State Support For The Innovative Development Of Agricultural Production In The Region

Abstract

This article considers the relevance, necessity and main directions of state support for innovative development of regional agricultural production, identifies the drivers of innovative development of agriculture, specifies the level of innovative activity, gives the characteristics of the result of innovative activity. It revealed the most important problem preventing agricultural producers from accumulating the money needed to innovate and invest in fixed capital. The problem is unstable interest rates affected by crisis phenomena: the foreign policy environment, the imposition of economic sanctions, inflation and currency volatility, epidemiological restrictions, etc. The authors analysed the actual structure of financing sources for innovations in agriculture in the Tambov region, which showed a stronger role for the federal budget. The main role is not that banks support innovation by granting loans, but that the state supports it by allocating funds from budgets at different levels. They considered the problem of state regulation of agriculture related to the seasonality of farming, as small and medium-sized enterprises are unable to generate sufficient profits to cover the cost of growing next year's crops. This confirms the urgent need to improve the areas of state support for business. To conclude, the state is interested in increasing budget allocations for the innovative development of agricultural production.