The article considers the place of depreciation and its effects on reproduction of fixed assets. Increasing the role of depreciation may become increasing influence and state control over the formation and targeted use of depreciation.

Defined that agricultural sector enterprises require large investments now to restore the active part of fixed assets. Conceptual approaches to finding new ways of forming the source of capital. One of the important sources of internal resources defined sinking fund.

 Proved that the purpose depreciation fund as a special reserve is reproduction of fixed capital, which is a financial resource for capital investments. Under conditions of high rates of technological progress depreciation is the source of expanded reproduction of capital.

 Studied that planning and administrative economy sinking fund companies used strictly for the intended purpose. Funds depreciation fund each enterprise kept in a special account of their intended use is strictly controlled. In market conditions enterprises are entitled to decide the question of the use of the depreciation fund. Funds depreciation fund allocated mainly to the current needs of the enterprise. Solving the problem of the procedure for using the depreciation fund is directly related to the economy emerges from the crisis, stabilization of production and increase in financial resources. Thus, the necessity of creating depreciation fund as a source of renewal resource potential of agricultural enterprises.

 Today in economics literature are expressed different views on the role and place of the depreciation fund as a source of reproduction of capital. Theoretical aspects of the depreciation fund companies of the agricultural sector. In our view, the sinking fund shall include the funds needed to complete reproduction of capital on a new technical basis, and to carry out all types of repair and modernization.

Found that the formation of new economic conditions, the introduction of commercial principles in business activities, privatization of state enterprises and forcing scholars and practitioners to justify new approaches to forming the source of capital. However, the sinking fund is one of the most accessible funds used for investment in new assets.

Determined the features of the formation of the depreciation fund farmers. Proved that the accumulated depreciation of fixed assets should be used only to restore it as a source of investment. Found that depreciation as a special economic category serves as both production costs and resource replay.

Now among academic economists is no single approach to the interpretation of the essence of the concept of "wear and tear", "depreciation", "wear". Between the category "depreciation" "depreciation", "wear" can trace the relationship, in the use of and under the influence of external factors fixed assets lose their use value that summarizes their wear. The loss of the use value causes the loss of value that causes their deterioration.

It is known that the cost of fixed assets depreciation that occurs in socially necessary volumes accompanied by the creation of an appropriate fund for compensation in product cost - depreciation fund. Furthermore the term of useful life of fixed assets - the period of time during which the fixed assets will be used now, or their use will be made now expected amount of output.

Be noted that depreciation policy in agriculture as an economic category is an integral part of agricultural policy. It should be an important lever of state influence on economic processes in the agricultural sector of the country.

Now among academic economists and practitioners no single methodological approach to understanding the essence of the amortization policy as an integrated system both at macro and micro levels. Depreciation policy in a market economy is closely linked to fiscal policy, ie taxation of the company.

In a market economy, in practice, the two concepts were extended amortization: economic and tax. Depreciation economic concepts is regarded as depreciation of fixed assets at reasonable cost norms that reflect real depreciation in the circumstances playback. Depreciation tax concept - a depreciation of fixed assets in tax regulations, which often exceed the economic rules.

It is proved that a market economy needs to grow as an important value amortization own sources of funding and investment reproduction of fixed assets in agriculture. Found the relation between means renewal of fixed capital and long-term strategy of the company.

Consequently according to the results of the research one could argue that in the present critical financial situation, the most rational direction of improving the efficiency of each company is to create a depreciation fund. We believe that the establishment of the depreciation fund will allow farms to make the transition to investment and technology development path that will stimulate investment activities and conduct financial recovery.

Key words: depreciation, sinking fund, agricultural enterprises, reproduction, fixed assets, amortization policy, resource potential.