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Financial Analytics: Science and Experience
 

Improving the financial mechanism for state aid to animal husbandry

Vol. 9, Iss. 1, JANUARY 2016

Received: 2 December 2015

Accepted: 14 December 2015

Available online: 17 January 2016

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: G18, G21, J43, Q14, Q18

Pages: 47-60

Shakhnazaryan G.E. Financial Research Institute, Moscow, Russian Federation
Goarsh@mail.ru

Importance. The article overviews reasons why the State agricultural policy demonstrates low efficiency, and emphasizes the need to apply comprehensive approaches, optimize areas of support and provide resources for credit cooperation in rural areas.
     Objectives. Having analyzed the supply of beef and milk products for the population, the research determines to what extent the State agricultural development program is implemented, identifies the existing challenges and formulates recommendations for overcoming them.
     Methods. The research applies comprehensive and systems approaches, and methods of comparative analysis, synthesis, induction and deduction, logic, historical and statistical methods.
     Results. It is necessary to enhance the State aid to agriculture by strengthening the credit cooperation, and segregating duties and power of authority levels.
     Conclusions and Relevance. Russia insufficiently supports beef and cattle breeding. It is necessary to strengthen a comprehensive approach to addressing issues of implementing the agriculture development program and doctrine of food security. I propose the credit cooperation mechanism, which proved efficient worldwide. To consolidate resources of the existing and future credit cooperatives, the existing structure should be complemented with a cooperative bank.

Keywords: animal husbandry, credit cooperation, effectiveness, agricultural policy, financial mechanism

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