INFLUENCE OF AGRIFOOD POLICY INSTRUMENTS ON THE INVESTMENT ATTRACTIVENESS OF AGRICULTURE

Issue № 11, 2023, article № 14, pages 128-139

Language: Russian

Original language title: ВЛИЯНИЕ ИНСТРУМЕНТОВ АГРОПРОДОВОЛЬСТВЕННОЙ ПОЛИТИКИ НА ИНВЕСТИЦИОННУЮ ПРИВЛЕКАТЕЛЬНОСТЬ СЕЛЬСКОГО ХОЗЯЙСТВА

Keywords: ELASTICITY, INTEREST, INVESTMENTS, INVESTMENT COMPETITIVENESS, LAGRANGE MULTIPLIERS, LOANS, SUBSIDIES, VIAPI MODEL, WEIGHTED AVERAGE COST OF CAPITAL

Abstract: A methodology for quantitative assessment of the impact of agri-food policy instruments on the attractiveness of agriculture for investors has been proposed and probed. Distinctive features of the methodology are the use of maximum return per unit of investment resources, at which their attraction remains economically profitable, as a measure of investment attractiveness; using the elasticity of this return on the intensity of application of an agricultural policy instrument as a measure of influence on investment attractiveness; use of VIAPI mathematical model to determine measures of investment attractiveness; the ability to obtain estimates in the context of various investment objects (energy capacity, livestock, the stock of own circulating capital, etc.) and various territorial objects (Russia as a whole, federal districts, natural agricultural groups of regions). As a result of probing, it was established that, with the exception of reimbursement of costs for interest payments on long-term loans, the instruments studied (subsidies for grain, milk, livestock, poultry, open-ground vegetables, all commercial agricultural products, reimbursement of interest payments on short-term loans) affect investment attractiveness through indirect channels, namely through an increase in income and through a change in the comparative advantages of agricultural sectors. Depending on the balance of effects across these two channels, the resulting impact can be either positive or negative. On the scale of Russia, only investments in livestock respond positively in terms of attractiveness to the use of any of the instruments studied.

Authors: Svetlov Nikolai Mikhailovich, Maslova Vlada Viacheslavovna, Zaruk Natalia Fedorovna