GLOBAL AND NATIONAL ASPECTS OF FINANCIAL SUPPORT FOR THE AGRICULTURAL SECTOR DEVELOPMENT

Abstract

The paper substantiates that the reliable food supply of the population is strategically dominant for strengthening the food and, also, the national security of any country and its sustainable development. The purpose of the article is to substantiate the essence of the state financial support for the agricultural sector development, its role in ensuring sustainable growth both at the level of a sovereign country and at the international level; and, to study the international experience of governments and the approaches of the OECD experts regarding the governments support for agricultural producers. The rapid changes in the socio-economic and political situation in the global world and the need to ensure food security require increasing attention to the development of the agricultural sector. According to world experience, the modern agricultural economy must be based on innovations that should equally apply to almost all production factors: equipment, technologies, animal breeds, plant varieties, financing, logistics, etc. The article defines that the financing of the agriculture sector is a factor that can be attributed to both ensuring the functionality of this sector and stimulating its development. Therefore, the research of existing and development of new approaches to the financing of agrarian entities and the assessment of their efficiency was conducted. Volumes of financing via programs of state financial support for agrarian sector enterprises of Ukraine in 2018-22 were analysed and divergent trends in their financing were identified.      Considering the increasing trend of the effect of returns in financial support via corporate income tax, the state support programs for agricultural producers should be expanded and increased in funding. Thus, it can be affirmed that state financial support contributes to the development of agriculture, its profitability, and the increasing revenues of the state budget because of the returns on financial support. At the same time, it is proposed that agricultural producers more actively resort to preferential bank lending due to its incentive features.