Abstract
The paper deals with the composition and functions of the financial and credit infrastructure of agricultural enterprises, the necessity of development of its institutes is substantiated. The development of financial and credit infrastructure is a vital part of any developed agricultural sector. Due to the length of the production cycle, the seasonality of production and the associated nature of the formation of costs and stocks, agricultural enterprises lack sources for continuous financing. The use of borrowed capital allows you to significantly expand the volume of economic activities of the enterprise, ensure a more efficient use of its own funds, and accelerate the renewal of fixed assets. In order to attract resources and, consequently, to invest in the agricultural sector, it is extremely important to strengthen both agriculture and the financial sector. This requires a coherent strategy with consistent regulation and policies that meet the needs of the sectors and correspond to the real capabilities of all actors in both sectors. The paper proposes a methodology for calculating the integral indicator of the efficiency of participation of all economic entities and financial and credit infrastructure of agricultural enterprises.
Highlights
Agriculture continues to be a fundamental tool for sustainable development and poverty reduction (World Bank, 2017)
The task of financial and credit infrastructure to ensure the accumulation of temporarily free funds and their redistribution in accordance with the needs of agricultural enterprises taking into account the specific features of agricultural production
The development of financial and credit infrastructure is a vital part of any developed agricultural sector
Summary
Agriculture continues to be a fundamental tool for sustainable development and poverty reduction (World Bank, 2017). By 2050, food demand is projected to increase by 70%, and for its satisfaction it is necessary to invest at least $ 80 billion in agricultural enterprises (International Fund for Agricultural Development [IFAD], 2017; World Food Program & IFAD, 2011). Agriculture is developing towards a modern, highly competitive system, driven by consumer demand for higher value, more processed products, and stable quality and safety standards. Increasing productivity, competitiveness and participation of small farmers in these global value chains were marked as priorities for agriculture for development (World Bank, 2017). Highly productive agricultural plants and animals), the formation of a sufficient in volume, affordable, temporary and effective financial and credit infrastructure, both in terms of quality characteristics and in terms of a variety of sources, forms and mechanisms of provision is a priority task (Food and Agriculture Organization [FAO] & World Bank, 2013).
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
