State Financial Support of Agriculture in Ukraine

In recent years, Ukraine has allocated considerable financial resources for agricultural support according to their demands on the budget. However, the increase of domestic support has not substantially influenced the effectiveness indices of agricultural yields. This demonstrates the imperfect nature of the internal support mechanisms for Ukrainian agriculture. As a result, domestic support has not become an effective stimulus for increases in production quality or stock/breeding production. In 2013, Ukraine gathered its biggest grain harvest. This increase in production did not, however, improve the financial results for agriculture and did not produce stable and dynamic branch development due to the negative influence of the global financial crisis. An unbalanced supply and demand of agricultural production, low buying ability of inhabitants, and the lack of an effective mechanism of domestic support caused several problems with price in the domestic food market.