Ways of perfection the mechanism of state support of agricultural organizations in the Republic of Kazakhstan

Kantureev Mansour Tasybaevich, assistant professor of economic sciences

Zhetysu State University named after Ilyas Zhansugurov

Faculty of Finance and Economics

Master of 1 course

ShaydekirimovGalim

The necessityfor state regulation and support in the sustainable development of agriculture in our country today is higher than in developed countries. Objective and subjective characteristics of agricultural production put domestic producers in the worst conditions in the market of agricultural products as compared with agricultural producers in developed countries and do not provide a competitiveness of production.

In recent years the extent of the backlog of domestic agricultural production in the degree of development of scientific and technological progress has multiplied. The older technologies are used in the most agricultural organizations, many of themhave moved to the widespread using of low productive of manual labor.

A large part of agricultural income is lost by reason ofthe prices of means of production for the village and agricultural products. As a result, the sources of funds for simple and expanded production substantially are limited or absent.

The level of development of infrastructure in rural areas is very low. A large part of the rural areas of the country is characterized by the lack of roads, water supply problems of human settlements, a small degree of security of gas supply and communication systems.

For a long time the agricultural production in Kazakhstan has been maintainedin many wayson account of intensive exploitation of agricultural workers and the rural population with low wages and its untimely payments. The result was the aggravation of demographic problem, the outflow of the more employable and qualified work force, the degradation of rural areas.Hence the extremely low availability of agricultural production personnel, especially qualified, which is a significant obstacle in the implementation of matters not only of scientific and technological progress, but also the development of the industry as such.Objective specific features ofagricultural production are explanationof most countries’ attention in the agrarian sector of the economy.That’s why worldwide, one of the most regulated sectors of the economy is agriculture.

The main purpose of state regulation of agricultural production - the formation of effective and sustainable agro-industrialproduction, providing food security of the country, the saturation of the domestic market that accessible to all segments of the population by rations and alignment of incomes and social development of population of individual regions, towns and villages [1 ].

Legislative and methodical provision of the state support of agriculture in the Republic of Kazakhstan is mainly directed on the basis differentiationof its size proceeding from different principles, that does not answer fully by thecurrent economic conditions.In practice, the implementation of the calculations on the distribution of the allocated funds is associated with considerable difficulties for the summary and grouping of the original data.A large part of the initial information is exposed by the risk of distortion on the primary level of management and at a higher. In conditions of underdevelopment information network of agricultural and low-skilled operators, the use of complex calculations will cause significant delays in providing timely information and problems with the accuracy of the results.

 As shown in the article , in contrast to our country , the mechanisms of regulation of agriculture in foreign countries are constantly changing depending on the level of food production and the size of farmers' income .The distinctive feature of the modern period of development of agriculture of developed countries became long-term guarantees of payments , their binding to the quantity and quality of used agricultural land .
 Results of the analysis of public administration agribusiness abroad show that in countries with developed economies regulation of agricultural production is carried out through the mechanism involving levers and incentives with suitable legislative and regulatory provision [ 2 ] .
 State support of measures must supposethe creation of a predictable conditionsof activities for subjectsof managementin the agrariansector so that they can clearly represent: on what government support, in what areas and to what extent they will be able to count not only this year but also in the foreseeable future.The government should identify mechanisms, the direction and content of the support, to ensure the stability of their performance.
 In 2013,thelong-term program "Agribusiness 2020" was first developed and has been implemented.The program provides the increaseof the state support’s amount of agribusiness 4.5 times, allowing the industry to attract about 70.0 billion US dollars of private funds.Already in 2015 the amount of subsidies for the development of the sector amounted to almost 1.0 billion Dollars. United States (176.8 billion. Tenge), which is 2 times more than in 2013 (88.7 billion.Tenge).

Along with the existing subsidy resources and activities in crop and livestock production the program contains a number of new instruments of support industries such as financial restructuring, reduction of interest rates on loans and leasing, subsidizing the cost of guarantees and insurance of loans.Among the new areas –investmentsubsidization, through which businessmen can recoup some of their costs for investments in agriculture.Since 2014 the subsidization for the costs of processing enterprises to purchase raw materials has been provided.The list of subsidized agricultural products includes the most import-dependent position of sugar, milk powder, butter, cheese.In 2014 comparing with 2013, the volume of production the butter has been increased for 11.6% and milk powder 24.4%. It is planned to increase sown area of sugar beet and its production in 2015 comparing with lastyearsmore than 10 times.These measures will have a significant effect on improving access to agricultural finance and will allow to improve the competitiveness of domestic agricultural producers and processors of agricultural products [3].

The main problem of state support for the agricultural sector in recent years is the absence of the approved strategyof development of the agricultural sector by the Government of Kazakhstan.The main directions of agricultural policy that acceptedearlier were not long-term. Short-term policy response to the tactical needs in the agricultural sector is still held, without regard for the long term.For each current year resolutions of the Government of the Republic of Kazakhstan and orders of Ministry of Agriculture are accepted, which determine the procedure for granting of subsidizations, conditions of insurance with state support and other measures.Adoption of a national project "Agribusiness 2020" is also intended only for five years.Based on the main strategic directions at the present stage in the first place, it is necessary to unite the disparate support measures to target programs to support livestock production, crop production and acquisition of technology in the medium term.Differentiation of programs should be made on the basis of their relationship to the production process.For the full implementation of program-oriented nature of the support for the agricultural sector, first of all, the legislative consolidation of the volume of funding programs to reflect them in the budget expenditures are needed.It is advisable to keep the achieved volumes of state support for agriculture at all levels of government with division of financial powers to them.Detailed consideration of the accepted resolutions allows to note gapsof regulatory framework, in connection with which some types of subsidizations carry declarative character and mechanism of the distribution of such compensation from the federal budget is not defined.For the majority of producers who really need support from the state, its measures are not available because of their financial situation.

That’s enough complex and cumbersome that mechanism for providing various kinds of subsidizations.It remains extremely low level of compensation for the costs of crop and livestock with the help of the budget, and therefore does not significantly affect the performance of agricultural producers.Thus, the agricultural organizations of the republic need approach competently to issuesof the use of subsidized loans, as amount of principal and interest a large part of the organization must be paid by their own expense for the entire loan period.Violation of conditions of the credit agreement automatically leads to exclusion from the program of state support, and the obligation to repay all amounts are daily increasing the value of fines and penalties.

Specificity of agriculture industry is related to the dependence on climatic conditions, season, and time-consuming process of production, strongly influenced by biological, chemical and physical factors; inextricably use of land as the main means of production; of the products on their own goals and other features that require significant initial and permanent current of expenses.Therefore, taking into account the average size of the fixed costs of the agriculture organization at implementation of measures of state support is offered in the article.

Objective specifics features of agricultural production generate to the need for constant intervention and support from the state.The country that ignores the development of their own agriculture enters the opportunistic dependence on other countries. Under the statesupport it should be understood that budget financing ofsubjects of agricultural sector in order to offset part of their costs because of the unpredictable nature of agricultural production.State participation in agricultural matters is mandatory conditions of effective functioning of the economy and social stability of society.

Literature:

1. Moldashev A.B. The mechanism of subsidizations of agribusiness in 2010-2012 and non-financial methods of stimulating its development, and others. (recommendations) / A.B.Moldashev, M.I. Cigarev and others. - Almaty, 2009. - 30 s.

2. Sigarev M.I. and others.Proposals for the income generation of agricultural producers in Kazakhstan. / Sigarev M.I. - Almaty, 2011. - 30 s.

3. Report of the Minister of Agriculture A.S.Mamytbekov at the meeting of the Council of Foreign Investors under the President of the Republic of Kazakhstan. 04.06.2015 | Updated: 30.07.2015 // http://mgov.kz/doklad-ministra-selskogo-hozyajstva-rk.