Specifics of assessing the economic efficiency of the agricultural sector’s performance

Abstract

The agricultural sector plays a crucial role in ensuring food security, especially in the face of global challenges such as climate change, pandemics, and economic crises. The economic efficiency of agricultural enterprises determines the stability of the food market and influences the country’s competitiveness in international markets. This article examines the specific features of assessing the economic efficiency of the agricultural sector, emphasizing the need to consider not only financial but also environmental indicators. Eco-efficiency assessment, which combines economic and environmental factors, is important for the rational use of natural resources, contributing to the sustainable development of agriculture. The study highlights the importance of implementing modern methods, such as Data Envelopment Analysis (DEA) and Stochastic Frontier Analysis (SFA), to evaluate the technical and allocative efficiency of agricultural enterprises. The impact of digital technologies also plays a crucial role in improving resource management and strategic decision-making. The article emphasizes the need for agricultural enterprises to adapt to the conditions of international competition and the intensive use of natural resources. Given the interdependence of economic and environmental factors, the authors advocate for a systematic approach to efficiency evaluation, ensuring sustainable agricultural development. Examples of the use of efficiency assessment models that optimize resources and reduce environmental impact are discussed. Special attention is given to the integration of innovations in production processes and the use of advanced technologies to minimize resource consumption. The authors conclude that a comprehensive approach to assessing the economic and environmental efficiency of agricultural production is essential for ensuring the sector's sustainable development and strengthening its competitiveness in global markets.