The resources of economic growth of agriculture in Slovakia

On the basis of the analysis concerning the state of market effectiveness, covering expenditures by price and creation of reproductive resources of material investment ownership, rye have evaluated the adequacy of price creation of agricultural raw materials as well as the need of change in the framework of the price formation in agro food production. The market production of agricultural firms has not been stabilized even in 1995. The increase of market live production only in insignificant measure determines the increase in gain of farm animals. This is also the main reason for high expenses of animal products. On the average the actual prices of agricultural producers cover the expenses of firms from 71% up to 150%, and are not capable to fulfill the allocation function thus do not act as the determining actor for the reconstructuring of agricultural production. For the economic turn round the reproductive resources are decisive. The investments from 1993, in current prices, are increasing but the depreciation of material investment ownership continues to increase. From this perspective, Slovak agriculture still has not overcome the treshold of growth phase. It is expected that the prices of agricultural producers will in the near future increase faster than the prices of investment assets. This will narrow the gap of price scissors between input and output, with which a large part of firms until now has not been able to come to terms. There is a need to give subsidy support to the more competitive firms. Presently, we are recommending that in order to face fundamental changes in the price creation of agricultural raw inputs, these prices must also play allocation function. They must be constituted on the basis of agreed prices between the producers and consumers, and in important commodities, in such a way so as to guarantee the minimum price. The proposals presented in the article are of limited nature for the solution and the improvement of economic parameters of agricultural firms in the near future.