Financial provision for innovative development of agricultural enterprises

Abstract

Today, agriculture takes one of the first places to ensure the development of the country's processing industries, and is a source of raw materials and a partner in the integration and market functioning, and is also an important strategic and economic basis for solving the food problem and raising the regional agricultural production to new economic stages. Market transformational changes taking place in the agrarian sector of the Ukrainian economy require the direction of significant investment resources. In modern conditions, the investment climate in the agrarian sector is not sufficiently favorable and opportunities for attraction of investment resources, especially long-term ones, are substantially limited. Taking into account the above, one of the main directions of state policy is to create a favorable investment climate in the agricultural sector, the introduction of new mechanisms that eliminate the problems of financial provision of innovative development of agricultural enterprises.

Significance of credit cooperation as a component of the financial mechanism of innovation development of the agrarian sector of the economy and development of rural areas ofUkraineis determined by the traditional importance. In the long-term plans of the government, the program provides reimbursement to cooperatives 70% of the cost for the purchase of equipment under the program of support of farming and cooperation (1 billion USD). In addition, farmers will have additional benefits in state support (compensation of 40% of the cost of equipment and 80% of the cost of seeds of Ukrainian breeding)

Also in this program is a reduction in the cost of credit funds to the European level - 1-2% and the reimbursement of 90% of the cost of advisory services. In fact, credit cooperatives play a key role in the financial provision of small producers, including the purchase of new technical means, fertilizers, the implementation of otherexpenses that can be treated as costs associated with innovation.

One of the most dynamic ways of attracting funding for today was agrarian forward. In 2017, the leading companies which buy grain based on the форвард - PJSC "Agrarian Fund" and PSPKKU, it was financed the agrarians in the amount of over 2 billion UAH. The success of the forwards can be explained by the reasons for the producers of agrarian products. Forward contract allows you to plan, insure manufacturers, give confidence and allow you to have a planning horizon.

P2P lending is a way of borrowing funds between persons which are not related to one another without the involvement of a financial intermediary (a bank, a credit union, etc.). Usually, loans are provided through online intermediary platforms that charge a loan commission and a tool for verifying the creditworthiness of an entity.

Using of Crowdfunding as a modern tool for financing small and medium business. Crowdfunding is a new, alternative source of funding. It refers to open calls to the public, usually in the Internet, to fund a project through donations, cash payments in return for remuneration, pre-ordering goods, granting loans or investing.

Modern economic conditions dictate the need to introduce new, effective financial instruments into the agrarian sector ofUkraine, which in the long-term will provide innovative development. In order to achieve certain results, the country needs a new strategy for raising capital for innovation, which will use new financial instruments that will increase the motivation of the population to invest their own savings in the country's economy.

USAID helpsUkraineregain its status as a breadbasket of our planet and intensify those driving forces that must be the key to economic growth in a broad public base. The main areas of this assistance include the formation of a sustainable, market-oriented strategic environment, the development of financial support mechanisms for the agrarian sector, and the development of more efficient market infrastructure for the needs of small and medium-sized producers. The Agency promotes the implementation of effective state policy in the field of agriculture, obtaining of Ukrainian enterprises access to international markets, as well as the introduction of funding mechanisms for the needs of small and medium-sized agricultural producers.

Also, at the Ukrainian market there are so many new tools – letters of credit, guarantees and factoring. Further research will focus on substantiating of the national system of financial support for innovation development, taking into account the experience ofc ountries, developing a mechanism offinancial support for innovation development, based on the use of additional tools for financing the introduction of innovation in production.

Thus, the publication deals with the problems of financial provision of innovative development of agricultural enterprises. Sources of formation of financial resources, reasons of unsatisfactory level of investment climate in agrarian sphere are revealed. It is determined that the use of effective financial instruments will provide innovative development of agricultural enterprises.  The development of credit cooperation as an integral part of the financial mechanism of innovative development of the agrarian sector of the economy was underlined.  The significanceofforwardcontracts, P2P lending as the most dynamic ways of attracting financing and development of rural are as of Ukraine, as well as crowd funding for the financing of innovative projects is grounded.

Keywords: financial security, investing, lending, lending, financial instruments, agriculture