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.

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 FORECASTING CHANGES IN THE STRUCTURE OF ASSETS AND CAPITAL OF AGRICULTURAL ENTERPRISES

2021 ◽  
Vol 6 (2) ◽  
pp. 52-57
Author(s):  
Nataliia Barabash ◽  
Tetiana Pashkuda
Keyword(s):  
Growth Rate ◽  
Agricultural Sector ◽  
Maximum Level ◽  
Management Policy ◽  
Optimal Size ◽  
Working Capital ◽  
Agricultural Enterprises ◽  
Study Results ◽  
Land Relations ◽  
Retained Earnings

The purpose of the study is to develop methodological approaches to forecasting changes in the structure of assets and capital of agricultural enterprises. Methodology. The information base of the article is presented by scientific works of domestic and foreign scientists. The research is based on scientific methods, among which it is expedient to distinguish: analysis and synthesis, comparison, idealization, and abstraction, as well as systematization and generalization – during the formulation of conclusions as a result of the study. Results. It is established that the agricultural sector of Ukraine has significant potential for further growth, but a number of problems hinder its development. Today, the stimulus is the system of land use and land relations, put into effect by lifting the moratorium on land sales. At present, the consequences of such reforms are unpredictable, as there are no clear and transparent rules of the «game» in the sector. It is found out that the most powerful participants in the agricultural market are agricultural holdings, which determine one of the goals of their activities is the development of infrastructure and expansion of influence in foreign markets. In modern economic conditions, the agricultural sector brings 15-20% of Ukraine's GDP annually, and despite the crisis of recent years, provides the population with high-quality products of its own production. Practical implications. One of the main problems in the implementation of working capital management policy is to determine the required amount and optimal composition, which is able to ensure the continuity of the enterprise, the maximum level of efficiency of funds. These problems are solved by forecasting the structure of working capital and forecasting its optimal amount. The urgency of the issue increases due to the fact that the problem of predicting the optimal size and structure of assets and capital challenges is caused by macroeconomic and macro-financial instability. Value/originality. Methodical approaches to forecasting changes in the structure of assets and capital are considered. It is proposed to use a system of indicators for calculations, including the following: growth rate of production and sales, a growth rate of product prices, projected operating costs, non-current assets at the beginning of the forecast period, projected investment, average depreciation rate of non-current assets, duration of production turnover inventories, the duration of collection of receivables, the average share of retained earnings in total profit from sales, the basic volume of production and sales, registered and annual invested capital of the enterprise.

scholarly journals Reviewing Local Revenue Capacity in Indonesia

2021 ◽  
Vol 8 (1) ◽  
pp. 1
Author(s):  
Metasari Kartika
Keyword(s):  
Agricultural Sector ◽  
Negative Impact ◽  
Fixed Effect Model ◽  
Provincial Government ◽  
Per Capita Gdp ◽  
Study Results ◽  
Significant Negative Impact ◽  
Per Capita ◽  
Trade Sector ◽  
Tax Capacity

Fiscal capacity through Local Own-Source Revenuedescribes the region's ability to explore existing sources of income in the region. Data from BPS (2019) on the level of regional independence shows 11 provinces in the low category, 15 provinces in the low category, and eight provinces in the moderate category. Until now, no province in Indonesia has been included in the high category of regional independence. The novelty of this study, trying to revisit the issue of Local Own-Source Revenue in Indonesia. The purpose of the study was to analyze the influence of per capita GDP variables, the value of the trade sector, and the value of the agricultural sector on Local Own-Source Revenuecapacity. Local Own-Source Revenue capacity is measured using the concept of tax capacity, namely Local Own-Source Revenuedivided by PDRB. The object of the study was 34 provinces in Indonesia during the period 2010-2019 (10 years). The research method uses an unbalanced regression panel with a fixed-effect model approach. The study results were that the per capita GDP had a positive and significant effect on Local Own-Source Revenue capacity. The trade sector had a positive and insignificant effect, and the agricultural sector had a significant negative impact on Local Own-Source Revenuecapacity. Therefore, the Provincial Government needs to continue to increase GDP per capita, issue regulations, and maintain regional conditions to support trade activities and approach the public to pay taxes, especially provincial taxes. The provincial government also needs to increase the downstream and industrialization of agricultural products to increase the capacity of Local Own-Source Revenue. Keywords: Local Own-Source Revenue; Tax Capacity  

scholarly journals Diagnostics of the State of Agricultural Enterprises Financial Security

2021 ◽  
pp. 52-60
Author(s):  
Olha Kovalenko ◽  
◽  
Liudmyla Yashchenko ◽  
Keyword(s):  
Financial Stability ◽  
Negative Impact ◽  
Methodological Approach ◽  
Developed Countries ◽  
The State ◽  
Financial Security ◽  
Net Income ◽  
Scoring Method ◽  
Agricultural Enterprises ◽  
Analysis Of Dynamics

In the conditions of rapid changes in the modern market environment, it is extremely important for agricultural enterprises to respond in a timely manner to threats to their financial security. Therefore, economic diagnostics is of significant methodological importance, and makes it possible to learn about economic problems and interpret the results of enterprises activity that have certain deviations from the norm or the state required for the enterprise. The subject of the study is a set of theoretical, methodological and practical aspects of diagnosing the state of financial security of enterprises. The purpose of the article is to diagnose the state of financial security of agricultural enterprises on the basis of the proposed methodological approach and to substantiate proposals for its improvement. The methodological basis of the diagnostics used in the study was: methods of theoretical generalizations, financial analysis, scoring method, analysis of dynamics and structure, linear programming. The article reveals the tasks and areas of management of Ukrainian agricultural enterprises with an emphasis on the protection of their specific financial interests – ensuring liquidity, solvency, financial stability, autonomy and others. For research purposes all Ukrainian agricultural enterprises were classified on the size of the net income. The system of indicators for diagnostics of financial security of the agricultural enterprises was offered. The basic structural elements of the mechanism of financial security management were substantiated. According to the diagnosis results, it was found that the state of financial security of large enterprises in 2018-2019 has deteriorated and it has had a negative impact on their solvency. Instead, the financial security of small and medium-sized enterprises has improved. Based on the experience of developed countries, proposals for public policy instruments to promote financial security of agricultural enterprises were proposed.

How Can We Help Alleviate the Financial Concerns of Non-Directed (Altruistic) Living Kidney Donors?

2020 ◽  
pp. 152692482097858
Author(s):  
Ariella Maghen ◽  
Georgina Mendoza ◽  
Grecia B. Vargas ◽  
Sarah E. Connor ◽  
Sima Nassiri ◽  
...  
Keyword(s):  
Financial Support ◽  
Financial Stability ◽  
Negative Impact ◽  
Financial Burden ◽  
Indirect Costs ◽  
The United States ◽  
Direct Costs ◽  
Full Potential ◽  
Donor Pool ◽  
Number Of Patients

Introduction: The recent increase in non-directed donors (NDDs) in the United States (U.S.) may help reduce the overwhelming number of patients on the waitlist. However, non-directed donation may be limiting its full potential. Out-of-pocket donation costs upward of $8,000 may be a barrier to potential donors with altruistic tendencies, but inadequate financial support. This study aimed to describe the financial concerns of 31 U.S. NDDs. Methods: We conducted qualitative interviews and administered quantitative demographic surveys between April 2013 and April 2015. Interview transcripts were analyzed using grounded theory techniques to describe and expand on themes relevant to the NDD experience. Findings: We identified 4 sub-themes related to the theme of financial concerns: (1) direct costs related to transportation, lodging, and parking, (2) indirect costs of lost wages encountered from taking time off work to recover from surgery, (3) sources of financial support, and (4) suggestions for alleviating donor financial burden. Two thirds of participants (20) expressed concerns about direct and indirect donation costs. 11 NDDs reported the negative impact of direct costs,15 NDDs had concerns about indirect costs; only 7 donors received supplemental financial support from state mandates and transplant programs. Discussion: Understanding the financial concerns of NDDs may guide improvements in the NDD donation experience that could support individuals who are interested in donating but lack the financial stability to donate. Removing financial disincentives may help increase nondirected donation rates, increase the living donor pool, and the number of kidneys available for transplantation.

Теоретичні аспекти сутності банківського кредиту та особливості кредитних відносин в аграрному секторі економіки

Ekonomika APK ◽  
2021 ◽  
Vol 319 (5) ◽  
pp. 101-112
Author(s):  
Iryna Tomashuk
Keyword(s):  
Agricultural Sector ◽  
Bank Lending ◽  
Practical Significance ◽  
Agricultural Credit ◽  
Economic Relations ◽  
Agricultural Enterprises ◽  
Theoretical Substantiation ◽  
Analysis And Synthesis ◽  
Banking Institutions ◽  
The Impact

The purpose of the article is to study and comprehend the essence of credit as a basic economic category and identify the features of bank lending in the agricultural sector of the economy. Research methods. In the process of research a number of methods were used: abstract-logical - for structuring and theoretical substantiation of the essence of the categorical apparatus of credit and credit relations; methods of comparative analysis and synthesis - to study the evolutionary aspects of credit development and credit relations in society; monographic - in identifying and systematizing the characteristics of credit relations in the agricultural sector of the economy; structural and functional approach for the formation of a conceptual vision of credit as an economic category and providing the specifics of the system of bank lending to agricultural enterprises; graphic - to illustrate and systematize the results of the study. Research results. The ambiguity of the interpretation of the credit category in the modern economic literature is revealed. It is proposed to consider the loan as a system of organizational and economic relations between the lender and the borrower, legally enshrined in the loan agreement, on the provision of funds for temporary use on terms of payment, maturity, intended use, security and return. The dualistic nature of credit efficiency is identified and analyzed. The fundamental nature of the impact of the specifics of agriculture on credit relations in the agricultural sector of the economy is assessed. The legitimacy of the existence of a separate mechanism of credit relations in the agar sector of economies is proved. The essential characteristics and features of agricultural credit are systematized and the priority features of objects of crediting in agriculture are covered. Scientific novelty. Theoretical aspects of structuring the interpretation of the essence of credit and credit relations have been further developed. Substantiation of structural components and features of bank lending of the agar sector of the economy. Practical significance. The results of the study can be used by public and sectoral authorities, as well as banking institutions in developing measures to enhance lending to the agricultural sector of the economy. Tabl.: 1. Figs.: 3. Refs.: 31.

Applying the high performance organisation framework in the horticulture and greenhouse sector

2017 ◽  
Vol 21 (2) ◽  
pp. 136-151 ◽  
Author(s):  
André de Waal ◽  
Alex Meingast
Keyword(s):  
High Performance ◽  
Design Methodology ◽  
Agricultural Sector ◽  
Questionnaire Data ◽  
Improve Performance ◽  
Content Type ◽  
Agricultural Enterprises ◽  
Study Results ◽  
Research Gap

Purpose The Dutch agricultural sector nowadays experiences many challenges. To deal with these, the sector has been interested in finding ways to improve performance. Mostly, the improvement research has concentrated in the areas of innovation of products and quality, supply chain management, cooperatives, entrepreneurship and human resources. However, hardly any research has been done into ways to strengthen the internal organisation, encompassing the quality of management, employees and processes and systems of the agriculture company. This paper aims to address this research gap by evaluating whether the high performance organisation (HPO) framework, a scientific validated analysis and improvement technique, can be used to help agricultural enterprises to strengthen their internal organisation. Design/methodology/approach The HPO Questionnaire was applied at four Dutch horticulture companies to evaluate their performance. Subsequently, at each company, interviews were held to obtain more information about the scores. Then, a workshop was organised with the management of all four companies to discuss the study results. Findings The workshop showed that the framework was suitable for the participating companies to start improving their organisations, as management of all four companies agreed that the analysis and recommendations, derived from analysing the questionnaire data and the interviews, were highly relevant to their business. Originality/value As there is no holistic organisational evaluation and improvement technique which looks specifically at the internal organisation of horticulture companies, available for the agricultural sector, the application of the HPO Framework in this sector is the first of its kind.

scholarly journals Formulation of Nao Equation According to Nao Framework

2021 ◽  
Vol 12 (3) ◽  
pp. 5042-5050
Author(s):  
A. H. Abdul Rasib Et. al.
Keyword(s):  
Manufacturing Industry ◽  
Production Efficiency ◽  
Value Added ◽  
Cost Effective ◽  
Lead Times ◽  
Critical Factors ◽  
Increase Production Efficiency ◽  
Post Process ◽  
Long Run ◽  
Study Results

Companies in manufacturing often find strategies to increase production efficiency and quality to be competitive in the long run. These strategies make companies remain profitable in a highly competitive market. Nonetheless, attempting to maintain a shorter production lead time is also vital as efficiency becomes a competitive priority. Whenever there are longer lead times, overtime is taken into account to meet the target. Overtime can be the most cost-effective way for companies to achieve their quality needs. Nevertheless, if poorly managed, overtime could quickly outstrip financial gains. This study aimed to establish the manufacturing industry model of non-value-added overtime (NAO) and formulate NAO equations. In this regard, the NAO equations were acquired from the critical factors of NAO. The vital aspects of NAO were then presented through the activities flow in the input/output manufacturing concept. The study results indicated that the highest critical factors contributed to the three processes: pre-process, in-process, and post-process.

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.

scholarly journals Risk insurance of agricultural enterprises

2020 ◽  
pp. 9-12
Author(s):  
Nadiia ANTYPENKO ◽  
Mariia USHOVA
Keyword(s):  
Financial Support ◽  
Agricultural Sector ◽  
Insect Pests ◽  
The State ◽  
Insurance Market ◽  
Main Task ◽  
Agricultural Enterprises ◽  
Foreign Experience ◽  
Foreign Countries ◽  
Risk Insurance

The paper is devoted to the interpretation and analysis of risk insurance of agricultural enterprises. Agricultural insurance is one of the most specific types of insurance, because a huge number of natural factors and emergencies (drought, floods, sudden changes in air temperature, humidity, and insect pests) are constant and inevitable risks of any agriculture. They cause considerable financial losses, and therefore such a sector of the economy must find reliable opportunities to protect against them. One of the risky types of insurance is agricultural risk insurance. This type of insurance is an important means of reducing the degree of risk in agriculture. The paper considers the peculiarities of the functioning of the agricultural segment of the insurance market in foreign countries. The possibility of attracting and adapting foreign experience of state financial support to the insurance market of Ukraine within the framework of basic insurance models is determined. The purpose of the study is to study and generalize risks in insurance, insurance models, foreign experience in agricultural production, development of recommendations for improving insurance operations for public financial support in the agricultural sector of Ukraine, taking into account foreign experience. Risk in agriculture is seen as a threat or possibility to deviate from the expected results of activities or decisions made from the planned ones. The paper also considers the experience of working with foreign countries on this issue. The purpose of the paper is to study the theoretical aspects of risk insurance that arise in the implementation of business activities in agriculture, justification of ways to improve the legislative and financial influence of the state in this process. The purpose of state assistance is to develop insurance infrastructure, standardize insurance conditions, reduce the cost of insurance products for agricultural users and improve the quality of insurance products. So, the main task for insurers of Ukraine is to gain and maintain a decent reputation and provide effective insurance services. Today, the state is trying to improve and stabilize the situation in the agricultural sector, for example, it involves the practice of providing state support in insurance of agricultural products (providing from the state budget to agricultural producers in the form of subsidies to reimburse part of the insurance payment actually paid for them).

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