STATE POLICY OF AGRICULTURAL BUSINESS DEVELOPMENT

Abstract

The article is devoted to the study of the mechanisms of state support for agrarian business in Ukraine, which is important in the context of the current challenges faced by the agricultural sector. The purpose of the study is to analyze existing support instruments, systematize existing measures and identify ways to improve them to increase the efficiency of agricultural production. The relevance of the topic is due to the need to strengthen state support for the agricultural sector to ensure its sustainability and competitiveness in international markets. The research methodology includes an integrated approach based on the use of economic and statistical analysis, comparative analysis, and expert evaluation of the effectiveness of state support programs. The collected data were systematized and analyzed in order to identify key trends and problematic aspects in the implementation of the state policy of support for the agricultural sector. The results obtained are characterized, which indicate the existence of significant reserves for improving the mechanisms of state support. It is determined that the main problems are the lack of efficiency in the use of the provided resources and the uneven distribution of financial support between different categories of farms. The measures implemented within the framework of state support (the state program “Affordable Loans 5-7-9”, one-time financial assistance to the population that suffered crop losses due to the undermining of the Kakhovka hydroelectric power plant dam, incentives for the establishment and development of family farms, the grant initiative “eRobota” with the following areas: “Your own business”, ‘Your own garden’, ‘Your own greenhouse’, ‘New level’), and their role in the development of small and medium-sized agricultural enterprises, which are the main drivers of economic growth in rural areas, is defined. The main areas in which the state provides support to farmers are outlined, in particular through subsidies for machinery and seeds, soft loans for farmers and other programs aimed at improving the economic situation in the agricultural sector. It is recommended to increase the effectiveness of these instruments by improving financial support and stimulating innovation processes in agriculture. It is determined that an important aspect is integration with international economic systems, in particular through the EU's Common Agricultural Policy, which promotes exports and increases the competitiveness of Ukrainian agricultural products in world markets. The author also notes the need for active implementation of digital technologies and innovative solutions to optimize production processes. The author substantiates the need to strengthen state support for agribusiness through the adaptation of elements of the EU's Common Agricultural Policy and the introduction of innovative tools. It is recommended to increase funding for the agricultural sector, focusing on small and medium-sized farms, to implement environmental initiatives in accordance with international standards and to create incentives for the development of innovative farming. The practical value of the article lies in the provision of specific recommendations for improving the state policy of supporting agricultural business, which can contribute to increasing the efficiency of agricultural production, developing the regional economy and ensuring the country's food security.