“DEVELOPMENT ISSUES OF INNOVATIVE ECONOMY IN T HE AGRICULTURAL SECTOR” International scientific-practical conference on March 25-26, 2021. Web:
http://conference.sbtsue.uz/uz
Figure 1 - Financial support for farm development
The practical tasks of increasing the effectiveness of the legal mechanism of state regulation of
the interests of farming are: streamlining the terminological apparatus, compliance of domestic legislation
with international law; systematization of normative legal acts, etc. Improvement of domestic legislation
can be effective only if scientifically sound principles of legality and sequence of actions are observed.
The main directions for improving price regulation in the agricultural sector are: introduction of a
comprehensive approach to price formation at all stages of the production process using a single
methodological framework in the national economy; implementation of a gradual transition from
regulated to free prices with the active participation of the state in ensuring equivalent exchange,
stimulating demand for agricultural products; restriction of prices for monopoly products; approximation
of domestic prices for agricultural products to world market prices at a gradual pace [2].
Improving the administrative mechanism of state regulation of farming interests will reduce
transaction costs after the implementation of a number of measures: effective advocacy of property rights,
providing greater opportunities to protect farms from non-compliance with the terms of contracts by
partners; creating a simple and accessible database of economic information that will facilitate the search
for the necessary data and simplify decision-making in conditions of uncertainty; monitoring the quality
of goods and services to state standards and norms; increasing the efficiency of control and audit
activities; formation of a favorable environment for the development of entrepreneurial activity and the
development of measures to bring the economy out of the shadows [3].
Improving the effectiveness of the economic mechanism of state regulation of the interests of
farmers is carried out through several measures: replacement of state financial support for various
programs for comprehensive state regulation of priority areas of development of the industry; attracting
financial resources to invest in knowledge-intensive competitive agricultural enterprises; moderation in
the implementation of tax regimes for agricultural enterprises, etc.
The direction of increasing the effectiveness of the social mechanism of state regulation of the
interests of farming is to improve staffing at all levels of government. In the village, it is necessary to
Financial support on a repayable basis or interest-free loans through the Ukrainian State Farm
Support Fund. In this direction in 2020 it is planned to direct 67 million UAH (from the special
fund of the state budget) in the amount of up to 500 thousand UAH per one farm.
State support for the development of animal husbandry and processing of agricultural
products. In the direction of 2020 it is planned to send 1 billion UAH.
Financial support for horticulture, viticulture and hop growing. In this direction in 2020 it
is planned to send 400 million UAH for a total amount of not more than 25 million UAH
per one business entity, by partial reimbursement of the cost
Available loans 5-7-9%. In this direction in 2020 it is planned to direct 2 billion UAH
from the special fund of the state budget
Partial compensation of the cost of agricultural machinery and equipment of domestic
production. In 2020, 437 million UAH is planned to be directed in this direction. In addition,
compensation will be paid to agricultural producers who purchased machinery and
equipment in October - November 2019, but for reasons beyond their control did not receive
compensation
Financial support of measures in the agro-industrial complex by reducing the cost of loans In this
direction in 2020 it is planned to direct 1.2 billion UAH.
