, growth of export potential and reduction of imports should be achieved. The necessity of introduction of innovative activity and process of innovations introduction in the production activity of the agricultural enterprises which are a basis of economic growth is proved. Obstacles to the innovative development of the regional agricultural sector are analyzed. The priority directions of innovative development of agro-industrial enterprises are indicated. The need to develop an innovative policy of agricultural enterprises in order to increase the efficiency of their operation is determined. It is noted that the priority of the agro-industrial sector development of Cherkasy region and its leading industries will provide the population with food products, industry with raw materials, and foreign trade with the export goods. It is established that innovative activity in agricultural enterprises is a decisive factor in the effective development and increase of agricultural production, significant changes in its structure, reassessment of the motivation system that meet the current principles of the Cherkasy Region Development Strategy for 2021-2027, which determines key vectors of the region in the long-term.

scholarly journals Mechanisms for introducing innovative technologies into the production of the agricultural sector

2020 ◽  
pp. 158-164
Author(s):  
Mykola Kravchenko
Keyword(s):  
Agricultural Sector ◽  
Animal Husbandry ◽  
Industrial Complex ◽  
Investment Environment ◽  
Innovative Technologies ◽  
Agricultural Enterprises ◽  
Current State ◽  
General Scientific ◽  
State And Local ◽  
Methodological Principles

Purpose. The aim of the article is substantiation of theoretical and methodological principles and development of practical recommendations for the formation and implementation of innovative technologies in the production of agricultural enterprises. Methodology of research. General-scientific and special research methods are used in the process of research, in particular methods: dialectics and scientific abstraction – in determining the essence of the innovative model of development of the agricultural sector of the economy; economic and statistical – when analysing the current state of implementation of innovative technologies in the agricultural sector of Ukraine; monographic – used in presenting the results of the study. Findings. Theoretical bases of formation of innovative mechanisms and their introduction in agrarian sector are covered. Theoretical and methodological approaches to the management of innovative technologies in the production of agricultural enterprises have been formed. Organizational and economic measures for the introduction of innovative technologies in the production of agricultural enterprises are substantiated. Originality. The mechanism of introduction of innovative technologies in agricultural production in the conditions of unfavourable investment environment in Ukraine is improved, which in contrast to the existing mechanisms provides integration of state instruments of support and regulation of the industry and implementation of state and regional programs at the expense of state and local budgets. In the paper it is offered to allocate production-technological, organizational-administrative, selection genetic, economic and social-ecological mechanisms of integration of innovation in various subsystems of agricultural sector. The production and technological mechanism is a priority in providing state support for the development of animal husbandry and processing of agricultural products. Practical value. Scientific developments will allow to form in Ukraine an effectively functioning agro-industrial complex with optimal financing based on the introduction of innovative technologies in the production of agricultural enterprises. Key words: innovation, methodical approaches, agricultural sector, advantages, technologies, production.

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