STATE REGULATION OF AGRICULTURAL SECTOR

Abstract

The State policy of regulation of agricultural sector is focused on the implementation of food security programs, increasing the availability of financing for agribusiness entities, optimal regimes of their taxation, subsidies, lending, support for innovative projects in seed production, breeding, reducing the cost of water, mineral fertilizers, seed disinfectants and herbicides, fuels and lubricants, equipment and machinery leasing. The mechanism for allocation of loans funds corresponds to the principles of repayment, urgency, payment, aimed at achieving specific goals. The article gives an assessment of modern operating systems of lending to rural producers: grain purchase; through the system of rural lending partnerships; provision of agricultural machinery and equipment on lease basis; production and purchase of livestock products; organization of spring field and harvesting works. The need to optimize government regulation based on agricultural protectionism is noted. The State should become the subject of regulation of competition on domestic market, which will increase the competitiveness of national agricultural production. It was revealed that direct budgetary support for prices for agricultural products is able to ensure the profitability of agricultural sector. The authors believe that one of the most successful mechanisms in the world practice is market of financial institutions aimed to provide the AIC with long-term and inexpensive loan resources. It is emphasized that the systems of stimulation of production, sale of seeds, certification and other organizational and economic measures of public support for selection and individual links of seed production of grain crops are of great importance.