On Legal Regulation of Lending to Agricultural Producers on the Security of Agricultural Production

Abstract

Problem setting. The article refers to the issue of legal regulation of lending to agricultural producers on the security of agricultural products. Special attention is paid to the problems of the implementation of the existing regulations, and to the lack of the possibility of the practical securing by the state of lending on the security of various types of agricultural products. Also the author explored the legislative provisions that are directly related to the mechanism of lending to agricultural producers on the security of agricultural products by private institutions and the state. Analysis of resent researches and publications. The following scientists were engaged in researches of the specified question: O. A. Kirichenko, A. G. Shvets, V. M. Grechanji, V. F. Zharenko and others. Article’s main body. The investments in the agricultural field are necessary sources for the existence of agricultural producers. Because business activity need additional circulating assets caused by seasonal nature of agricultural products manufacturing. This necessity in additional circulating assets could be cover by fund raising. Unfortunately, agricultural enterprises providing by circulating assets in lower limit, that does not always cover the financing charges in the current year. The deficit covered by the state budget and the private financing. Therefore lending to agricultural producers should be considered as a way of getting investment. Conclusions and prospects for the development. Ukrainian legislation on the lending to agricultural producers on the security of agricultural production is not perfect. Certain provisions of laws of Ukraine require itemization and development according to the needs of the current agricultural market. The prospects of the development of matter under inquire are: creating the Agricultural Credit Corporation, improving the insurance market, lending to the agricultural enterprises with poor financial condition under the state guaranties.