Abstract

The nominal increase of gross agricultural output does not ensure adequate socio-economic development of rural areas and improvement of rural populations’ life quality. There is important to create favorable conditions for comprehensive development of rural territories, formation of a highly efficient competitive agricultural sector at level of regions and country as a whole. It becomes important effective use of rural territories potential, in particular the development of cooperation as an effective tool for forming a competitive entrepreneurial environment. The purpose of the article is to substantiate place and role of cooperation in ensuring the revival and sustainable development of Cherkassy region rural areas. The article deals with the role of cooperatives in ensuring rural territories economic development at Cherkassy region, in particular agricultural service cooperatives. The quantitative characteristics of agricultural service cooperatives of Cherkassy region are presented, in particular: number of cooperatives and their participants, volume of services provided, size of unit fund, number of workplaces created. The peculiarities of cooperatives financial support at the region, in particular by costs of local budgets and grant financing, are investigated. The examples of financing involvement in agricultural cooperatives development at Cherkassy region are considered. Existing deficiencies have been identified and characterized. The peculiarities of farms and peasant households functioning at Cherkassy region as potential participants of cooperatives which produce one third of region agricultural production are investigated. There was investigated their logistical and personnel support level, employment trends in rural areas, level of employees’ education, level of agricultural land development, structure of agricultural production, technical support level of production process. Three-component model of rural territories economic development, key role in which the state belongs, was proposed. The main obstacles that hamper the cooperation development in rural areas of Cherkassy region are characterized. The advantages of merging small producers into agricultural service cooperatives are presented.

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