State regulation of agriculture in the conditions of activation of international integration processes


  • O. Salamin
  • S. Poperechnuy
Keywords: state regulation of agriculture, international integration processes, state regulation of prices, state financial support, public-private partnership systems

Abstract

The problems of organization, direction and implementation of the state regulatory policy in agrarian sector of Ukrainian economy are described. The features of domestic agriculture are shown, through which the approaches to state regulation of industry cannot be automatically applied in economically developed countries. The main one is the inadequate level of formation of the agrarian market and its infrastructure, which leads to high variability of prices.  The analysis of state regulation prices had been shown that none of the approaches applied haven’t provide the proper results since 1991. The problems are aggravated by restrictions international organizations to state influence on the price. Due to the high variability of prices, especially large sized enterprises of the holding type are accelerating, focused on the production of raw materials and its supply to the external market, where prices are more stable. The growth of export potential is combined with an increase in the monoculture orientation of domestic agriculture, an increase in social problems in villages, a significant isolation from the markets for small and medium-sized farms. In these conditions, there are no regular processes of differentiation of private peasant farms, their transformation into farmer-type farms. In order to ensure the adequacy of the competitiveness of processed agricultural products, it is proposed to form integrated systems involving different sized enterprises engaged in the production, processing and marketing of products, and to direct state financial support to such integrated structures which are oriented towards to the production of competitive products. A prerequisite for such support may be the development of a business plan for the production of such products. Support should be directed to the acquisition of the means of production necessary for the implementation of the business plan. To exercise control over the price character of spending state support, it should be carried out on the principles of private-public partnership. The state may remain the owner of the means of production purchased with the state support until the project capacity is reached by a defined business plan. After that, these means can be transferred to the balance of enterprises, which was sent financial support. The advantages of such support compared to the existing ones are its higher efficiency, the focus on the implementation of the potential of domestic agriculture in conditions of international integration of Ukraine. Positive experience would be promote the deployment of integrated systems through decentralized funding.

 

References

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Abstract views: 46
PDF Downloads: 64
Published
2017-10-03
How to Cite
Salamin, O., & Poperechnuy, S. (2017). State regulation of agriculture in the conditions of activation of international integration processes. Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies. Series Economical Sciences, 19(81), 64-69. https://doi.org/10.15421/nvlvet8110
Section
Economic efficiency of production and agricultural products alteration