LAW OF UKRAINE “ON AGRICULTURE”

Project

LAW OF UKRAINE

“About Agriculture”

Section I

TERMS

This Law defines the socio-economic foundations of the organization of agriculture of Ukraine, creation of favorable economic conditions for its effective development, as a priority branch of the economy, with the purpose of guaranteeing food security, necessary raw materials for other branches of increasing export potential, creation of proper living conditions in rural areas and integrated rural development.

Article 1.1 Basic Terms and Definitions

Agriculture is a system-forming industry that provides human livelihood, engaged in agricultural production, as a source of basic food for the population and raw materials for the processing industry, acts on the basis of biological factors – plants and animals and is the basis of rural development and rural habitat management population. In agriculture, economic and biological laws interact closely.

Agroindustrial complex – a set of branches of economy including production, procurement, storage, transportation, processing and sale of products of agriculture, fisheries and spheres of activity, providing them with equipment, technological equipment, information and other resources, veterinary and phytosanitary security, scientific support and training .

Administrative-territorial unit – the territory within which local executive and local self-government bodies are formed and operate with their own budget and statistical reporting system and direct relations with central and regional authorities.

Vertical agro-trade integration – non- market coordination of the activities of enterprises of different spheres of agro-industrial complex; creation by enterprises of one sphere of agro-industrial complex new enterprises with tasks of other spheres of agro-industrial complex; the combination in one enterprise of several activities inherent in different spheres of agro-industrial complex.

State regulation of the market for agricultural products and foodstuffs – state intervention in the economic situation in the market for stabilization of market processes in corresponding predefined parameters.

Organization and formation of the market for agricultural products and foodstuffs – creation of a system of special institutions and enterprises that, using appropriate methods of organization and management, ensure the stable functioning of the market in appropriate socio-economic parameters.

Organized agricultural market – part of the agricultural market is represented by elements of highly organized market infrastructure – exchanges, wholesale markets, agro-trading houses.

Priority area – an industry in which the foundations of national food security are formed through the development of competitive production in combination with the development of favorable conditions for solving social issues.

Food security is the protection of a person’s vital interests, which is to guarantee the state’s unimpeded economic access to food for the sake of maintaining his or her normal activities.

Building a product market – providing a certain composition of operators of the product market.

Agricultural and food markets are part of the commodity market where agricultural products and food are the subject of sale and purchase.

Agricultural products – raw materials and products of plant and animal husbandry, including beekeeping; including products after primary processing.

Agricultural producer – a natural or legal person engaged in the production of agricultural products, which must have more than 60 percent of the total production produced by a legal entity or a farm that operates without creating a legal entity .

Agricultural production – a type of economic activity for the production of products, which is associated with biological processes of its cultivation, intended for nutrition in raw and processed form and for use for non-food purposes.

Rural territory – a collection of rural settlements and adjacent agricultural lands (lands), historically formed within the legally defined boundaries, which combines administrative-territorial (villages, rural settlements, village councils) and territorially-functional (agricultural production, processing of products) , its preservation and implementation) belonging to the creation of proper working conditions and living conditions of the population and ensuring the food security of the country.

Sustainable development of rural territories – stable socio-economic development, increase of agricultural production, increase of agricultural efficiency, employment of rural population and standard of living, rational use of natural resources attracted to rural territories.

Rural settlement , village – separate units within the territorial-administrative unit of the permanent residence of the population, which through natural means – land and created in the process of development of production of labor, social and ecological potentials, conducts mainly agricultural activity, provides food security and increases the welfare of society.

The village settlement network is historically formed in the space of villages, farms, suburbs, single-family dwellings, caused by the most rational combination of natural, labor, production, economic, social and environmental potentials for efficient performance of functions of mainly agricultural production.

Social policy is a system of measures aimed at solving strategic goals for the social development of territories, improving the quality of life, preserving and increasing the welfare of peasants.

A social strategy is a long-term, fundamentally important projection, plans, intentions of the government, regional, district and local authorities and self-government to create appropriate working conditions and housing for the rural population through improving the balancing of social budgets of different hierarchical levels.

Product Market Infrastructure – the set of intermediary, trade-intermediary and trade enterprises directly involved in the sale and purchase of agricultural products and food with the participation of buyers and sellers and market prices; the physical arena of contacting product market operators.

Phytosanitary safety is a state of protection of agricultural objects and plant products against pests, diseases of plants and weeds.

Article 1.2 Subject to Regulation of this Law

1. This Law regulates the basic rules for the organization of agriculture as an industry that provides food security solutions for the country with a seasonal and extended cycle of production with a slow capital turnover, depending on the climatic conditions, economic relations with other industries, and economic sectors of the country, and directions of development of rural territories, relations arising between citizens and legal entities recognized on the basis of this Law by agricultural producers on the one hand and rhanamy government in the field of agriculture – on the other, including “Land Code”, “Commercial Code”, “Banks and Banking”, “Tax Code”, “customs and tariff regulation” and others.

2. On the basis of the organizational and legal principles established by this Law, legislative acts of direct action on regulation of production activity, economic relations related to the production of agricultural products, as well as development on the social sphere of the village are developed.

Section II

STATE AGRARIAN POLICY

Article 2.1 State Agricultural Policy

State agrarian policy is an integral part of the state socio-economic policy aimed at sustainable development of agriculture and rural areas.

Article 2.2 Purpose of the State Agrarian Policy

The purpose of the state agricultural policy is:

production of agricultural products to the extent necessary to ensure food security of Ukraine and increase export potential, increase the competitiveness of agricultural producers, promote sustainable development of rural areas, increase the employment of rural population and its standard of living.

Article 2.3 Principles of State Agrarian Policy

The principles of state agrarian policy are:

a) the sequence of implementation of measures of state agrarian policy;

b) Creating equal economic conditions for the development of all forms of economic activity in the agricultural sector;

c) accessibility, stability and targeting of state support for agricultural producers;

(d) promoting voluntary competition in the markets for agricultural products, raw materials and food;

e) participation of public sectoral agricultural products (professional) associations of agricultural producers in the formation and implementation of state agricultural policy.

Article 2.4 Main directions of the state agrarian policy

The main directions of the state agrarian policy are:

a) creation of conditions for priority development of the village, characterized by the system of its state support, priority of investments for realization by agricultural producers and their associations of investment projects on implementation of innovations, credit-financial, price, resource, tax and demographic policy;

b) ensuring the equivalence of the exchange of goods and services between agriculture, industry and the service sector of the economy.

c) development of national and regional programs for the development of agriculture and rural territories;

d) stability of sufficient provision of population with domestic food products;

Article 2.5 Implementation of State Agrarian Policy

The following measures are applied to the implementation of the state agrarian policy:

a) the provision of budgetary funds to support prices and income for agricultural producers;

b) creating a favorable investment climate and increasing along with investment in agriculture;

c) the application of preferential tax regimes for agricultural producers;

d) the procurement of agricultural products storage, processing and a post and a kycha nnyadlya state and municipal needs;

e) regulation of the market of agricultural products and food, including customs tariff and non-tariff regulation;

f) information support for agricultural producers and other participants in the agricultural and food market, as well as providing them with advisory services;

g) antitrust regulation of agricultural and food markets, logistical resources and services;

Article 2.6 Participation of State Authorities in the Implementation of State Agrarian Policy

1. Bodies of executive power, which perform the functions of elaboration and implementation of agrarian policy and regulatory regulation in the field of agriculture are the Cabinet of Ministers of Ukraine, the central executive bodies and their bodies at places, which in accordance with the powers:

a) ensure the development and implementation of national and regional programs;

b) coordinate the actions of the subjects of implementation of measures of national and regional programs and other measures in the field of agricultural development;

c) regulate prices in the agricultural and food markets by organizing and conducting commodity interventions;

d) are responsible for the implementation of national and regional programs.

Article 2.7 Participation of the public sector, Agroprod in ktovyh and (specialized professional) about ‘ associations of agricultural producers in the formulation and implementation of the state agrarian policy .

1. Bodies of executive power, which perform functions of elaboration of state policy and legal regulation in the field of agricultural production, in order to harmonize the interests of agricultural producers, involve on a voluntary basis unions (associations) and other associations of agricultural producers in the formation and sale of state agricultural producers policies by:

a) participation in the drafting of regulatory acts, targeted programs, national report;

b) generalization and dissemination of achievements of science and technology, domestic and foreign experience in the field of agricultural development;

c) submission of proposals for the formation and implementation of the state agricultural policy;

d) elaboration of recommendations for public authorities.

Section III

ORGANIZATIONAL AND ECONOMIC DEVELOPMENT PRINCIPLES

AGRICULTURE

Article 3.1 Agricultural producers

1. Agricultural producers include:

a) agricultural enterprises of different organizational and legal forms, in which the sale of agricultural products of own production is at least 75 percent for the calendar year;

b) farms and private peasant farms that sell their agricultural products and their products;

c) agricultural production cooperatives and their associations that sell agricultural products of their own production;

d) auxiliary agriculture (agro-workshop) of industrial enterprises and organizations that produce and sell agricultural products in raw and processed form;

e) households (households) that sell surplus agricultural products produced for their own consumption.

Article 3.2 Creation of legal forms of economic management

1. Agricultural producers are created in accordance with the current legislation, are legal or natural persons, can, rent and lease land and property, work individually or enter into various economic structures.

2. Agricultural producers can be united in integrated territorial-production formations, public sectoral, agro-productive and professional (professional) associations on joint activity of their participants, protection of their interests and establishment of mutually beneficial partnership.

3. All economic entities are equal and create the same economic conditions.

4. The activities of agricultural service cooperatives in the provision of services to members of these cooperatives are non-profit and are not taxed.

Article 3.3 Production activities of agricultural producers

The production activities of agricultural producers of all forms of ownership and management are carried out on the basis of the relevant legislative acts that stipulate their rights and obligations.

Relations between the state in the person of its representative (executive) bodies and subjects of entrepreneurial activity in agriculture are based on the principles of democracy, observance of constitutional principles and equality.

The state, within the limits of its administrative management functions, implements a system of measures to create the necessary prerequisites for equalizing the socio-economic development of agricultural production, taking into account the regional differences in the natural and economic environment. The Cabinet of Ministers of Ukraine periodically (within the statutory time limits) determines the list of economically backward rural areas (territories). In these regions, in addition to the national programs of support for production activities of all categories of agricultural producers, funds are drawn in accordance with the laws of Ukraine.

Article 3.4 of the State target n rohrama kompleksonono development of agriculture and rural areas .

1. The State Program for the Development of Agriculture and Rural Territories (hereinafter referred to as the State Program) is a document that defines the goals and main directions of agriculture development for the medium term, financial support and mechanisms for implementing the envisaged measures.

2. The state program shall be developed by the Ministry of Agrarian Policy and Food of Ukraine in agreement with other interested bodies of executive power for a five-year period and submitted for approval by the Cabinet of Ministers of Ukraine not later than July 1 of the year preceding the first year of its operation, upon submission of the executive body, carrying out functions of state policy making and regulatory regulation in the field of agriculture.

3. The main indicators of the draft state program shall be considered by a commission consisting of representatives of the Cabinet of Ministers of Ukraine and the Verkhovna Rada of Ukraine and sent to the Cabinet of Ministers for their consideration and approval before the draft law on the state budget for the next financial year before the Verkhovna Rada of Ukraine.

4. The state program contains the main indicators and forecast of agricultural development, purpose, objectives, indicators of its effectiveness and financial support for the whole period and for years.

5. The central executive body, which performs the functions of elaboration of state policy and legal regulation in the field of agriculture, not later than October 1, which precedes the first financial year of the state program, organizes the development of regional agricultural development programs and determines the participation of legal entities. and individuals in their implementation.

6. The Central Executive Body, which performs the functions of elaboration of state policy and regulatory regulation in the field of agriculture, shall, by agreement with other interested bodies of executive power, submit to the Cabinet of Ministers of Ukraine the draft state program for the following March five-year period.

Article 3.5 Implementation of the State Program

The implementation of the state program is carried out by the Ministry of Agrarian Policy and Food of Ukraine and its local authorities through the development of measures for the implementation of state and regional programs.

Control over the implementation of the state program rests with the Cabinet of Ministers of Ukraine.

Article 3.6 National Progress Report and Results of State Program Implementation

1. The national progress report and the results of the implementation of the state program shall include:

a) results of implementation of the state program for the last year and for the whole period of its implementation;

b) the main indicators of agricultural development in accordance with the purpose and objectives set by the state program;

c) forecast of agricultural development for the next year and, if necessary, proposals for adjusting the state program.

2. Expert commissions are set up to evaluate the results of the implementation of state and regional subprograms: on the state program – by the Cabinet of Ministers of Ukraine, and on regional ones – by regional state administrations.

Expert committees draw conclusions that assess the results of implementation and effectiveness of national and regional programs.

3. Bodies of executive power, which carry out functions of elaboration of state policy and legal regulation in the field of agriculture, annually, by May 15, prepare a national report on the progress and results of implementation of the state program in the previous year and send for consideration to the Cabinet of Ministers of Ukraine.

4. The national report approved by the Government shall be forwarded to the President of Ukraine and the Verkhovna Rada of Ukraine, shall be considered by the Verkhovna Rada of Ukraine and shall be published in the mass media.

Article 3.7 System of programming of complex development of agriculture and rural territories

System of programming of integrated development of agriculture and rural territories is a system of development of forecasts, strategies and elaborated on their basis of medium-term (up to 5 years) programs and projects of integrated development of agriculture and rural territories, agreed in accordance with the determined strategic priorities of the state agrarian and social policy, programming periods and administrative and territorial levels of management.

The development and implementation of a system of programs and projects for integrated development of agriculture and rural territories is carried out in the manner prescribed by the relevant Laws of Ukraine in the context of their blocks: agrarian (About veterinary medicine; About plant protection; About land protection; About system of engineering and technical support ; On land reclamation; On the basic principles of state agricultural policy for the period up to 2015); planned (On state forecasting and development of programs of economic and social development of Ukraine; On planning and development of territories; On the General scheme of planning of the territory of Ukraine; On state targeted programs); territorial (On general principles of creation and functioning of special (free) economic zones; On local self-government in Ukraine; On local state administrations; On stimulating the development of regions); investment-innovative (About investment activity; About the National program of informatization; About innovative activity; About the Basic principles of development of the information society in Ukraine for 2007-2015).

General principles and methods of development of forecasts, strategies, programs and projects of complex development of agriculture and rural territories are determined by the relevant acts of the Cabinet of Ministers of Ukraine and orders of the profile central executive bodies.

1. 2. Types of programs and those responsible for their development and implementation

According to the areas of responsibility of the management entities and sources of financing, the development programs are divided into:

2.1. State and regional (regional) targeted programs for integrated development of agriculture and rural territories, providing for the concentration of resources and targeting the funds of state and regional (regional) budgets for the implementation of measures to ensure food independence of the state (region) and the implementation of national and elaborated in their development regional (regional) innovation and investment production and socially significant projects and measures to stimulate innovative development of agriculture and rural areas in accordance with the determined laws of Ukraine the main directions of agricultural policy of the state.

The central body of state and regional (regional) executive authorities on agrarian policy and food of Ukraine is responsible for the development and implementation of these programs.

Implementation of innovative investment projects and measures of targeted programs of integrated development of agriculture and rural territories should also be envisaged in the Program of economic and social development of Ukraine, respectively regional (oblast) – in programs of economic and social development of regions (Autonomous Republic of Crimea) for the next planned year.

2.2 National and regional (regional) sectoral (agro-product) targeted agricultural development programs, providing for consolidated targeting of funds from different sources (including funds from state and regional programs, economic entities, extra-budgetary development funds, etc.) for the implementation of joint production , social and environmental projects and activities aimed at introducing technological and organizational and economic innovations in the production, storage, processing, implementation, improvement of quality and safety and the products and technological processes or services of industries, etc.

The development and implementation of these programs are the responsibility of public self-regulatory agri-food and public organizations operating in the agri-food sector.

National sectoral (agro-product) targeted development programs may be part of state targeted programs for integrated development of agriculture and rural areas.

Regional sectoral (agro-product) targeted development programs may be part of the relevant regional targeted programs for integrated development of agriculture and rural areas.

2.3. Local (district, rural (settlement)) programs for integrated development of agriculture and rural territories, which envisage increase of incomes of rural territories (including rural residents, economic entities and local budget revenues) due to rational use of land, natural and climatic , the resource and territorial benefits of these territories, and the consolidated targeting of funds from various sources (including local budgets, extrabudgetary development funds, state and regional programs, etc.) realization of joint production and social projects on creation of jobs and observance of social standards of life support of rural population.

Local governments of the appropriate level are responsible for the development and implementation of these programs.

Innovation – investment projects and activities of relevant regional targeted programs for integrated development of agriculture and rural areas may be part of relevant local programs for integrated development of agro-industrial production and rural areas.

2.4. Economic programs of innovation and investment development, which envisage concentration of resources and targeting of funds of economic entities for realization of economic and inter-economic innovation – investment projects for enhancing the competitiveness of economic entities, ensuring their innovative development, as well as coordinated with the local economic development authorities rural territorial communities and rural territories.

Bodies of economic and inter-economic management are responsible for the development and implementation of these programs.

1. 3. Reconciliation of development of state, regional (regional) and sectoral (agro-product) programs.

Development and implementation of state, regional (regional) targeted programs of integrated agricultural development and sectoral (agro-food) targeted programs of agricultural development are carried out in accordance with the procedure provided by the Laws of Ukraine “On State Forecasting and Development of Programs of Economic and Social Development of Ukraine” and “On State Targets applications ».

In this sectoral (agro-product) target programs are developed on an initiative basis by the appropriate self-regulatory agro-food associations and public organizations together with public authorities.

State target programs for integrated development of agriculture and rural territories are developed for a period of up to 5 years and take into account the projects and measures of national sectoral (agro-product) target programs aimed at the implementation of the main directions of agricultural policy of the state.

Regional (regional) targeted programs of integrated development of agriculture and rural territories are developed in the development and detailing of state targeted programs of integrated development of agriculture and rural territories for a period of up to 5 years and take into account the projects and activities of regional sectoral (agro-product) targeted programs aimed at to implement the main directions of the agrarian policy of the state.

1. 4. Reconciliation of development and implementation of local programs of socio-economic development of rural communities and territories and economic programs of innovation and investment development.

Development and implementation of local programs of socio-economic development of rural territorial communities and rural areas, as well as programs of innovation and investment development of enterprises and farms located on the territory of agriculture and agriculture should be carried out on the basis of a programmatic and targeted approach, providing for integrated development rural area and agroindustrial production located thereon and be carried out in the following sequence:

4.1. Development, broad discussion and approval of the strategy of socio-economic development of rural territory (rural territorial community), which in particular envisages:

– deepening of specialization and concentration of agro-industrial production taking into account territorial advantages;

– proposals to economic entities and rural communities on the implementation of joint inter-economic production and socially significant innovation and investment projects using mechanisms of integration (cooperation, clustering, corporatization);

– the obligation of state and local self-government bodies to stimulate the implementation of these projects.

4.2. Development of strategies and programs of innovation – investment development of economic entities using methods of specialization and diversification of agricultural and related production and development of integration ties, including through their share participation in the implementation of joint production and socially significant innovation – investment projects;

4.3. Development, broad discussion, mutual agreement and approval of medium – term (up to 5 years) programs of socio – economic development of rural territorial communities as a set of business plans for realization of economic, inter – economic and public joint innovation – investment production and socially significant projects and measures.

4.4. Development, widespread discussion, mutual agreement and approval of medium-term (up to 5 years) district programs of complex development of agro-industrial production and rural territories, as a summary based on proposals of rural territorial communities and economic entities of a complex of business plans for implementation of joint innovation and investment inter-economic industrial and community socially significant projects and activities.

4.5. Organization of the implementation of activities and projects of programs through the conclusion of contracts (contracts) and fulfillment of mutual obligations of participants: bodies of state executive power, local self-government and economic entities.

The integrating body of the implementation of the interconnected process of planning the development of agricultural and agricultural-related enterprises and farms and agro-industrial production in rural areas as a whole should be the management of the development of agro-industrial production of the state administration together with the bodies of inter-economic, public and local self-government, the method of co-operation implementation of programs and projects – to involve agricultural advisory services, special consulting firms and scientific institutions.

1. 5. Mechanism of program adaptation in the process of their implementation.

State, regional (regional), sectoral (agro-product) targeted programs of integrated development of agriculture and rural territories, as well as local programs of socio-economic development of rural territorial communities and rural territories (districts) are developed for a term of up to 5 years. However, in order to take into account significant changes in the environment, the needs and priorities of integrated development of agriculture and rural territories, the volume of possible attraction of investments for the implementation of innovation – investment projects, etc., according to the results of monitoring the implementation of programs, they may be amended and supplemented in the manner provided in the points 3.4.

Article 3.8 Statistical reporting by agricultural producers and control of its reliability

Agricultural producers are obliged to submit in full the form, provided for in the statutory documents, to the authorities free of charge (except for conducting separate sampling surveys of individuals or collections of such persons for which respondents receive monetary compensation for the time spent). statistics reliable information, including restricted access, and accounting data.

The statistics should reflect the true state of the economic performance and the use of agricultural land.

The control over the accuracy and completeness of the statistical reporting is carried out by the state statistics bodies.

Respondents are administratively responsible for providing untrue statistics, taking notes, and distortions.

Section IV

OM Mielno RELATIONS IN AGRICULTURE

ECONOMY

Article 4.1 Land relations in agriculture

1. Land relations shall be regulated by the Constitution of Ukraine, the Land Code of Ukraine, this Law, as well as the relevant legislative and other normative legal acts.

2. Land relations are social relations concerning the ownership, use, disposal and management of land at the state, regional, economic and domestic levels as objects of management and means of production in agriculture.

Article 4.2 State Land Cadastre

1. In order to provide public authorities, local self-government bodies, citizens and legal entities with the necessary information on land for their intended purpose, restrictions on use, quantitative and qualitative characteristics, their evaluation, distribution between owners and users in Ukraine, a state land cadastre is maintained.

2. The procedure for maintaining the state land cadastre shall be established by the Law of Ukraine “On State Land Cadastre”.

Article 4.3 Land capital in agricultural production

1. Agricultural lands function in economic turnover as capital, which is provided by their value according to the normative and expert evaluation, carried out in accordance with the methods approved by the resolutions of the Cabinet of Ministers of Ukraine.

2. The legal bases for conducting and regulating land valuation are carried out in accordance with the Law of Ukraine “On Land Valuation”.

Article 4.4 Inclusion of land value in economic turnover

Land value is included in the sum of fixed and working capital as a component of the advanced capital and is a profitable factor of production. The procedure for including land value in economic turnover is approved by the Cabinet of Ministers of Ukraine.

Article 4.5 Inclusion of the value of land resources in the algorithm for determining the efficiency of agricultural production

In order to ensure equal economic conditions of expanded reproduction of agricultural production with other sectors of the economy, the value of land resources is included in the value of capital advanced in the production of capital when determining the rate of profit as the main indicator of the efficiency of economic activity.

Article 4.6 Utilization of the value of land resources in the economic regulation of reproduction of agricultural production

The cost of land resources, as a component of capital advanced for agricultural production, participating in the formation of the rate of return, is taken into account in the formation of prices of supply for agricultural products, determining the need for credit resources and the amount of government support and taxation standards in agriculture, as a sector of slow-moving turnover of capital.

Article 4.7 Economic Incentives for Landowners and Land Users for Land Protection and Sanctions for Violations of Legislation on Conservation, Reproduction and Improvement of Soil Fertility

1. The state shall provide economic incentives for landowners and land users, including tenants, to undertake, at their own expense, measures to improve the ecological status of land, protect, preserve, restore and increase soil fertility by offsetting the costs of such measures. Incentives are provided at the expense of the State Budget of Ukraine and local budgets in accordance with state and regional programs for land protection, application of preferential taxation of land plots and preferential lending of measures.

2. In the case of land use by owners and users, including tenants, methods that lead to increased erosion processes and deterioration of soil quality sanctions in the form of penalties and damages for damage caused.

3. The Cabinet of Ministers of Ukraine approves the procedure of economic stimulation of measures on land use and protection and increase of soil fertility.

Section V

ECOLOGICAL AGRICULTURE OF AGRICULTURAL PRODUCTION

AND RURAL AREAS

Article 5.1 Environmental principles of agriculture

1. Agricultural activities are conducted in ways that do not harm the environment and human health.

2. An indispensable condition for agriculture is environmental protection, rational use of natural resources, ensuring environmental safety of human life, meeting the needs of the population in environmentally friendly food products.

Article 5.2 Greening of agricultural production

Greening of agricultural production is carried out in order to meet the needs of the population with quality, environmentally friendly food, land protection, preservation and reproduction of soil fertility, environmental improvement and aims at:

a) development and implementation of measures for land protection, prevention of soil contamination and production of heavy metals, industrial emissions, pesticides, radionuclides and other agrochemicals;

b) improvement of the regulatory framework for ensuring the proper level of quality and competitiveness of domestic foodstuffs, food raw materials and related materials and protection of the domestic market from imports of foreign products that do not meet domestic standards;

c) development and implementation of national quality standards for basic agricultural products, foodstuffs and related materials in accordance with international requirements;

g) promoting the development of organic production of agricultural products through the introduction of a system of state incentives, financial support, the establishment of a national certification body and markets.

Article 5.3 Greening of rural areas

Greening of rural areas is ensured by:

a) compliance with environmental safety standards in the formation and placement of agricultural production;

b) rational use of natural resources on the basis of creation and introduction of the latest ecological technologies of agricultural production;

c) implementation of measures to prevent damage, pollution, depletion of natural resources, negative impact on the state of the environment;

d) the application of biological, chemical and other methods of improving the quality of natural resources, which ensure the protection of the environment and public health;

e) development of recreational and recreational land use;

f) preservation of the territories and objects of the nature reserve fund, as well as other territories subject to special protection.

Article 5.4 Principles of greening of agricultural production and rural territories
The basic principles of greening agricultural production and rural territories are: 
a) guaranteeing an environmentally safe environment for 
human life and health; 
b) priority of ecological safety requirements, obligatory 
observance of ecological standards and norms in carrying out agricultural activity; 
c) the precautionary nature of environmental measures; 
d) greening of agricultural production on the basis of complexity of decisions on environmental protection, use and reproduction of land and other natural resources, wide introduction of the latest techniques and technologies;
e) preservation of the integrity of natural objects and species diversity of flora and fauna; 
(g) the mandatory environmental assessment of agricultural products, soils and the environment; 
g) normalization of the impact of agricultural activity on the environment; 
h) compensation for damage caused by violation of the legislation on environmental protection; 
i) the combination of incentives and responsibilities in the field of environmental protection. 
Article 5.5 State Policy in the Field of Greening of Agricultural Production, Land Use and Protection, Preservation and Reproduction of Soil Fertility

State policy in the field of greening of agricultural production, protection of land, preservation and reproduction of soil fertility is aimed at:

a) development of national and regional programs for greening agricultural production, land use and protection, preservation, reproduction and increase of soil fertility. The programs are developed for a period of five years, defining the composition and volume of priority measures for the greening of agricultural production, protection of land, conservation, reproduction and increase of soil fertility, as well as the volumes and sources of resources for the implementation of works on their implementation. The implementation of national and regional programs shall be ensured by the executive authorities and local self-government bodies in accordance with the powers defined by the legislation;

b) improvement of the state complex system of observations, which provides topographic-geodetic, cartographic, soil, agrochemical, radiological and other surveys and exploration of the condition of lands and soils, their monitoring. Formation of national and regional databases on the quantitative and qualitative state of soils, ensuring the functioning of the information-analytical system to prevent negative processes and eliminate their consequences, planning soil protection and other measures;

c) exercising state control over the implementation of measures on land protection, conservation and restoration of soil fertility.

Article 5.6 Requirements to Agricultural Producers for the Greening of Agricultural Production, Land Use and Protection, Preservation and Restoration of Soil Fertility

Agricultural producers are obliged to:

a) comply with the requirements of land and environmental legislation;

b) to carry out measures for the protection of land, preservation, reproduction and increase of soil fertility, other beneficial properties of land, provided for by this Law and other normative legal acts of Ukraine.

c) promote the implementation of national and regional programs on the greening of agricultural production, land protection, conservation, reproduction and increase of soil fertility;

d) to take measures to prevent the negative and ecologically dangerous impact of economic activity on the ecological status of rural areas and to eliminate the consequences of this impact.

Article 5.7 Protection of Agricultural Lands

1. Protection of agricultural lands is provided by a set of measures for preserving and restoring the fertility of soils, increasing the environmental sustainability of agricultural land, as well as limiting their removal (purchase) for non-agricultural purposes.

2. Soil fertility changes are monitored on the basis of agrochemical examination in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

3. Protection of agricultural lands from erosion, villages, flooding and other types of degradation shall be carried out on the basis of implementation of measures provided by national and regional programs, in accordance with working projects of reclamation, protection of lands from erosion and other documentation on land management.

4. Legal principles of land protection shall be implemented in accordance with the Law of Ukraine “On Land Protection”.

Article 5.8 Use and protection of eroded and eroded lands

1. The use of eroded and erosion-hazardous land plots is allowed provided the measures for their anti-erosion and landslide protection provided by the legislation of Ukraine are taken.

2. Landowners and land users, including tenants, are obliged to undertake anti-erosion soil protection measures in order to prevent the deterioration of their qualitative status and the quality of the adjacent land plots and the environment as a whole.

Article 5.9 Use and Protection of Radioactively Contaminated Lands

Economic activities on lands that have been contaminated with radioactive contamination are conducted in compliance with the conditions of the special regime of their use.

In order to ensure the production of environmentally friendly products on lands contaminated with radionuclides, it is envisaged:

a) performing works on a set of anti-radiation organizational, agro-technical, agrochemical, zootechnical, agro-ameliorative measures aimed at reducing the level of radioactive contamination of agricultural products, preserving and reproducing soil fertility, improving the efficiency of agricultural production;

b) development of modern and improvement of existing technologies of agricultural production in the territories that have been exposed to radioactive contamination;

d) optimization of the system of radiological monitoring of agricultural land and products.

Article 5.10 Measures for the protection of land reclamation

Landowners and land users in carrying out reclamation works and operation of reclamation systems are obliged to take measures aimed at preventing flooding, swamping, salinization, soil contamination, wind and water erosion of reclaimed lands, their degradation, and deterioration of water.

Article 5.11 State control over land use and protection, conservation and reproduction of soil fertility and monitoring

1. State control over the use and protection of land, conservation and reproduction of soil fertility shall be carried out by the State Inspectorate for Control over the Use and Protection of Land and its territorial bodies.

2. State control over compliance with the requirements of the legislation on ecology and rational use of natural resources shall be exercised by the State Environmental Inspectorate and its territorial bodies.

3. Soil fertility changes are monitored on the basis of agrochemical examination in accordance with the procedure established by the Cabinet of Ministers of Ukraine. Soil monitoring in the system of the central executive authority on agrarian policy is carried out by the State Soil Fertility Protection Service and its territorial bodies. The data of agrochemical surveys are open and accessible to the citizens of Ukraine, scientific and research institutions, executive authorities and local self-government bodies and are submitted in accordance with their written requests within the deadline specified by law.

4. State control over land use and protection, compliance with the requirements of the legislation of Ukraine on land protection shall be exercised by:

a) carrying out checks on the implementation of national and regional programs for the protection of land, conservation and restoration of soil fertility and targeted use of funds aimed at their implementation;

b) participation in the work of commissions during the commissioning of amelioration systems and reclaimed lands, protective forest plantations, anti-erosion hydrotechnical structures and other objects that are constructed with the purpose of preserving, restoring and increasing the fertility of soils and ensuring the protection of lands;

c) soil monitoring and agrochemical certification of agricultural lands.

5. The legal principles of state control over land protection shall be implemented in accordance with the Law of Ukraine “On Land Protection”.

Article 5.12 Scientific support of land use and protection, conservation, reproduction and increase of soil fertility

In order to ensure scientifically sound land use and protection, conservation, reproduction and increase of soil fertility, improvement of the ecological status of agricultural lands, appropriate scientific researches are carried out according to the programs approved in accordance with the established procedure by a specially authorized central body of executive power, with the participation of the National Academy of Sciences of Ukraine. central executive bodies within the powers specified by law. 
Article 5.13 Environmental protection in the application of plant protection products, mineral fertilizers, petroleum and petroleum products, toxic chemicals and other preparations
1. Enterprises and citizens engaged in agriculture are obliged to observe the rules of transportation, storage and use of plant protection products, their growth promoters, mineral fertilizers, petroleum and petroleum products, toxic chemicals and other preparations, in order to prevent contamination by them or their constituents of the environment and food. 
2. The list of pesticides and agrochemicals authorized for use in Ukraine, the regulations for their application, as well as the annual amendments thereto, shall be determined in accordance with the procedure established by law. 
Article 5.14 Requirements for Agricultural Producers for the Management of Dangerous Substances

Agricultural producers who own or use at least one hazardous substance handling facility are obliged to:

a) ensure the prevention of environmental pollution, and in the event of such pollution, eliminate pollution and its effects on the environment and human health;

b) take measures to prevent the release of hazardous substances into the environment and human body;

c) to report on the release of hazardous substances into the environment and on the measures taken to eliminate its consequences, local executive authorities, local self-government bodies and the population;

d) to ensure the operation of these facilities and the transportation of dangerous substances in compliance with the requirements of environmental legislation;

e) to identify the objects of handling of dangerous substances and the substances themselves, as well as to provide information about such objects and substances stored in them in accordance with the Law of Ukraine “On objects of high risk”.

Placement of hazardous substances is only permitted in specially equipped areas.

Article 5.15 Protection of the environment from uncontrolled and harmful biological effects

1. Agricultural producers are obliged to ensure environmentally safe production, storage, transportation, use, destruction, disposal and disposal of microorganisms, other biologically active substances and products of biotechnology, as well as the introduction, acclimatization and re-optimization of animals and plants, prevention and elimination of the consequences of the harmful effects of biological factors on the environment and human health.

2. The production and use of new strains of microorganisms and 
other biologically active substances, as well as genetically modified organisms, products obtained using genetically modified organisms, shall be carried out only after comprehensive studies of their impact on human health and the environment with the permission of a specially authorized person. the central body of executive power on health issues and the specially authorized central body of executive power on environment and natural re ursiv.

Article 5.16 Protection of the environment from pollution

1. Agricultural producers must take effective measures to reduce the generation of waste and to dispose of it, dispose of it or dispose of it safely.

2. Disposal of waste is permitted only with special permission in the territories designated by local councils within the limits set with the sanitary and ecological standards in a way that allows their further use as secondary raw materials and safety for the environment and human health.

3. Specially authorized central executive authority on agrarian policy, State Veterinary Medicine Service of Ukraine, their bodies on the ground are provided by authorized executive authorities, local self-government bodies, enterprises, institutions, organizations, citizens and their association with information on location of animal waste management, epizootic, epidemiological and ecological status of the territory and their impact on the environment and human health.

Article 5.17 Provision of veterinary and phytosanitary safety

1. The provision of veterinary and phytosanitary safety shall be carried out in accordance with the legislation of Ukraine.

2. In order to match the quality and safety of agricultural products to the international requirements of the State, the following measures shall be taken:

– carrying out veterinary and phytosanitary control in accordance with the legislation of Ukraine;

– prevention, diagnosis and elimination of animal diseases according to the list approved by the Cabinet of Ministers of Ukraine upon submission of the authorized body in the field of agro-industrial complex;

– organization of state points of artificial insemination of animals, stocking of livestock products and raw materials, sites for slaughtering farm animals, cattle slaughterhouses, special stores (burial grounds) of pesticides, poisonous chemicals and containers from under them;

– veterinary measures aimed at the protection of the territory of Ukraine and prevention of the spread of diseases common to animals and humans;

– phytosanitary measures aimed at preventing the spread of harmful and especially dangerous organisms, protection of the territory of Ukraine from quarantine objects, as well as the identification, localization and elimination of the centers of their distribution.

Article 5.18 Control and supervision in the field of waste and hazardous substances management

1. Agricultural producers shall carry out primary production controls in the field of waste and hazardous substances management.

2. State control and supervision in the field of waste management of animal origin shall be exercised by the State Veterinary Medicine Service of Ukraine, other specially authorized bodies of executive power in the field of waste management.

3. The observance of the laws in the field of waste and hazardous substances management shall be exercised by the Prosecutor General of Ukraine and his subordinate bodies within the powers provided for by law.

4. State control in the sphere of waste and hazardous materials management shall be exercised by specially authorized central executive bodies on environmental protection, on health issues and other specially authorized executive bodies.

Article 5.19 Responsibility for Violations of Environmental Law and Land Law of Ukraine

1. Legal and natural persons guilty of violation of environmental legislation and land legislation of Ukraine shall bear civil, administrative or criminal liability in accordance with the legislation of Ukraine.

2. The application of disciplinary, civil, administrative or criminal penalties shall not release the perpetrators from compensation for damage to land and the environment.

3. Damage caused as a result of violation of the legislation of Ukraine on environmental protection shall be fully compensated.

Section VI

PROPERTY RELATIONS IN AGRICULTURE AND FORMATION OF FIXED PRODUCTS

Article 6.1 Property relations in agriculture

1) Property relations are social relations that arise as a result of ownership, use, disposal and management of property at the state, regional, economic and intra-economic levels.

2) Property relations are regulated by the Constitution of Ukraine, the Economic Code of Ukraine, other legislative and regulatory acts.

3) The basis of the legal regime of property of the economic entities on which the economic activity is based are the property rights, economic management, operational management and use.

4) Business activities are carried out on the basis of the rights of ownership of the disposal and use provided by the Civil Code of Ukraine.

5) The state ensures protection of property rights of all economic entities.

Article 6.2 Formation of Logistics Base

1) Rationally formed basic production facilities, their optimal ratio ensure the relationship of production volumes with the resources of enterprises, taking into account specialization, economic conditions for the development of all types of agricultural formations.

2) The formation and reproduction of the material and technical base is determined by the investment, depreciation, credit and technical policy of the state.

3) Development of agricultural producers’ material and technical base, in particular fixed assets, is a priority task of agricultural policy and a priority direction of state support.

Article 6.3 Restoration of material and technical base and depreciation of fixed assets

1) State support for expanded reproduction of the material and technical base is aimed at balancing the equivalence of interbranch exchange, taking into account the priority directions of development of individual industries.

2) Fundamentality of agricultural products for justification of the equivalent price is determined on the basis of scientifically substantiated technological need of certain types of fixed assets for agricultural production.

3) Simple reproduction of fixed assets is ensured by the depreciation policy, which is aimed at their accelerated updating.

4) Depreciation is carried out in accordance with the rules and methods that ensure the timely reproduction of fixed assets during their use.

5) Costs in the amount of accrued depreciation are the property of agricultural producers and are not deductible or taxable.

6) The state shall encourage the accrual and use of depreciation fund funds for the purpose of purchase of agricultural machinery, construction of livestock and other premises, formation of the main herd, development of viticulture, horticulture, etc.

Article 6.4 Valuation and revaluation of fixed assets

1) There are two types of valuation for accounting for fixed assets – accounting and expert.

2) The accounting valuation procedure is governed by the Accounting Regulations (Standards).

3) The peer review procedure is governed by national assessment standards. It is used to determine the market value in transactions of sale, lease, privatization and others.

4) 3, in order to ensure that the amounts of depreciation and amortization charges for the acquisition of similar objects, revaluation of fixed assets is carried out by annual indexation of their value for the previous period using official price indices for the relevant types of logistical resources used in agriculture for the current period. and during the All-Ukrainian Agricultural Census. Undertakings may independently reassess property, plant and equipment based on the results of the peer review and in accordance with the Accounting Standards (Standards).

Article 6.5 Technical and technological equipment of agriculture

1) Technical and technological equipment of agriculture is carried out in accordance with the current laws and on the basis of the state target program for the implementation of technical policy and the state target program for the development of domestic agricultural machinery for the agro-industrial complex, which are developed once every three to five years, and if necessary adjusted annually.

2) Priority of the technological and technological equipment of agricultural production, the capital intensity of which is objectively higher than other sectors of the economy, is provided by investments in fixed assets at a level proactively higher than the share of agriculture in the gross value added of the country. Appropriate materials and calculations are developed by the authorized executive body for agricultural policy and food and approved by the government together with the state budget indicators. Failure to comply with them entails administrative liability.

3) The main financial sources of technical and technological equipment are depreciation, profit, loan funds, financial resources provided in the State and local budgets and other funds. Reproduction through profit is achieved by balancing the equivalence of inter-sectoral economic relations.

Article 6.6 Engineering and technical support of agriculture

1) The system of engineering and technical support of agriculture is a set of subjects of legal relations, principles, forms, methods, organizational and economic levers aimed at creating, testing, certification, production, sale, use and maintenance of agricultural machinery.

2) The legal, organizational and economic principles of the formation and operation of the system of engineering and technical support shall be regulated by the relevant laws.

3) Subjects of engineering and technical support of agriculture are technical and technological scientific research, experimental design and machine testing institutions, factories of tractor and agricultural engineering, agro-service enterprises and cooperatives, specialized organizations for trade in equipment, leasing companies, information and consultative companies , agricultural producers and their engineering units.

4) The main tasks of the system of engineering and technical support of the agroindustrial complex are: ensuring the needs of agricultural production by technical means; implementation of the state technical policy in the agro-industrial complex, promoting the development of domestic agricultural machinery; formation and development of the market of technical means, including secondary, expansion of the network of service enterprises; providing agricultural producers with reliable information on the consumer properties of machinery and equipment, their availability, cost and more.

Article 6.7 Market of agricultural machinery and technical service

1) The economic activity of enterprises, organizations, institutions of different ownership forms for the creation, development, testing, certification, production, sale, use and maintenance of technical means for the agro-industrial complex is based on the principles of market economy.

2) The authorized body of the executive power on agrarian policy and food develops and implements measures for creation of an effective branched network of market structures.

3) Filling the market with technical means of domestic production is carried out on the basis of its modernization through institutional and structural restructuring, cooperation, formation of national and international industrial-financial groups, corporations uniting the enterprises-flagships that design, create and produce modern energy facilities and capable of influencing other structures (enterprises), with a view to concentrating their financial resources, pursuing a single technical policy, ensuring the production of appropriate agricultural products machinery and equipment.

Article 6.8 Provision of agriculture with fuel and energy resources

1) Authorized bodies of executive power contribute to providing fuel and energy resources on the basis of agricultural producers to meet their needs, energy and environmental security, and development of self-sufficiency of the agricultural sector of the economy.

2) Price stabilization and provision of agricultural commodity producers with fuel and energy resources shall be carried out by authorized executive bodies in accordance with the principles of market economy.

3) Authorized executive bodies coordinate research, development and implementation of the latest technologies, biological fuels and new alternative energy sources.

Article 6.9 Transportation and Logistics Activities

1) Transport-logistic activities are coordinated by a logistic center, subordinated to the authorized body of executive power on agrarian policy.

2) Agricultural resource supply, production and marketing of agricultural products is ensured by the functioning of transport and logistics systems that synthesize the supply, production, transportation, warehousing, distribution and provide timely, high quality with minimal costs of implementation of these processes.

3) Transportation and logistics activities are directed to modern integrated logistics technologies and development of agrarian production technical base.

4) Transportation of agriculture is carried out in accordance with logistical technologies of material flow management in the process of delivery of goods to the consumer.

Section VII

CREATION OF A FAVORABLE ECONOMIC ENVIRONMENT

FOR AGRICULTURAL DEVELOPMENT

Article 7.1 Creating a level playing field in agriculture

1. The state creates the necessary economic conditions to ensure the expanded reproduction of production in the branches of agriculture.

2. The state shall ensure the creation of equal economic conditions for economic agents in the economy of the country.

Article 7.2 Introduction and application of the rate of return indicator

1. In order to ensure equal economic conditions of expanded production reproduction in the country’s economy sectors, a rate of return is introduced as a ratio of profit to average annual advanced capital, taking into account the value of land in agriculture as the main and special means of production.

2. To prevent unreasonably high prices for products and services in the process of free pricing, account is taken of the standard cost of a unit of production and the normative rate of return, taking into account the period of turnover of capital.

3. As a criterion for assessing the economic efficiency of agricultural enterprises, the rate of return is used in practice, pricing, lending, taxation, determining the size of state support for industries.

4. The normative level of the rate of profit is set by the Cabinet of Ministers of Ukraine for 2 – 3 years.

Article 7 . 3. Agriculture Support Fund

1. The Agricultural Support Fund, as a sector with a slow capital turnover, is formed within the special fund of the state budget at the expense of:

a) in the budget of the country at the expense of the proceeds from the taxation of excess profits (received in excess of the rate of profit established in the country ) of enterprises of different industries;

b) due to temporary deductions from the volume of sales of products, works and services from all economic entities. The amount and the procedure of deduction shall be established by a decree ofnormative-legal acts of the Cabinet of Ministers of Ukraine;

2. The Agricultural Sector Support Fund shall be used to support the prices of sales of goods and support the income of economic entities, in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Article 7.4 Measures to balance the economic and social conditions of rural development

The state is implementing a system of measures to balance the socio-economic conditions in rural areas, which are in unequal production and natural and climatic conditions.

The Cabinet of Ministers of Ukraine defines rural areas with a low basic level of rural economy and social development. Investments in these areas are attracted under preferential conditions in accordance with the legislation of Ukraine.

The procedure for equalization of economic conditions is determined by the Cabinet of Ministers.

Article 7.5 Objectives and Principles of State Regulation of Agriculture and Rural Development

1. The goals of state regulation of development of agro-industrial complex and rural territories are:

a) ensuring sustainable economic and social development of agriculture;

b) creating economic conditions for the production of competitive agricultural products and products of their processing;

c) development of social and engineering infrastructure of rural territories and provision of favorable living conditions for rural population;

2. The state regulation of the development of agriculture and rural territories shall be carried out in accordance with the following principles:

a) the priority of agricultural developmentґ and rural areas;

b) compliance of sanitary and phytosanitary norms with the requirements of international agreements;

c) transparency of measures taken by the state;

d) targeting of state support;

e) development of competitive advantages of domestic agricultural production;

f) protection of the internal market from unfair competition;

g) environmental safety of residents’ dwellings in rural settlements;

h) interaction with public associations, associations (unions) of entrepreneurs;

i) effectiveness of state regulation measures;

j) ensuring veterinary and phytosanitary safety;

j) application of measures of tax, budgetary, customs-tariff, technical regulation and other measures in accordance with the legislative acts of Ukraine.

3. Measures for state regulation of agricultural production and rural territories established by paragraph 2 of this Article shall be financed in the directions provided in accordance with:

a) legislative acts of Ukraine;

b) national and regional programs and action plans for their implementation, approved by the Cabinet of Ministers and local executive authorities.

4. The annual amounts of financing for these measures shall be established by the law on the state budget and decisions of the executive authorities on local budgets for the respective financial year.

State priorities are implemented in accordance with the State Program for Agricultural Development:

a) stimulating investment in the agricultural sector;

b) conducting irrigation and irrigation works on the basis of national and regional programs;

c) creation of a production base of agricultural machines and other material means;

d) allocation of public funds for quarantine and curative measures against infectious diseases and pests in agriculture, training and scientific support, creation of industrial and social infrastructure;

e) ensuring proportionality between the prices for the most important types of agricultural products and the material and technical means used in their production – machines, mechanisms, fuel and lubricants, mineral fertilizers, poison chemicals (a list of agricultural products and material means is established by the Cabinet of Ministers;

e) the application of differentiated credit and taxation.

Section VIII.

FINANCIAL AND CREDIT SECURITY

AGRICULTURAL DEVELOPMENT

Article 8.1. State financial support for agriculture

The purpose of state financial support for agriculture is to create favorable economic conditions for agricultural production.

State financial support for agricultural producers is carried out in the following areas:

– budget financing (through payment of grants and subsidies from state and local budgets),

– preferential taxation (by introducing special tax regimes);

– credit security (through the creation of adequate infrastructure for the development of credit cooperation, the introduction of new lending mechanisms, the creation of guarantee funds, etc.),

– support for the development of agricultural insurance (to ensure the stability of producers’ incomes).

State financial support is provided to economic entities in accordance with the procedure and under the conditions specified by the relevant legislation.

Article 8.2 Budget financing

Budget support is provided to economic entities in the manner and under the terms of approved budget programs aimed at achieving a specific goal, objectives and expected result at the expense of state and local budgets.

The priorities of the budgetary policy are:

– stimulation of innovative development of the industry;

– creation of conditions for high-tech competitive commodity production;

– support for the development of a credit system for agricultural producers;

– ensuring the financial participation of the state in insurance programs and guaranteeing a stable level of income of the producers of the industry;

– Assistance in structural restructuring of agricultural production through state investment of restructuring of production activity of enterprises.

The budget support mechanism provides for:

– Forming a transparent system of criteria for allocation of budget funds and ensuring their concentration on key directions of development of the agricultural sector;

– introduction of a budget financing procedure only on the condition of share participation of producers in budget-financed programs, ensuring their equal access to public funds and strengthening the system of control and financial responsibility for their effective use;

– Improving the efficiency of state budget expenditures to support the agrarian sector of the economy by introducing a program-targeted method of using budget funds;

– conducting constant monitoring of the implementation of budget programs, which results in the abolition of inefficient programs and the allocation of financial resources for the implementation of programs that meet the objectives of state support.

Article 8.3. State financial support at the expense of preferential taxation
In the field of taxation, it is possible to exercise the regulatory influence of the state on the activities of agricultural market entities. 
For agricultural producers, it is envisaged to apply special tax regimes, mechanisms and instruments of taxation, aimed at taking into account the specificity of activity in the industry, its importance for the national economy, as well as to ensure favorable conditions of management in order to increase the volume of agricultural production and social activity of economic entities in rural areas. of the agricultural market. 
State financial support through preferential taxation provides for:
– ensuring equal tax conditions in the field of agricultural production, introducing a differentiated taxation procedure for different categories of producers;

– the application of a special procedure for direct taxation of agricultural producers of small organizational forms, which would provide for the maximum simplification of tax relations;

– application of special tax regimes for payment of compulsory payments by peasant farms; 
– reforming the system of compulsory land payments in order to increase their impact on the economic turnover of agricultural land; 
– the application of special regimes for value added tax aimed at increasing the level of profitability of agricultural production. 
Specific forms and instruments of taxation of agricultural producers are determined by tax law.
 

Article 8.4. Credit security

Ensuring the proper access of agricultural producers to the credit market is ensured through the creation of a specialized agricultural bank, the formation and maintenance of a credit cooperative system, the creation of appropriate conditions for the development of mortgage lending, the formation of necessary institutions of credit market infrastructure. 
The development of the credit system of agricultural producers is carried out in the following areas: 
– formation of a proper credit infrastructure; 
– promoting the formation of a cooperative credit system aimed at serving small and medium-sized businesses in rural areas; 
– stimulating the development of credit unions and their associations in the countryside;
– improvement of mechanisms of lending to agrarian market entities, in particular, the introduction of mortgage transactions using specific types of securities; 
– Improvement of the mechanism of state support by applying the mechanism of cheaper interest rates for the use of loans; 
– promoting the development of a credit network for the sale of agricultural products under forward and futures contracts; 
– formation of a system of registration of debt and mortgages, implementation of measures for development of the market of debt and mortgage, financial derivatives.
– ensuring the functioning of a reliable system of guaranteeing the repayment of credits through the use of a mechanism of compensation for losses due to the formation of insurance reserves (guarantee funds), as well as the application of programs of state support for the profitability of agricultural production. 
– introducing new lending mechanisms through the use of financial instruments (in particular, securing future crops and securing agricultural lands and rights to use them;

Article 8.5. Support for agricultural insurance development

State financial support for agricultural insurance is aimed at stabilizing the incomes of agrarian market entities and is carried out by reducing the cost of insurance premiums actually paid by producers (insurers) at the expense of the State budget, according to approved insurance programs depending on the country of priority other agricultural products.

State-supported agricultural insurance is subject to the risk of loss (loss) or partial loss of agricultural products, including crop yields and perennial crops, as a result of natural hazards to agricultural production.

The procedure and conditions for providing financial support for agricultural development shall be established by the Cabinet of Ministers of Ukraine.

Section IX

AGRICULTURAL AND FOOD PRODUCTS MARKET DEVELOPMENT

Article 9.1 Functions and Basic Principles of Organizing the Market for Agricultural Products and Food

1. The functions of the market for agricultural products and foodstuffs are socially significant goals, which they must achieve, and tasks that are solved with its participation. The main features will be the following:

Social – providing the population of the country with food at the level of scientifically grounded standards of food and at affordable prices, as well as goods produced from agricultural raw materials.

Pricing – the identification of market prices for agricultural products and products of their processing as a result of open public interaction of market relations actors in terms of supply and demand. Market prices – the main characteristic of the state of the market environment, according to which the subjects of market relations determine the strategy and tactics of their economic actions.

Incentive – means the objective need to use the market instruments (supply, demand, prices) to satisfy the economic interests of entrepreneurs with profits, and employees – with wages.

Selective – selection of the most effective competitive operators of the agrarian market from the supply side and creating prerequisites for them to expand their activity.

2. The basic principles of organization (formation) of the market of agricultural products and food are:

– product structuring of the market as a macroeconomic object of organization and management;

– product-centralist principles of market organization and management;

– diverse association of market operators;

– use of vertical (agro-trade) integration as a through universal lever of organization and management of the market;

– the priority of self-organization and self-management of market operators in determining its organizational and management mechanisms;

– wide price range and bilateral nature of state regulation of the market.

Article 9.2 Components of the Organization and Management of the Agricultural and Food Products Market

1. The organization and management of the market for agricultural products and foodstuffs shall be carried out through the product markets and shall include:

– creation of establishments of personalization (personalization) of product markets;

– establishment of market pricing infrastructure enterprises;

– state regulation of the market.

Article 9.3 System of establishments of personification of product markets

1. The system of institutions for the personalization of product markets includes:

– food industry (professional) associations of producers of agricultural raw materials;

– product branch (professional) associations of owners (tenants) of processing enterprises;

– Intersectoral (interprofessional) associations of producers of raw materials, owners (tenants) of processing, trading enterprises, representatives of consumers and the state.

Article 9.4 Infrastructure of the Agricultural and Food Products Market

1. The basic functions of the infrastructure of the agricultural and food market are:

– assistance to the subjects of the commodity market in realization of their economic interests;

– organizational design of commercial and business relations of business partners;

– providing legal, financial, insurance services;

– study of market conditions, goods, competitors, intermediaries, consumers;

– actual trading or other commercial and economic activity;

– mediation in the sale of goods, the establishment of commercial and economic relations;

– provision of relevant services to the subjects of the commodity market;

– use of transport, communication facilities, storage facilities, fuel and energy complex

2. Elements of commodity market infrastructure include a wide range of diverse organizations and systems representing different sectors of the country’s economy including:

2.1. Trade enterprises and organizations – determine supply and demand, set prices for goods and services, track structural changes in production and circulation. Trade enterprises and organizations include:

2.1.1. Wholesale trade enterprises (commodity exchanges, wholesale markets);

– Commodity Exchanges of Ukraine provide services in the organization of trading of exchange commodities in the domestic and foreign markets. Trading is carried out on exchange contracts as real goods (spot, forward), and goods with deferred delivery time (futures, option). In the organization of trade commodity exchanges can use electronic exchange auctions, be united in the Unified Exchange System of Ukraine and integrated into the Unified World Exchange System.

– Wholesale markets for agricultural products provide services in the organization of trade in agricultural products for the needs of the domestic and foreign markets, ensure the ordering of supply and demand of agricultural products, carry out quality control, form an adequate price, which should serve as a guide for other market actors. They are organized in each region and the Autonomous Republic of Crimea.

2.1.2. Retailers (urban and rural markets, retail stores, branded agricultural and processing companies, catering);

2.1.3. Commissions trade enterprises;

2.1.4. Fairs

2.1.5. Auctions.

The specific composition of market pricing infrastructure enterprises for each product market is determined taking into account the marketing properties of the respective products. The wholesale trade is mainly oriented towards foreign economic orientation.

2.2. Commercial intermediaries play an active role in shaping and executing the movement of goods. The main commercial intermediary organizations include:

– dealer firms;

– distribution companies;

– agency firms;

– brokerage organizations;

– chambers of commerce and industry.

2.3. Service organizations. Their activity is aimed at rationalizing the movement of goods, improving the material and technical, engineering and technological base of the agrarian market, resource conservation, solving problems of management, planning and organization of commercial and economic activity of subjects of the agrarian market. The main service providers are:

– service cooperatives;

– leasing organizations;

– engineering firms;

– consulting (consulting) firms.

2.4. The information-analytical organizations provide the subjects of the commodity market with the necessary objective operative information for successful conducting of commercial and economic activity. Among the main information-analytical organizations are the following:

– State Statistics Committee;

– information-analytical centers of stock exchange, and wholesale markets;

– agrarian market monitoring center;

– marketing and information and commercial centers;

– exhibitions;

– Advertising organizations.

2.5. Financial organizations provide financial services for agricultural production, provide financial and settlement services in the sale of goods. These organizations include:

– banking system;

– credit unions;

– specialized financial institutions;

– clearing and settlement institutions;

– insurance organizations.

2.6. Controlling organizations exercise proper control over the functioning of the commodity market, warning against financial, legal, tax and other violations, the presence of low-quality, environmentally dangerous goods, unfair competition. The following organizations shall perform the functions of regulation and control of the commodity market:

– customs services;

– audit firms;

– Treasury;

– tax administration bodies;

– veterinary services;

– trade inspection bodies.

2.7. Legal organizations ensure equality for all participants of the agrarian market, freedom of choice, inviolability of property, the possibility of unimpeded exercise of civil rights and their protection, state regulation of economic relations. The following organizations provide legal support:

– law firms;

– notary offices;

– Bar;

– judiciary.

2.8. Personnel organizations are engaged in the preparation and implementation of tasks related to the personnel supply of commodity market entities. The main ones are:

– employment services;

– personnel services of enterprises, organizations;

– vocational training institutions;

– retraining and advanced training services.

2.9. Organizations of the transport and logistics system are an important link in the process of forming commercial and economic relations in the agrarian market and organization of movement of goods. The specificity of transport as a sphere of economy lies in the fact that it does not produce commodity products, but only participates in its creation, providing raw materials, materials, equipment and delivering commodity products to the consumer. Transportation costs are included in the cost of goods. The agrarian transport and logistics system allows:

– determine the specialization of vehicles;

– determine the specialization, concentration and routing of cargo transportation;

– solve the problem of transport service of the commodity market;

– to determine the current and prospective needs of the commoditymarket in the transportation of goods and passengers, to rationally distribute the transport between separate modes of transport;

– comprehensively develop all modes of transport and continuously improve them;

– identify and specify the scope of the most efficient use of each mode of transport;

– to expand and rationalize the transportation of goods in mixed traffic;

– to rationally place separate modes of transport on the territory of the country, based on the needs of developing internal and external commercial and economic relations.

Cargo transportation in the commodity market is carried out by different types of transport – rail, road, water, air, pipeline.

2.10. The communication system stores and transmits information from the source to the specific recipient. The following types of communication are presented in the organization of agricultural production and sale of products – postal, electric, radio and television, satellite.

2.11. Warehousing serves as an important link, providing a place of distribution, sorting, picking, storage and expedition of inventory. Warehousing as an element of commodity market infrastructure includes:

– warehouses (agricultural producers have the right to store manufactured products, both in certified warehouses and in non-certified, own warehouses and warehouses).

– equipment for placement of materials and products;

– hoisting machines and mechanisms;

2.12. The fuel and energy complex fully supports the operation of all elements of the agricultural market infrastructure. Its components are a commodity for both the domestic and foreign markets. The structure of the fuel and energy complex includes the following sub-complexes: oil; gaseous; coal; electric power.

Article 9.5 State regulation of the market for agricultural products and foodstuffs

1. Government institutions and enterprises shall be established to ensure the effective application of regulatory mechanisms in the agricultural and food markets in the following areas:

– Guaranteed provision of agricultural producers with production resources at a predefined list and stable prices;

– commodity and financial interventions in wholesale and retail units;

– credit and insurance support for agricultural producers;

– provision of the minimum necessary volume of production of the most important types of agricultural products and food by domestic producers;

– rational export-import regime.

2. New enterprises and institutions of state agrarian regulation shall be created in case the existing enterprises and establishments are not sufficient to provide regulatory influence on the market on the necessary scales.

3. The fulfillment of the functions of state regulation may partly be entrusted to institutions and enterprises of personification of the product markets.

4. State regulation of the market for agricultural products and foodstuffs in order to ensure food security and support of domestic agricultural producers shall be carried out by means of:

– commodity and financial interventions;

– methods of customs-tariff, non-tariff regulation in accordance with the legislation of Ukraine in order to protect the internal market.

– quotas

– mortgage operations

– government subsidies

– preferential lending

– preferential taxation

– the creation of conciliation commissions to regulate inter-sectoral and intra-industry economic relations, including prices and revenues, in the production process

– introduction of social programs, etc. 
5. The procedure and mechanisms for implementing state regulation of the agricultural market shall be determined by the Government of Ukraine. 
6. The list of objects of price regulation is determined and approved by the Government of Ukraine annually.

7. Measures to limit the import of agricultural products to the territory of Ukraine and the export of agricultural products from the territory of Ukraine shall be established by the Government of Ukraine on the basis of a proposal of a state executive body that performs the functions of regulation in the sphere of agro-industrial complex.

Article 9.6 Prices and Pricing for Agricultural Products

1. The price of agricultural products should provide a cost recovery and guarantee a profit based on the capital invested in production, depending on the term of its turnover, it will allow to improve both inter-branch economic relations in the country and intra-industry in agriculture in the direction of creating equal conditions formation of prices for all kinds of products, works and services, which are produced and provided by enterprises in different branches and spheres of economy of Ukraine;
2. The manufacturer’s price should be at the heart of the value, the monetary value of which is the buyer’s price. To compare the first price with the second one, it should be constantly monitored and use all the possibilities of balancing their levels – state and local budgets, profits of processing and trading enterprises, grants, loans, etc. Management of price processes should become a mandatory function of every specialist and manager at all levels of production management; the price algorithm should be the same for all types of resources.
3. In order to prevent the establishment of unreasonably high prices for products and services in the process of free pricing, it is necessary to take into account the normative cost of the unit of production and the normative rate of return, taking into account the period of turnover of capital;
4. If the market price cannot provide expanded reproduction of particular industries, then the state should apply mechanisms to support these industries.

Article 9.7 Monitoring and Information Support of the Agricultural Market

1. With the purpose of continuous operational monitoring of trends in the domestic and foreign markets of agricultural products, to determine the disproportion in inter-branch relations, to develop short-term forecasts, etc. the Center for Agrarian Market Monitoring is established.

2. To the information which is subject to obligatory placement and updating not less than once a quarter on the official site of the state body of executive power, which performs the functions of regulation in the sphere of agro-industrial complex, on the official websites of the authorized bodies of state power of Ukraine, on the Internet , related information:

– the decisions made by the executive body, which performs regulatory functions in the sphere of agro-industrial complex;

– on the publication by the state bodies of the executive power, bodies of the state power of Ukraine normative legal acts that establish the procedure for the implementation of state support for agricultural development;

– on the level of customs rates, volumes of tariff quotas and their application, volumes of import and export of basic agricultural products, raw materials and food;

– on the projected and actual indicators of production of basic agricultural products, raw materials and food (monthly reports on crops, on harvest, on livestock, on production of milk and other agricultural products);

– the average price for sold agricultural products, raw materials, food, and industrial products;

– on the state of the state intervention fund of agricultural products at the end of the year (annually) and on the results of the state procurement interventions, commodity interventions;

– the volume of stocks of agricultural products, raw materials and food at the end of the year (annually) throughout Ukraine;

– on conducting tenders for the supply of agricultural products, raw materials and food for state needs;

– about other information established by the state executive body, which performs regulatory functions in the sphere of agro-industrial complex.

1. 3. This information shall be provided free of charge. All interested parties are guaranteed equal conditions of access to it.

Section X

SOCIAL DEVELOPMENT OF RURAL AREAS

Article 10.1 Formation of the State Demographic Policy

It aims at preserving the peasantry as a native speaker of the Ukrainian language, identity, culture and spirituality of the nation.

Priority directions of demographic policy implementation: increase of birth rate of rural population, decrease of mortality and increase of life expectancy of rural population; improving working conditions, livelihoods and increasing living standards of peasants.

State regulation of demographic policy is ensured by: drafting and adopting legislative and regulatory acts on: enhancing childbearing activity of rural women; introduction of privileges at birth of 3 or more children; setting up a well-established network of paramedics and outpatient outpatient facilities in the countryside to provide primary care for women and childbirth and a newborn care center.

Article 10.2 Formation of social and engineering infrastructure of rural territories

It is implemented by approximating and equalizing working conditions and livelihoods of rural population to the level of social standards and norms.

It is ensured through the establishment of a proper rural network of educational, medical, cultural and leisure, physical and sports, communal, commercial and other forms of socially oriented service.

Improving the living conditions of the rural population is carried out through: maintaining the existing housing stock, its modernization, major repairs and improvement, promotion of various forms of housing construction, extension of rural youth programs, maintaining favorable conditions for the functioning of gas, water, heat and sewage networks them into communal property.

Control of drinking water quality from local sources is increasing.

Engineering of rural settlements is carried out on the basis of complex state, regional and local targeted programs of water, gas, electricity supply and development of the rural road network. The engineering networks and structures in rural areas will be serviced by specialized enterprises and organizations on a competitive basis under the control of local governments.

The improvement of the state of rural roads is carried out at the expense of state and regional rural development funds.

Article 10.3 State regulation of rural development

It is carried out at the expense of budget financing in accordance with the law of Ukraine “On the Priority of Social Development of the Village and Agro-Industrial Complex in the National Economy” and is determined according to the priorities of the data of certification of rural settlements through the development and implementation of Integrated state programs for social development of rural areas in accordance with social standards and standards. The volume of financing of measures from the state budget for the development of the social sphere of the village and rural territories is established annually.

Article 10.4 Development and maintenance of social facilities in the countryside

It is subordinated to local state bodies and local self-government bodies and is carried out at the expense of republican and local budgets according to targeted programs of social development of rural settlements and the fund of rural development. Development and maintenance funding are allocated annually.

Article 10.5 State Policy for Increasing the Employment, Remuneration and Income of Rural Population

It aims at maintaining and creating new jobs based on the intensification of agricultural production, balancing the demand and supply of labor in agricultural production and non-productive sphere in the countryside, securing youth, specialists and skilled workers for agriculture and rural development, creating conditions for agriculture and rural development. initiatives and entrepreneurship based on the development of small and medium-sized businesses, green tourism, the revival of folk crafts and and on this basis to provide employment, increase wages and incomes of the rural population.

For the first time, rural residents who are registered as entrepreneurs in rural areas are exempt from all types of taxation for a period of three years.

Entrepreneurs are compensated from the state and local budgets for the construction and purchase of production facilities and technological equipment in the amount specified by law.

Specialists and employees of the rural social sphere are set higher (by 10%) salary (tariff rates) compared to the wages in cities. Special programs for increasing employment in rural areas are introduced by increasing the state procurement of future specialists for the village by up to 50% and in the agricultural sector by up to 90%.

Article 10.6 Provision of social protection for agricultural workers and rural population

Implementation of systemic measures at the state level aims at a constant increase in the wages in the industry to a level not lower than the average for the economy and the increase of the aggregate income of rural families to 1.5-2 times the level of the subsistence level, providing compensation (subsidies) for reimbursement of the cost of housing, utilities, purchase of natural gas and solid fuels, use of transport, telephone, etc., introduction of preferential prices for the purchase of handicapped persons, veterans of labor, persons of retirement age and medicines reparations.

Rural pensions are provided in accordance with the pension legislation of Ukraine under the three-tier system: solidarity and cumulative mandatory state and voluntary pension insurance system.

During 2011–2012, compulsory health insurance for the population is introduced in rural areas, and compulsory state social insurance for workers from accidents, occupational diseases and rehabilitation of victims at work is introduced in the workplace.

Section XI . AGRICULTURAL MANAGEMENT

Article 11.1 Subject of agricultural management

The subject of agricultural management by spheres of influence is:

– in the production sphere: agricultural production, forestry, aquaculture and aquaculture, ecological agriculture and crafts;

– in the market sphere: land, agricultural, forest and fishery and processing products; agro-production services, resource material, technical and financial-credit support of agriculture;

– in the field of innovative development of agriculture: scientific and technical, technological, personnel, information-consulting, investment support, international relations;

– in the socio-economic sphere: rural households, their incomes, expenditures, rural labor resources, agricultural employment;

– in the field of nature protection: land, its fertility and use, reservoirs, flora and fauna, ecology, agritourism.

Article 11.2 Objects of Management in Agriculture.

The objects of management in agriculture are:

– agricultural, as well as their associations;

– organization of agro-technical services, insurance, financial-credit services, innovations, information-consulting (advisory) services;

– research, educational and other institutions and institutions of agricultural profile;

– environmental, veterinary institutions, etc.

Article 11.3 Main Purpose and Purposes of Management

Creation of conditions and realization of such interconnected strategic goals of agriculture development:

– food security of the state;

– profitability of management facilities;

– raising the standard of living of the rural population;

– socio-economic development of rural areas;

– ecology and safety of the environment and food.

Article 11.4 Subjects of economic and intergovernmental management in agriculture

The subjects of agricultural management are the bodies of management, which are divided by the political and political levels into bodies of entrepreneurial management, local self-government, public self-government and state administrative institutions.

The order of delegation of powers by agricultural enterprises and enterprises to manage production, marketing, financial, investment etc. activities of cooperative, associative, cluster, corporate and (or) other integrated territorial-production and (or) sectoral (agro-industrial) norms of the Commercial Code and other laws of Ukraine.

Article 11.5 Subjects of Public Management of Agricultural Development

Public administration entities can be created in the form of:

– public sectoral, agro-productive and professional (professional) self-regulatory associations that are formed to manage joint production, marketing, financial and investment activities of participants, protect their interests and establish a private-public partnership. The activities of these associations are governed by the Civil Code, the Law of Ukraine “On Public Associations”, other laws of Ukraine of direct effect and constituent (statutory) documents;

– bodies of local (settlement, rural, district, regional) self-government for managing the socio-economic development of rural communities and territories. The activity of local self-government bodies is regulated by the Law of Ukraine “On Local Self-Government” and other Laws of Ukraine.

Article 11.6 Subjects of Public Administration of Agricultural Development

The state management of agriculture is carried out by the Cabinet of Ministers of Ukraine, the central executive authority on agrarian policy and food, specialized units for managing the development of agro-industrial production and rural territories of regional and district state administrations.

Article 11.7 Principles of the separation of functions and powers (competences) between socio-political levels of government

The division of powers and responsibilities between the socio-political levels of agricultural management is carried out on the following principles (principles):

– activity of bodies of state, inter-economic and public administration ensures the fulfillment of political, organizational-economic and control-inspection (supervisory) functions;

– the central executive body on agrarian policy and food is the leading link of the system of administrative institutions, perform management functions acting under the public supervision of state and mixed agencies and institutions, intergovernmental and public associations, bodies of local self-government, etc. to which the government functions ;

– bodies of entrepreneurial (economic and inter-economic) management are created by entrepreneurs in rural areas on the basis of full economic independence in accordance with the laws of Ukraine;

– local self-government bodies ensure the efficient use of land, natural, climatic, resource and spatial advantages of rural territories, using the possibilities of local budgets and transfers from regional and state budgets in compliance with the principle of “village development for the sake of its inhabitants”;

– bodies of regional (district and regional) management of the development of agro-industrial production and rural territories perform organizational-economic and support functions for the development of strategies and implementation of programs and projects for the development of agro-industrial production and rural territories, as well as control and inspection functions in terms of ensuring the agro-food independence of the territories;

– bodies of state administration of agriculture perform political functions to create favorable for the complex development of agro-industrial production and rural territories of the legislative field, economic functions to develop and implement targeted programs of state support for the development of agro-industrial production and rural territories, regulation of the internal agrarian market, the development of foreign markets of domestic agricultural products, providing functions for innovative development of agro-industries production and rural areas, control and inspection functions in terms of ensuring the agro-food independence of the state;

– public authorities carry out political functions concerning lobbying of their members’ interests before local self-government bodies, regional and state administration, economic functions for coordinating the coordination of socially necessary costs, prices and incomes of agricultural market operators at all stages of agricultural production from producer to end-user, support functions for the organization of information and consulting support for the activities of their members, control and inspection yni functions Regulatory entities agri-food market, local government bodies of economic, regional and public administration;

Article 11.8 Powers (Competencies) of State Executive Bodies on Agrarian Policy

1. For the country’s food security, integrated development of rural and rural areas, systematic measures for the implementation of state agrarian policy, including:

– guaranteeing the food security of the state;

– transformation of the agrarian sector into a highly efficient, competitive in the domestic and foreign markets sector of the state economy;

– preservation of the peasantry as a carrier of Ukrainian identity, culture and spirituality of the nation;

– integrated development of rural areas and solving social problems of the village.

2. The system of state executive bodies on agrarian policy

Includes:

– the central executive body on agrarian policy;

– agricultural management bodies of regional state administrations;

– agricultural management bodies of district state administrations;

3. The activities of the Central Executive Body on Agrarian Policy are aimed at :

– development and implementation of state target, sectoral and other agro-industrial development programs and rural areas;

– adherence to agrarian priorities in the formulation and implementation of economic, social and environmental policies of the state;

formation and implementation support:

– state agricultural policy aimed at ensuring the food security of the state, the development of agricultural advisory activities;

– state policy in the fields of veterinary medicine, food and feed safety, quarantine and plant protection, protection of plant variety rights; on land relations, quality and safety of products, seeds and planting material, biological safety, soil fertility.

4. The activities of the agricultural management bodies of regional state administrations areaimed at :

– ensuring the implementation of the state agricultural policy, development and implementation of regional programs and forecasts for the development of agro-industrial sectors;

– formulation and implementation of rural social policy, sustainable development of the regional agri-food market and rural territories of the region;

– organization of seed, variety testing and protection of plants, breeding business, scientific and human resources, standardization, quarantine, labor protection.

5. The agricultural management bodies of district state administrations are aimed at :

– realization of the state agrarian policy, analysis of tendencies and forecasting of the process of development of agro-industrial production and rural territories, preparation of the program of socio-economic development of the district;

– facilitating the organization of production and marketing of agricultural products, the development of market infrastructure, the monitoring of the agricultural food market;

– implementation of measures for the conservation, restoration and rational use of land and other natural resources, labor protection.

The functions, duties and rights of state executive bodies are specified in the regulations on state executive bodies, approved by the Cabinet of Ministers of Ukraine, and job descriptions of employees, taking into account the specificity of their activities.

Article 11.9 The powers (competencies) of bodies of economic and inter-economic management in agriculture are aimed at achieving the interconnected goals:

– ensuring profitable management and production of competitive products;

– implementation of innovative models of development of agricultural enterprises;

– raising the level of payment and social security for employees of enterprises;

– participation in socially significant development projects of rural territorial communities and rural territories.

1. Functions of economic management bodies:

– development and implementation of strategies, programs, projects and business plans for innovation-investment development of enterprises (farms) to ensure their competitiveness;

– planning and organization of marketing activities in accordance with the principle of “produce what can be sold”;

– planning and organization of operating activities in accordance with the principle of excess of income over costs;

– introduction of effective models of internal economic calculation, financial and management accounting and control;

– operative regulation of economic processes, intra-economic and inter-economic relations taking into account changes in the environment;

– introduction of effective systems of motivation of workers and collectives with the use of a complex of economic, social-psychological and administrative-administrative methods of stimulation of high-productivity work;

– compliance with standards and introduction of quality and safety management systems for agricultural production and production;

– highly professional performance of special functions of agricultural specialists, including through the introduction of technological and organizational-economic innovations;

– performing other functions that do not contradict the legislation of Ukraine.

The functions, responsibilities and rights of agricultural management bodies are specified in the Model Regulations on Management Bodies and Job Descriptions of Managers and Agricultural Specialists, which take into account the specific nature of their activities.

3. Activities of intergovernmental bodies:

In agriculture, inter-economic organizational and administrative structures can be formed in the form of self-governing economic associations of cooperative management and cluster regional cooperation in organizational and legal forms of societies, associations, consortia.

Voluntary, equal and not-for-profit economic associations of economic entities in the agri-food sector are created on the basis of territorial-production or agro-food characteristics.

The functions, duties and rights of self-governing economic associations are detailed in the Law of Ukraine of direct action and in the constituent (charter) documents.

Article 11.10 Powers (competences) of public self-government bodies in agriculture

1. The activities of public self-government organizations in the agri-food sector should aim at:

establishment of public-private partnership in the formulation and implementation of the state agricultural policy;

achieving sectoral interest parity and compromise in resolving cross-industry issues;

improving the quality of food products, economic and social responsibility of economic entities in the agricultural sector through consolidated establishment of rules and standards of their activity in the agricultural market;

ensuring transparency and openness of mechanisms of functioning and development of domestic agri-food markets;

the satisfaction and protection of legitimate social, economic, professional and other common interests of their participants, including the protection of the interests of domestic producers in the world food markets.

2. Achieving the stated goals of organization of public sector self-regulation in the agro-food sector shall be ensured by:

organization of open and transparent interaction between representatives of related industries;

ensuring representation and protection of interests of agro-food subjects in the formulation of the state agrarian policy;

development of measures for implementation of the state agrarian policy, through submission of proposals to state, sectoral, regional and other agro-industrial development programs;

ensuring the consolidated establishment of rules and standards of economic and professional activity of participants and mechanisms for monitoring their compliance;

collecting and disseminating public information on agri-food development;

ensuring the representation of interests of domestic economic entities in the agricultural sphere in the world markets and in relations with similar structures of other countries; and.

3. The system of public authorities includes:

– public organizations by types of activity and organizational and legal forms of management;

– professional public organizations on a professional basis;

– public agro-product self-regulatory associations;

– the highest agri-food council. 
a) Non-governmental organizations active in the field of agriculture and established on the basis of types of activity, organizational and legal forms of management and professions – established and functioning in accordance with the current legislation. 
b) public agro-food self-regulatory associations – non-business partnerships created to protect the economic interests of economic entities in inter-sectoral relations, relations with public authorities, local self-government and with international organizations.

The functions, duties and rights of public agro-food self-regulatory associations are detailed in the Laws of Ukraine and in the constituent (statutory) documents of these associations.

c) Higher agri Council – the supreme body coordinating public government in agri-food sector, which is created by the existing public ahroproduktovyh self-regulatory organizations and NGOs in the field of agriculture and government agriculture to align the interests of businesses and setting rules governing interbranch relations.

The functions, duties and rights of the Higher Agro-Food Council are detailed in the Laws of Ukraine.

Article 11.11 Fundamentals of Public-Private Partnership in Agricultural Development Management

Public-private partnerships in the field of agriculture and food are a system of relations between associations of business entities.

The state encourages the development of national self-regulating agro-food associations as institutions through which the activities are achieved:

– long-term agreements between the government and a representative total of domestic producers of the main types of agricultural products in terms of production volume and sales volume,

– sectoral price agreements between the Government, producers of agricultural raw materials and representatives of other branches of the product chain towards the end consumer in the internal market,

– opportunities for cooperation in promoting products to target overseas markets.

The mechanisms of public-private partnership implementation, including sectoral price agreements in the field of agriculture and food, are defined by the relevant Laws of Ukraine.

Article 11.12 Agricultural Advisory Activities

1. To assist in solving the problems of agricultural enterprise development, an agricultural advisory subsystem is formed in the agricultural management system.

2. From the audit of agricultural advisory services as defined in the Law of Ukraine “On Agricultural Advisory Activities”.

3 . Subjects of agricultural advisory. The agricultural advisory system is formed as a part of the following entities of advisory activity:

– the state system of agricultural advisory in the sphere of management of the central body of executive power on agrarian policy and food of Ukraine as a network of state institutions – the National Center of agricultural advisory service and regional advisory services with district departments;

– non-state agricultural advisory services – legal entities irrespective of the organizational and legal form, ownership, structural subdivisions of agricultural educational institutions, research institutions that are included in the Register of advisory services, and which carry out advisory activities on a non-profit basis;

– consulting firms and private consultants – legal and natural persons, registered in accordance with the law and providing commercial advisory services on an entrepreneurial basis.

4. Financing of agricultural advisory entities. Advisory activities in the provision of socially directed advisory services are carried out at the expense of state and local budgets, and in the provision of commercial services – at the expense of economic entities. Advisory activities may also be funded through grants, international technical assistance, international programs and projects, charitable contributions from individuals and legal entities, and other sources not prohibited by law.

Individuals and legal entities carrying out economic activities in rural areas, rural population, as well as local authorities and executive authorities have the right to receive socially directed advisory services. Volumes of socially directed advisory services provided at the expense of the State Budget of Ukraine and local budgets are determined by state and regional development programs. Local governments may identify additional socially-oriented advisory services provided at the expense of local budgets, in accordance with local socio-economic development programs.

The provision of socially-oriented advisory services, funded by the state budget and local budgets, by non-governmental agricultural advisory services, consulting firms and private consultants, is conducted on a competitive basis. Participation in the competition for the provision of socially-oriented advisory services may only be undertaken by the entities of advisory activity that are recognized as such in accordance with the Law of Ukraine “On Agricultural Advisory Activities”.

Article 11.13 Management of formation of qualitative personnel-managerial potential

Professional training of management personnel for agriculture is carried out by higher educational institutions of agricultural education at the expense of the state budget in volumes that meet the needs of enterprises and farms of agriculture.

The use of management personnel is organized by the owners of enterprises (farms) independently and is carried out on the terms of an employment contract (contract), which contains mutually agreed production and management obligations, working conditions and its remuneration, social security, etc. within the Ukrainian legislation.

Regional management of the formation of human resources and management potential is carried out through:

– introduction of a system of continuous education of management employees and specialists of management objects;

– periodic evaluation of the efficiency of utilization of personnel and managerial potential of management facilities with issuance of recommendations to the owner (s) on increasing its level;

– initiation of rehabilitation and / or bankruptcy procedures in cases of chronic loss of the enterprise to change its owner (s) and / or managers;

– legislative setting of restrictions on the level of education and terms of advanced training of management personnel.

Article 11.14 Control and inspection activities

At the enterprises of agriculture of all forms of ownership and management state and public control over the quality of agricultural products and raw materials is carried out in the process of its production, storage, processing and sale, including during export-import operations.

Monitoring of lands, forests and water bodies, their ecological status is ensured, control over compliance with the requirements of the legislation in the course of exploitation of nature conservation objects, conservation of rare and endangered species of plants and animals is maintained.

Organized implementation of measures to comply with environmental safety in the use of pesticides, agrochemicals, waste of own production, plant growth promoters.

The state policy on plant quarantine and varieties protection, veterinary medicine and veterinary control is carried out, protection of the territory of Ukraine against introduction of pathogens of plants and animals, pests and weeds, phytosanitary control is carried out.

The control over the observance of the enterprises and organizations of all forms of ownership of the requirements on labor protection, fire safety, supervision over the technical condition of machines and equipment is ensured.

In order to perform these functions, the State Inspectorates on the principle of “one-stop shop” must operate within the bodies of state and regional agricultural management. At the same time, the control and inspection functions of the state administration bodies in the agrarian sector are limited to exercising control on issues on which the security of the state depends, and regional (regional, regional) governing bodies exercise control on the issues on which the security of the territories depends.

The functions of state and regional authorities on inspection activities may be delegated to public self-regulating agro-food associations. State control bodies cooperate with the latter on the issues of safety legislation, application of standards, norms and regulations, development and implementation of nature protection, environmental programs, etc.

Section XI І

SCIENTIFIC SUPPLY AND TRAINING FOR AGRICULTURE

Article 12.1 Scientific support and training for agriculture

Scientific support of agricultural production is carried out in order to create an innovative model of the industry, competitive in the internal and external markets of innovative products, training of personnel and development of scientific research.

State support for scientific and human resources for agricultural development is carried out through the organization of:

– research and development work;

– Dissemination and introduction of scientific developments into production;

– coordination of the activities of agricultural science institutions with the needs of agricultural production;

– conservation and development of gene pool of plant varieties, breeds and species of farm animals, birds and fish;

– improvement of forms and methods of preparation and retraining, certification of personnel from priority directions of development of agrarian branch and agrarian science;

– formation of a machine-tractor park and updating of technological equipment for state organizations of education and science, which carry out training and carry out scientific researches in the field.

Article 12.2 Regulatory and methodological support for the development of agricultural production and rural areas

1. Normative and methodological support for the development of agricultural production and rural territories is carried out with the purpose of application of scientifically grounded agricultural technologies and technologies of agricultural production, increase of efficiency of agriculture, formation of infrastructure of its maintenance, production of competitive products, optimization of state support, increase of economic potential of production. environmental security and rural perspectives turn.

2. Regulatory and methodological support for the development of agriculture and rural territories shall be implemented through the development of standards, norms, instructions, methods, recommendations by the authorized state body.

Section XII І

INTERNATIONAL COOPERATION

Article 13.1 International cooperation in the field of agriculture and rural development.

International cooperation in the field of development of agro-industrial complex and rural territories is carried out on the basis of international agreements.

Article 13.2 International Treaties.

When concluding an international treaty of Ukraine, it must be ensured that the rules contained in the legislation of Ukraine are brought to the rules of the international treaty.

If the international treaty of Ukraine provides for rules other than those contained in the legislation of Ukraine, then the rules of the international treaty shall apply.

Article 13.3 State Policy in the Field of International Cooperation and Regulation of Foreign Economic Activity of Agricultural Entities of Ukraine.

The state policy in the sphere of international cooperation and regulation of foreign economic activity of the subjects of the agro-industrial complex of Ukraine is based on the fact that:

– the state recognizes the special role of agricultural production and, at the same time, as a sector of the economy that shapes the country’s food security, and as an industry that forms traditionally mono-dependent welfare of rural areas,

– the state recognizes the special export potential of Ukrainian agriculture, the continued ability of the industry to produce agricultural products of basic types in volumes substantially higher than the demand for biological demand or biological standards of the domestic market,

– after ensuring the stability of the internal market, raising the income from export activities of the subjects of the agro-industrial complex is the next priority of the state.

State policy in the sphere of international cooperation and regulation of foreign economic activity of the subjects of the agro-industrial complex of Ukraine is directed to:

– strengthening the position of Ukraine’s agro-industrial complex in world markets,

– increasing the efficiency of export activities, the related tax revenues and the welfare of rural areas,

– protection of the economic interests of Ukrainian agricultural producers in foreign markets.

Article 13.4 Right to participate in international activities and trade.

Any economic operator shall have a free right to international cooperation under customs tariff and non-tariff regulation in accordance with the current legislation of Ukraine, including the right to export and import agricultural products, foodstuffs and services necessary for their production.

Article 13.5 Foreign Economic Activity.

Any restriction on the fulfillment by the economic activity of Ukraine of its obligations under international agreements is unlawful, if such an agreement at the time of conclusion was in accordance with the current legislation of Ukraine and the Government of Ukraine does not apply during the implementation of special regimes of quantitative restrictions on exports or imports to protect the internal market.

Article 13.6 Right of Foreign Economic Operators to Compensate for Damages from the Introduction of Quantitative Restrictions on Exports to Protect the Internal Market.

Due to the unique feature of the functioning of the agricultural market, which is to delay the response from supply to changes in demand related to biological cycles of agricultural production, some entities of foreign economic activity have a special right to demand from the Government of Ukraine compensation for losses in the current marketing year to safeguard the domestic market of export quantitative restriction regimes where:

– at the time of concluding international agreements for the current marketing year, they were in compliance with the rules contained in the legislation of Ukraine,

– the subject of the international agreement on the Ukrainian side is the producer of agricultural products or his authorized agent in advance,

– internal market prices, which were established as a result of the introduction of restriction regimes, are substantially lower than the prices set by sectoral price agreements between the Government and national self-regulating agro-food associations.

Section XI V

FINAL PROVISIONS

1. This Law shall enter into force on the day of its publication.

2. Until the laws of Ukraine and other normative legal acts are brought into conformity with this Law, they shall be applied in the part that does not contradict this Law.

3. Within six months after the entry into force of this Law, the Cabinet of Ministers of Ukraine shall:

to submit to the Verkhovna Rada of Ukraine proposals for bringing the laws of Ukraine into line with the Law of Ukraine “On 
Agriculture”;

to ensure, in accordance with the competence, the adoption of 
normative legal acts provided for by this Law;

to bring its normative legal acts in compliance with this 
Law;

to ensure revision and repeal by their ministries and other 
central bodies of the executive power of Ukraine of their 
normative-legal acts contrary to this Law.

President of Ukraine.

President of Ukraine

Kyiv, _ __________ 2011 
№

VF Yanukovych