Improving the instruments of state support for farms development as a component of rural areas social capital

Abstract

The article considers measures taken to improve state support of farms as a component of rural areas social capital. It has been proved that farms have a weak position in the market environment due to the peculiarities of their economic nature which requires the use of effective instruments of state support. Instruments of state support for the development of farms in the leading countries aimed at supporting farmers’ income, risk insurance, sales promotion, etc. were systematized in the study. The need to develop regional programs to support small farms producing "niche" crops, which would provide compensation for material costs of its production in the amount of 50% of the cost standards. The procedure for providing such support has been developed and the possibilities of fnancial support on the principle of co-fnancing of the united territorial community and state bodies in the ratio of 50:50 have been determined. The expediency of state support for novice farmers through providing grants for a family livestock farm establishment of has been proved. The study systematizes the criteria that a novice farmer must meet to be admitted to the competition and the lists the basic documents to be submitted. The funds of local united territorial communities and the state budget in the ratio of 30:70 should make the fnancial basis of the program to support the farms development for the production of livestock products. It is determined that the maximum size of the grant for the development of a family livestock farm should make: for cattle and meat cattle breeding - under 60%, pigs and poultry - 50% of regulatory costs with the grant period of 24 months. It is argued that the development of farms social partnership with different stakeholders is one of the areas of formation of rural areas social capital. To this end, it is proposed to develop a school nutrition program in rural areas, which will provide quality and safe nutrition for school-age children, to create a new channel for the distribution of products grown by farmers and other positive aspects of rural development. Key words: farms, state support, regional support, grant support, social capital, rural area.