Financial support for agricultural enterprise: indicators and performance results

Abstract

The goal is to assess the results of production activities of agricultural enterprise, final financial indicators and its overall financial condition, depending on the volume of state financial support. Methods – comparison of calculated levels of dynamics of economic activity of an economic entity, abstract-logical, generalizations. Results - the state of the existing mechanism for providing budgetary funds to agricultural formations is analyzed. The trends in receiving financial assistance from the state are considered based on the use of information about their goals, strategy and competitiveness. The parameters of production of crop and livestock products at the analyzed facility over the past five years have been studied; for the same period, the volumes of funding received have been indicated, the amounts of which are not stable over the years; a direct relationship between the increase in the amount of subsidies and the increase in the volume of products produced has been substantiated. The one-sided nature of the amounts of financial investments provided, which are focused mainly on the crop production industry, is noted. The author states that despite the decrease in production indicators, there is a significant increase in gross and net profit, which helps improve the financial position of the agricultural company. Conclusions - as measures to improve the system of providing financial support to agricultural producers, it is advisable to increase public investment in agricultural enterprises in priority areas, primarily for the production of livestock food products, as well as to reduce interest rates; provide for the issuance of loans for the development of livestock farming. To ensure the sustainable functioning of an agricultural enterprise, an effective economic instrument is needed, based on a combination of state regulation and self-control, and the implementation of a balanced pricing and financial and credit policy.