Features and problems of lending to agricultural enterprises

Abstract

The agro-industrial complex (AIC) is considered a high-risk area, since the activities of agricultural producers are influenced by natural and climatic conditions, the seasonal nature of revenue from sales of products. Features of the reproduction process in the agro-industrial complex affect the sources of financing the production activities of agricultural enterprises, among which bank loans play a significant role. The article discusses the features of credit risk management of JSC “Russian Agricultural Bank”, reveals the features of Bank lending in this area. Lending plays an important role in the development of agriculture. For agribusiness enterprises, it is the main source of updating production and working capital. Loans are provided for the purpose of improving production assets, increasing capacity, and other aspects. Therefore, risk management is becoming increasingly important and is becoming one of the most important conditions for ensuring the economic security of credit institutions. Implementing targeted and consistent risk management requires significant organizational effort, time, and other resources. An effective risk management system, in particular credit risk, is one of the necessary conditions for the sustainable development of JSC “Russian Agricultural Bank”.

Sustainable development strategy of the dairy agro-industrial complex through the use of waste-free technologies

“…In 2001, the form of ownership changed, and the company was transformed into a closed joint stock company. In 2003, LLC "Yemelyanovo" was established [7][8][9].…”

Prospects for the use of artificial intelligence in the agricultural sector

“…Research in the field of artificial intelligence and its real implementation in business show how companies using new artificial intelligence capabilities can achieve technological achievements and achieve tangible results in their industries and gain competitive advantages. Artificial intelligence has not only significantly improved many technological and social processes and made them more efficient, but also changed the price of labor, significantly reorganized the management process and introduced new qualification requirements, changing the nature of human-machine interaction [9][10][11][12].…”

Modern Problems of Bank Lending of Enterprises of the Agricultural Complex of Ukraine

“…Thus, in 2020 the efficiency of credit provision of the agricultural sector was UAH 11.64, which is UAH 0.4 more than in 2015. At the same time, the analysis of the organization of crediting of an agro-industrial complex in Ukraine allowed to reveal the following problems peculiar to it [9][10][11][12]:…”

“…Issues of formation and development of the credit system in the agro-industrial complex are considered in the economic theory and practice of Ukraine and developed countries in connection with its special importance in the development of infrastructure of modern credit relations, forms and methods of lending. General problems of financial and credit support of agro-industrial enterprises, theory and practice of lending are reflected in the works of such scientists as Meyers et al [1], Bazaluk et al [2], Boichenko et al [3], Rdzanek [4], Foltýn et al [5], Zhuravl va [6], Luzan [7], Yatsenko et al [8], Betubiza and Leatham [9], Ruete [10], Rozhkova [11], Nitsenko et al [12], Ushkarenko and Soloviov [13], Artemenko [14], Nakonechn [15] and others. Despite significant elaboration of the outlined problem, need to deepen and develop the issue of improving lending to the agro-industrial complex, assessing the impact of lending on the features and conditions of reproduction in the agro-industrial complex.…”