Current Situation of Agricultural Enterprises Financing in Ukraine: Economic and Legal Analysis

Abstract

Modern agriculture is developed in the direction of increasing the efficiency of agricultural production. This requires a stable combination of financial and economic, legal and organizational factors with the mandatory introduction of the innovative component. Scientific research is based on the current information and scientific base which contains a methodology for assessing the effectiveness of raising funds, the use of which allows systematizing a number of phenomena in the process of agricultural development, unifying the procedure for determining the nominal volumes and effectiveness of welfare payment using direct methods. The paper deals with some problematic legal issues of legal regulation of financial relations with the participation of agricultural enterprises; it is determined and justified the necessity of allocation of agricultural enterprises financial support, providing the administrative assistance and control over the target use of the given funds. The main articles of agricultural enterprises support in Ukraine were identified and the main generators of these enterprises financing were determined from the position of financial and credit institutions. The conceptual models of state support for the development of rural areas in Canada, Australia, Italy and the United States of America are analyzed. The main reasons for the unsatisfactory state of agricultural enterprises development, in particular, economic, social, infrastructural, administrative, problems that restrain the development of the agrarian sector as a whole are outlined. The necessary conditions for the development of agricultural enterprises in Ukraine are determined. On the basis of the analysis of world experience of rural development policy, a list of directions of agrarian sector enterprises support necessary for activation of rural areas development in Ukraine has been formed. The actuality and necessity of activation and harmonization using qualitatively new methodological dimensions of agricultural enterprises financing of various forms of ownership outlined the purpose of scientific search, its contour, tasks and architectonics.

Methodology and criteria for assessing the financial efficiency of agricultural clusters

“…In today's innovative economic society, organizations that are able to produce knowledge, adequately process information, be flexible, respond to technological, social and institutional changes and ultimately ensure their competitiveness will survive and work effectively. This problem is also specific to the agro-industry sector and is particularly relevant at the provinceal level [2].…”

Issues of financing of agricultural complexes and their economic analysis

“…The economic volatility of agrocluster development is determined by the use of appropriate methodological approaches and effective practices for their operation [1]. This includes creating a modern organizational structure of the cluster and a system of financial and economic relations, ensuring the use of various resources and technologies, the possibility of attracting qualified personnel, and others [2]. The sustainable development of agricultural clusters largely depends on the organization and management of innovative processes, the basis of which is the existing research and production potential of the region.…”