RUSSIAN PRACTICE OF APPLYING INSTRUMENTS OF FINANCIAL SUPPORT TO AGRIBUSINESS

The creation of conditions ensuring food security, the competitiveness of the Russian economy and the well-being of citizens becomes a strategic direction for supporting the agro-industrial complex. The availability, accessibility and transparency of financial resources (support measures) determine the fulfillment of such conditions. In recent years, the positive results of the implementation of structural elements of the state program for the development of agriculture and the regulation of markets for agricultural products, raw materials and food indicate not only the need to consolidate this trend, but also to maintain and develop it. The past 2020 has become quite difficult and unstable for the Russian economy. Therefore, the measures of state support to the industry become especially significant and relevant. Financial support for the agro-industrial complex is provided through a financial mechanism, which is traditionally represented by budget, credit, insurance, tax mechanisms, each of which in turn includes specific methods and related instruments. This is especially relevant in modern conditions setting a new paradigm for the development of the Russian economy in general and the agro-industrial complex in particular. The expansion of the export potential of the agro-industrial complex, volatility in international commodity markets, active digitalization indicate the need and importance of expanding the use of instruments of financial support for agribusiness. The unusual conditions caused by COVID-19 pandemic not only created some threats to the development of the agro-industrial complex, but acted as an impulse for the mass introduction and use of digital technologies.


Introduction
Traditionally, the financial mechanism includes a budget finance mechanism, a credit mechanism, an insurance mechanism, an investment mechanism, and a tax mechanism. The mechanisms are represented by a set of financial methods and instruments for the formation, allocation and use of financial and credit resources (functional elements) within the framework of clear regulatory and information support (supporting elements). The constituent methods of the financial mechanism are focused; they have an evolutionary character due to the ongoing changes and instability of the Russian economy.

Problem Statement
The state of reproductive processes in agriculture leads to competitive advantages of the agroindustrial complex, which is necessary to achieve food security (Boldyreva et al., 2017).
The problems of attracting financial resources for expanded reproduction and favorable conditions for further development of the agro-industrial complex are always relevant and significant.

Research Questions
The availability, accessibility and transparency of financial resources by agribusiness actors will contribute to the implementation of the growth model of the complex, reflecting the modern characteristics of the country related to competitiveness and food security. Consideration of the main areas of financial support for the modern agro-industrial complex will determine the scale of problems and possible solutions for their possible development.

Purpose of the Study
The purpose of the paper is to study the Russian practice of applying instruments of financial support to agribusiness and the possibilities of their expansion.

Research Methods
The study is based on the analysis and synthesis of theoretical and factual materials on the features and problems of applying the instruments of financial support for agribusiness using various methods: systemic, logical analysis, synthesis, induction and deduction.

Findings
Financial support is provided both at the expense of federal or regional budgets, and on the basis of co-financing. In accordance with the Federal Law "On the Development of Agriculture", the federal budget funds have a special purpose. Budget subsidies continue to be the traditional and main form of state financial support for the agro-industrial complex. https://doi.org/10.15405/epsbs.2021.11.224 Corresponding Author: Yalmaev Rustam Alievich Selection and peer-review under responsibility of the Organizing Committee of the conference eISSN:  1704 In 2017 is characterized by significant changes (transition to a "single subsidy") of agricultural producers consolidating inter-budget subsidies (54 subsidies implemented were combined into 7 areas).
Within the framework of this subsidy, the Russian Federation was granted the right to determine the volumes, forms and methods of state support in the relevant priority areas based on regional specifics: agricultural production and natural-climatic and other features of the region. It was assumed that this form of support would ensure the targeting of recipients, facilitate the receipt of budget funds, reduce the timing of their delivery to agricultural producers, and fill the lag in the context of financial support for flows from the point of view of their recovery. However, in practice, this has led to a redistribution of budget funds, not always to the desired positions.
In 2020, the result of the change in subsidies was the transformation of a single subsidy and the allocation of a compensating and stimulating subsidy. Thus, the so-called mechanism of regionalization of state support makes it possible to independently choose priorities in agriculture, while stimulating the growth points of the industry and developing the most promising areas . To increase the efficiency and optimize the mechanism of compensating and stimulating subsidies, the Ministry of Agriculture is working to adjust this form of support, a package of changes is being prepared to simplify the process of granting subsidies and increasing the flexibility of this mechanism while maintaining the current structure and approach to subsidies .
Insurance continues to be a significant area of financial support for agribusiness, but its demand has been declining since 2014. The mentioned transition to a single subsidy since 2017, the reduction in the number of insurance organizations that have carried out insurance with state support since 2016 caused by increased control over insurers by the Bank of Russia, the emergence of a mandatory requirement for membership in the National Union of Agricultural Insurers to insurance companies concluding agro-insurance contracts with state support, were the reasons for a noticeable drop in insurance. State expenditures on agricultural insurance were included in the "single subsidy" (Table 01).
The right of regions to independently allocate the amount of subsidies laid down in it led to the residual principle of providing this form of support.  (Fagps, 2021) A two-year gap (2017-2018) proved the need for state participation and its dominant role in the development of this form. Since 2019, there has been growth in some indicators, which indicates a revival of the agricultural insurance market and the creation of conditions for its restoration.
As part of the federal project "Creating a system of support for farmers and the development of State support funds are allowed to be allocated for the purchase or construction of new facilities for the production, storage and processing of agricultural products, for the supply of these facilities with equipment, agricultural equipment and special transport. Grant funds may be spent on the purchase of animals, poultry and fish seeding material.
In order to increase the availability of borrowed resources for agricultural producers, state support measures are being implemented such as reimbursement of part of the interest rate on investment loans received until December 31, 2016 inclusive; reimbursement of part of direct incurred costs of agricultural producers for the creation and/or modernization of agro-industrial facilities; supporting concessional lending to agro-industrial enterprises; contribution to the authorized capital of JSC Rosselkhozbank.
From January 1, 2017, agricultural producers, organizations and individual entrepreneurs engaged in the production, processing and (or) sale of agricultural products were given the opportunity to receive a short-term or investment loan at a rate of not more than 5 %. The list of authorized banks participating in the implementation of the soft lending mechanism is determined by the Ministry of Agriculture.
Reimbursement to a credit institution of lost income comes directly from the federal budget in the amount of the key rate of the Bank of Russia (Ministry of Agriculture, 2021). Positive dynamics indicate the demand for this support measure (Table 02). Thus, in 2021, the list of areas of targeted use of preferential loans was expanded, which may now also be directed to the introduction of digital technologies and the automation of agricultural enterprises.
Farmers will be able to use preferential short-term loans issued for up to one year for informatization and digitalization of agricultural production and processing of their products, as well as maintenance of equipment and facilities.
The list of areas of targeted use of preferential investment loans has also been expanded. Credit funds issued for a period of 2 to 5 years may be used to purchase and refurbish the agricultural machinery fleet with automatic driving systems, point-to-point application of materials, crop mapping, precision farming or data collection and transmission equipment. It is also possible to buy special equipment for precision farming. In addition, farmers may direct preferential investment loans to the purchase of equipment for applying and reading identification tools, introduction of hardware and software products for labeling certain types of dairy products (Ministry of Agriculture, 2021).
One of the imperatives of a long-term strategy for the development of agro-industrial complex should be the development of exports, its diversification, improving the quality and competitiveness of domestic products. As part of the implementation of this direction, the Federal project "Export of agricultural products" is being implemented, the key task of which should be to increase the volume of exports of agricultural products to $45 billion per year by 2024. Thus, several complex programs of state support for agro-industrial complex producers are being implemented, aimed at increasing the efficiency and competitiveness of Russian food products: preferential lending, compensation of costs for transportation of products, compensation of costs for certification of products, stimulation of oil crops production.
The mechanism of granting preferential loans to exporters is aimed at supporting export-oriented enterprises and contributes to increasing the production of agricultural products in demand in foreign markets. Currently, 7 systemically significant banks are participating in the program, which have already issued over 40 billion rubles of credit funds. Enterprises get the opportunity to use credit funds at a preferential rate subject to an increase in the production of competitive products .
In 2019 assumed that all support measures -subsidies, grants, preferential loans, preferential leasing may be obtained electronically, while the key task of the project will be to improve the mechanism for providing state support to farmers on the principles of transparency (excluding the so-called "human factor" in the distribution of support and accessibility. This will significantly reduce the costs of agricultural producers.
It is estimated that by 2024, 75 % of operations to provide state support will be carried out digitally.
However, at present, only 5 % of domestic agricultural companies use modern digital technologies.
During the pandemic, it was decided to strengthen state support measures against the backdrop of the coronavirus crisis. These measures are spelled out in the draft National Action Plan aimed at restoring employment and incomes, economic growth and long-term structural changes for 2020-2021: recapitalization of Rosagroleasing (6 billion rubles); subsidizing tariffs for the transportation of vegetable products, mineral fertilizers, oilseeds for subjects of the Far Eastern Federal District (1 billion rubles); extension for up to 1 year of existing short-term loans and deferral on the payment of principal debt and interest attributable to 2020 on previously concluded preferential investment loans, increase in the volume of preferential lending to agricultural producers and food industry enterprises (4 billion rubles); creation of a single digital platform for identifying, evaluating and introducing agricultural land into agricultural circulation, including an investment Internet platform on which a potential investor in the agricultural sector can get a ready-made solution for conducting agricultural activities most in demand in the relevant region (1.5 billion rubles).

Conclusion
In conclusion it shall be noted that the Russian practice of using financial support tools for the agro-industrial complex may be characterized by consistent processes of transformation, modification and modernization due to modern trends in the development of the Russian economy: export orientation, 1708 volatility in international commodity markets, introduction of digital technologies and platforms, nonstandard conditions due to COVID-19 pandemic. The lack of systematic data for 2020 and the adjustment of financial support in a pandemic situation do not provide an opportunity to assess the full scope of financial methods to support AIC.
The results of the study made it possible to consider the possibilities of Russian practice of applying methods and corresponding instruments of financial support for the agro-industrial complex.
The low solvency of producers and often processors of agricultural products is the main barrier to the introduction of modern information and communication technologies. Therefore, it is advisable to continue increasing the potential of financial measures to support agricultural producers in the context of the expansion of the line of credit products and concessional lending by authorized commercial banks aimed at developing activities related to the introduction of digital technologies. It seems possible to expand the areas of the subsidy system in the context of program-targeted methods of supporting agriculture (subsidizing Russian organizations developing and introducing digital platforms and software products at agro-industrial enterprises), expanding the scope of grant financing (Shkarupa, 2020). Positive dynamics in the development of agricultural insurance and the specificity of agricultural territories emphasizes attracting more insurance companies to regional insurance markets.