Investment in agriculture: Methodology and assessment

Abstract

Food security issues have been addressed by many scientists in the framework of food policy development and government regulation of agro-industrial complex (agribusiness), where investment in agribusiness is the cost, expressed in monetary form, whose results are manifested over a long period of time or after a long period.The purpose of the article is to formulate a system of indicators for the analysis of agriculture when developing food policy.Methods. Application of modeling in the course of strategy development in investment activity allows taking into account the specifics of economic activity of agricultural enterprises and variability of efficiency. Results/Conclusion The main types of investment in agriculture are: ־ capital contributions in the form of investments of financial and material and technical resources in the reproduction of fixed assets, soil fertility, and water resources through new construction, expanded technical re-equipment, and maintenance of existing production; ־investing capital in the creation of inventories; ־financial resources in the form of shares, bonds and other securities, as well as the cost of the acquisition of treasures and bank deposits, financial assets. When developing food policy, the analysis of indicators characterizing the agricultural organization's performance allows obtaining consolidated indicator. Combining three integrated indicators calculated for each block of indicators (Block 1 – Analysis of crop production; Block 2 – Analysis of animal production; and Block 3 – Analysis of agricultural organizations performance), into consolidated indicator allows assessing the development of agriculture in general.