Some issues of financial support for agricultural formations

Abstract

Background and purpose. Currently, much attention is paid to issues of financial support for agricultural producers. This mainly concerns issues of subsidizing and lending, since, as noted by the President of the country K.-Zh. Tokayev in his annual Address to the people of Kazakhstan, “…The most important task is a gradual transition from direct subsidizing of the agro-industrial complex to ensuring affordable lending. All allocated funds must be used effectively. However, unreliable data, or in other words, falsifications, do not allow us to assess the real situation in agriculture” [1].

The purpose of the study is to study the effectiveness of using state financial support for agricultural producers from the point of view of assessing the activities of both credit unions providing lending and subsidizing services and recipients of loans - agricultural formations.

Materials and methods. When studying the state and efficiency of the objects, the methodology of comparative assessment of production and financial activities of agricultural formations financed by the CT and the credit partnership itself was used based on economic and statistical methods of comparison and dynamics, abstract logical methods and methods of analysis and generalization of the obtained results.

Results. The conducted analysis of the efficiency of using loans and subsidies allocated from the republican budget by rural producers showed their necessity in general. However, there is a low share of investments in fixed assets, indicating an insignificant share of long-term loans.

The efficiency of using one of the types of financial support - subsidies - by agricultural producers remains low in general, since its recipients do not always show progressive results of their activities. In addition, the issues of objectivity and transparency of providing subsidies to agricultural formations remain unresolved. Subsidies are often distributed unevenly, which leads to the concentration of financial resources in large agricultural holdings, while small farms remain on the sidelines. This aggravates inequality and reduces the competitiveness of small agricultural enterprises.

Conclusion. Budgetary subsidies and lending, as regulatory levers and instruments, should orient producers toward more efficient management, and they should be provided in a strictly differentiated manner. The mechanism of financial support for the agricultural sector should take into account that agricultural enterprises operate on the principles of self-financing and that specific measures of their support are nothing more than additional measures designed to ensure normal economic conditions for management.