Importance Agriculture is the main producer of vital agricultural food, playing an exceptional role in ensuring the food supply security of the nation. As agriculture has the specific nature, market mechanisms cannot be implemented in agriculture likewise in other economic sectors. Considering a special status of agriculture and a disparity in prices, it cannot compete with other sectors equally. Low profitability of agriculture, dependence on natural factors, seasonal and cyclic operations cause the sector's technological lag. The agricultural sector adapts to rapidly changing economic and technological conditions more slowly than other sectors. Objectives The article aims to demonstrate that active State financial aid can make agriculture an effective sector. The State agricultural policy should pursue creating conditions for sustainable development of rural areas, growth rates of agricultural production through an increase in its competitiveness as its priority objective. Methods The research employs economic methods of analysis, i.e. a vertical comparative analysis, grouping, balance and graphical methods. Results I evaluate the current State finance of agriculture in Russia and substantiate the main aspects of improving the mechanism for providing the State aid to the sector. The article analyzes expenditures of the consolidated budget of the Russian Federation for agriculture. It also reviews the State support to insurance of risks in agriculture, lending format as part of support to agricultural producers. Conclusions and Relevance I conclude that the globalization of socio-economic processes obstructs the efficiency and competitiveness of the domestic agricultural production unless the State provides more aid and support to the agricultural sector. To make Russia independent in terms of food security, it is necessary to double the State aid to agriculture. Concurrently with increasing the State finance of agriculture, the State should modify the organizational and economic mechanism for supporting the sector. If the State aid mechanism is improved and enhanced and the sector has optimal parameters, it will contribute to growing profitability of agricultural production, extended reproduction and higher food supply security of the country.
Keywords: agriculture, State financial support, subsidies, lending, insurance
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