Investment needs assessment of Ukrainian agricultural enterprises

Abstract

Agricultural enterprises in Ukraine require a considerable investment income. The paper studies the main problems and conditions for investment into agricultural enterprises, the scope and dynamics of their investment provision. The results of agricultural enterprises activity depend directly on the state of their fixed assets. This is one of the biggest vulnerabilities of agricultural enterprises, which makes it impossible for the economy of Ukraine to demonstrate decent results. Investments should be used primarily for the development of material and technical basis of agricultural enterprises, because the fixed assets always depreciate, the term of their use in many enterprises exceeds 15 years and their number is constantly decreasing. Investment in technical provision of plant growing is necessary and attractive. Firstly, as a basis of plant growing, grain and oilseeds are always in demand at the domestic and foreign markets. Secondly, the volumes of investments are moderate compared to other investments in agriculture. In the beginning, it is sufficient to invest into the branch on average from 1 to 2 thousand US dollars per 1 hectare. The average payback period of investments is 2-4 years. Thus, in order to stimulate investments, it is vital to form a qualitatively new policy aimed at increasing investment attractiveness of agricultural enterprises.

Keywords

• agricultural enterprises
• agriculture
• foreign direct investments in Ukraine
• investment activity