Improving commodity lending to the agro-industrial complex as an element of the state support system

Abstract

The study relevance is due to the fact that commodity lending is a fairly new procedure for agricultural producers in the state support. The study purpose is to diagnose the mechanisms of commodity lending in the livestock industries in the Samara region AIC and to develop methods for their optimization. Today, the current state of commodity lending is largely a prerequisite for the development of the economy and an integral element of the country’s economic growth. At the same time, we propose to introduce a system of control over the use of funds aimed at commodity lending, grants, subsidies, state support, to optimize the purposefulness of the received commodity lending funds, in order to prevent their further use for other purposes. The recommendations will contribute to improving the process of commodity lending to the AIC, both in the medium and long term. Competent organization of the commodity lending process will ensure the uninterrupted and effective work of the SUE SR “Veles”, the Ministry of Agriculture, agricultural producers in the field of commodity lending and, as a result, will strengthen the economy of the region as a whole.

State support for agriculture based on the development of commodity lending in animal husbandry

“…In order to receive a commodity loan, the recipient of the livestock of farm animals needs to submit an application and collect a package of documents, the list of which is established by the procedure for selecting recipients of the livestock of farm animals for concluding commodity loan agreements [38][39][40][41][42]. Subject to the fulfillment of the necessary requirements for concluding an agreement, "Veles" JSC transfers livestock to farmers of the Samara region.…”

Red deer breeding investment risks

“…However, within the framework of this project, the technological risk is considered insignificant due to the fact that the production technology based on the selected equipment has been worked out by the manufacturer, so no operational difficulties are expected.  Risk of non-compliance with the estimated time frame for the project [17].  The latter type of risks is minimized due to the following factors:  A preliminary agreement was reached on the purchase of equipment, on the issue of its delivery, installation, warranty service, etc .…”