EXPERIENCE OF REGULATION AND ANALYSIS OF STATE SUPPORT FOR VEGETABLE PRODUCTION

Abstract

This study explores the current state of Ukraine’s vegetable production sector amid martial law and the consequences of the temporary occupation of certain territories for domestic vegetable output. The research identifies key obstacles impeding the sector’s development, including high dependence on imports, challenges in adopting innovations, energy instability, and insufficient governmental support. A comparative analysis of state regulation practices in the United States and European Union countries is conducted, emphasizing the use of pricing, taxation, credit instruments, production volume controls, and domestic market protection mechanisms. The effectiveness of the State Target Program for the Development of Vegetable Production through 2025 is assessed, revealing declining financial allocations and a limited range of support tools. The main problems of vegetable growing development in Ukraine are emphasized, in particular, the significant import dependence of the vegetable growing industry, despite the fact that market demand for a number of vegetable crops exceeds supply and continues to grow; the difficulty of implementing innovative technologies in small farms, which leads to low yields; the problem of attracting investments in the development of vegetable growing on farms, wear and tear of equipment, minimal use of drip irrigation, etc. It was determined that there is actually no state support for vegetable growing, with the exception of declared grant programs for the creation of gardens and greenhouses, due to the difficult situation in the energy sector. The urgent ways to support the development of the vegetable growing industry in Ukraine are to expand the areas for growing basic vegetable crops and rare vegetables in the western and central regions, increase vegetable yields by implementing innovative technologies, promote the introduction of drip irrigation in small farms through mechanisms of partial financing from local budgets and alternative sources, stimulate the creation of vegetable cooperatives, and intensify interregional exchange of vegetable products.