DOI: https://doi.org/10.32515/2663-1636.2024.12(45).92-103

Updating the Concept of Development of EU Agricultural Enterprises by Environmental Strategies (German Experience)

Ruslana Zhovnovach, Oleksandr Shatalov, Viacheslav Riabka

About the Authors

Ruslana Zhovnovach, Professor, Doctor in Economics (Doctor of Economic Sciences), Head of the Department of Economic Theory, Marketing and Economic Cybernetics, of the Department of Economic Theory, Marketing and Economic Cybernetics, Central Ukrainian National Technical University, Kropyvnytskyi, Ukraine, ORCID: https://orcid.org/0000-0001-6758-3421, e-mail: ruslanaz1977@gmail.com

Oleksandr Shatalov, Postgraduate (student of the third (educational and scientific) level of higher education), SHEI «Pryazovskyi State Technical University», ORCID: https://orcid.org/0000-0003-4889-6275, e-mail: shatalovmalik31@gmail.com

Viacheslav Riabka, Postgraduate (student of the third (educational and scientific) level of higher education), SHEI «Pryazovskyi State Technical University», ORCID: https://orcid.org/0009-0007-9443-5847, ryabkava25@gmail.com

Abstract

The article examines the experience of Germany in the direction of updating the concept of income formation of agricultural producers as a practice of combining modern environmental requirements with traditional economic incentives. The gradual transition from intensive production to sustainable agriculture in this case is marked by the integration of environmental principles into production processes and the development of mechanisms for compensating agricultural producers for environmentally friendly practices. The purpose of the publication is a comprehensive study of proposals for updating the mechanisms and tools for generating farmers' incomes in the context of ecological transformation of the country's agricultural sector. The current schemes of support for farmers in the process of implementing practices that minimize the negative impact of agriculture on the environment and contribute to the transition to more sustainable production models are analyzed. A research project is being implemented to assess the impact of the Green Deal strategy on the financial stability of German agricultural producers, a comprehensive analysis of the policy of national, land and public support, available types of subsidies, and environmental incentives. It is argued that aimed at providing sustainable sources of income for real farmers, at the same time containing answers to the challenges and potential opportunities for adaptation of primary care farms to new environmental standards, the introduced environmental strategies serve as the basis for the formation of recommendations on ways to integrate effective elements of the European initiative into the income regulation system in order to increase the competitiveness of Ukrainian farmers. Taking into account the fact that the use of effective pilot practices in Germany has prospects for a significant increase in the level of resilience of domestic farming to climate change, framework restrictions on the use of the environmental approach are defined, which ideally should simultaneously provide permanent jobs in the industry and preserve the ecological basis of agricultural production, meet consumer expectations for sustainable and healthy farming. Requirements for a new paradigm of management of the processes of formation of public goods within the framework of a combined environmental agrarian policy, aimed at the production of environmentally friendly products and obtaining a proper income, despite stable and tough rational competition, are being formed

Keywords

revenues from agricultural production, environmental strategies, the Green Deal, the European Union's common agricultural policy

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Copyright (c) 2024 Ruslana Zhovnovach, Oleksandr Shatalov, Viacheslav Riabka