Financing the Development of Agricultural Production in European Countries: Comparative Analysis and Experience for Ukraine

Abstract

Current trends in the development of agricultural production necessitate the attraction of additional financial resources to finance the agricultural sector, which are specific to each national economy. The article examines the priority directions of development of the mechanism for financing agricultural production in Ukraine in the context of current trends in the implementation of the common agricultural policy in Europe. A comparative analysis of the mechanism of additional financing of agricultural production in the EU countries was carried out in the implementation of the common agricultural policy. Clustering of European countries was carried out while taking into account the existence of patterns in the agricultural market and it was confirmed that these patterns do not determine the features and volumes of additional financing of agricultural production. The existence of twelve possible types of markets of agricultural products in European countries is determined and the existence in practice of six of them is confirmed. It is determined that there are significant violations in the policy of convergence of financing of the agricultural sector declared by the OAP, which confirms the need to reform the Common Agricultural Policy of European countries in the direction of greater compliance with the national problems of the European agricultural sector.It has been determined that there is a specific list of development problems that is not repeated for any of the European countries for the agricultural sector of Ukraine, and its own type of agricultural market has been formed, which also has no correspondence. The article focuses on the need to form in Ukraine a specific mechanism of additional financing of agricultural production, taking into account the problems of development of the national agricultural sector and in the context of the Common Agrarian Policy of the Economic Community, its priorities and direction of reform.