Social democrats consider that it is necessary to grant comprehensive support of the local producer of agricultural products, development of the national food market. This will help to limit inflow of those imported products that can be produced in the sufficient amount by our national agricultural sector. We are ready to participate in drafting the Law on security of food products in the state.
To become an effective producer of the agricultural products and provide employment and income from export operations, it is necessary that agricultural sector should undergo structural changes and change proprietary relations between the subjects of agricultural production. We support different forms of property and relevant types of business in the village. The state is to minimise its interference to the agricultural market and create favourable environment for development of their sound competition. Such measures as: cancelling state order, product crediting, barter operations, and liquidation of artificial administrative monopoly for allocating limited resources and marketing service - will endow agricultural economy with parity and equal conditions for competition. We support privatisation of the structures that store and process agricultural products, sell necessary for rural areas products: energy, mineral fertilisers, protective substances for the plants, forage - via the agrarian stock exchange and auctions concluding stock contracts for foodstuff trade-ins.
It is necessary to stimulate creating market infrastructure, servicing, material and technical provision, specialised banking institutions, namely those offering mortgages, seasonal and long-term loans for the villages.
At the same time in the transitional period, it is necessary to ensure real state support of reforms in the agrarian sector of economy. To achieve this the legislative base of reforming economic relations is to be enhanced, all the contradictions are to be eliminated. Tax and financial stimulation are to be provided to small agricultural businesses and farms. All above can be achieved through providing low-interest loans, tax privileges, setting the parity prices. It is reasonable to develop and introduce state programme of turning private subsidiary economies into productive family economies.
In the course of market reforms it is necessary to provide continuity of the agricultural production and avoid any kind of disorganisation, considering its economic appropriateness and social consequences. We consider that gradual introduction of land resources into economic use based on better investment possibilities, reforming of agrarian sector through attracting means of industrial and banking capital, investment, security and pension funds, turning people's savings into loan funds as well as attracting foreign investment are the conditions of successful implementation of land reform.
We understand that solvency of the population is a major resource of improving financial situation in agrarian sector. Transition of the agricultural economy to the intensive type of development, creating large specialised agricultural enterprises of industrial type is possible only if the national economy is strengthened, and income of the population increase.
Under current situation in Ukraine, when almost half of the population live and work in rural area, where labour cost is very low and peasants have no money to organise agriculture in an intensive manner; it is minor owners, who, provided they are supported by the state and apply new market mechanisms and conditions, will gradually accumulate property and land and will become effective owners.
Realising that economic development is targeted at innovative model, we consider that agricultural economy has potential for growth in the effective and balanced utilisation of the available resources.
Development of social assets, improving life conditions in the village, gradual levelling of the social standards for urban and rural population constitute considerable reserve for improving effectiveness of the agrarian sector.