THE RESOURCES OF ECONOMIC-GROWTH OF AGRIC ULTURE IN SLOVAKIA

On the basis of the analysis concerning the state of market effectiven ess, covering expenditures by price and creation of reproductive resou rces of material investment ownership, rye have evaluated the adequacy of price creation of agricultural raw materials as well as the need o f change in the framework of the price formation in agro food producti on. The market production of agricultural firms has not been stabilize d even in 1995. The increase of market live production only in insigni ficant measure determines the increase in gain of farm animals. This i s also the main reason for high expenses of animal products. On the av erage the actual prices of agricultural producers cover the expenses o f firms from 71% up to 150%, and are not capable to fulfill the alloca tion function thus do not act as the determining actor for the reconst ructuring of agricultural production. For the economic turn round the reproductive resources are decisive. The investments from 1993, in cur rent prices, are increasing but the depreciation of material investmen t ownership continues to increase. From this perspective, Slovak agric ulture still has not overcome the treshold of growth phase. It is expe cted that the prices of agricultural producers will in the near future increase faster than the prices of investment assets. This will narro w the gap of price scissors between input and output, with which a lar ge part of firms until now has not been able to come to terms. There i s a need to give subsidy support to the more competitive firms. Presen tly, 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 agr eed prices between the producers and consumers, and in important commo dities, in such a way so as to guarantee the minimum price. The propos als presented in the article are of limited nature for the solution an d the improvement of economic parameters of agricultural firms in the near future.