Finacial Support to the Agrarian Sector of Ukraine

Abstract

The paper studies the current state of agricultural production in Ukraine, it analyzes the agricultural financial system and the tools of the financial mechanism of agricultural development activation, and determines the main factors restricting the flow of investments into the agricultural sector. The terms of agricultural producers lending are analyzed, modern instruments of financial support of agricultural activity, including bill financing and agrarian receipts, factoring, forfeiting and using venture capital are substantiated. The paper also focuses on market participants lending through credit unions and on the need to modernize state agricultural policy in small and medium-sized businesses support. It is proved that in order to minimize the negative effects of agribusiness development in Ukraine, it is necessary to develop effective measures preventing the investment downturn and creating an attractive investment climate in the industry, aimed at further development of the national stock market, leasing and establishment of specialized credit institutions.