Farm income financial support mechanism: European experience for Ukraine

The relevance of the article is due to the need to use in Ukraine the experience of the European Union (EU) in the implementation of the Common Agricultural Policy (CAP) aimed at supporting the production and income of farms. The purpose of the article is an analytical review of the priorities, tasks, schemes and measures of the CAP of the EU regarding the organization and implementation of financial support for farm income. In the course of the work, survey and analytical research methods were used, the legislation of the EU was studied, on the basis of which direct assistance is provided to farmers. To formulate recommendations, the results of foreign scientific works were summarized. The following research methods were used as a decision-making tool in the context of the effectiveness of the measures taken by the CAP of the EU and the farm income support mechanism: analysis and synthesis; induction, deduction and analogy; abstraction; generalization; idealization, etc. Attention is focused on the expediency of financial support for the income of farms due to the inability to carry out the reproduction process in an open and unprotected market. Farms are identified as multifunctional economic units that, on the one hand, perform important economic, social and environmental functions in the agricultural sector and rural space, and on the other hand, require active financial support. The EU Regulations are analysed, which determine the procedure for direct support to farmers and the implementation of market measures through the European Agricultural Guarantee Fund (EAGF). The schemes of direct payments and market measures of European farmers (their income) are presented in line with the first component of the CAP (First Pillar) using financing mechanisms implemented through EAGF. The sizes and conditions of direct assistance to farmers within the framework of the first component of the CAP are considered. The effectiveness of the measures of the CAP for the financial support of farms has been established. The necessity of correlation of the mechanism of support for farmers with the fulfilment of their obligations to protect the environment is proved. The expediency of singling out among agricultural producers certain categories of farms worthy of a special attitude towards them by society and the state has been established