scholarly journals DETERMINANTS OF FINANCIAL RESOURCE CONDITION OF SMALL AGRARIAN ENTERPRISES

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.

2021 ◽  
pp. 206-209
Author(s):  
Ю.В. Мельникова ◽  
А.В. Шохнех

В статье раскрываются направления развития системы малых предприятий как основы государственной экономики, а также фокусируется внимание на ряде отрицательных моментов, которые деактивизируют малый бизнес, приводя к их ликвидации. В сложный кризисный период, когда субъекты малого бизнеса первыми оказались не готовы к экономической нестабильности, государство предлагает многокомпонентное решение в виде финансовых программ-поддержки. В статье выделены четыре группы программ, каждая из которых определяет свои приоритетные направления для активизации малых предприятий The article reveals the directions of development of the system of small enterprises as the basis of the state economy, and also focuses on a number of negative aspects that deactivate small businesses, leading to their liquidation. In a difficult crisis period, when small businesses were the first to be unprepared for economic instability, the state offers a multi-component solution in the form of financial support programs. The article identifies four groups of programs, each of which defines its priority areas for the activation of small businesses.


2019 ◽  
pp. 53-62
Author(s):  
Liudmyla Chvertko ◽  
Oksana Vinnytska ◽  
Tetiana Korniienko

The purpose of the research is to substantiate the laws of development of agricultural insurance with state support in Ukraine, and provide a set of practical recommendations for implementation of insurance mechanisms for financial support of agriculture. Methodology. The theoretical and methodological basis of the research are the dialectical method of knowledge of economic processes, the fundamental provisions of modern economic theory, scientific works domestic and foreign scientists on economic relations between participants of the agricultural insurance market with state support for agricultural products. A systematic approach, methods of generalization, induction, deduction, analysis, synthesis and comparison were used to achieve this purpose. Results. The necessity and importance of using insurance mechanisms to mitigate risks for agricultural producers had been determined. The state of economic relations for the protection of property interests of agricultural producers had been reviewed in general, and trends in the development of subsidized crop insurance in the insurance market of Ukraine had been identified. The indicators of agricultural insurance and the amount of subsidies from the state budget allocated to reduce the cost of insurance premiums (contributions), which actually had been paid by actors of the agricultural market, had been analyzed. It was revealed that in 2005-2008 the introduction of state support for crop insurance had a positive impact on the performance of the agricultural insurance market, contributed to the popularization of this type of insurance in Ukraine, and positively affected protecting the interests of agricultural producers. The factors hindering the development of domestic crop insurance with state support were revealed. It had been proved that current level of penetration of this kind of insurance protection remains low and insufficient to guarantee the safety of business activities in the agricultural sector, the current model of agricultural state aid, provided by the Law of Ukraine “On peculiarities of crop insurance with state support”, was inefficient and therefore required reformation. The importance of improvements in state regulation, including implementation mechanisms of the existing legislation, and state policy of financial support had been substantiated. It was determined that the market model of crop insurance system in Ukraine should be based on the principles of public-private partnership. Practical meaning appears in the possibility of using theoretical conclusions and practical recommendations for the further development of agricultural insurance in general and crop insurance with state support in particular. Prospects for further research are identification and scientific substantiation of the ways of forming a reliable mechanism for insurance protection of property interests of agricultural producers, development and legislation of recommendations on the forms of effective interaction between the main participants in agricultural insurance – agricultural producers, insurance companies and government.


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


2020 ◽  
Vol 203 (12) ◽  
pp. 94-100
Author(s):  
Zhanna Sadu ◽  
G. Dyuzel'baeva

Annotation. Objective. The research is aimed at studying the current state of the animal husbandry industry, identifying the main problems in the animal husbandry industry and substantiating the priority areas used by the state to support agricultural producers. Methods. In the course of the research, analytical and economic-statistical methods; general scientific methods of system, comparative and structural-logical analysis were used. Results. The article presents the results of assessing the current situation in livestock farming in Kazakhstan, the dynamics of the number of livestock and poultry for 2015–2019, which affects the growth of gross livestock production, as well as the number of farm animals by region as of January – December 2019. The dynamics of the production of livestock products is analyzed as one of the priority areas for ensuring the country's food security, as well as the export, import and consumption of livestock products in the domestic market for 2015–2019. The main problems in the livestock industry are identified. The measures applied by the state to support agricultural producers through direct subsidies from local budgets are disclosed. The dynamics of subsidizing the development of livestock breeding and livestock products are presented, and the problems of the subsidy system are indicated. Identified the need to improve state support of the agroindustrial complex of Kazakhstan, the importance of state regulation of the agrarian sector of Kazakhstan to ensure the country's food security and sets out some measures of state regulation of development of agroindustrial complex. The scientific novelty of the research lies in the fact that it convincingly reveals the main problems of animal husbandry at the present stage, the directions of state financial support for agricultural producers are determined, the need to improve the issues of state support for the agro-industrial complex of Kazakhstan is substantiated.


Author(s):  
S.V. Korobka

Small entrepreneurship in rural areas plays a significant role in the Ukrainian economy, since its development contributes to the economic growth of the welfare of rural residents, the acceleration of scientific and technological progress, contributes to the saturation of the territorial markets with the necessary goods and services, and provides employment of freed labor resources. However, one of the main problems that slow down the development of small businesses in rural areas is the lack of financial support at the regional and national levels. A prerequisite for the further successful development of small business in rural areas is the stable and comprehensive state regulation. To date, there is no single algorithm of state intervention in the sphere of entrepreneurial activity. Each state, in accordance with socio-economic conditions of development, establishes state priorities and general state development. Small entrepreneurship in rural areas develops under the influence of external participants in the process: the state, local governments, and competitors. In reforming the economy, small businesses in rural areas have assumed the role of creator of the foundation for creating a new management system. The creation of small enterprises in rural areas allows solving a number of organizational and economic tasks, namely: the refusal of centralized management due to its ineffectiveness; creation of conditions for the reduction of the number of employees due to the elimination of ineffective units; the implementation of rational transformations for the further development of a particular area of the entire region. State regulation and support for the development of small businesses in rural areas in Ukraine should include a system of regulatory, economic and organizational measures that will promote the living standards of the population in rural areas, increase the efficiency of economic activity and rational use of available resources. Consequently, the further development of rural areas of Ukraine depends on how the state, community and rural dwellers work in this regard. The reasons for the slowdown of rural areas are the lack of human capital in rural areas, as well as financial support. It is also necessary to develop a single legal space within which social partnership of all members of society can be realized for the common goal – development and prosperity of not a separate group of people, but of the entire population of our rich country. Prospects for further research we see in the future the study of regional features of state support of small business in rural areas.


2021 ◽  
Vol 0 (4) ◽  
pp. 66-89
Author(s):  
Alexander Chepurenko ◽  
◽  
Efim Galitsky ◽  
Anna Dukhon ◽  
Alexander Oslon ◽  
...  

The article analyzes the perception of the nature of relations with the state by Russian small entrepreneurs and, in particular, the success of state support provided to small businesses during the pandemic. The data for the analysis were obtained during the summer (2021) survey of 580 small business owners, a sample of which was formed from the database of the Institute's project "Public Opinion Foundation" "Sociology of Small Business (SMBiz Project)". This database was gained in years of all-Russian population surveys conducted on random samples. The main hypotheses of the study were confirmed. They are formulated as follows: (1) Small business is not homogeneous in its attitude to the policy pursued by the state, which can be influenced by different circumstances and factors (experience in business, its success, location, etc.). (2) Participation in certain state support programs increases the level of confidence in the state and has a positive effect on the assessment of its policy. (3) The measures implemented by the Russian state during the pandemic have had different coverage and different effectiveness in the perception of their beneficiaries. In the concluding part, evidence and recommendations are formulated for the bodies implementing the policy on SMEs in Russia.


2020 ◽  
Vol 14 (4) ◽  
pp. 154-161
Author(s):  
Svetlana Chernikova

Depending on the stages of economic development, the development of the financial sector of the agro-industrial complex is fully characterized by state support, while state support, for example, of dairy processing enterprises, is practically carried out with an advantage in favor of agricultural producers. In turn, processing enterprises to a greater extent carry out their production and financial activities without financing and are forced to attract investors on their own. The current situation, without a doubt, requires attention and identifying priority areas in addressing the development of the financial sector of dairy processing enterprises, financing, lending and state support in the form of subsidies. An analysis of the content and effectiveness of the state program for the development of agriculture and the regulation of agricultural products, raw materials and food markets for 2013–2020 of Perm Kray showed that, in general, the program is aimed at involving all those with resources: material, labor, financial and informational, of all interested market participants. However, the mechanism for implementing the planned program does not fully meet the objectives, needs to be adjusted. The general orientation of the activities within the framework of this program has the orientation of state support, to a greater extent, of agricultural producers, which is confirmed by the study, it is necessary to develop a mechanism of financial support for all interested market participants, equally. In this situation, it is necessary to develop a procedure for providing subsidies to increase the efficiency of processing enterprises in the dairy industry, taking into account environmental factors at various stages of economic development. In this regard, the author proposes to consider the growth of the dairy industry at various stages of economic development in the process of implementing the State Program. To develop the State subprogramme of financial support for dairy processing enterprises, which will propose a mechanism for financing dairy processing enterprises in the framework of public-private partnerships.


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.


2020 ◽  
Vol 19 (12) ◽  
pp. 2210-2224
Author(s):  
V.M. Sharapova ◽  
T.N. Medvedeva ◽  
E.A. Farvazova

Subject. The article considers a procedure for calculating and distributing State support to depressed agricultural regions in the framework of a new type of budget financing, i.e. compensating and stimulating subsidies. Objectives. The purpose is to evaluate the efficiency of the system of State regulation of agribusiness in a depressed region, determine the priority of modern methods of budgetary support from the State, improve the methodological approach to the distribution of State aid among subjects of the Russian Federation with low level of socio-economic development. Methods. The study draws on the abstract and logical method, methods of statistical analysis, grouping, comparison, and generalization. Results. We realized the objectives of the study, using the agricultural producers of the Kurgan Oblast case. The paper analyzes the condition of agricultural sector in the depressed region, assesses the State support system efficiency for the agricultural sector of the Trans-Ural region, considers government measures related to the regulation of the economy of backward regions. It presents an updated method of budget financing within an incentive subsidy by clarifying the calculations and introducing an additional indicator that reflects the level of remuneration of regional agricultural producers. Conclusions. The updated calculation methodology for incentive subsidies to depressed regions enables to build a certain economic rating of ten depressed regions of the Russian Federation, taking into account not only the volume of production and employment, but also the level of wages of agricultural workers.


Author(s):  
A.Ya. Kibirov ◽  

The article uses methods of statistical analysis, deduction and analogy to consider programs at the Federal, regional and economic levels, which provide for measures aimed at improving the technical equipment of agricultural producers. Particular attention is paid to the acquisition of energy-saving, high-performance agricultural machinery and equipment used in the production and processing of agricultural products. An assessment of the effectiveness of state support for updating the material and technical base of agriculture is given. Based on the results of the study, conclusions and recommendations were formulated.


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