ACTUAL PROBLEMS OF STATE REGULATION OF AGRICULTURE OF UKRAINE

Abstract

The purpose of the article is to substantiate the ways of improving the state regulation of agriculture in the conditions of intensification of international integration processes. The relevance of the study is determined by the lack of common approaches to the development and implementation of state regulatory policy, the borrowing of ways to regulate agriculture in economically developed countries without consideration of the state of the domestic agricultural market and the problems that need to be addressed. Common research methods were used. The monograph method was used to study the problems of regulatory policy development, statistical analysis – to study the volatility of product prices and their impact on production volumes. The results of the research compare different ways of state regulation of agriculture. Inadequate effectiveness of promoting the development of farms has been shown by simplifying the procedure of their state registration, the possibility of creating such farms without registration as a legal entity. Direct government financial subsidies did not have a significant impact on the development of farms. In the context of market relations, the decisive regulatory impact on economic entities is price, which is a main element of the market mechanism for regulating economy. Agricultural producers cannot adapt to the high level of price volatility. A high–risk market environment is emerging. Bank loans are not involved in this environment. The funds are not invested in an industry with a long return on capital. It is proposed to direct the state regulatory policy to the formation of horizontal and vertical marketing systems, in which prices will stabilize without state regulation. On the basis of harmonization of requirements for raw materials, competitive products on the foreign market will be produced. It is proposed to focus direct state financial support on financing investment projects to strengthen the international competitiveness of agriculture. That provide meets international standards and sanitary requirements for product organization. This will overcome the general trend of scattering state support funds. They will focus on achieving the priority goals of agricultural development in the context of Ukraine's international integration. The practical importance lies in the possibility of using the proposed methods of agricultural regulation by the state authorities and economic entities.