ACTIVITIES OF FARMS IN FORMATION OF PROPOSALS ON THE AGRICULTURAL PRODUCTS MARKET AND DETERMINATION OF STRATEGIC PERSPECTIVES OF PROSPECTS IN UKRAINE

Abstract

The article examines the current state, development trends, features, and problems of farms in Ukraine. The experience and practice of world agricultural production confirm the high degree of adaptation of farms to market changes, due to the rapid response to changing market conditions, given the flexibility and diversification of production activities. However, today the development of farming in Ukraine is constrained by several problems, the main of which are: lack of working capital and opportunities to attract them, insufficient equipment with modern technical means, instability of state support, and so on. Today in Ukraine there are about 32 thousand farms, which is 67% of the total number of economically active agricultural enterprises. However, the production and social potential of farms remain unrealized. Despite the significant number of farms, their share in the overall structure of gross agricultural output is insignificant – the highest value of this indicator was determined in 2019 – 11.6%. It is established that the importance of farms in the formation of supply in the market of agricultural products of Ukraine is insignificant, especially comparing the development of farming in Europe. The main problems in the development of Ukrainian farming are lagging behind current trends in the introduction of innovative agricultural technologies. The main reason for this situation is the lack of working capital and the high cost of credit resources. As a result, farms have insufficient material and technical provision. The EU experience provides examples of forming an effective institutional basis for state agricultural policy. The EU's common agricultural policy has significant benefits for European farmers. We are talking about the allocation of subsidies from the multibillion-dollar budget of the European Union to support producers, the application of a simplified system of direct payments, state support in the form of additional payments for young farmers, and the production of certain products. Farms are able to increase production and replenish the supply of agricultural products. Strategic development of farming in Ukraine, aimed at creating competitive farms, should take place under the condition of strengthening the role of state policy to support them and combine it with the development of cooperation and integration.