LENDING TO AGRICULTURAL PRODUCTION: FEATURES, PROBLEMS, AREAS OF DEVELOPMENT

Abstract

Agrarian producers face the problem of reliable sources of borrowing, including the possibility of lending to commercial banks. Taking into account the weak development of the agricultural credit system, active participation of the state in providing credit resources to agricultural sector producers in the country's economy is also required. The article defines the features, problems and substantiates the directions of development of the agricultural crediting system in modern conditions. The paper identifies the factors that make agricultural commodities attractive to bankers: stable demand for seasonal loans, limited internal sources of accumulation, a long cycle and localization in the space of production, anchoring of businesses to land resources. The factors that create barriers to the penetration of the capital market, caused by objective features, such as the complexity of agricultural production, lack of experience and traditions of commercial lending, contradiction and lack of legislation are identified. It is established that, taking into account the specific features of agricultural production, the credit system of agricultural commodity producers should offer loans of various forms on the basis of mutual interests of the parties, increase of production efficiency and new methodological approaches to this branch by financial and credit institutions. It is determined that the features of the process of reproduction in agricultural production do not allow to operate only at the expense of own sources of financing. He needs financial and credit state support, since the agricultural producers' own funds are not enough even for seasonal work, payments with the budget, wages, purchase of agricultural machinery, maintenance of socio-cultural sphere. It is determined that the creation of a comprehensive mechanism for credit stimulation of innovative activity in agriculture will allow to activate scientific and technological progress along the chain, from basic research to implementation of development in production, taking into account the limited resources of enterprises and state (public) priorities for the development of the industry, development of the industry in the future. The practical significance of the study lies in the fact that its scientific-theoretical results, practical proposals, conclusions and generalizations form the scientific basis for the development of directions of state regulation of the credit system in agricultural production. The implementation of the proposed measures will help to increase the efficiency of agricultural production and ensure the process of sustainable development of the agricultural sector of the economy.