Agricultural credit as a financial support mechanism for environmental transformation and economic growth of agro-industrial enterprises

Abstract

The article explores the role of agricultural credit as a tool that facilitates simultaneous economic growth and environmental transformation of agro-industrial enterprises.

Introduction. Amidst global climate challenges and stricter requirements for sustainable development, credit mechanisms are viewed not merely as a source of working capital replenishment, but as a key lever for the "green" transformation of production processes. The authors substantiate the necessity of integrating environmental criteria into financing processes to ensure the long-term competitiveness of the agricultural sector.

Problem Statement. Despite the necessity of transitioning to sustainable development, agro-industrial enterprises face limited access to "green" financing. Existing credit mechanisms are primarily oriented toward current liquidity rather than long-term environmental modernization. This creates a gap between environmental transformation requirements and the actual financial capabilities of farmers, hindering both their economic growth and the implementation of innovations.

Unresolved Aspects. Issues regarding the assessment of "green" risks in lending and the lack of effective incentives for banks to finance environmental projects in the agro-industrial complex remain insufficiently addressed. Furthermore, there is a lack of clear methodological approaches to determining the effectiveness of credit as a tool specifically for environmental, rather than merely financial, transformation.

The purpose of the article is to scientifically substantiate the role of agricultural credit as a systemic financial lever that ensures the agricultural sector's transition to a sustainable development model and stimulates long-term economic growth through the implementation of environmentally efficient technologies.

Main Body. The object of the study is the process of attracting agricultural credit as a financial lever for the environmental transformation and economic development of agro-industrial enterprises. It is substantiated that accessible long-term financing not only minimizes environmental risks but also contributes to increasing the operational efficiency and competitiveness of agricultural enterprises. The systems of state support, including preferential lending and interest rate subsidies, which act as catalysts for investment activity, are analyzed. The role of credit mechanisms in ensuring the dynamic development of the agricultural sector and their impact on macroeconomic indicators are investigated.

Conclusions. It is proven that agricultural credit is a critical resource for the environmental modernization of the agro-industrial complex. It is established that the transition to "green" lending ensures a synergy between environmental sustainability and enterprise profitability. It is proposed to integrate environmental criteria into the credit policies of banks and to strengthen state support for interest rates to stimulate sustainable innovation.