INCREASING THE PROFITABILITY OF AGRICULTURAL PRODUCTION: SIGNIFICANT FACTORS AND SOLUTIONS

Issue № 3, 2024, article № 7, pages 72-85

Section: Investment and innovation in agriculture

Language: Russian

Original language title: ПОВЫШЕНИЕ УРОВНЯ РЕНТАБЕЛЬНОСТИ ОТЕЧЕСТВЕННОЙ СЕЛЬСКОХОЗЯЙСТВЕННОЙ ПРОДУКЦИИ: ЗНАЧИМЫЕ ФАКТОРЫ И ПУТИ РЕШЕНИЯ

Keywords: AGRICULTURAL SECTOR, PROFITABILITY, RUSSIA, COST, AGRICULTURAL PRODUCTS, FACTORS OF PRODUCTION

Abstract: The article is devoted to the urgent problem of developing measures aimed at increasing the profitability of domestic agricultural products. A brief description of the current state of agricultural production is given. It was noted that the level of profitability of agriculture in 2023 decreased by 1.2% compared to 2022 and amounted to 19,1%, taking into account various types of subsidies, and without them – only 15.8 percent. The analysis showed that this situation in the industry is associated with a record harvest of major crops and, above all, grain in 2022. and an increase in the cost of agricultural production in 2023. To solve the problems associated with the low price of grain and the growing disparity in prices between industrial and agricultural products, the State Duma has created a working group that will propose to the Russian Government a mechanism to ensure price parity in the agricultural sector. The paper reveals the main factors influencing the increase in the profitability of agricultural production, which can be divided into 2 large groups: external – in relation to a separate organization and internal, which are directly related to its activities. The first group includes natural and climatic conditions, sanctions of unfriendly countries, state policy: regulatory support, subsidies, compensation, taxation, priorities for the development of the agricultural sector. The second group should include the factors of production efficiency available to the enterprises themselves: land, material and labor resources. Special attention is paid to the preservation and development of the scientific potential of the agro-industrial complex, and the transfer of scientific developments into business practice, in order to increase the level of profitability in the production of agricultural products. According to the author, in order to accelerate the solution of problems related to price disparity, as well as reducing the cost of production, joint efforts of the state, science and business are needed, as well as to ensure financing of 5 state programs according to their initial passport.

Authors: Nechaev Vasilii Ivanovich