The Importance of State Support and Regulation in the Agro-Industrial Complex

Abstract

The main tasks of state support and regulation of the agro-industrial complex are to maintain the level of profitability necessary for expanded reproduction, ensuring food security and social development of rural areas. The profitability of the main types of agricultural products that has developed in recent years has been more satisfactory to agricultural producers. This was achieved through the implementation of the State Program “Development of agriculture and regulation of agricultural products, raw materials and food markets for 2008-2020”. Agreements on agriculture and on subsidies and compensatory measures ratified in August 2012 changed not only the principles and mechanisms, but also the amount of state support. At the same time, in the scientific literature, the categories “State support” and “State regulation” are very often used as synonyms. The study contains excerpts from legal acts, opinions of the authors, as well as an analysis of these economic categories. The study revealed that these economic categories differ in theory and practice. Their differences are due to: the tools and mechanisms of their implementation; sources of financing; the target orientation of funds; the ratio to the sources of capital financing; target indicators, performance indicators.