Indicators of state financial support for capital reproduction in the agricultural economic sector: The european union and russia

Abstract

Financial support of the agricultural sector of the economy in the current context is the leading function of state regulation since it is strategically important for national security. The effectiveness of state financing of the agricultural sector of the economy involves ensuring the positive dynamics of its development and establishing appropriate estimate indicators. In this regard, the cost and streams of state financial support for the agricultural sector of the economy should be as effective as possible. The purpose of the article is to substantiate the priorities of state financial support for the capital reproduction in the agricultural sector of the Russian economy based on a comparison with the European Union. The article clarifies the essence of various approaches and mechanisms, as well as indicators of state support for the agricultural sector of the economy of the EU and Russia, indicators of agricultural production volumes supported by the state, as well as nominal protection coefficients (NPC). The authors conclude that the financial policy of capital reproduction in the agricultural sector of the Russian economy is aimed at ensuring its long-term sustainable expanded intensive innovation-based reproduction. At the same time, the key to its implementation is a clear identification of the mission of financial policy, strategic and tactical tasks, ensuring their feedback and adaptation to changes in the internal and external environment of the agricultural sector of the economy, as well as considering the risks of capital reproduction. At that, the basis for supporting producers in the EU is the financing of capital investments of farmers, while the basis for supporting producers in Russia is providing support based on commodity products.