INSTITUTIONAL SUPPORT AND STATE ASSISTANCE FOR THE TECHNICAL AND TECHNOLOGICAL DEVELOPMENT OF AGRICULTURE

INSTITUTIONAL SUPPORT AND STATE ASSISTANCE FOR THE TECHNICAL AND TECHNOLOGICAL DEVELOPMENT OF AGRICULTURE

Oksana Vyshnevetska, candidate of economic sciences, senior research fellow, leading research fellow of the department of investment, material and technical ensuring, National Scientific Centre «Institute of Agrarian Economics», orcid.org/0000-0003-0978-2603

Abstract. The article examines the institutional framework and mechanisms of state support for the technical and technological development of agriculture in Ukraine. The relevance of the topic is determined by the crucial role of the agrarian sector in ensuring food security, economic stability, and rural development. However, insufficient state support, outdated financial instruments, and price disparity hinder the renewal of the material and technical base, thereby limiting the competitiveness of agricultural production.

The purpose of the study is to analyze the current state and effectiveness of state programs and financial instruments aimed at supporting farmers, as well as to develop recommendations for improving the institutional foundations of technical and technological modernization of agriculture. The objectives of the article include identifying problems in the state regulation system, evaluating the efficiency of existing funding programs (leasing, machinery cost compensation, preferential loans), and comparing Ukrainian and European experiences.

The methodological basis of the research is a combination of systemic and comparative analysis, economic and statistical methods, as well as the study of legal acts and official statistical data.

The results show that the existing system of state support in Ukraine is characterized by instability, untimely financing, and a low share of public investment in the modernization of agricultural production. The study found that the machinery cost compensation program contributed to an increase in domestic equipment purchases and supported agricultural engineering, though it failed to stimulate innovation. The analysis of the “Affordable Loans 5–7–9%” program highlighted its significant role in expanding farmers’ access to financial resources under crisis conditions. The novelty of the research lies in the comprehensive evaluation of different forms of state support and the formulation of proposals to improve their effectiveness.

The practical significance of the findings is in their potential use for enhancing state agricultural policy. Implementation of the proposed measures – strengthening protectionist policies for domestic machinery, developing leasing mechanisms, supporting innovations, and establishing joint ventures with global leaders—will contribute to the modernization of Ukraine’s agrarian sector, strengthen its competitiveness, and ensure sustainable rural development.

Keywords: state support, lending, agricultural machinery, leasing, compensation, agricultural sector, state programmes