The Problems of Investment and Crediting of the Ukrainian Agricultural Enterprises at the Level of Macroeconomics: Foreign Experience

Author(s):  
Tetyana Reshytko ◽  

The article deals with the problems of financial support to the agricultural producers in Ukraine, which mostly perform from their own resources, which is insufficient for self-financing. This fact makes agricultural enterprises hope for support from the state and presupposes the development of banking and partnership forms of crediting. The framework of state support to agricultural producers and the implementation of private investments in the development of agricultural enterprises are revealed. There have been given the examples of successful private investments, which provide not only the manufacturing of high quality products, but also the employment of farmers. The main directions of financial support for production and employment of the rural population in the EU member states are shown. The need to create a favorable investment climate in the agricultural and non-agricultural spheres, in the development of rural areas is indicated. It has been investigated that radical changes are required to establish the positive dynamics of investment processes. First of all, it concerns the introduction of a real market for agricultural land, which will stop the outflow of investors from the industry, expand the banks’ interest in financing agriculture, and allow direct and legal involvement of these lands in the investment process. In order to solve the problem of rural residents’ employment, there is a need to improve the investment climate in the agricultural and non-agricultural spheres. In this regard, the experience of developed countries is interesting, where investment by the state budget is an important factor in social reproduction, a source of modernization and expansion of fixed capital, a means of stimulating its accumulation. The establishing of financial support for social infrastructure in rural areas will stop the reduction and closure of social facilities, increase the range and quality of services, improve the living conditions of farmers, promote small business, create additional jobs and reduce the migration of productive rural forces to cities and abroad. The problem of investment support to the development of agriculture and rural areas is large-scale, nationwide, and requires the consolidation of efforts of all levels and spheres of production, society, public authorities and economic management.

Author(s):  
Nadiya Svynous

Introduction. The processes of reproduction of MTB of agricultural producers are determined by a number of internal and external factors, among which are the following: opportunities for the formation of investment resources from external and internal sources of funding; effectiveness of state support; organization of production activities, which focuses on resource conservation; size and specialization of the enterprise; financial stability; efficiency of production activity; product competitiveness; investment activity; productivity of technical means, their physical and moral wear and tear; perception of innovations. Methods. The methodological basis of the study is a dialectical method of cognition, a systematic approach to the study of economic phenomena. The tasks are solved using the following methods: abstract and logical (in formulating theoretical generalizations and conclusions); monographic (reflecting the processes of formation of the material and technical base of agricultural enterprises in the dynamics); statistical analysis (to assess the movement of the active part of non-current assets of farms in the corporate sector of the agricultural economy). The reliability of the obtained results, conclusions and proposals is confirmed by the calculations and a significant amount of empirical material presented in the work. Results. It is established that the main problems of deterioration of material and technical condition of fixed assets in agriculture are: low investment activity of agricultural producers; insufficient volumes and miscalculations in the targeting of state support for the renewal of fixed assets of agriculture for small and medium-sized farms in rural areas; imperfect agricultural leasing; no indexation of the book value of fixed assets of agricultural enterprises. Discussion. In the conditions of further development of investment activity of farms of the corporate sector of agrarian economy there is a necessity to make capital investments in acquisition of agricultural lands. In this connection the priority tasks of scientific research are: development of methodical approaches transactions for the purchase and sale of agricultural land and their reflection in the financial statements. Keywords: investment, material and technical base, agricultural enterprise, technical means, state support.


2021 ◽  
Vol 12 (3) ◽  
Author(s):  
Pakholiuk Anatolii ◽  

The article is devoted to the separation of specific features of the internal and the external agrarian financial relations. It is proved that the peculiarities of the first group of legal relations are conditioned by the organizational and legal form of legal entities in which they arise, change and interrupt. These features are established in the legislation governing the legal status of these entities. In particular, it determines the procedure for the formation of property funds of agricultural enterprises, the distribution of financial results (profits) among the founders and participants (members) (for example, payment of dividends (in companies), dividends and patronage dividends (in agricultural cooperatives), also contributions to this fund. At the same time, enterprises accept internal documents on the basis of which such distribution is carried out. In addition, the procedure for exercising control over their financial and economic activities is regulated. The procedure of payments with members (participants) in case of termination of the business entity or withdrawal from its members (participants) is also specific. The opinion is substantiated that the peculiarities of external agrarian financial legal relations are caused, as a rule, by the nature of the business entity activity. Therefore, these relations are regulated by agrarian legislation in field of the state financial support of agriculture and rural social sphere; implementation of certain types of agricultural activities; insurance and lending of the agricultural producers. Such legal relations, according to the author, include: payment legal relations; credit relations (including financial leasing relations); insurance legal relations; relations with the state and local budgets (regarding the payment of taxes and other obligatory payments and fees; receipt of state financial support); investment relations. Keywords: agrarian legislation, agrarian financial legal relations, agricultural enterprise, agricultural producer, internal financial relations, external financial relations


Author(s):  
Roman LOGOSHA ◽  
Olha KHAIETSKA

The article presents retrospective analysis of the creation and development of the State Land Bank in Ukraine. It is substantiated that for the effective functioning of the land market, among other components, the functioning of proper infrastructure and system of state control is necessary, when the State Land Bank or other specialized state institution plays an important role and performs the functions of the market regulator and land manager. Study of the peculiarities of the functioning of mortgage lending systems at foreign countries and the possibility of applying foreign experience for the development of mortgage relations in agriculture of Ukraine are conducted. The perfect infrastructure of the mortgage and credit market ensures high efficiency of mortgage relations. It is identified that important elements of the infrastructure of the mortgage market in many countries are: land cadastre and centralized credit bureau with access of banks to their information in real time, centralized real estate database; stock exchanges, clearing centers and the clearing system of the central bank, specialized banks and structures (corporations, funds, management), state trust guarantee funds. In today's conditions, when Ukrainian agricultural producers use land on lease, the expediency of creating the appropriate state institutions, including the establishment of the State Land (Mortgage) Bank, is growing. Its functioning will promote to: the development of mortgages on agricultural land; improve the conditions of medium- and long-term lending secured by land to meet the needs of agricultural producers and the population living in rural areas; expand the possibilities of agricultural production; provide regulation of the pricing process for land plots; ensure the effective operation of the land redistribution mechanism; will help attract investment in agriculture and additional investments in land to maintain its fertility, etc.


Author(s):  
Natalia KOVAL ◽  
Oksana RADCHENKO

Agriculture, like the entire Ukrainian economy, is experiencing a difficult period. Although such a downturn in production, which had been at the time of restructuring, did not take place, but the results of the activity are rather uneven over the years and tend to decrease over the past few years. The problem is exacerbated by the fact that the financial condition of farmers depends on the macroeconomic situation, which is confirmed by foreign studies, namely, on a specific policy of state support. More than 11% of agricultural and farm enterprises are concentrated in Vinnytsia region. ¼ part of the farms has a land ownership of up to 500 hectares, and an essential criterion begins with 50 hectares. A significant (20%) share of farms has a land bank of 1-2 thousand hectares. The share of small agricultural enterprises for 2010-2017 has increased from 22.7% to 35.7%, and the share of micro-enterprises in them remains constant - 10%. In the special fund of the state budget, according to the program 2801460 "Granting loans to farms", allocations for 2016 - UAH 15.8 million were determined; 2017 - UAH 65.0 million, in 2018 - UAH 43.1 million. According to the regional state administration, according to the results of the implementation of budget support programs for agrarians in 2018, Vinnytsia region was second only to the number of financial support provided to farmers by the Mykolaiv region. Yes, it was used by 411 farms with 2,350 registered (17.5%). It is supposed that all key areas of state support for 2019 will be maintained. In the region there is a Program for the development of private, farm enterprises for 2016-2020 (modern edition in the Regulation of the State Aviation Administration dated 02.11.2016, number 40). For 2014-2016, UAH 4.96 million has been allocated to this direction from the region budget. Favorable loans were received by 24 farmers and 7 private farms, 5 agricultural cooperatives. In 2017, the program allocated 1.0 million UAH, the trend was also in 2018 The most successful program is to reduce the cost of technology. According to the Ministry of Agropolicy, it has already used 1830 farms in Ukraine and purchased 2,900 units of equipment. The amount of compensation amounted to 211 million hryvnias. Moreover, the most interested persons were Vinnytsia - 163 agricultural enterprises. Agrarians of Vinnytsia region received almost 16 million UAH. reimbursement. About 7.7 mln UAH got gardeners of Vinnytsia region as a partial compensation for purchased landing material. Taking into account the data of 2017, it was discovered that the financial crisis has hit most of the small businesses, due to the fact that it is harder for them to attract external financing, including tight credit requirements. It is for this reason that, when analyzing the financial support of farmers abroad, there are compromises between profitability, ecosystem services and other social factors, which is a fundamental prerequisite for sustainable development of agriculture. A holistic approach to assessing the productivity of farms in the production, social, financial and environmental dimensions is being developed. In this context, the ministry's intention is to draw the attention of heads of specialized departments to the between rural councils and agribusiness, as well as the level of salaries that would indicate a socially oriented agrarian business. For Vinnytsia region issues of attraction of new agricultural producers for cooperation in the project with the Euro region "Dniester" and the special support of this direction are considered by the branch of the Ukrainian State Fund for support of farms, the Institute of forage and agriculture Podillya of the NAAS of Ukraine and the Vinnytsia regional branch of the State Agricultural Protection Agency "State Soil Protection". In order to use budget funds efficiently, to achieve a balance in funding support programs and sustainable socio-economic development of the village, to increase the competitiveness of agricultural producers, to expand the commodity structure of exports and to establish Ukraine on the world food markets, the Ministry of Agropolicy has drafted a bill "On Amendments to the Law" On State support of agriculture of Ukraine ". It provides the basic principles for the creation and functioning of the State Paying Agency and the State Agrarian Register. It is worth taking into account the example of EU countries that build a database of agricultural producers by introducing a free identification procedure in a single register. An individual entrepreneur or legal entity creates a personal electronic cabinet and automatically receives information on all types of state aid, eligibility criteria, and the ability to apply online. Analysis of foreign experience shows that in their attempts to increase the viability of family farms, agricultural governments have chosen a number of approaches that can be extended to developing countries. To improve the organizational and financial structure of farms, it is necessary to improve communication processes within farms and between farmers' organizations, enterprises, and social funds in order to establish common priorities for agrarian development in identifying and / or developing, adapting and expanding innovations. Consequently, prospects for further exploration in this area lie in the field of elaboration of a methodology for determining the financial condition of farms based on farm and simplified financial statements.


2020 ◽  
Vol 2 (11) ◽  
pp. 71-73
Author(s):  
M. U. USUPOV ◽  

The article is devoted to the state of the economy of the subject of the agricultural sector – the Toktogul region of Kyrgyzstan, as well as the formation of a land division, which is impossible without an influx of investments and ensuring the availability of monetary resources for agricultural producers. In our time, innovation is becoming the main means of increasing the benefits of economic entities by better meeting market demand and reducing production losses compared to competitors. Despite repeated attempts by the country to create a system of lending to agricultural companies, only a small percentage of them use credit resources. Various state aid schemes support a competitive environment in the money markets and guarantee relatively equal access to them for financial institutions and agricultural enterprises.


Author(s):  
Liudmyla Yefimtseva ◽  

The article examines the historical experience of the creation and operation of machine-technological stations, taking into account the peculiarities of their development in each period of their activities. The advantage of creation of machine-technological stations at city united territorial communities at the present stage as one of means of the maintenance of agricultural commodity producers from the area of the earths to 500 hectares of a full complex of technical means is outlined, the growth of which will contribute to the development of the market of agro-technological works and services. Among the main advantages - the proximity of technical means to the agricultural lands of farmers is a significant factor, given that the average size of the united territorial community is about 225 km2. In addition, the newly created machine-technological stations, whose activities will be aimed at working with small areas of agricultural land, will be equipped with appropriate technical means, which will save money. Restraining factors of development of machine-technological stations at the present stage are revealed, among which the main ones are limited financial resources at the stage of their creation, insufficient level of state support, lack of integration of machine-technological stations with agricultural enterprises that are consumers of their services. It is proposed to create a fund to support the newly created machine- technological stations at the city's united territorial communities to provide start-up capital in the form of interest-free loans on a competitive basis, which can be used for investment in technical means and equipment, working capital or expansion of agro-technological works. In addition, the improvement of programs of financial support for agricultural producers will promote the development of machine-technological stations in the agricultural sector. The implementation of the proposed proposals will contribute to the development of the market of agro-technological works and services in the direction of providing agricultural producers of small forms of management with a full range of quality technological services in a timely manner.


VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 42-49
Author(s):  
Nataliya Tanklevska ◽  
Vitalina Yarmolenko

The article is aimed at identifying modern features of insurance in the agricultural sector of the Ukrainian economy and defining the factors of influence on the agricultural insurance market. The article discloses interpretation of the terms of «insurance» and «agricultural insurance» and also presents the types of possible risks arising in the activities of agricultural enterprises. The performance indicators of leading insurance companies in the field of agricultural insurance are analyzed. The current state and dynamics of insurance of agricultural risks, which arise both in the field of crop production and in livestock, are researched. This will allow predicting the future prospects of the market for insurance services and products, as well as finding possible optimal ways to solve the problems of product insurance, faced by the agricultural producers. The main factors influencing the efficiency of the insurance market in the agricultural insurance sector are allocated. The basic principles of insurance of agricultural products with the State support are analyzed. It is defined that the further development of agricultural insurance should be directed towards creating a profitable and safe environment for all participants in the agricultural market, which provides for the distribution of risks between agricultural producers, processing enterprises, banks, insurance companies and the State. The agricultural insurance of risks creates possibilities for advantageous harmonizing the interests of participants in the agricultural insurance market and the State as a party whose first priority is to ensure stable economic growth.


2020 ◽  
pp. 29-36
Author(s):  
М.V. Zos-Kior ◽  
V.Y. Ilin ◽  
I.M. Kyryliuk ◽  
O.V. Solod

The article describes the digitalization of ecological and economic principles of agricultural enterprise development management. It presents effective techniques for adapting enterprises to the challenges of the smart economy, which changes human needs, products, services, value chains, markets, processes, business models, forms of competition and business partnerships. The article proves the efficiency of precision farming, which includes parallel driving, yield mapping, differentiated application of seeds and fertilizers. It is determined that the lack of systemic demand for digital solutions from domestic agricultural enterprises and rural communities and unpreparedness (strategic, financial, technological, personnel, organizational, etc.) of most enterprises and communities to cardinal innovations significantly deter the formation of smart agribusiness in Ukraine. The article describes the system of measured indicators and capabilities of the Hummingbird Technologies platform and consequences of its implementation for land management, in particular normalized relative biomass index, leaf surface index, crop heterogeneity map, plant lodging risk map, weed map, seedling density map, electronic maps creation tasks, task map for differentiated desiccation, task map for differentiated application of herbicides, task map for differentiated application of growth regulators in plants. It justifies the need to intensify the work of rural a community, which try to communicate with agricultural producers on mutually beneficial terms and with other stakeholders for the sustainable development of rural areas. The issues of participation of rural communities in projects to increase soil fertility, organization of organic farms, service cooperatives, which are directly or indirectly related to the effective management of environmental and economic development of agricultural enterprises. The article shows the necessity of professional development of business engineers, personnel and strengthening of role of analytics for agricultural enterprises to digitalize the economic activity.


Author(s):  
I. Smolynets

One of the most important directions in this context is the problems of organizational and legal forms of development of entrepreneurial activity in agriculture. Effective development of entrepreneurial activity in agriculture is hindered by poor adaptation to market conditions and low investment attractiveness of agrarian production and economic formations, unsystematic and dispersed revenues for modernization of production activities, insufficient state support, imperfection of the organizational and economic mechanism for managing the development of various organizational and legal forms of entrepreneurial activity activities in the agrarian sector. In the historical aspect of the development of entrepreneurial activity there are the following forms: private farms, individual holdings, households, peasant farms, private and state agricultural enterprises, collective farms, in particular peasant unions, agricultural companies, inter-farm enterprises and associations, of various kinds and types societies that are divided in form of association and level of responsibility. The most important of these, which have become accustomed and function in agriculture, are agricultural enterprises, in particular private ones, and households. However, today the state of development of entrepreneurial activity in the agroindustrial complex remains rather complicated and requires complex comprehensive reforms, the main role of which should be owned by the state. That is why among the objects of state regulation a special place should occupy the agrarian sector of the economy and the forms of entrepreneurial activity, in particular the agrarian market and the formation of its infrastructure, which is conditioned by the state regulation. The main problems of the agrarian sector development include the low efficiency of agricultural production and the problem of deformation of price proportions, the solution of which is directly related to the perfection of the infrastructure and mechanisms for regulating the agricultural market. The process of establishing enterprises on the basis of co-operation and their integration with processing enterprises will reflect the interests of agricultural producers and promote their stable and efficient development. The most effective form of co-operation is production, sales and service cooperatives, created on the basis of cooperation of shares and natural forage lands, fixed assets, livestock of animals that unite agricultural producers, households, purchasers, enterprises of the processing industry, various catering enterprises, institutions and organizations. Co-operation, by its very nature, is an economic and voluntary phenomenon. Integration is the next stage of effective economic forms of cooperation among the participants in the agrarian market.


THE BULLETIN ◽  
2021 ◽  
Vol 389 (1) ◽  
pp. 208-218
Author(s):  
A. R. Soltangazinov

At the present stage in the domestic scientific environment, the problems of ensuring sustainable development of rural areas are insufficiently studied and require further study. The goal of sustainable development of rural areas is a balanced development of the economic, social and environmental spheres, aimed at ensuring a favorable life of the population. The article considers the economic aspects of the functioning of rural territories of Pavlodar region and provides a comprehensive assessment to solve the problems of socio-economic development of these territories in the current and long-term perspective. As a base of analysis and assessment used statistical data of the official website of the Committee on statistics of MNE of RK, and also empirical observation and informational resources of local Executive bodies region. Based on the results, which identified systemic problems of the rural economy that have a negative impact on the level and quality of life of the rural population. These include, first and foremost, the dominant raw material orientation of the rural economy, low labour productivity, due to the significant moral and physical deterioration of the production-technical base, including the excess of the lifespan of the majority of equipment, as well as the rate of fleet renewal machines relevant regulatory requirements, using a separate are subject obsolete resource-intensive technologies. It is shown positive dynamics of key indicators of agriculture, which developed in the first place, due to government regulation of agriculture and the creation of an enabling environment through the extension of the relevant package of measures of state support aimed at the development of this sector of the national economy. Recommendations aimed at activating the processes of rural economy diversification have been developed. Analysis of the state of domestic beekeeping shows that this market niche in the national economy is not sufficiently developed and this industry has a significant unrealized potential. Significant benefits of the development of the beekeeping industry are shown, which will have a positive impact on strengthening the export positions of non-resource orientation, increasing employment of the rural population, crop yields, solving the problems of degraded agricultural land, etc. The economic feasibility and effectiveness of investment projects in the field of beekeeping development, which simultaneously provide a significant social effect, are justified. For the transition of rural territories to a qualitatively new level of development, based on the conclusions made about the priorities of rural development, the authors justify strategic prospects for further development using the internal mechanism of their functioning, reserves of economic growth and taking into account the specifics and features of administrative-territorial units.


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