ECONOMIC DEVELOPMENT TRENDS OF UKRAINE'S AGRARIAN ECONOMY UNDER EUROPEAN INTEGRATION PROCESSES

Abstract

The state and tendencies of development of production potential of agrarian sector are analyzed, influence of budgetary and monetary regulators on the sustainable development of agrarian sector is investigated, the effectiveness of certain financial regulation instruments is evaluated. Some of the main problems of agricultural sector development are highlighted. Traditional sources of financial resources of agricultural enterprises, including equity, bank lending and investments, and alternative ones, including leasing, have been identified. Directions for rapid and effective development of the agricultural sector of Ukraine are outlined. A topical scientific problem is solved, which is to summarize the theoretical, methodological and practical foundations of financial development of the agricultural sector of the economy and to put forward proposals to stimulate the financial development of the agricultural sector of the economy of Ukraine in the context of European integration processes. It is determined that the producers, having received the increased profit, will be able to invest it in the further development of the agrarian sector of the economy of Ukraine. It was found that state support for smallholder farms should be stepped up, which would be the key to positive changes in rural areas. It is proved that farms are limited in financial resources. It is determined that according to the current legislation, local governments have the right to decide on compensation of interest on loans for business purposes from local budget funds. It is established that in order to stimulate the financial development of the agricultural sector of the economy in the context of European integration processes, the experience of European agriculture should be taken into account. On the basis of the identified problems, further prospects for improving the financial regulation of the agricultural sector of the economy are outlined, the peculiarities of the implementation of financial regulation of the agricultural sector in the developed market economies are investigated, and proposals for the activation of the mechanism of financial regulation of the agricultural sector in the context of Ukraine's integration are substantiated.