DETERMINANTS OF FINANCIAL RESOURCE CONDITION OF SMALL AGRARIAN ENTERPRISES
KOVAL Natalia – Candidate of Economic Sciences, Associate Professor of the Department of Accounting and Taxation in the Sectors of the Economy, Vinnytsia National Agrarian University (21008, Vinnytsia, 3 Soniachna Str., е-mail: Natkov@i.ua).
RADCHENKO Oksana – Candidate of Economic Sciences, Associate Professor Leading Researcher of Financial, Credit and Tax Policy Department NSC "Institute of Agrarian Economics (03127, Kyiv, str. Heroes of Defense 10, е-mail: firstname.lastname@example.org).
Agriculture, like the entire Ukrainian economy, is experiencing a difficult period. Although such a downturn in production, which had been at the time of restructuring, did not take place, but the results of the activity are rather uneven over the years and tend to decrease over the past few years. The problem is exacerbated by the fact that the financial condition of farmers depends on the macroeconomic situation, which is confirmed by foreign studies, namely, on a specific policy of state support.
More than 11% of agricultural and farm enterprises are concentrated in Vinnytsia region. ¼ part of the farms has a land ownership of up to 500 hectares, and an essential criterion begins with 50 hectares. A significant (20%) share of farms has a land bank of 1-2 thousand hectares. The share of small agricultural enterprises for 2010-2017 has increased from 22.7% to 35.7%, and the share of micro-enterprises in them remains constant - 10%.
In the special fund of the state budget, according to the program 2801460 "Granting loans to farms", allocations for 2016 - UAH 15.8 million were determined; 2017 - UAH 65.0 million, in 2018 - UAH 43.1 million.
According to the regional state administration, according to the results of the implementation of budget support programs for agrarians in 2018, Vinnytsia region was second only to the number of financial support provided to farmers by the Mykolaiv region. Yes, it was used by 411 farms with 2,350 registered (17.5%). It is supposed that all key areas of state support for 2019 will be maintained.
In the region there is a Program for the development of private, farm enterprises for 2016-2020 (modern edition in the Regulation of the State Aviation Administration dated 02.11.2016, number 40). For 2014-2016, UAH 4.96 million has been allocated to this direction from the region budget. Favorable loans were received by 24 farmers and 7 private farms, 5 agricultural cooperatives. In 2017, the program allocated 1.0 million UAH, the trend was also in 2018
The most successful program is to reduce the cost of technology. According to the Ministry of Agropolicy, it has already used 1830 farms in Ukraine and purchased 2,900 units of equipment. The amount of compensation amounted to 211 million hryvnias. Moreover, the most interested persons were Vinnytsia - 163 agricultural enterprises. Agrarians of Vinnytsia region received almost 16 million UAH. reimbursement. About 7.7 mln UAH got gardeners of Vinnytsia region as a partial compensation for purchased landing material.
Taking into account the data of 2017, it was discovered that the financial crisis has hit most of the small businesses, due to the fact that it is harder for them to attract external financing, including tight credit requirements.
It is for this reason that, when analyzing the financial support of farmers abroad, there are compromises between profitability, ecosystem services and other social factors, which is a fundamental prerequisite for sustainable development of agriculture. A holistic approach to assessing the productivity of farms in the production, social, financial and environmental dimensions is being developed.
In this context, the ministry's intention is to draw the attention of heads of specialized departments to the between rural councils and agribusiness, as well as the level of salaries that would indicate a socially oriented agrarian business. For Vinnytsia region issues of attraction of new agricultural producers for cooperation in the project with the Euro region "Dniester" and the special support of this direction are considered by the branch of the Ukrainian State Fund for support of farms, the Institute of forage and agriculture Podillya of the NAAS of Ukraine and the Vinnytsia regional branch of the State Agricultural Protection Agency "State Soil Protection".
In order to use budget funds efficiently, to achieve a balance in funding support programs and sustainable socio-economic development of the village, to increase the competitiveness of agricultural producers, to expand the commodity structure of exports and to establish Ukraine on the world food markets, the Ministry of Agropolicy has drafted a bill "On Amendments to the Law" On State support of agriculture of Ukraine ". It provides the basic principles for the creation and functioning of the State Paying Agency and the State Agrarian Register.
It is worth taking into account the example of EU countries that build a database of agricultural producers by introducing a free identification procedure in a single register. An individual entrepreneur or legal entity creates a personal electronic cabinet and automatically receives information on all types of state aid, eligibility criteria, and the ability to apply online. Analysis of foreign experience shows that in their attempts to increase the viability of family farms, agricultural governments have chosen a number of approaches that can be extended to developing countries.
To improve the organizational and financial structure of farms, it is necessary to improve communication processes within farms and between farmers' organizations, enterprises, and social funds in order to establish common priorities for agrarian development in identifying and / or developing, adapting and expanding innovations.
Consequently, prospects for further exploration in this area lie in the field of elaboration of a methodology for determining the financial condition of farms based on farm and simplified financial statements.
- Graeub, B. E., Chappell, M. J., Wittman, H., Ledermann, S., Kerr, R. B., & Gemmill-Herren, B. (2016). The state of family farms in the world. World development, 87, 1-15. https://doi.org/10.1016/j.worlddev.2015.05.012
- Tyler Watts, Molly Woodruff, (2017). "Institutional inefficiency: small farms starve India’s economy", Journal of Entrepreneurship and Public Policy, Vol. 6 Issue 2, pp. 206-223. Available at: https://doi.org/10.1108/JEPP-05-2016-0021. https://doi.org/10.1108/JEPP-05-2016-0021
- Kaletnіk, G.M. (2015). Strategіko-іnstitucіjnі zasadi efektivnostі vikoristannja potencіalu agrarnogo sektoru ekonomіki [Strategic-institutional principles of efficiency of using the potential of the agrarian sector of the economy]. Ekonomіka. Fіnansi. Menedzhment: aktual'nі pitannja nauki і praktiki – Economy. Finances. Management: topical issues of science and practice, 1, 3-15 [in Ukrainian].
- Stratehichni napriamy rozvytku silskoho hospodarstva Ukrainy na period do 2020 roku (2012) [Strategic directions of development of agriculture of Ukraine for the period till 2020] za red. Yu.O. Lupenka, V.Ia. Mesel-Veseliaka. Kyiv, NNTs “IAE”, 182 [in Ukrainian].
- Mazur, V.A., Tomchuk, O.F., Branіc'kij, Ju.Ju. (2017). Metodyka analіzu fіnansovogo stanu pіdpriєmstva vіdpovіdno do vimog vnutrіshnіh і zovnіshnіh koristuvachіv [Methods of analyzing the financial field of the company of the company in accordance with the requirements of both internal and external users.]. Ekonomіka, fіnansi, menedzhment: aktual'nі pitannja nauki і praktiki – Economics, Finance, Management: Topical Issues of Science and Practice, 3, 7-20 [in Ukrainian].
- Pravdjuk, N.L., & Mulyk, T.O., Mulyk, Ja.І. (2019). Upravlіnnja fіnansovoju bezpekoju pіdpriєmstv: oblіkovo-analіtichnij aspekt: monografіja [Management of financial security of enterprises: accounting and analytical aspect: monograph]. Kyiv: «Centr uchbovoї lіteraturi», 224 [in Ukrainian].
- Vdovenko L.O., Chernenko D.S. (2015). Finansova pidtrymka osobystykh selianskykh hospodarstv – stymul rozvytku ahropromyslovoho vyrobnytstva haluzi. [The financial support of private farms is a stimulus for the development of agro - industrial production in the industry]. Ekonomіka. Fіnansi. Menedzhment: aktual'nі pitannja nauki і praktiki - Economy. Finances. Management: topical issues of science and practice, 2, 33-38 [in Ukrainian].
- Skoruk O.P., Zubar I.V. (2018). Perspektyvni napriamy orhanizatsii fermerskoi kooperatsii. [Perspective directions of organization of farm cooperatives]. Ekonomіka. Fіnansi. Menedzhment: aktual'nі pitannja nauki і praktiki – Economy. Finances. Management: topical issues of science and practice, 7, 97-109 [in Ukrainian].
- Samborska O. Yu., Pryshliak N. V. (2018). Tendentsii rozvytku malykh form hospodariuvannia v ahropromyslovomu kompleksi. [Trends in the development of small forms of management in the agro-industrial complex]. Ekonomіka. Fіnansi. Menedzhment: aktual'nі pitannja nauki і praktiki - Economy. Finances. Management: topical issues of science and practice, 6, 62-71 [in Ukrainian].
- Pronko L. M. (2018). Instrumenty rozvytku maloho pidpryiemnytstva v silskii mistsevosti Vinnytskoi oblasti. [Tools for Small Business Development in Rural Areas of Vinnytsia Oblast]. Ekonomіka. Fіnansi. Menedzhment: aktual'nі pitannja nauki і praktiki – Economy. Finances. Management: topical issues of science and practice , 5, 64-74 [in Ukrainian].
- Koval, N.І., Nechepurenko, A.P. (2015). Oblіk fіksovanogo sіl's'kogospodars'kogo podatku u fermers'kih gospodarstvah. [Oblіk of fiksovany ііlсkipospodarskogo taxation of farmer's state]. Ekonomіka. Fіnansi. Menedzhment: aktual'nі pitannja nauki і praktiki – Economy. Finances. Management: topical issues of science and practice, 1, 127-134 [in Ukrainian].
- Radchenko, O.D. (2019). Fіnansovij potencіal stalogo rozvitku agrarnogo sektoru [Financial Potential of the steel development of the agrarian sector]. Ekonomika APK – Ekonomіka of the APK, 1, 27-34. DOI: https://doi.org/10.32317/2221-1055.201901027 [in Ukrainian].
- Radchenko, O.D. Lazutina L.O. (2017). Finansova pidtrymka maloho pidpryiemnytstva yak skladova silskoho rozvytku [Financial support of small business as a component of rural development]. Visnyk Cherkaskoho Universytetu. Seriia: Ekonomichni nauky – Herald of Cherkasy University. Series: Economic Sciences. 3, 66-75 [in Ukrainian].
- Sajt Mіnіsterstva agrarnoї polіtiki ta prodovol'stva Ukraїni [The Site of the Ministry of Agriculture of Ukrain]. URL: http://minagro.gov.ua/ [in Ukrainian].
- Sajt Vіnnic'koї oblasnoї derzhavnoї admіnіstracії. [The site of the Vinnitsa Oblast State Administration]. URL:http://www.vin.gov.ua/oda [in Ukrainian].
- Kennickell, A.B., Kwast, M.L., & Pogach, J. (2015). Small businesses and small business finance during the financial crisis and the great recession: New evidence from the survey of consumer finances. Available at: SSRN 2620748. http://dx.doi.org/10.17016/FEDS.2015.039
- Katan L.I., Vasylieva N.K., Vinichenko I.I. (2016). Instytutsiine zabezpechennia finansuvannia staloho rozvytku ahrarnoi sfery Ukrainy [Institutional provision of financing for the sustainable development of the agrarian sector of Ukraine]. Visnyk Dnipropetrovskoho universytetu – Bulletin of Dnipropetrovsk University, 24, 7, 207-214 [in Ukrainian].
071 Accounting and taxation
072 Finance, banking and insurance
076 Business, trade and exchange activities
241 Hotel, restaurant and catering
281 Public administration
The journal “Economy, finances, management: Topical issues of science and practice” is included in the "List of Scientific Professional Editions of Ukraine".
The scientific edition is assigned the Category "Б" in the field of economics in specialties 051, 071, 072, 073, 075, 076, 241, 281
The journal “Economy, finances, management: Topical issues of science and practice” has a Digital Object Identifier (DOI)
The journal “Economy, finances, management: Topical issues of science and practice” is indexed in such database as Index Copernicus Value (https://journals.indexcopernicus.com/search/form)
The editorial board of the journal is guided by the principles of scientific, objectivity, professionalism, informational support of the most significant innovative researches, observance of standards of publishing ethics.
The purpose of the journal "Economics, finances, management: Topical issues of science and practical activity» is the coverage of leading scientific ideas in the economic, financial and management activities of the sectors of the national economy and the involvement of representatives of the domestic and foreign scientific professional community.
Objectives of the journal:
- publication of research findings on innovation in the economy, financial and management spheres, innovation of production processes;
- expanding partnerships with international scientific publishing organizations;
- enhancing the culture of reviewing and annotating published material;
- adherence to editorial ethics.
Article publishing is a paid service. Cost for printing in professional publications in accordance with the Decree of the Cabinet of Ministers of Ukraine of August 27, 2010 No. 796 "On approval of the list of paid services that can be provided by state educational institutions, other institutions of the educational system belonging to state and communal ownership" and the order Rector of the Higher Education University Mazura VA dated March 14, 2018 No. 93 “On setting the cost of printing in professional editions of the University”.
The cost of printing one page in professional editions of the university is 60 UAH.
An additional copy of the magazine with the mailing list costs 250 UAH.
Recipient: Vinnytsia National Agrarian University MFO 820172 Current account No. 31256282102055 Code 00497236 Bank State Treasury Service of Ukraine, Kyiv. VAT payer code 004972302286. Registration number 100271744. Purpose of payment: for printing an article in the journal: ”Economy, finances, management: Topical issues of science and practical activity "
It was founded in 1997 under the name "Bulletin of the Vinnytsia State Agricultural Institute". In 2010-2014 he was published under the title “Collection of scientific works of Vinnitsa National Agrarian University”.
From 2015 ”Economy, finances, management: Topical issues of science and practical activity” (Certificate of State Registration of Mass Media No. 21154-10954 of PR as of December 31, 2014)
The journal is the successor to the edition ”Collection of Scientific Papers of Vinnytsia National Agrarian University. Series: Economic Sciences. "