The Problems of Investment and Crediting of the Ukrainian Agricultural Enterprises at the Level of Macroeconomics: Foreign Experience Cover Image

Проблеми інвестування та кредитування аграрних підприємств України на рівні макроекономіки: зарубіжний досвід
The Problems of Investment and Crediting of the Ukrainian Agricultural Enterprises at the Level of Macroeconomics: Foreign Experience

Author(s): Tatiana Reshitko
Subject(s): National Economy, Business Economy / Management, Micro-Economics, Agriculture, Economic policy, Socio-Economic Research
Published by: Центральноукраїнський національний технічний університет
Keywords: financial support of agricultural producers; investment and lending to agricultural enterprises;

Summary/Abstract: The article deals with the problems of financial support to the agricultural producers in Ukraine, which mostly perform from their own resources, which is insufficient for self-financing. This fact makes agricultural enterprises hope for support from the state and presupposes the development of banking and partnership forms of crediting. The framework of state support to agricultural producers and the implementation of private investments in the development of agricultural enterprises are revealed. There have been given the examples of successful private investments, which provide not only the manufacturing of high quality products, but also the employment of farmers. The main directions of financial support for production and employment of the rural population in the EU member states are shown. The need to create a favorable investment climate in the agricultural and non-agricultural spheres, in the development of rural areas is indicated.It has been investigated that radical changes are required to establish the positive dynamics of investment processes. First of all, it concerns the introduction of a real market for agricultural land, which will stop the outflow of investors from the industry, expand the banks’ interest in financing agriculture, and allow direct and legal involvement of these lands in the investment process. In order to solve the problem of rural residents’ employment, there is a need to improve the investment climate in the agricultural and non-agricultural spheres. In this regard, the experience of developed countries is interesting, where investment by the state budget is an important factor in social reproduction, a source of modernization and expansion of fixed capital, a means of stimulating its accumulation.The establishing of financial support for social infrastructure in rural areas will stop the reduction and closure of social facilities, increase the range and quality of services, improve the living conditions of farmers, promote small business, create additional jobs and reduce the migration of productive rural forces to cities and abroad. The problem of investment support to the development of agriculture and rural areas is large-scale, nationwide, and requires the consolidation of efforts of all levels and spheres of production, society, public authorities and economic management.

  • Issue Year: 2021
  • Issue No: 6 (39)
  • Page Range: 37-46
  • Page Count: 10
  • Language: Ukrainian