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Finance and Credit
 

Non-governmental sources of funding of extended reproduction in the agro-industrial complex

Vol. 20, Iss. 43, NOVEMBER 2014

Available online: 3 November 2014

Subject Heading: Small business crediting

JEL Classification: 

Pages: 38-53

Gorokhov A.A. Ural State Economic University, Yekaterinburg, Russian Federation
al-gorohov@yandex.ru

The article underlines that the agrarian sphere specifics cause the need of the State participation in financing of extended reproduction processes, what means that the noticeable part of capital investment in agriculture is directly, or indirectly, financed by the budget funds. However, non-governmental financial sources play a considerable role, because they reduce the State budget load, optimize the structure of investment and increase the total amount of capital investment in the sector. The non-governmental financial sources also function as information sources, because according to the structure of their use, it is possible to judge the most perspective (from the commercial point of view) agribusiness sectors that are under consideration when developing the State agrarian policy. Thus, the State and private investment in agribusiness should supplement each other, promoting an increase of overall effectiveness of the financial and economic mechanisms of extended reproduction in the sector. The paper emphasizes that the Russian economists pay their main attention to credits of commercial banks as the main non-governmental financial source of reproduction processes in agribusiness. Meanwhile, bank credits as a source of financing of extended reproduction in the Russian agriculture have a number of basic restrictions. The financial and economic mechanisms of extended reproduction of agribusiness have to use all possible non-State sources of financial resources. Using this way only, it is possible to achieve the maximum mobilization of means and to ensure the functioning of the extended reproduction mechanism. The paper considers the principal sources of financing of the national agribusiness and agrarian-and-industrial complex at the level of a certain region, i.e., the Tyumen region. The article analyzes the dynamics and structure of the used means. The author identifies the problems hampering the effective development of non-State sources of financing in agriculture, and also proposes a number of measures for their solution.

Keywords: agribusiness, reproduction, investment, credit, leasing

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