finding of alternative sources of innovations funding in agriculture

The article highlights and explores aspects of alternative financing for the development of agriculture in Ukraine. The main trends that have developed in modern conditions on the use of alternative financing instruments are considered, the features and possibilities of using such forms of attracting financial resources are described. The mechanism of financing through alternative sources will facilitate improved access of business entities of the agricultural sector to financial resources, especially at a time when enterprises carry out production and economic operations that require investments and during their seasonal inactivity. As an alternative to financing the innovations of the agricultural sector, tools are considered that, at a cost, can be cheaper than bank lending and have a less complicated clearance procedure. Alternative forms of financing the development and introduction of innovations in agriculture are considered.


introduction
Financial support of sustainable development of agricul ture is very important, because this development ensures food security, contributes to the transformation of the agricultural sector in a highly competitive sector and in the domestic and foreign markets, and provides a comprehensive rural development and social problems in rural areas.
The need for investment in agriculture is increasing due to the growing global population and changing diet preferences of the growing middle class in the markets towards higher quality products (such as dairy products, meat, fish, fruit, vegetables, etc.).
The banking sector has a much smaller share of their loan portfolios in agriculture compared with the share of agriculture in GDP.This limits investment in agriculture and indicates that the threshold for loans not due to lack of liquidity in the banking sector, but rather due to lack of willingness to expand lending to agriculture.
Even if there is, most of the funding for agriculture is usually informal and short precluding a longterm in vestment.This informal funding only partially covers the financial needs of farmers and small agribusinesses, and usually at a high cost.Technology audiT and producTion reserves -№ 3/5(35), 2017 ISSN 2226-3780 for innovation is made.The most wellknown experts [1][2][3] once again specified the methodology of innovative de velopment financing of agriculture.That is why, in the development of theoretical, methodological and practical foundations of financing sources for innovations and the search for alternative financing sources for innovation development of the agricultural sector of Ukraine, one should take an example of developed countries.

the aim and objectives of research
The aim of research is an assessment of the sustain able agricultural development financing and the search for alternative sources of innovation financing in agriculture.
To achieve this goal, the following tasks are set: 1.To investigate the need to finance the development of agriculture of Ukraine.
2. To consider the major trends prevailing in the current conditions on the use of alternative financing instruments, 3. To describe the characteristics and possible use of innovative forms of raising funds.

research of existing solutions of the problem
There are many unresolved theoretical, methodological and practical issues of financing agriculture in terms of the globalization process in Ukraine.
Author [4] notes that the current state of funding research is characterized by significant barriers to the formation of an innovative model of agriculture.Iner tia of investment support of sector, inadequate funding mechanisms for innovation disorder a clear legal frame work, high risk innovations hinder the development of the agricultural sector on new principles [4].
The analysis of scientific literature [2,3,5,6] confirms that the limiting factor for development of agricultural fi nancing is the instability of economic conditions, due to the influence of weather conditions, price volatility, changes in the legislative and regulatory regulation.Therefore, in these conditions, special attention needs to systemic problems of agriculture and introducing a mechanism of its public financial support and ensuring sustainable development.Much of the issues related to the improvement of financing agriculture still need further investigation and resolution [7].
The problems of financial institutions increased by offering financial products for agriculture: operating costs are high, no return of the specific risks of the industry, such as production, prices and market risks; financial in stitutions lack knowledge in how to manage transaction costs specific risks that agriculture and financial services market for customers to agricultural producers [8].

methods of research
To achieve the objectives the following methods are used: analysis and synthesis, logic synthesis, analogy, com parison, monographs and graphicanalytical method.

research results
In addition, government policy is often ineffective and may actually interfere with the provision of financial ser vices to the agricultural industry.Politics, as a practice of preferential lending interest rates and loan programs create obstacles to lending to the private sector, creating problems for the state crediting of agriculture.
Agricultural financing should be focused on the fol lowing four areas: 1.The segment of small farmers and determination of their financial needs.Small farmers are miscellaneous and have different needs.It is important to identify the various small sub fragments and assess their needs and concerns to develop products and solutions.In addition, small farmers do not just need loans for agricultural ac tivities, but they also need credit for other needs and activities, savings, payment systems and insurance.
2. It is necessary to find ways to finance agricultural risk using the solution as unique (or individual) risks and significant systemic risks.Individual risks often associated with the assessment of credit risk, as well as information and system.Information can assist financial institutions in assessing credit risk.Finding of a good mortgage, such as personal property may also help.The assessment of systemic risks, agricultural insurance, catastrophic risk programs, price hedging through commodity exchanges or value chain can provide some solutions.
3. It is necessary to identify the relevant institutions and delivery channels, thus reducing maintenance costs of agricultural customers.A variety of sources can provide financing agriculture, depending on the type of clients they serve.Commercial banks can provide solutions through a chain of added value and better organized groups of small farmers.New technologies and advances in mobile banking solutions, and improving of the integration of farmers in best organized value chain can promote solu tions and delivery channels that reduce the cost of public services in rural areas.
4. The decision to issue should be at favorable specific state policy that restricts the flow of financial services to smallholders.The government may restrict lending, but also can crowd out the private sector.
Future ISSN 2226-3780 and indirect economic control (Fig. 2) [9].Methods of direct regulation based on the fact that economic entities must be guided by the requirements of the legislative and executive authorities.

Monetary and financial
Monetary and financial turnover

Taxes and taxation
Import-export operations, etc.

Employment, unemployment health, education
Social protection and social security pollution etc.

fig. 1. Management system of agriculture
Indirect regulation aimed at creating preconditions to ensure that local government and business entities in self selecting economic solutions focused on options that meet the objectives of public policy.They focus on the one hand, to stimulate innovation processes, on the other -to create favorable conditions for economic, social and political envi ronment for scientific, technological and social development.
The development of innovation in agriculture is only possible with the support of the state, which should create conditions that allow all market participants to develop their innovations, promote and implement in production.Also, inefficient state policy of Ukraine in the field of ag riculture does not promote development of the agricultural sector, which is reflected in the technological lag production of unprofitable industry, its low profitability and so on.
Here, in Fig. 2   Alternative and innovative financing of agriculture in Ukraine is a holistic collaboration, strategic financing and multilateral relations in management, stimulating significant and steady flow of public and private investment in the agricultural sector, leading to increased productivity and agricultural development.
Financing of innovation in agriculture is characterized by multilateral management of mobilized resources (public and private) are in addition to official development as sistance and other traditional finance is stable, predictable, and will further the search for new ways to scale up the use of innovative tools in agriculture Ukraine.Accord ing to the World Bank, the optimal investment efforts related to efforts in areas such as economic empower Technology audiT and producTion reserves -№ 3/5(35), 2017 ISSN 2226-3780 ment, water, energy, education and training and financial services [1].
They include support for agricultural activities by the capital, public and private institutional partnerships that catalyze and attract new resources and relationships of financial management for agriculture.In practice, the traditional sources and mechanisms of financing and in vestment in the agricultural sector in Ukraine can not achieve and do not achieve the desired results of economic development.It is a fact that confirmed the need for alternative and innovative financing in the agricultural sector of Ukraine.
There are benefits to include large private investments into agriculture to finance and financial markets work at agricultural producers.
Financial transactions of high frequency, small tax gives them a significant funding source is easy to assemble in financing economic development of agriculture.Banks can complement traditional mortgage loans innovative forms of support, such as warehouse receipts, bonds and related risk management mechanisms to reduce risks.
Can Ukraine to accelerate the adoption of alternative and innovative financing mechanisms for agriculture, just the adoption of any other innovative idea?Awareness and interest (the first stages of the adoption of any innova tion) are starting to occur in some financial institutions.-livestock and fish products.Rapidly growing urban population and middle class generates high demand for protein as meat, fish, dairy products, eggs, etc. Livestock subsector can also generate stable income when introducing innovations; -processing of agricultural products subsector.20-40 percent of agricultural crops derived through waste and spoilage due to lack of proper storage and handling.Ukraine is among the world's leading pro ducers of certain agricultural products, but it accounts for less than 1 percent of global added value of these products (which return more than 7 % of the income derived from the original product).In markets, where processing subsector is presented, there are investment needs that require sophisticated investors [1,5,10]; -internal value chain financing agricultural produc tion to increase opportunities for strategic resolving past financial challenges as continued funding without a plan that covers the entire process.
The value of the global value chain of agriculture is increasingly proving bond measures taken by different countries and companies on the basis of comparative ad vantage reduce costs and planning of added value.
Ukraine may connect to a global value chain rapid growth through strategic industries rapid access point that can quickly monitor certain aspects of industrializa tion and help have some market share in global corporate profits and, ultimately, economic development: -Machines for mechanization of agriculture.Innovative financing as agricultural machinery agriculture would change Ukraine for the better.
-Organic and inorganic fertilizers.Production of or ganic and inorganic fertilizers in Ukraine has great investment opportunities.
-Irrigation and energy.Withdrawal of irrigated land is about 3.5 times greater than that of rainfed produc tion, 3.5 times greater return on investment.Innova tive financing irrigation will receive a higher yield of agricultural products.So, there are many needs in the agricultural sector of Ukraine, which require investment, but offer financial resources are low.Each country should adopt a strategic and innovative ways to get the best result with the avail able financial resources available for agriculture.
Let's consider some traditional funding mechanisms agriculture in Ukraine.
1. Taxes.By bringing most of its traditional taxes, which constitute a significant proportion of revenues to state and local budgets may send them to finance agri culture.
2. Bank loans.Loans for agriculture constitute a small proportion of the total bank credit portfolio in many Ukrainian banks.Banks perceive agriculture as a high risk sector, which should be avoided.Many agricultural producers have low financial literacy, and do not know their capabilities.Government loan guarantees on loans agricultural sector should encourage banks to issue more loans to agriculture, but many producers are unaware of the existence of such banking products.
There are alternative and innovative financing mecha nisms for agriculture: -innovative special meeting of the producers of those industries which receive profits.Protection licenses, regulatory framework and market dynamics allow some Технологічний аудиТ Та резерви виробницТва -№ 3/5(35), 2017 ISSN 2226-3780 businesses and industries operate as monopolies or oligo polies that are able to make enormous profits, and can be special taxes on profits.Some telecommunication and oil companies face unique market dynamics of demand, which helps them making huge profits, some of which can be returned to the national economy through special fees in the industry; -custodian banks money belonging to other businesses, governments and citizens, which banks sell for profit.The presence of large public resources at its disposal from which profit and privileges that are not in other, will always produce extraordinary profits that may be levied specifically for the benefit of society; -a small percentage of profits chargeable to the ex traordinary business giants will affect them a little, but realize a significant influx of government funding for agricultural and other key industries for the common good; -a tax on consumer items and products that are harmful in excessive amounts.These fees can be invested in agriculture: -innovative banking products for the agricultural sector.Bank loans will remain an everyday source of funding for agriculture; -many farmers belong to the informal sector and do not have a legally registered property to be used as collateral, effectively excluding them from obtaining loans from banks; -banks can deploy active operational mechanisms to reduce the risks that ensure repayment, the use of in novative, combining loans with consulting services and innovative monitoring (and other security measures) to achieve repayment and protect its loan portfolio; -strategic and innovative leasing.Through innovative leasing options with structured finance leases, ope rating leases or use everyday payments on the lease, services of agricultural machinery and preservation of agricultural products or processing equipment can be provided many small farmers who do not have money to buy them.This will enable small farmers to use machinery [2,3] In order for Ukraine agriculture adaptation to spe cific market situations it is necessary to find answers to the following questions: Can more funding be directed to agriculture; whether the financing of agriculture in Ukraine to be more innovative, strategic, holistic and applied to the major investment destinations that are able to achieve much more than agriculture, obtained in the past; whether existing and new players in the financing of agriculture and investments to be introduced because of publicprivate partnership, where each partner carries out a role that best suits and better complement the whole?
These issues are presented in this article require further investigation.Strong, efficient and innovative institutions that provide innovative services to those who need them and are strategic guidelines should be implemented.Al ternative financing model are crucial to achieving the strategic objectives of economic development of agriculture.Technology audiT and producTion reserves -№ 3/5(35), 2017 ISSN 2226-3780

sWot analysis if research results
Strengths.The strength of the research is analysis of alternative innovation financing and opportunities for their usage in agriculture.
Weaknesses.The weaknesses is that the complexity of agricultural production and its specificity determining the originality of approaches and methods of innova tion management, a combination of different types of innovation, strengthening the state's role in promoting innovation.It should be emphasized that agricultural production are characterized by high risks of innova tion processes: risk of financing research and production results, risk of a temporary gap between spending and results, the uncertainty of demand for innovative prod ucts.Avoiding innovative development related primarily to the sharp decline in effective demand for science and technology and scienceintensive products due to the difficult financial situation of companies, a sharp decline in funds from budgetary sources of funding, in ability to get loans.
Opportunities.The opportunities for further research are solutions of the existing problems of financial inno vation support, which requires the establishment of its mechanism, i. e., model building, implementation of which will enable to establish scientific and reasonable funding sources and funding directions and more.
Threats.The to the results of the research are that under conditions of limited financial resources for innovative development of the agricultural sector impor tant issue is the rational use.From this perspective, the priority is not the value of borrowed resources and the efficiency improvement of their use; improve the structure and areas of investment support, channeling funds for new technology and equipment.

conclusions
1. Agriculture provides food security and food inde pendence of Ukraine generates 9 % of total GDP and about 60 % of the population consumption fund.In ad dition, the agricultural sector is one of the major budget making sectors of the national economy, whose share in the consolidated budget of Ukraine in recent years is 8.9 % and is the second largest economic sectors in the commodity structure of export.Agriculture contributes to development of other industries that supply the means of production and consume agricultural products as raw materials, and provide transportation, shopping and other services.Only innovative financing sustainable agricul ture can ensure the improvement of rural population, environmental protection, preservation of natural, human and production resources, increasing competitiveness of agricultural production.
2. There are many needs in the agricultural sector of Ukraine, which require investment, but offer financial resources are low.
Each country should adopt a strategic and innovative ways to get the best result with the available financial resources available for agriculture.

Fig. 3 3 .
Fig.3shows a chain of innovation and investment financing in agriculture.