Uman NUH | today: 09/10/2019

The role of loan in the system of the expanded reproduction of entities of the agricultural sector

Author(s) Bondarenko N.V., , , Uman National University of Horticulture
Vlasyuk S.A., , , Uman National University of Horticulture
Korneha A.O., , postgraduate, Uman National University of Horticulture
Category Economics
year 2017 issue Випуск №91. Частина 2
pages 65-75 index UDK 336. 77.
DOI
Abstract Growth in agricultural production not only nationally but also globally is in direct proportion to the demographic situation, world prices and demand for agricultural products. It is found that the basic premise of the expanded reproduction of entities of the agricultural sector is the scientifically reasonable ratio between own and borrowed sources of financing of operating and investment activities. Despite the numerous achievements of domestic scientists in solving this problem still there is no approach to the formulation of a unified strategy and tactics. It is analyzed that the expropriatory price for credit resources, lack of guarantees for their return, unfinished mechanism of property insurance that is one of the main sources of providing credit resources, lack of planning production activities and norm setting of current assets make impossible the adequate response of both creditors and debtors to the crisis in the society. It is determined that the experience of functioning entities of the agricultural sector indicates that ensuring continuity of the production process, their financial stability and ability to pay depends largely on the involvement of bank loans. It is revealed that impact of organizational and economic factors is inherent to the reproduction process of the agricultural sector. They determine its specifics and to some extent affect both the use of resource potential and production and economic relations. The system of crediting entities of the agricultural production which is mainly adapted to the market economy with directive-planned economy is not effective. As a result, crediting of farmers in general and in particular concessional lending is almost stopped which adversely affects the continuous circulation of the production process, leads to a decrease in soil fertility, increase in the degree of equipment deterioration, violation of crop rotations, increased production costs and reducing its profitability. It is determined that different loan levels to cover operating costs correspond to different types of enterprises. Given the results of a cluster analysis it is necessary to note the fact that in enterprises of the third and fifth cluster where in a similar structure of sources of financing operating activities respectively 37.2 and 43.2% of credit to cover expenses the efficiency indicators are significantly different from other studied groups. According to the results of studies a modern organizational and economic mechanisms to improve the impact of the loan on the reproduction process for entities of the agricultural sector have numerous unused reserves, the main of which are grouped in three stages: collection of economic and financial information regarding the financial condition of the agricultural sector as a whole and individual entities, in particular; strategy development of mechanisms on lending entities of the agricultural sector on the basis of the data; choice of options for the systematization of the role of loan in the expanded reproduction of entities of the agricultural production and on this basis modeling process of the expanded reproduction due to attraction of credit resources. It is noted that the limited budget funds is not a reason for not developing programs aimed at developing of the agricultural sector. Since, the main problem is not a lack of resources but the absence of a clear mechanism for their efficient use. Measures which would be aimed at the development of financial intermediaries, improvement of theoretical and practical approaches to the funding of the agricultural sector in accordance with EU requirements are proposed.
Key words loan, financial providing, credit availability, planning, norm setting, food safety, agricultural sector, operating activities, investing activities
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