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Regulatory mechanisms of state financial support that influence the financial results of the activity of agricultural enterprises

Author(s) Malyovanyi M., Doctor of Ekonomikal Sciences, ,
Bechko P.K., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Bondarenko N.V., , , Uman National University of Horticulture
Vlasyuk S.A., , , Uman National University of Horticulture
КОБИЛЯНСЬКИЙ М.О., , ,
Category Economics
year 2019 issue Issue number 95. Part 2
pages 80-98 index UDK 336.027
DOI 10.31395/2415-8240-2019-95-2-80-98 (Link)
Abstract State financial support is an important component of the organizational and economic mechanism for the effective development of agricultural commodity producers. It is impossible for the agricultural commodity producers to operate in the market economy conditions without proper support since the state has a significant impact on the development of agriculture of Ukraine. It has been determined that the efficiency of the agricultural industry largely depends on the funding advanced in the production process. Seasonal nature of production, slow circulation of capital, dependence on natural and climatic conditions significantly affect the financial flows of farmers and lead them to dependence on state financial support due to objective and subjective conditions of their functioning. The main mechanisms of taxpayer support for agricultural business entities, used in domestic practice, have been developed. The state support for farmers should be aimed at increasing their profitability, meeting the needs of the population in quality products, growing the exports. The efficiency of the state financial policy is that it serves as a mechanism and motivation for efficient labor and rational use of potential resources. It has been established that in recent years, the agricultural sector has shown positive changes in the context of increasing the volume of production, the growth of its profitability and a significant increase in the share of the industry in the formation of budgets of all levels at the expense of taxes paid. The priority of lines of the state financial support for farmers has been determined. Financial support by easing of credits to some extent contributes to the unblocking of lending to farmers, expanding their access to credit resources in the market of credit services. Support for business entities through the mechanism of easing of credits is carried out in the form of credit subsidies and involves subsidizing a part of the fee (interest) for the use of loans provided by banks in national and foreign currency. It has been determined that preferential loans for agricultural business entities have obtained a number of shortcomings during the period of their existence. The main of them is their extremely uneven geographical distribution (half of the total amount of agricultural loans of the country is received by enterprises registered in Kyiv and Kyiv region). It has been noted that in domestic practice there is no developed policy to support agriculture in general and cattle-breeding industry particularly, taking into account the peculiarities of the reproduction of the industry and its multifunctional nature. It has been determined that the absolute requirement for farmers to receive taxpayer support is the efficient use of their commercial lands. To achieve that there should be a normalized number of requirements that stimulate agricultural commodity producers to reproduce land yield, protect aquatic resources, produce quality products, protect cultivated lands, etc. It has been determined that for even distribution of the state financial support for the agricultural enterprises between the regions it is necessary to introduce the official statistical reporting that contains data on the tax preferences provided to agricultural commodity producer that receive state subsidies
Key words state support for agricultural enterprises, market relations, loans, interest rates, financial results, economy sector, tax preference, taxpayer support
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