The Impact of Financial Regulation and Governance Mechanisms in the Agricultural Sector on the Development of Financial Inclusion and Human Capital
Financial regulation is changing in response to the risks of the agricultural sector and the growing need to expand the availability of financing from various sources. In these conditions, studying the role of financial inclusion as a separate area of financial regulation becomes relevant. The purpose of the article was to study the role of financial regulation and risk management in the agricultural sector from the point of view of achieving digital inclusive financing and the impact on the development of human capital in agriculture. The methodology of the article is based on a legal analysis of financial regulation and financial inclusion in 24 EU countries based on the results of a survey of farmers and agricultural companies in 2020 and 2023. The results demonstrate an increase in the level of financial accessibility of bank lending in all countries in 2020-2023 with the development of financial regulation aimed at increasing the level of flexibility of the available financial capabilities of agricultural producers. Small and medium-sized farmers, as well as young farmers, suffer the most from the lack of financing due to strict banking requirements. Financial regulation has not affected the development of human capital, as the labor force in the sector continues to decline over the past 2010-2024.