Government Support Impact on Agriculture Development

Government Support Impact on Agriculture Development Agriculture is one of the most important sectors of the national economy, because it satisfies the population needs in food and raw materials for various industries. It takes a central role in the economy of any country, regardless of whether it has a comparative or absolute advantage, or not. A state support plays a key role in the economic development of agriculture. The purpose of the study is to determine the direction of increasing the effectiveness of agricultural policies. In the research are analyzed positive and negative changes in the policy of food security, interrelations of basic last 15 years’ statistics with sales volume in livestock and crop production. It is also offered possible options of public policy improvement. The paper is based on the regression analysis, which confirmed / disproved influence of various factors on agriproduct’s output. As a result, it has been clearly shown that the policy directed to subsidizing of the agro-industrial enterprises is more effective decision from the state, rather than the strategy which is directed to increasing in quantity of the agro-industrial equipment, manure, etc. Programs of the state support of branch have to have more system character and affect not only production of food, but also system of merchandising, and (in some cases) consumption subsidizing. Besides, it is necessary to pay attention to development of all forms of managing (and not just the large enterprises), and also to take care of the share of the enterprises controlled by domestic owners. The growth of domestic agricultural industry is limited to uncertainty of branch support state programs, and also decrease in purchasing power of the population.