№ 3/2017

Fìnansi Ukr. 2017 (3): 86–95

FINANCIAL AND ECONOMIC REGULATION

HOMYN Iryna ¹

¹Ternopil National Economic University
OrcID ID : https://orcid.org/0000-0002-5882-3830

Regulation of development of the agricultural sector: the financial aspect

The article investigates the problem of the financial regulation of the agricultural sector. It is emphasized that all sorts of budgetary allocations are not coordinated with key strategic areas to balance crop and livestock production, which leads to the increased imbalance during the post-reform period. Since in European countries where the quality of soils is much worse than in Ukraine, the yield of agricultural crops is 2–4 times higher and more regular annually, regardless of climatic conditions, it becomes obvious that the domestic agricultural sector is not economically efficient, resulting in a low competitiveness of Ukrainian agricultural products in foreign markets. Taking this into account, the purpose of the article is to substantiate the ways of balanced financing for agricultural sector development. The author proposes a balanced formation of investment resources for these purposes by determining the optimal level of own funds of agricultural enterprises, attracting bank loans, provided they are guaranteed to return within the terms agreed, and reinforcing the resources with budget financing. Due to the lack of the latter, it is suggested to focus on the priority area, which, in the author’s opinion, is now the development of dairy cattle breeding. It is noted that budget support for the cooperation of producers – first of dairy products, then of meat products, canned vegetables, etc. – plays the role of a multiplier of production necessary for the processing of agricultural products, thus stimulating the development of crop and livestock production and other sectors of agriculture. In the end, the agricultural sector will become a locomotive which will gradually pull out the domestic economy of the crisis.

Keywords:agricultural sector, agribusiness, management, development, crop production, livestock production, consistency, financial resources.

JEL: H12, G18, G28.

Homyn I. . Regulation of development of the agricultural sector: the financial aspect / I. . Homyn // Фінанси України. - 2017. - № 3. - C. 86-95.

Article original in Ukrainian (pp. 86 - 95)

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