Analysis of the state grants' impact on the economic sustainability and efficiency of agricultural production

Abstract

The estimation of the state support efficiency for agriculture in the Russian Federation is actively discussed in economic spheres. The grants received by farmers should be justified by an increase in the production and an increase in its profitability. It makes this research topic relevant. The article considers the degree of state grants influence on the stability of agricultural production and financial performance on the example of agricultural organizations of the Slavyansk region of Krasnodar Territory. The economic indicators of the agro industrial complex (AIC) of the region are considered. The main agricultural crops capacity, production and sales volumes, average prices for products, cost value and profitability of sales are analysed. The volume of grants received per hectare, the degree of costs compensation, the impact of grants on returns on investments and product profitability are considered using rice as an example. The analysis of the grants impact on the volume of net profit is given. It was proposed to determine the profitability of capital using the net profit reduced by the volume of grants in the calculations to improve the objectivity of the analysis and estimation of the efficiency of agricultural producers.