Assessment of the Dynamics and Efficiency of the Use of Assets of Agricultural Holdings of the Russian Federation

Issue № 10, 2024, article № 7, pages 64-76

Section: Economic mechanism of managing

Language: Russian

Original language title: ОЦЕНКА ДИНАМИКИ И ЭФФЕКТИВНОСТИ ИСПОЛЬЗОВАНИЯ АКТИВОВ АГРОХОЛДИНГОВ РОССИЙСКОЙ ФЕДЕРАЦИИ

Keywords: AGRICULTURAL HOLDING, LARGE-SCALE AGRICULTURAL PRODUCER, ASSETS, RETURN ON ASSETS, INFLATION, KEY RATE OF THE BANK OF RUSSIA, LOANS, PRICE OF CREDIT RESOURCES, EFFECT OF FINANCIAL LEVERAGE

Abstract: The aim of the work is to assess the dynamics and efficiency of the use of assets of agricultural holdings of the Russian Federation to clarify the change in the economic potential and the possibility of using the financial leverage by such entities. Based on a study of the indicators of a selected group of agricultural holdings, a positively stable trend in the cost growth of their assets was identified, both in nominal and real terms. During the period under study, the rate of cost growth of the assets under study in nominal terms exceeded the rate of inflation. This indicates the growth of the economic potential and capacity of agricultural holdings of the Russian Federation, which can be projected onto the entire agricultural sector with a certain level of error. A decrease in the growth rate of assets of the studied organizations in recent years was revealed. The reasons for this decline are considered: objective limited resources, the law of diminishing marginal efficiency of asset use, and a decrease in the marginal effectiveness of government financial support. Based on the results of the analysis of the dynamics of profit and return on assets of a selected group of agricultural holdings, we can conclude that the influence of combinations of different factors on the efficiency of using the assets under study in different periods of time was unstable. Among other things, the mechanisms of state financial support for both agricultural holdings and the agro-industrial complex as a whole were unstable in different years. Such support was and still remains a significant factor in the development of the industry, given the relatively low level of return on assets of the subjects under study. The value of return on assets of the studied group of agricultural holdings is assessed as low to obtain a positive effect of financial leverage for market conditions. In other words, the use of loans on market conditions by the average agricultural producer with the existing return on assets is characterized by a negative value of financial leverage. Considering that leading agricultural holdings were considered, the industry value of the indicator may be even lower. This level of efficiency in the use of assets in the agro-industrial complex currently makes the industry dependent on government subsidies of loan rates, and also makes it inappropriate for a significant increase in the assets of agricultural holdings without changing the level of their efficiency. The relatively low return on assets of the group of agricultural holdings under study and the high level of dependence on loans make the industry sensitive to changes in the key rate of the Bank of Russia, and, accordingly, inflation. As practice shows, such a rate is not stable and for a significant period of time it exceeded the value of the return on assets of the examined entities. Considering that state financial support cannot or should not increase in direct proportion to the growth of agricultural holdings’ assets, the relatively low level of return on assets, which does not allow scaling (using credit resources) on market conditions, should be considered as an objective and significant barrier to the further development of the industry. At the macro level, factors contributing to the development of the industry are: a decrease in inflation and, accordingly, a reduction in the key rate of the Bank of Russia, and at the micro level - targeting return on assets.

Authors: Morhachov Ilia Viktorovich, SHevchenko Mariia Nikolaevna, Listopadova IUliia Vladimirovna, CHugai Dmitrii IUrevich