Priorities of state support for grain production development in Ukraine

Economic Annals-ХХI: Volume 152, Issue 7-8(1), Pages: 28-31

Citation information:
Penkova, O., Kotvytska, N., & Revutska, A. (2015). Priorities of state support for grain production development in Ukraine. Economic Annals-XXI, 7-8(1), 28-31. https://ea21journal.world/index.php/ea-v152-07/

Oksana Penkova
D.Sc. (Economics),
Associate Professor,
Uman National University of Horticulture
1 Instytutska Str., Uman, 20305, Cherkasy region, Ukraine
oxana.penkova@yandex.ua

Natalia Kotvytska
PhD (Economics),
Associate Professor of the Economic Theory Department,
Uman National University of Horticulture
1 Instytutska Str., Uman, 20305, Cherkasy region, Ukraine
nacot@i.ua

Alla Revutska
PhD (Economics),
Lecturer of the Economic Theory Department,
Uman National University of Horticulture
1 Instytutska Str., Uman, 20305, Cherkasy region, Ukraine
revutskaya.alla@mail.ru

Priorities of state support for grain production development in Ukraine

Abstract. The conditions and trends of grain production development in Ukraine determine a degree of food and ecological safety, employment and well-being of the population, as well as the opportunities for the country’s export potential increasing. The state regulation of the grain market and support provided to grain producers have a significant influence on quantitative and qualitative indicators of grain production in Ukraine. The priority areas, scope and problems of such support have been identified in the article.

The establishment of the privileged taxation regime to support agricultural producers has affected the grain producers’ financial performance most positively, whereas the system of price regulation has appeared to be the most ineffective in the grain market of Ukraine. Effects from financial and credit support, provision of subsidies and governmental grants for producing and purchasing of resources, specialized support of selected directions and programs have been devaluated because of the lack of information and opaque mechanisms of the potential support recipients selection, insystemacity of its realization and insufficiency of state financing. In the present conditions Ukraine should orient at the Common Agrarian Policy of the EU which is aimed at realization, first of all, the objective of rural areas constant development. Following that, the state support of the grain producers in Ukraine should gradually be redirected with the aim of increasing the competitiveness of grain producers taking into account the ecological requirements. The amount of state support should depend on the number of created workplaces, productivity and resource use.

Keywords: Grain Production; Grain Market; State Support for Grain Production; State Support Mechanisms and Tools; Common Agrarian Policy; Ecology; Agricultural Land

JEL Classification: L16; O13

References

1. Persson, K. (1999). Grain markets in Europe 1500-1900, Integration and Deregulation. Cambridge: Cambridge University Press.
2. Storey, G. (1996). Grain Prospects and Policies for the 21st Century. Canadian Journal of Agricultural Economics, 44(4), 385-395.
3. Boaitey, A. (2013). Grain market deregulation: a case study of the Canadian and Australian wheat boards. Journal of Public Affairs, 13(2), 282-287.
4. Shpykuliak. O., Voskobiynyk, Yu., Sabluk, R., & Ovsiannikov, O. (2008). Formation and development of grain market in Ukraine. Kyiv: NNC IAE (in Ukr.).
5. Holomsha, N. (2009). Competitiveness of grain at the agrimarket. Ekonomika APK (Economics of AIC), 12, 83-88 (in Ukr.).
6. Nikishina, O. (2012). Priorities of the national grain policy and mechanisms of their realization in conditions of economic globalization. Ekonomika charchovoi promyslovosti (Economics of Food Industry), 4(16), 14-22 (in Ukr.).
7. The State Statistics Service of Ukraine. Official website.
   Retrieved from http://www.ukrstat.gov.ua/ (in Ukr.)
8. About grain and grain market in Ukraine. Law of Ukraine.
   Retrieved from http://zakon4.rada.gov.ua/laws/show/37-15 (in Ukr.)
9. Concerning the mechanisms of state support for agrarian production in Ukraine. Analytical Note. Retrieved from http://www.niss.gov.ua/articles/910/ (in Ukr.)
10. Agrarian fund beyond the boundaries of state regulation.
    Retrieved from http://www.ac-rada.gov.ua/control/main/uk/publish/article/16735718 (in Ukr.)
11. Melnyk, T., & Holovachova, O. (2014). Grain export regulation in Ukraine. Visnyk Mariupolskoho derzhavnoho universytetu. Seriya: Ekonomika (Herald of Mariupol State University. Series: Economics), 7, 77-90 (in Ukr.).
12. Isayan, A. (2013). Special crediting of AIC enterprises: theory and practice. Visnyk universytetu bankivskoi spravy Natsionalnoho banku Ukrainy (Herald of Banking University of the National Bank of Ukraine), 1(16), 66-70 (in Ukr.).
13. Pavlenko, O. (2015). The new instrument of rural support.
    Retrieved from http://www.epravda.com.ua/columns/2015/04/9/537766/ (in Ukr.)
14. Popova, O. (2013). New priorities of the Common EU Policy for 2014-2020: strategic priorities for Ukraine’s agrosphere development. Ekonomika APK (Economics of AIC), 12, 89-96 (in Ukr.).

Received 17.05.2015