OPPORTUNITIES FOR ADAPTATION OF FOREIGN EXPERIENCE ABOUT IMPROVEMENT OF THE FINANCIAL MECHANISM OF FUNCTIONING OF AGRARIAN ENTERPRISES

Abstract

The article summarizes and systematizes the experience of the leading countries of the world in the formation and strengthening of the financial mechanism of agricultural enterprises. The purpose of this article is to determine the main components of the formation of the financial mechanism of agricultural enterprises in the leading countries of the world and the possibility of its adaptation to the domestic realities of the agricultural sector of the economy. It is determined that the financial mechanism is influenced by the world financial processes and globalization, so it is advisable to adapt the leading experience of foreign countries. International experience shows that the reform of the financial mechanism of agricultural enterprises is mainly due to the strengthening of direct and indirect levers of state influence. State influence is exercised by regulating prices for agricultural products and farm incomes, budget financing for agrarians, providing affordable credit, transparent and clear taxation, regulating agricultural exports and imports, stabilizing agricultural markets, regulating land relations, assisting farms adverse climatic conditions, support for scientific and technological progress, social support for farmers, etc. The success of agriculture in leading countries in Western Europe, the US, Canada, China, and Japan is bound to limit the effects of market-based self-regulation mechanisms using external leverage. This is government support for agriculture through subsidies, prices, quotas, credit and tax policies, etc. It is proved that the experience of agricultural development in the EU country also speaks about the important role of the state and state support in this process. State regulation of agricultural policy was laid down in the articles of the Treaty of Rome. It is in this document that the foundations of the Common Agricultural Policy (CAP) of the EU countries have been identified. It has been established that the effectiveness of the financial mechanism of agricultural entities can be affected by government intervention in terms of supporting agriculture through subsidies, price regulation, the application of quotas, credit and tax policies, and the like. Typical and effective instruments of the influence of foreign countries on the financial mechanism are identified, which would be advisable to adapt and apply in the practice of functioning of agricultural enterprises.