Uman NUH | today: 09/09/2019

Investments and their role in ensuring sustainable land use for agricultural enterprises

Author(s) Semenda D. K., , , Uman National University of Horticulture
Semenda O. V., , , Uman National University of Horticulture
Category Economics
year 2014 issue Випуск №86. Частина 2
pages 57-65 index UDK 330.322:332.34:63
DOI
Abstract Investment support to agriculture especially intensively studied in the period of reforming of agrarian sector. A significant contribution to the research investments made by well-known domestic and foreign researchers. However, the problem of investment and their role in ensuring effective land use for agricultural enterprises requires further study and deepening of theoretical positions and practical use. The achievement of this goal is possible with the creation of favorable conditions for investment activity of domestic investors and foreign capital. The article used the following research methods: abstract-logical, historical and systematic analysis table. Economic targets of the research are agricultural enterprises of Cherkasy region. Investment in agriculture in recent years has been mixed. In 1991, the share of value added in agriculture, was 23% in relation to total value added of the whole economy of Ukraine. The share of investment in agriculture is also accounted for 23% of all investments [6]. Since 1991 the capital investment agriculture for 10 years drastically decreased and by 2000 had reached the value of 3.7%, or decreased by 6.2 times. One of the reasons for this situation prior to 2000 is that the financing of innovation activity in Ukraine was extremely unsatisfactory. The technology-intensity of GDP declined from 1.8% in 1991 to 0.83 in 2012 that led to the degradation of the material-technical base of the agricultural sector, as well as the depletion of working capital for agricultural producers. Investment depends on the business performance. Alternative equity at the end of the existing investment projects and may become the beginning of new Bank lending. However, the cost of credit remains high, due to the nature of agriculture. This raises the need to attract financial resources and investment policy development for sustainable land management.
Key words land use, investment, financial and economic issues, Bank loans, sources of investment
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