STATE REGULATION OF AGRICULTURE IN UKRAINE

Abstract

Problems of state regulation of agriculture in Ukraine are analyzed. It is shown that all problems will be solved automatically in the initial stages of agricultural reform on a market basis. It was believed that market levers operate automatically. Without the established agricultural market and its infrastructure, the liberalization of economic activity has only exacerbated the problems. In the following periods, regulatory acts were aimed at solving certain problems without defining strategic goals for agricultural development. The efforts of state agricultural management bodies are aimed at bringing regulatory policy closer to the model used in the European Union. Similar approaches are often copied without regard for the state of agriculture in Ukraine and the level of market relations. A feature of agriculture in Ukraine is the inadequate level of infrastructure of the agricultural market. Because of this, prices for agricultural products are not generated by the market, but they are formed under the monopoly influence of certain structures. Prices are very variable. It is very difficult for manufacturers to adapt to such prices. In such conditions, especially large business entities are developing rapidly. Their activities are aimed at bringing products to foreign markets where prices are more stable. State farm support programs do not provide the necessary results. There are not natural processes of transformation personal farms into commodity farms. It is proposed that the state regulatory policy can be aimed at creating self-regulatory economic systems in which prices would be formed to all participants in market relations without direct state influence. It is acceptable to organize product processing and branded trade in sales cooperatives. The need to expand the functions of wholesale markets for agricultural products is substantiated. It is expedient to direct the funds of state support for wholesale markets for agricultural products to establish branches of these markets. They would provide transport services to small producers, store products, at the direction of the owners, organize auctions. This will ensure the overcoming of isolation from market relations of small businesses, their production of competitive products.