FEATURES OF STATE REGULATION OF AGRICULTURAL BUSINESS

Abstract

The purpose of the work. Develop theoretical and practical approaches in accordance with the peculiarities of state regulation of agrarian business. Methodology. To substantiate the theoretical provisions and practical results of the study, methodological principles were followed: scientificity, complexity, systematicity, reliability, efficiency, objectivity, effectiveness, continuity. The following methods of scientific research were used: analysis and synthesis, monographic, deduction and induction. The information base of the study was the materials of the State Statistics Service of Ukraine, the Ministry of Agrarian Policy and Food of Ukraine, legislative and regulatory acts, developments of research institutions, publications of individual authors on this topic, and personal observations of the author. Scientific novelty. Taking into account modern trends in economic development and functioning of agrarian business, the main problems to be solved by public administration bodies are defined: the impact of low competitiveness of agrarian business; overcoming the price disparity in commodity exchange between agriculture and other branches of the national economy; reduction of the monopoly of processing enterprises and trade networks; insufficiency of the income level of agrarian business for the modernization of agrarian production; low level of digitization of agricultural business; outflow of the able-bodied population from rural areas; lack of management skills in management of agrarian business, including lack of knowledge and experience in the chosen type of activity; lack of entrepreneurial skills; insufficient start-up capital for opening and running an agrarian business. Conclusions. Despite the multiplicity of efforts, the environment for state regulation of agribusiness development remains unfavorable: due to the risk of facing pressure from unscrupulous representatives of law enforcement agencies; the risk of raider attacks; monopolization of agricultural production by large companies and squeezing of small agribusiness from the agrarian sector of the economy; short planning horizon; a high level of tax burden (labor costs are in a double burden mode). The development by public management bodies of mechanisms for supporting small forms of business is an integral stage in the improvement of state policy. Taking into account the fact that the further development of agrarian business will take place in the conditions of digital transformation, which enables agricultural producers to increase labor productivity, optimize costs, and strengthen competitiveness through the use of innovative technologies; there will be an opportunity to open new sales markets with the help of online sites.