REASONS FOR THE EMERGENCE OF EXCESS PROFITS IN AGRICULTURE: GLOBAL MARKETS

Issue № 7, 2026, article № 22, pages 253-262

Section:

Language: Russian

Original language title: ПРИЧИНЫ ВОЗНИКНОВЕНИЯ СВЕРХПРИБЫЛИ В СЕЛЬСКОМ ХОЗЯЙСТВЕ НА ПРИМЕРЕ МИРОВЫХ РЫНКОВ

Keywords: AGRICULTURAL MARKETS, GOVERNMENT SUPPORT, MONOPOLY RENT, REGULATORY DECISIONS, EXCESS PROFITS, AGRICULTURE, PRICE SHOCKS

Abstract: In the context of increasing volatility in global food markets, the issue of studying the causes of the emergence and conditions for the sustainability of excess profits in agriculture is becoming particularly relevant.. The article clarifies the concept of “excess profit” as income that significantly (by 25% or more) exceeds the average market level of EBIT margin profitability necessary to maintain operating activities. The structural causes of excess profits in agriculture are examined using global markets as an example. The impact of price shocks, the role of regulatory decisions, and the mechanisms for obtaining monopoly rents are analyzed. The goal of the study is to identify and characterize the structural causes of limited excess profits by agricultural organizations using global markets as an example, to provide a quantitative assessment, and to develop recommendations for managing excess profits while taking into account the interests of all participants in the agricultural economy. The study utilized methods such as a comparative analysis of statistical data, a case study of successful agricultural market regulation practices, and a systems approach to studying the interrelations between the causes of excess profits. The study's results allowed us to quantify and identify the causes of limited excess profit generation (price shocks, regulatory decisions, monopoly rent) taking into account the level of economic development of countries; identify differences in the mechanisms for accumulating excess profits in developed, developing, and market economies; and propose a set of measures to equalize the distribution of excess profits through government regulation, antitrust policy, and innovation incentives. The findings can be used to improve agricultural policy and enhance the sustainability of food systems at the national and global levels.

Authors: Ruban-Lazareva Natalia Vladimirovna