Investment support for the modernisation of the technical base of agriculture

Abstract

The effectiveness of agriculture today directly depends on stable investment, which is the main source of resources for the industry. The outbreak of full-scale war by the Russian Federation has had serious consequences for the Ukrainian agricultural sector: the occupation of territories, the destruction of logistics chains, the destruction of property, the outflow of labour and large-scale mining have created a critical shortage of investment funds. An additional problem is the need to upgrade investment infrastructure and the lack of financial and credit instruments, which has had a negative impact on the state of the industry and, as a result, on the quantity and quality of products manufactured.

The purpose of the study is to conduct research on investments in agriculture in Ukraine in the context of Russian aggression, identify factors affecting the investment climate, assess the investment opportunities of agricultural enterprises, and develop recommendations for their improvement.

Methods used in the study: monographic (for analysing agricultural production investment); analysis of time series and structural changes (for studying the dynamics of capital investments and their sources in the past); comparison (comparison of data); tabular and graphical (visual presentation of analysis results in the form of tables and graphs), abstract-logical (generalisation of research results and formulation of conclusions).

Results. The article analyses the investment activities of agricultural enterprises, focusing on the objectives and directions of investments. It was found that, despite the growth of investments in national currency, their volume in dollar terms was less significant. There is a clear correlation between investment activity and the political situation in the country.

The imbalance in investment is highlighted: agricultural enterprises mainly finance investments with their own funds (more than 90%), which, combined with limited access to expensive loans, creates financial risks.

At the same time, the largest growth in investment is observed in intangible assets, particularly software and databases. This is consistent with global trends in the digital economy, where digital technologies are shaping the future.

Conclusions: To overcome the existing technical difficulties in the agricultural sector, the following steps have been proposed: prioritising funding for agriculture as a key sector of the economy, establishing fair economic relations between all players in agricultural production and the equitable distribution of profits, investing in ecology and natural resources, developing infrastructure in rural areas, providing state support and incentives for investment in the agricultural sector, and supporting small agribusinesses.