Introduction. The lack of investment is one of the most essential problems, which slows down the progressive development of domestic agricultural production, reduces its competitiveness in the domestic and foreign markets, causes unjustifiably low share of the added value and raw materials of foreign trade in agri-food products. Finally, without sufficient investment, Ukrainian agricultural production is unable to enter the stage of sustainable development. However, the accumulation of destructive environmental and social factors, provided the use of traditional industrial technologies, may lead to catastrophic consequences in the field of agricultural production in the future.
The purpose of this article is to study the institutional mechanism for ensuring the sustainable development of agricultural production.
Results. Granting the status of free economic zones for agricultural production to depressed rural areas of Steppe and Polissya agroclimatic zones can create a positive investment motivation for both small and large organizational forms to invest in agricultural production in the area. State programs of food aid to the poor, as well as replenishment and renewal of state material food reserves, can stimulate investment demand in the agricultural sector of the economy. The development of transport infrastructure will help reduce the cost and reduce the time of transportation of agri-food products. This will help attract investment in agriculture and industrial processing, and increase household amenities, cultural and medical services, transport links to the nearest administrative center and other similar transformations, can create favorable conditions for reviving the demographic potential of rural areas.
Conclusions. Investment policy in the framework of public-private partnership is a powerful tool for restoring confidence in the state and the implementation of large-scale infrastructure projects. In the order of priority, in our opinion, in the first place is the revival and development of social infrastructure in rural areas as well as the provision of advisory, consultative, informational and other training services to villagers.
Key words: agricultural production, investments, investment mechanism, sustainable development, investment deficit, State Land Bank.
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The article was received 19.12.2019