The Achievements, Problems and Prospects of Functioning and Circulation of Agricultural Receipts in Ukraine

Abstract

In present times, agrarian receipts are becoming increasingly popular among small agricultural producers. In parallel, the issues related to the improvement of the legal framework for their functioning and circulation, the incompleteness of the process of registration of property rights and lease agreements for land plots in the State Register of property rights to immovable property, low awareness of farmers with the mechanisms of circulation of these financial instruments appear to be relevant. The study is aimed at theoretical substantiating the problems, achievements and prospects associated with the functioning and circulation of agrarian receipts, as well as developing practical recommendations for improving this process. The study was carried out according to the general methodological scheme of the system approach. In the course of the study, the methods of comparative analysis, statistics-economic, abstract-logical, graphic, and some other methods were used. It is determined that the functioning of the five-year project «Agrarian Receipts in Ukraine», initiated by the International Finance Corporation (IFC), provided a powerful basis for the successful use of agrarian receipts. The peculiarities of functioning and circulation of agrarian receipts in agriculture of Ukraine are substantiated. A comparative analysis of the use of agrarian receipts and other credit instruments by agricultural producers is carried out. Problems are identified and advantages associated with the use of agrarian receipts are outlined. It is proved that agrarian receipts are an effective instrument for attracting relatively cheap credit resources by small and medium-sized agricultural producers. Registration of agrarian receipts speeds up the procedure for obtaining a loan; does not require additional collateral, since the collateral is the future crop; can be repaid by the products for which the loan was provided. It is determined that the improvement requires a mechanism of functioning of agrarian receipts in terms of increasing the period of their use, expanding the list of entities that can issue agrarian receipts, changing the collateral for agrarian receipt. Further research will be aimed at developing new and improving existing financial instruments of rural development.