Trends in agricultural development and its state regulation

Abstract

The problems of development and implementation of state regulatory policy in agriculture of Ukraine are considered. An attempt is being made to bring it closer to the principles applied in economic of developed countries. Such an approximation for all years of reforms was carried out without taking into account the initial stages of the formation of market relations in Ukraine. The release of levers of state regulatory influence without a prevailing market regulation mechanism only intensified the problems. In economically developed countries, market relations have been developing for a long time in an evolutionary way in conjunction with state regulation of the agrarian economy to solve problems that have arisen from time to time. The quantitative relations characteristic of economically mature systems cannot be extended to the domestic economic system. An indication of the blind spread of approaches to the state regulatory policy of Ukraine that characterize quantitative ratios in mature economic systems is the implementation of monetary policy. A prerequisite for monetary policy and appropriate macroeconomic analysis is the balance of the economy, in which the need for a certain amount of money is formed. Such an approach is acceptable for sustainable market systems, where certain trends and patterns are formed, but it cannot be applied for economies where market trends are only emerging. Therefore, the monetary policy in agriculture could not provide the expected results. Proposed commonly accepted in foreign publications factors that determine the need for state regulation of agriculture, taking into account the state of the domestic agricultural sector to complement such as the creation of identical starting conditions, activation of entrepreneurial activity. Without this, in Ukraine, high-growth entities of a holding type of a large size are formed at a high pace. They use the most advanced technical equipment, involve narrow-profile specialists, they form large commodity batches, which can enter the foreign markets without intermediaries. All agroholdings, however, deprive rural inhabitants of the opportunity to create farms, increase unemployment and social problems in villages. Objective competitive advantages of domestic agriculture, which are determined by fertile black earth, are used by a limited number of persons.