DOI: https://doi.org/10.18371/fcaptp.v1i32.200355

COST EFFECTIVENESS AND ATTRACTING INVESTMENTS IN CROP SECTOR

I. Yu. Salkova, N. V. Polishchuk, A. A. Broyaka, A. V. Kucher

Abstract


The current state of financial support for Ukrainian agriculture indicates the need to intensify investment processes and increase the efficiency of investment. The purpose of the article is to present the results of the conducted assessment and analysis of the relative cost effectiveness of crop production using the method of analysis of the environment of functioning, which made it possible to identify the features of investments use and to calculate their payback period. The possibility of reducing direct labor costs and direct material costs in the crops production has been identified. It has been established that the greatest potential for reducing direct labor costs and direct material costs of production is typical for nine crops (rye, oats, buckwheat, dried cereals, soybeans, rape, sunflower, potatoes, and greenhouse vegetables), since the indicators are less than 0.5. At the same time, the potential for growing wheat, millet, open-ground vegetables and berries is used to 100 %. The potential for increasing the volume of sales of berry crops, buckwheat, rape and colza seeds, and process sugar beets is 1, that is, 100 % used, but the production of nine crops has a significant unrealized potential of more than 50 % (the potential for increasing the volume of sales for existing expenses is ranging from 0 to 0.5). Having accepted the reduction in direct material costs as the goal of optimizing crop production development indicators in the near future, it has been found that the discounted payback period of an investment is 15 years that requires the strengthening of the investment role in agriculture by labor stimulating of employees.


Keywords


efficiency; costs; investments; agricultural enterprises; method of analysis of the environment of functioning

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ISSN (print) 2306-4994, ISSN (on-line) 2310-8770