An important specific feature of risk insurance in the agricultural business is the possibility of systemic risks, which are characterized by large amounts of loss-making for agricultural enterprises. In this case, the amount of insurance premiums received by insurers may significantly exceed the amount of their insurance payments. In our opinion, the insurance products offered by Ukrainian insurers in the field of agricultural insurance do not fully meet the needs of consumers. The main problems of Ukrainian insurance organizations providing services in the field of agricultural insurance are the low level of solvency of agricultural enterprises, as well as inflationary processes that make long-term agricultural insurance contracts concluded in the national currency of little demand. The evolutionary development of the Ukrainian insurance market for agricultural risk insurance, in our opinion, should correlate with the development of reinsurance of these risks. This will make it possible to balance the insurance portfolios of insurance companies and provide insurers with additional opportunities for their investment activities. The creation of a specialized national reinsurance company for reinsurance of agricultural risks, in our opinion, will improve the insurance coverage of Ukrainian agricultural enterprises.
Investing in the agricultural sector of the economy largely depends on how quickly the investments made will pay off. Private business, first of all, will invest in the agricultural business in the presence of a low cost and high quality of products. The longer the payback period of the investment, the less likely it is that it will be implemented in practice. Investments are an important source of expanding agricultural production. They enable the agricultural enterprise to carry out technical re-equipment and implement effective environmental and resource-saving technologies. State support for agriculture can consist in the development of transport infrastructure in rural areas, improving the quality of life in rural areas and increasing the labor potential of rural residents. One of the main goals of state support for agriculture is to create favorable conditions for attracting private investors to this industry. Investment activities in agriculture can be focused on improving the fertility of land resources used in agricultural production. The authors consider it expedient to provide the Central Bank with preferential conditions for commercial banks to reduce the cost of loans issued to agricultural enterprises.
Ukraine has a large amount of land that can be used for the production of agricultural products, but there is a tendency to worsen the standard of living and reduce the level of social security in rural areas. The main directions of state regulation of agriculture in Ukraine, according to the authors, are the introduction and development of various measures aimed at reducing the disparity in prices for industrial and agricultural products, creating conditions for food security for basic types of food, implementing effective land reform, training labor resources for agricultural enterprises, transforming socio-cultural infrastructure in rural areas, creating effective market and transport infrastructure in rural areas, the use of price and customs regulators to effectively support domestic agricultural producers. Ensuring the stable development of the agricultural sector of the economy requires certain efforts focused on the development of the socio-economic sphere of rural areas. The development of rural areas requires conditions for the activation of activities in rural areas that are not related to the production of agricultural products (tourism, electricity production from renewable energy sources, folk crafts), increasing the level of efficiency in using the natural and labor potential of rural areas, improving the quality of medical services for the rural population and improving the functioning of the rural socio-cultural sphere.
The importance of environmental management is determined by the need to manage human activities related to harming the environment. The introduction of environmental management has a positive impact on reducing the anthropogenic load on the environment. Environmental management contributes to the harmonization of the relationship between man and nature. The implementation of environmental management at the enterprise largely depends on the interest of its employees in the protection of the natural environment. The preservation of the external environment is possible only if people have a responsible attitude to this problem. The effectiveness of the functioning of the elements of environmental management at the enterprise increases if the employees have a responsible attitude to environmental problems and an understanding of the environment as a human habitat, as a biological species. The social and economic development of human society is closely related to the protection of the external environment. The existing environmental problems in the modern world require a change in the thinking of humanity.
Improving mortgage lending, increasing government spending on financing scientific research in the field of agriculture, improving the system of agricultural risk insurance, and providing tax incentives to agricultural enterprises can help increase the investment attractiveness of agricultural businesses. In order to attract external investors, agricultural enterprises should, in our opinion, offer their investment projects more widely at various forums dedicated to investment activities, and make efforts to form their own good investment image. One of the reasons for the high interest rates for lending to agricultural enterprises is the size of the Central Bank's discount rate. In banking, the Central Bank applies only a single discount rate, but in many industrialized countries, its size can be zero or even negative. The authors proposed to apply not one, but several discount rates of the Central Bank, depending on what specific purposes the commercial bank will spend the financial resources received from the Central Bank. In our opinion, for lending to agricultural enterprises, a commercial bank should be able to receive funds from the Central Bank at a discount rate close to zero, and in our opinion it will make it possible to reduce the interest rate when granting loans to agricultural enterprises.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.