PROBLEMS OF FINANCING OF AGRICULTURAL EXTENSION ACTIVITIES IN UKRAINE

Author:

POKHYLENKO Nataliia1,KORINETS Roman2

Affiliation:

1. National Scientific Center «Institute of Agrarian Economics»

2. Honorary President of the National Association of Agricultural Advisory Services of Ukraine

Abstract

The article analyzes the current state of financial support for socially oriented extension services in Ukraine in order to identify the obstacles to stability and regularity of its implementation. It has been established on the basis of statistical data, that the financing of such activities from the state budget has a downward trend. Its volumes are tens of thousands of times less than similar budgetary expenditures in post-socialist countries that are currently EU members. The results of a survey of representatives of consulting services showed that the reason for the low activity of the registered agricultural extension services in the implementation of state programs to support agricultural producers and, accordingly, the incomplete development of the allocated funds are the scarcity, unpredictability and instability of state support for agricultural extension activities, the weakness of the coherence between themselves of the state programs, aimed at the development of the agricultural sector of economy. There is also a lack of understanding of the importance of agricultural extension by local government representatives. It is proved that conservatism in the introduction of innovations by owners of small farms, low level of awareness of agricultural extension, significant distance of advisory centers from potential customers, low income of the rural population minimize their ability to pay for commercial advisory services. It is established that financial and organizational difficulties have a significant negative impact on the psychological aspects of counseling. Advisors declare a lack of faith in their own strength. The results of the study allow us to assert that the formation of stable, simple and clear rules for long term state financing of agricultural extension activities and the absolute abidance of such rules by state institutions will help to increase the sustainability of financial support for agricultural extension activities in Ukraine.

Publisher

Vinnytsia National Agrarian University

Reference21 articles.

1. 1. McNamara, P. (2014). A review of sustainable financing of extension services in developing countries. MEAS discussion paper. University of Illinois at Urbana-Champaign. Retrieved from: https://meas.illinois.edu/wp-content/uploads/2015/04/McNamara-2014-Finance-MEAS-Discussion-Paper.pdf [in English].

2. 2. Feder, G., Willett, A., & Zijp, W. (1999). Agricultural Extension: Generic Challenges and Some Ingredients for Solutions. ssrn.com. Retrieved from: https://ssrn.com/abstract=620481 [in English].

3. 3. Shchodo derzhavnoi pidtrymki rozvytku silskogospodarskogo doradnytstva v Ukrajini. Analiticha zapyska [Regarding state support for the development of agricultural advisory services in Ukraine. Analytical note]. Natsionalnyi instytut stratehichnykh doslidzhen – National Institute for Strategic Studies. Retrieved from: http://www.niss.gov.ua/articles/1521/ [in Ukranian].

4. 4. Кropyvko, M.F. (2011). Shlyahy rozvytku silskogospodarskogo doradnytstva v Ukraini [Ways of development of agricultural extension in Ukraine]. Naukovyi visnyk NUBiP Ukrainy. Seriia «Ekonomika, ahrarnyi menedzhment, biznes» – Scientific Bulletin of NULES of Ukraine. Series «Economics, agricultural management, business», 168, 10-16 [in Ukranian].

5. 5. Broyaka, А.А. (2016). Коntseptualni zаsаdy оrganizatsii еfеktyvnogo іnformatsiino kоnsultatsiinogo zabezpechennia silskogo gоcpodarstva [Conceptual framework of organization an effective information and advisory support of agriculture]. Agrosvit – Agroworld, 21, 36-42 [in Ukranian].

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