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Ensuring the reproduction of the material and technical basis of agriculture

Cherevko H.

ECONTECHMOD : An International Quarterly Journal on Economics of Technology and Modelling Processes

2017

Vol. 6, No 3

17--23

In this article the results of the generalization of the essence of the process of reproduction of material and technical base and material and technical resources in agriculture, assessment of their condition and use, studying the level of organization of the system for providing these resources of agricultural producers, and substantiating ways to improve it, are highlighted. In agriculture ensuring of the overall reproduction process depends crucially on ensuring the effective implementation of a qualitative reproduction of its material and technical base. At present, the level of agricultural supply of Ukraine by material and technical resources, their structure and level of efficiency of use and the system of their reproduction leave much to be desired. The main factors of unsatisfactory state of the material and technical base of agriculture and its reproduction in Ukraine are: low investment attractiveness of agricultural enterprises; the absence of a state technical policy and a well-established system of material and technical support in the country; lack of financing of scientific research in the field of production of machinery and equipment and their use in agriculture; low-quality storage of agricultural machinery; lack of training system for working on complex agricultural machinery and its maintenance; difficult financial and economic situation of domestic factories producing agricultural machinery and its low quality. The main directions of solving the problem of expanded reproduction of the material and technical base of agricultural enterprises are the objective regulation of the parity of prices for agricultural and industrial products, the change of depreciation policy in order to increase its importance for accelerating the modernization of technical and technological processes, reforming the domestic agricultural sector of the economy, state assistance development of domestic agricultural machine-building and tractor construction in cooperation with foreign enterprises, creation of a system of repair and maintenance services and the proper infrastructure of the market of agricultural machinery and training system for working with agricultural machinery. A real step in this direction could be the decision to implement budget allocations for the technical reequipment of Ukrainian agricultural producers and the development of infrastructure of the agricultural machinery market at the rate of at least one percent of the amount of the expenditure part of the state budget. It is also worth raising of funds for research in the field of development and improvement of agricultural machinery, equipment and tractors in order to increase their competitiveness.