ASSESSMENT OF STATE SUPPORT FOR AGRICULTURE IN UKRAINE

Abstract

Production of high quality agricultural products, seasonality of agricultural production, the presence of time between the implementation of costs and production results, the dependence of agricultural production results on climatic conditions necessitate continuous improvement of state support for producers and subsidies.

The purpose of the article is to assess the state support of the agro-industrial complex, identify the main problems with its provision and substantiate proposals for its improvement.

The scientific novelty is to provide proposals for improving state support for agricultural production in order to increase the competitiveness of the agricultural sector strengthen food security and increase the economic potential of Ukraine.

Conclusions. Despite the differential approach to providing state support to the agricultural sector of Ukraine, it is imperfect, contradictory and does not allow for long-term budget planning of state support for agricultural production, does not ensure full development of the industry based on modern innovative technologies and therefore does not create conditions for improvement economic potential of the country. The main problematic aspects of the development and provision of state support for agricultural production are: lack of systemic nature and consistency with the priorities of agricultural development; instability and short-term orientation of state programs; unpredictability and lateness of payments by the state, as well as annual underperformance of programs; imperfection and insufficient effectiveness of legislative acts governing the provision of state support to agricultural producers.

In order to create an effective system of state support for agricultural production, it is necessary to: first, at the legislative level to improve the relevant regulations governing the state support of the industry; secondly, to develop and officially approve the Strategy for the Development of Agriculture and Rural Areas, as well as relevant documents defining the priorities of state support for agricultural production for the medium and long term; third, to prioritize the development of small businesses and improve tools to support and encourage them; fourth, to determine the tools, sources and volumes of formation of financial resources for the provision of state support, as well as to agree on the annual volumes of the provision of state support in its strategic areas; fifth, to monitor the implementation of state support programs based on the use of qualitative and quantitative indicators.