FINANCIAL SECURITY OF THE FARM IN THE CONTEXT OF ITS FINANCIAL AND ECONOMIC SECURITY

Abstract

Financial support is an integral characteristic of economic activity and does not always depend on the enterprise and can be managed by it. Farming has many risks that affect the stability of financial security. And therefore, in many cases, the risk can turn into a crisis and have negative consequences for the financial and economic security of the economy. This has caused the need to provide financial support to the farm in the context of its financial and economic security, which underpins a rational security policy of the farm. The task of ensuring the financial and economic security of the enterprise is to guarantee its stable and maximally effective functioning now and high development potential in the future. The following criteria for determining the financial and economic security of an enterprise are distinguished: functional, static and resource. Therefore, the purpose of the article is to analyze the problems of financial support of farming, as well as to identify new alternative ways of receiving financial resources to ensure its financial security. The article is devoted to topical issues of determining financial support. The poor financial condition of most farms significantly reduces their adaptability to market conditions, creating the problem: low capital – low productivity – low income – low capital. Insufficient financial support at the expense of profit initiates a new stage of development of the industry – credit. All over the world, a cooperative lending system is used to support the development of small and medium-sized enterprises in the countryside. The methodological and organizational recommendations developed in the article regarding the creation of rural credit cooperatives as an institution of financial support for farms will contribute to improving the level of their financial support by accumulating and concentrating the financial resources of small business entities and the population in the countryside (without significant state financial support) and will direct them work to improve their economic activity. The article proposes a solution to the problem of financial support of farms, which is necessary for its stable financial and economic security.