Importance Currently, in view of Russia's accession to the WTO, the issues of the State's agricultural support, the volume of which is not sufficient for expanded reproduction, has assumed particular relevance. Historically, worldwide, subsidies are the most common form of agriculture support. Russia is not using taxes adequately as an economic lever to stimulate the industry, despite widespread use of taxes in the EU, the USA and other countries. Objectives The article aims to determine the rationality of applying various methods of the State support for the Russian agribusiness, i.e. tax incentives and government subsidies. In accordance with the aim, I define the following objectives: to analyze agricultural producers' taxation, to identify the main advantages and disadvantages of tax incentives and government subsidies for agribusiness, and based on it to draw conclusions. Methods In this paper, by means of comparative and analytical methods, I have specified the aspects of the State support for the Russian agribusiness, and also identified the cases, which will bring the maximum effect of different support methods. Results The paper shows the advantages and disadvantages of tax exemptions and government subsidies as leverages of economic impact on agribusiness. I have determined that achieving of the maximum positive effect requires their rational combination. Conclusions and Relevance I conclude that there is no universal "engine" for the agrarian sector in the world. Since, there is a need for the rational combination of incentives and subsidies: providing of the direct State support in the form of subsidies is the most efficient for those agricultural producers, which have not achieved acceptable output results. Providing of tax incentives will be the most rational feature for producers with the stable financial position.
Keywords: agribusiness, WTO rules, agricultural commodity producer, State support, tax benefit, government subsidy
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