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The Influence of the State Support on the Formation of Competitive Advantages of Agricultural Businesses
Orel A. M.

Orel, Anna M. (2020) “The Influence of the State Support on the Formation of Competitive Advantages of Agricultural Businesses.” Business Inform 7:147–153.
https://doi.org/10.32983/2222-4459-2020-7-147-153

Section: Agricultural Economics and Agribusiness

Article is written in Ukrainian
Downloads/views: 5

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UDC 351.82

Abstract:
The purpose of the article is to determine the current state of the State support for agricultural businesses in the context of creating competitive advantages. The main normative documents regulating the State support of agricultural commodity producers are considered. The classification of forms of support into direct, indirect and intermediated and methods into administrative and economic are defined. The key role of the subjects of institutional regulation of the State support is determined. The main directions of fiscal, budgetary and credit policy of support of the agricultural sector are considered. An analysis of the dynamics of costs to support the agricultural sector from 2013 to 2019 has been carried out. It is determined that the share of agricultural expenditures for the period under review in the total budget expenditures decreased from 1.2% to 0.55%, which indicates a lack of appropriations. The analysis of the dynamics of the cost structure for the support of the agricultural sector has been done, which allowed to determine the imbalance of the main directions. Incomplete use of the planned funds in the targeted area for certain areas of support for agricultural producers in 2019 has been identified. Trends in the dynamics of support amounts for 2020 are considered: a threefold reduction in allocations for livestock, a significant increase in indemnities to reduce the cost of loans and the introduction of a new direction of affordable lending for micro-entrepreneurship and small business (5–7–9%). This indicates a shift in the priority of the State support from direct to indirect and intermediated methods. The use of quotas on the Deep and Comprehensive Free Trade Area between Ukraine and the EU in the export of certain products is considered. The important role of increasing the volume of quotas and their nomenclature for creating price competitive advantages for domestic agricultural producers has been proved. The negative trend of further reduction in the number of cattle, pigs, sheep and goats, which has been observed for a long time, requires a revision of government policy in this sub-sector. The need to increase the amount of the State funding for agricultural producers has been proven to increase their competitiveness and create competitive advantages.

Keywords: the State support, subject of agrarian business, agrarian sector, agricultural enterprises, methods, forms, the State budget, quotas.

Fig.: 1. Tabl.: 1. Bibl.: 15.

Orel Anna M. – Candidate of Sciences (Economics), Associate Professor, Senior Lecturer, Department of Production Organization, Business and Management, Kharkiv P. Vasylenko National Technical University of Agriculture (44 Alchevskykh Str., Kharkiv, 61002, Ukraine)
Email: [email protected]

List of references in article

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