Keywords: mechanisms of state regulation, agrarian policy, market economy, rural commodity producers, food chain, food markets, vertically integrated systems, agrarian co-operation, associations of rural producers.


The article states that in agricultural policy of countries with developed market economy one of the key tasks was and remains the support of rural commodity producers. It is carried out in a variety of ways, including: measures for direct support of agriculture through price, credit, tax and customs policies that contribute to the growth of income of peasants and provide them with extended reproduction in a market economy. It is determined that foreign trade policy forms objective conditions for the advantages of domestic products for consumers. At the same time, it should not restrict the ability to meet broad consumer demand.

It has been determined that in the agricultural policy of countries with developed market economy the support of rural commodity producers is carried out in various ways, including: measures of direct support of agriculture with the help of price, credit, tax and customs policies, which promote the increase of income of peasants and provide them with extended reproduction in conditions of market relations; regulation and coordination of inter-branch links aimed at achieving a balance in all parts of the food chain, removing "bottlenecks" and imbalance in the development and functioning of food markets and vertically integrated systems, the use of scientific and technological progress and advanced technologies; support of agrarian cooperation bodies, territorial and food unions and associations of rural producers, and other non-governmental organizations representing the interests of the peasantry at all levels of government, including the government; provision of employment in the agricultural sector and the corresponding level of living of the rural population.

It is proposed to include in the number of instruments payment of payments in kind for each agricultural output hectare of non-production products brought out of agricultural production combined combination of programs of insurance and lending with production quotations, fixed payments, depending on the previous dynamics of production in exchange for the conditions imposed on the restriction of production and compliance with environmental requirements, mandatory insurance and annual reports on their activities. Important role at this stage is played by measures of state regulation that impede the monopolization of market activity and promote equality between small and large market players.

The necessity of such actions in the conditions of overproduction is substantiated by world experience. The Single Agricultural Policy (EAP) in the EU member states is a vivid example of successful agricultural market regulation, consisting of three main elements: market policy; structural and rural development policies. Coherence in this "particularly sensitive" segment of the economy has become a factor in European economic integration. The European experience is especially interesting because it is regulated at the supranational level, is complex and flexible. There are two rules for state regulation of the EU agricultural sector: it is forbidden to sell imported goods at a price below the domestic market price, and for those who import products to the countries of the Commonwealth, it is necessary to make a difference in the budget of the EU (partly in the budget of the country that imports the products) between the marginal price and the price of the world market. This difference is called the payout for an agreement. The EU support policy that has been carried out has greatly stimulated the export of agricultural products and contributed to the transformation of the EU from a net importer to a net exporter for a number of commodity positions. We have indicated that the most important advantage of the EU, in comparison with Ukraine, is the existence of a non-liberal-tariff system for regulating the external market, and a system of compensatory payments and payments. This enables exporters from the European Union to automatically enter the Russian market, at least with the same prices that exist in Ukraine, regardless of the cost to the EU.


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How to Cite
Cherkaska, V. (2019). MECHANISMS OF STATE REGULATION OF PROTECTION OF INTERNAL MARKETS OF THE AGRARIAN SECTOR. Public Administration and Regional Development, 1(3), 178-191.