Institutional and economic foundations of state regulation of the agricultural sector in ukraine

The article examines the institutional and economic foundations of state regulation of Ukraine’s agricultural sector under the conditions of food system transformation, global integration, and wartime challenges. It is substantiated that the modern model of agrarian development cannot rely solely on market self-regulation mechanisms but requires a systematic combination of institutional instruments (legislative, organizational, and regulatory) and economic levers (subsidies, grants, tax incentives, credit, and insurance mechanisms). The methodological basis of the study incorporates a systemic approach, institutional analysis, economic and statistical methods, index evaluation, and scenario modelling. The results demonstrate that agriculture remains a strategic pillar of the Ukrainian economy, accounting for more than 10% of GDP — a figure significantly higher than the EU average of 1.4–1.6%. At the same time, imbalances persist: the level of state support in 2023 was about UAH 4,6 billion, which is several times lower than comparable programs within the EU’s Common Agricultural Policy. A comparative analysis reveals considerable lags in labor productivity and farmland capitalization, underscoring the need for modernization, infrastructure development, and the digitalization of regulatory frameworks. The study proposes conceptual directions for enhancing state agrarian policy, including harmonization with EU standards, expansion of budgetary support programs, stimulation of innovation and cooperative models, and strengthening transparency through digital instruments. The practical significance of the research lies in developing a methodological basis for assessing the effectiveness of state regulation and forecasting the outcomes of agrarian policy under both domestic and global challenges. The conducted analysis reveals that, despite its high export potential and strategic importance to the economy, the Ukrainian agricultural sector exhibits a significant gap compared to EU countries in terms of state support, land capitalization, and labor productivity. The study concludes that enhancing the effectiveness of agrarian policy is possible only through improving the institutional framework and expanding economic levers of state support. The harmonization of Ukraine’s agrarian policy with the EU’s Common Agricultural Policy should be viewed as a key guideline. This will ensure the competitiveness of domestic production, its modernization, and its full integration into global agricultural and food value chains. Keywords: state regulation, agricultural sector, economy, mechanisms, market, institutional foundations, economic instruments, food security, European integration, agriculture, public governance.