Investments in agriculture: public, private, foreign. Statistics and proposals. Private investment in agriculture Investors in agriculture

2017-02-27 Igor Novitsky

Not all beginning farmers know that they can receive a grant not only from the state, but also from a private investor or investment fund. Such funds provide financial support not at once, but in stages. The farm receives the first grant, and if it is successfully developed and reported, the investment fund pays the next tranche.

How to look for a private investor

When looking for a private investor, you need to keep in mind that he is unlikely to be interested in a small project of a not very large farm. However, if you have promising ideas and you can justify them logically, it is quite possible that a private investment fund will be interested in them, and your project will receive financial assistance.

The important thing is that you can receive a grant not only from a Russian private investor, but also from a foreign one interested in agricultural business in our country.

In this case, the requirements for candidates for receiving a grant will vary significantly, so when submitting an application you need to understand exactly who is going to invest money in the project. Before submitting your application for consideration to the investment fund, you must adjust their form to the requirements of the investment fund. The business plan will need to be changed to suit the investor’s requests.

Thus, almost all foreign investors want to receive the most accurate and detailed reports on how the farm uses the funds received from the investor.

Private domestic investors, as a rule, stipulate their investment terms depending on their personal interests. Government sponsors consider the most important thing for a positive decision on issuing a grant to be the number of jobs that can be created by the project and the possibility of providing such potential workers with social protection.

Foreign private funds, grants for the development of farms in Russia

Let's give an example of a private fund, not a resident of the Russian Federation, that is ready to sponsor agricultural enterprises in Russia and Kazakhstan. A current offer from a foreign company that is ready to invest in agricultural enterprises in Kazakhstan and the Moscow region.

The company is ready to engage in both direct investments and project financing. The conditions offered by this investor are standard - 5-7% per year, for a period of 10 years.

At the same time, the requirements for the project and it are quite high, although quite justified. The investor puts the quality of the project first:

high demand. At the same time, I am interested in its demand not only in Russia, but also abroad;
innovations used in the project;
environmental safety of the project;
prospects for international cooperation. For example, such options in which the raw materials or technologies are foreign.

It is important that a foreign investor is interested in a project that already has a certain base. That is, he is ready to invest in business expansion, and not in a startup.

The investor calls the mandatory conditions the presence of well-developed documentation as part of the business plan, as well as the presence of 10% of the applicant’s own funds from the investment funds. The estimated volume of investment is from 30 to 200 million rubles. The investor expects the payback period to be 3-7 years.

You can find out more about this and other foreign investors who are ready to sponsor Russian farmers on investment project exchanges.

Russian private investment funds

Most often, investments are proposed in large projects in various areas of agriculture with an estimated investment volume of 50 to 200 million rubles and a payback period of 3-5 years, but there are also investors operating with amounts from 200 to 600 thousand rubles.

The number of investors varies significantly by industry. Thus, there are practically no funds willing to invest in feed production; 3 private investment funds offer investments in veterinary medicine. Number of investment funds ready to invest by industry:

Fish farming 12;
Greenhouse farming 15;
Plant Science 16;
Poultry farming 16;
Livestock 25;
Processing of agricultural products 26.

Private investors can be found on the Internet: to do this, type in the search bar “investment project”, “investment base”.

How to get a youth grant

An intellectual game with a result in the form of a real grant is a reality. This is not the first time that the Russian Union of Rural Youth, together with the Ministry of Education, the Ministry of Agriculture and the Federal Agency for Youth Affairs, has been holding an intellectual game with the self-explanatory name “Beginner Farmer”.

The goal of the game is to develop planning skills in agricultural business among young people and students. The participants of the game, as before, were:

agricultural student teams;
senior students of secondary secondary schools and universities in agricultural specialties.

Competitions are held as part of the game:

slide show with a presentation of a business project;
duel between teams with questions and answers;
quick answers to questions from the expert jury;
and many others.

Last year, 76 works from 63 regions took part in this game. The winners were the teams of the Primorsky State Agricultural Academy and the AU of Makhachkala, Omsk and Saratov.

How to get grants from the state and from private investors

The first thing a farmer must take into account is regional characteristics. The holding of a competition for a grant from the state or the interests of a private investor largely depend on the specifics of the region. Some regions are much more interested in developing certain industries than others. This must be clarified before submitting documents.

One of the common mistakes of potential grant recipients is to unclearly indicate the list of acquisitions for the funds received.

The business plan must clearly indicate what exactly will be purchased. If this is agricultural machinery, then its model, performance and other technical characteristics must be indicated.

If funds are allocated for the purchase of farm animals, their breed and gender must be indicated in the business plan. The same applies to agricultural buildings. It is necessary to indicate in detail the area and number of floors of the building, the main building materials.

Experts recommend that agricultural enterprises and heads of peasant farms pay attention to federal or regional support programs. During the period of the embargo on food imports, agro-industrial complexes and farms are still provided with funding. The money is provided on a non-refundable and free basis. The recipient is only required to fulfill the specified conditions and then submit a detailed report on the expenditure of funds.

The Ministry of Agriculture of the Russian Federation deals with subsidizing issues. During 2016, the department allocated money for the following purposes (thousand rubles):

· compensation for insurance costs of agricultural enterprises – 2987593;

· reimbursement of interest paid on loans – 83178346;

· support for small farms – 10,488,239;

· financing of regional agricultural programs – 8340495;

· compensation for modernization costs – 12655179;

· development of rural areas under the project until 2020 – 15717774;

· implementation of the plan for agricultural land reclamation – 2142090.

In total, over the past year, the Ministry of Agriculture spent more than 201.6 billion rubles on subsidizing agricultural enterprises.

The process for obtaining funding varies by program. However, the mechanism is uniform and comes down to 6 steps:

· choice of subsidy;

· Submitting an application with attachments;

· study of documents by a commission of the regional body of the agro-industrial complex;

· sending the applicant a written notice of the decision;

· transfer of funds;

· control of target spending.

You can find detailed information about the rules of participation on the official websites of the departments. For example, in the Perm region a special department deals with issues. The rules are covered. Thus, financing of dairy production is carried out for each kilogram of products shipped. In this case, manufacturers are reimbursed up to 30%. Local agricultural enterprises are provided with support in increasing the number of breeding livestock, purchasing seed material, etc.

Investment loans

Rosselkhozbank has been providing loans in the segment for many years. Currently, this is the most well-known lender that actively cooperates with government agencies. In 2017, several products were offered to farmers and small company owners.

Loan name	Conditions	Note
"Standard"	The agreement is concluded for a period of up to 8 years, and the loan amount cannot exceed 60 million in domestic currency. The borrower is provided with an 18-month repayment deferment. The schedule is drawn up individually for each agreement.	At least 36 months must pass from the moment of registration of a farm or agricultural company. The founders of the enterprise or the head of the peasant farm act as guarantors. If a loan is issued to a farmer, the guarantor must be at least one adult and able-bodied family member
Purchase of machinery/equipment	The acquired assets become collateral for the loan. The loan term is limited to 7 years, and repayment deferment is given for 12 months	Depending on the type of machinery or equipment, the amount of equity capital is established (15 - 30%). The program allows the purchase of used equipment
Increasing the number of young animals	The subject of the pledge is animals, including those purchased from foreign producers. The terms provide for a standard annual deferment of loan payments. Maximum contract term – 5 years	The bank issues up to 80% of the cost of young animals. A prerequisite is to have at least 2 years of livestock farming experience
Land acquisition	The land plot acts as a guarantee for the fulfillment of debt obligations by the company. The maximum duration of the contract is 8 years, and the deferment of the first payment can be 2 years	Loans are issued only for the purchase of agricultural land
Individual lending	The program is designed for 15 years, and there are no restrictions on the amount. The terms of the transaction are agreed upon with the borrower during negotiations	The program involves a flexible system of grace periods. If the loan is issued for more than 5 years, the recipient has the right to count on a 36-month period

Rosselkhozbank cooperates with federal and regional departments. When receiving a loan from a financial institution, a participant has the right to take advantage of government support measures. In this case, part of the interest will be paid from the budget (SME Corporation).

Other banks also offer loans. However, it is difficult to call such products investment products. Interest rates on loans from business associations are too high, and deferments are extremely rare.

Finance lease options

The key player in the market cooperating with agricultural producers is Rosagroleasing. The relationship building mechanism is standard:

· the applicant sends documents with a request to purchase equipment, breeding stock, machinery or real estate;

· the commission considers the application, assesses the solvency of the potential client;

· the parties enter into an agreement, determining the procedure for settlements.

The joint-stock company is engaged in the implementation of joint programs with the Russian Federation. For example, in the Komi Republic there is a system of subsidizing payments under the contract. The region bears costs ranging from 40 to 70%. Funds are allocated exclusively from the budget of the constituent entity of the Russian Federation.

In the Volgograd region, funding is provided in two directions at once. Thus, the authorities transfer the initial payment under the leasing agreement, and then subsidize periodic payments up to 70%.

Private investment in agriculture

In the context of import substitution, interest in agricultural enterprises is growing among professional financiers and private players. Investments in this area are becoming more and more profitable, and investment schemes are multiplying. The import substitution program, tax incentives, and comprehensive government support contribute to the activation of the segment.

Experts analyzed the market and identified four promising areas for searching for investors.

Specialized associations accumulate the available funds of thousands of individuals. The total capital is divided into shares, the value of which changes depending on the performance results. Management of the fund is entrusted to professional financiers and economists. Specialists carefully select the enterprises in which money is invested. In this case, the association acquires a stake in the agricultural company or buys out securities. Currently, several dozen Russian funds are actively working in the segment, including the largest player RDIF.

Virtual platforms have been created for meetings between private investors and agricultural enterprises. Now there are about a hundred of them. Internet services allow you to raise money to implement an idea or develop an existing business. It is enough for the user to describe the project in detail, provide accurate data on the payback period, minimum capital, etc. The money will come from other platform participants who are interested in the offer. Examples of such portals are:

· "Agroserver.ru";

· "Kickstarter";

· Boomstarter and others.

A distinctive feature of transactions on such sites is high risk. There are a lot of offers from scammers and amateurs here. Investors are acting extremely cautiously, and therefore they will have to fight for investments. Service owners report that only one out of five or six projects raises the required amount. There is no need to count on large investments, since the vast majority of investors have capital of up to 100 thousand rubles.

3) Conferences and forums

You can meet private investors who are ready to finance a promising enterprise at national or international events. A large number of different meetings and exhibitions will be held in 2017. Our experts have identified the most interesting of them.

Event name	Place and time	Subjects
Fifth international conference	Bulgaria, Elenite resort	Agriculture, agricultural policy, food
Exhibition AGRO	Portugal, Braga	Food, livestock, agricultural technology
Exhibition "Agro-industrial complex 2017"	Russia, Volgograd	Crop farming, poultry farming, technology, livestock farming, agrochemicals, loans, leasing, investments
Scientific conference “Innovations in the selection of fruit and berry crops”	Russia, Orel	Priority areas of selection and achievements in this area
Exhibition "AGROCOMPLEX 2017"	Russia, Kaliningrad	Food, drinks, processing industry equipment, farm products
Exhibition "AgroSib"	Novosibirsk, Russia	Agricultural machinery, equipment, materials for production
Exhibition YUGAGRO	Russia, Krasnodar	Products of agro-industrial complexes and peasant farms, machinery, equipment, investments

4) Vouchers

Farm owners can raise funds against future production. For this purpose, special coupons are issued that give the right to receive part of the harvest, livestock meat or young animals. The mechanism is just beginning to spread in Russia, but experts rate it quite highly. The success of the event depends on the quality of forecasting, the effectiveness of the advertising campaign and the completeness of audience coverage. It is recommended to distribute “vouchers” among individuals interested in purchasing agricultural products at producer prices. Owners of small catering establishments also willingly purchase such coupons.

Thus, farmers have limited choice of sources of financing. Beneficial investment loans and subsidies are designed primarily for developed agricultural enterprises. The heads of peasant farms can only find funds on specialized sites and cooperate with private individuals. However, even in this segment, opportunities remain. The success of the project still depends on the completeness of the business plan and the activity of the author of the idea.

Before starting a business in agriculture, it is necessary to collect preliminary information about various industries and determine what will help build the most profitable business:

sheep farming as a business;

small production;

farming;

ordinary purchase and sale.

Sheep farming as a business for a beginning farmer is a promising and profitable industry. Suitable for those who are ready to start from scratch, work hard and earn money.

Organization of activities

The entire initial process consists of several stages:

Assess your own capabilities

Pay the state fee

Contact government agencies to register farming

Obtain permission from the veterinary service, fire inspection and sanitary inspection

Selecting an activity

There are two types of farming: personal subsidiary farming and peasant farming. They present aspiring entrepreneurs with difficult choices. Both forms are regulated by different regulations.

Personal subsidiary farming is intended to meet the needs of the family and is not one of the types of entrepreneurship.

For those who have chosen sheep farming as a business for a novice farmer, peasant farming is suitable, which gives certain rights, opens up wide opportunities, and is also associated with expenses and responsibilities.

Differences between peasant farming:

information is entered into the unified federal register of legal entities;

reporting is submitted to the tax authority and extra-budgetary funds;

contributions are paid for employees;

no restrictions on the land area used;

state financial assistance for the development of entrepreneurship.

Rent of land

Rented land makes it easier to complete documentation and is cheaper. The number of animals purchased will affect the area of land. 1 hectare of space is enough for one animal.

Sheep farming as a business for a beginning farmer is convenient to build on abandoned farms. Renting extensive livestock pastures containing outbuildings will reduce costs. There is no need to build sheepfolds: sheep are unpretentious to their living conditions. In the summer, they can be kept in open pens; a video about this is available on the Internet. In winter they will enjoy indoors and you can use an old farmhouse for this.

Selection and acquisition of animals

Entrepreneurs earn a lot of income by breeding meat sheep. The quality of the wool also matters. Many valuable products are obtained from animals: meat, wool, milk, fat, sheepskin. Meat species are almost not susceptible to disease, they are hardy and quickly gain weight.

Types of beneficial breeds:

Prekos - with good care, one ram yields 55 kg of meat per year

Texel is distinguished by the unique qualities of meat: no smell, it is juicy, well structured, and does not leave a greasy aftertaste.

The Romanov breed is known for its high fertility and good early maturity.

The Gissar breed is the largest in the world, it is characterized by rapid meat growth

If you lack experience and knowledge, the best way out is to consult a specialist. To begin with, you can purchase a small number of sheep, then expand the number of livestock.

Livestock should be purchased from certified producers in early summer.

The list of sellers will need to be updated periodically to avoid interbreeding.

Recruitment of employees

The professionalism of employees affects the level of future income. To create good conditions for keeping sheep and ensure full-fledged work, you will need to hire:

shepherd;

shepherd's assistant;

specialist in shearing rams and sheep;

milkmaid;

qualified veterinarian.

An experienced shepherd can simultaneously perform the work of a manager, veterinarian, livestock specialist and shearing specialist.

The veterinarian is required to:

vaccination;

preventive examinations of livestock;

processing of premises.

Sales of products

In sheep farming as a business, the subsequent sale of meat is important for a beginning farmer. For this purpose, farms are required to maintain records for each individual animal. Data is entered into the cards: injections given, diseases suffered, age (year, month).

You can negotiate the supply of meat with markets, retail outlets, kebab houses, cafes, restaurants and other establishments that have a high need for fresh and high-quality meat.

Shops that sew outerwear and shoe factories are interested in purchasing shorn wool. The dressing of hides and the sale of wool do not ensure the profitability of the farm. May provide additional income.

Sheep milk is in demand in dairies and cheese production plants.

Pros and cons of entrepreneurship

Sheep farming as a business for a beginning farmer has positive and negative sides.

Advantages:

high demand for products;

ecological purity of meat and wool;

tax and registration benefits;

the payback period is only a few years;

with proper allocation of resources, it brings a stable income;

the possibility of organizing a family business;

outdoor work;

minimal competition;

governmental support;

great development prospects.

Flaws:

risk of livestock falling;

dependence on natural factors;

cannot be temporarily suspended;

complexity of obtaining a loan;

low profitability.

The reasons why you should choose to raise sheep over other animals are quite significant. Sheep:

do not require special care;

can stay in the fresh air for a long time;

feed on various herbs;

adapted to grazing on pastures that have already been used;

require less feed;

drink salt and fresh water;

rarely feel thirsty;

tolerate heat and cold well;

They are ready to travel long distances in search of food.

If, after analyzing entrepreneurship in agriculture, you realized that this is not your thing, pay attention to. If you have your own, you can do it right there. Alternatively, you can try to master a profession in business informatics. You can find out more about it on the page. The business portal site does everything possible to help its visitors achieve material prosperity.

Quite a lot has been written about where you can invest your money. You can put them on a time deposit or place them in a mutual fund, you can purchase real estate or gold (). In a word, there are a lot of options. Investors, especially large ones, are already fed up with standard prospects for placing funds. An increasing number of organizations, and even individuals, prefer to consider this method of investing money as investing in agriculture.

Features of investing in the agricultural industry

It's no secret that until recently, private investors practically did not invest in this industry. Why did this happen? From the point of view of economists, agriculture is an area where investments cannot provide quick profits. Future income refers, rather, to “long” money, that is, long-term investments.

However, it should be noted that it is the agricultural sector that can ultimately bring its investors higher profits than the usual areas of investment (real estate, manufacturing). Today there are two reasons why individual investors are reluctant to invest in this direction:

Big risks. Agricultural production depends on many factors that neither the producer nor the investor can influence: late spring, rainy summer, unfavorable conditions for the autumn harvest. This is what crop farming is all about. The livestock sector is also exposed to risks: sudden animal diseases can lead to the destruction of entire livestock.
Long wait for profit. In order to make a profit, you need to do more than just grow a crop. It needs to be collected, processed and, most importantly, implemented. Only after this can the profits be calculated. It is the problem of selling products that ultimately scares away most of those who think in these categories: if I invest money in agriculture, I myself will not be left at a loss and will bring benefits.
The need to modernize the industry. Investing in this direction is great. Only many investors think that to do this they just need to buy feed or seedlings, plow the land or buy a herd of young animals. The fact is that back in the USSR, and even today, agriculture receives the lion’s share of money from the state budget. If our country has already embarked on the path of a market economy, then the budget should not provide for a complete renovation of the technical fleet, as well as real estate complexes. That is why such an investment entails additional costs in the form of the purchase of new equipment.

It's actually not all that sad. Those who still decide to invest money in this area have a number of advantages:

The most important advantage for an investor is that agricultural products never fall in price. There are, of course, seasonal fluctuations, but as a result, the cost of products increases from year to year along with inflation. Products grown in environmentally friendly places are especially popular. So those manufacturers who can competently resolve the issue of selling their products should not be afraid of possible losses.
Constant demand for products. It is well known that the larger the population, the greater and faster the demand for agricultural products grows. So there is no need to fear unemployment in this area.

In addition, it should be noted that such investment can bring benefits not only to the investor. Investments in this area solve several problems at once:

Providing the population with jobs.
Strengthening economic stability in the country.
Proper use of natural resources directly contributes to solving environmental safety problems.

Public investment

Of course, the state does not take full responsibility for the agricultural production sector. But it should be noted that government investment today is not limited to just injecting funds into this sector. Growing demands for products provide new impetus for the development of the industry. Today, agricultural production is closely connected with many industries, such as chemical, engineering, and energy. To increase the volume of good quality products, innovation is constantly required, which is provided through government subsidies. It is the state that, through subsidies, encourages those private investors who invest in this sector of the economy.

State ones are also necessary because private investors alone are simply not able to modernize this industry as a whole. At the same time, the demand for high-quality and environmentally friendly food products is constantly increasing. Only with the support of the state is the agricultural sector able to reach a qualitatively new level of development.

At the same time, foreign investment in agriculture should not be discounted. Statistics show that foreign companies are just as willing to invest in the development of the agricultural country as in projects for the processing and extraction of oil fields. This is evidenced by the surge in business activity of Chinese and South Korean companies in the Primorsky Territory.

This surge in activity of foreign investors is due to the presence of undeveloped fertile lands. Ultimately, all foreign investments contribute to the development of regions, the creation of new jobs and the improvement of the quality of life of the local population. State and foreign investment makes it possible for Russia to once again become the world's largest producer of agricultural products.

Agriculture is a fundamental industry that is low-profit and unattractive for investment, but the growth of the entire economy depends on its development. If the state is interested in a stable and strong economy, then it must contribute to the creation of a favorable investment climate at the legislative and executive levels. Therefore, the issue of attracting investment in agriculture remains one of the key issues in economic development.

Investments in agriculture have their own characteristics. They are manifested in the fact that, along with the investment of capital in objects that are the results of human labor, as in other sectors of the economy, in agriculture they are also invested in natural objects, which, other things being equal, makes their activities more capital-intensive with a long payback period and high risks , since nature lives according to its own laws, the management of which today is either impossible or expensive.

The specifics of the agricultural industry, increased risks and other circumstances determine the advisability of identifying the agricultural sector as a separate type of investment managed by investors.

Investments in agriculture can be carried out for different purposes, have different investment objects, be characterized by different degrees of investor participation, differ in form of ownership, etc. (Fig. 1.4).

Coordinated implementation of agricultural investment processes in short-term and long-term investment cycles, ensuring the satisfaction of economic interests and the solution of social and environmental problems, is possible only with active government support for investment activities in the agricultural sector of the economy.

Here are several factors that depend on government policy and create a favorable regime for investment by agricultural producers:

- the right to acquire land ownership. Today land can be bought and sold;
- tax benefits;
- creating conditions for attracting borrowed funds. Subsidizing interest costs on servicing loans that are associated with investments in agriculture;
- export barriers - governments can use various methods to limit the export of agricultural products in order to control supplies and prices on the domestic market;
- compensation for the cost of fertilizers, seeds and fuel. The state may be expected to partially cover these costs;
- investments in land. There are several basic strategies for companies in the agricultural products industry. The main one is investment in land. It is clear that prices do not reflect its real value, so you can purchase farmland as an asset that is growing in value and is capable of generating growing cash flows. In addition, land can be used as collateral to obtain cheaper loans.
- investments in agricultural production. Investing money makes it possible to receive subsidies and also guarantees preferential tax treatment. In addition, a favorable pricing policy has developed within the country, and in the future they are able to enter global agricultural markets. Moreover, investments in grain production reduce raw material costs and production costs, of course, if the value chain involves further processing, or if it is used as a raw material (for example, livestock feed, in flour milling or baking production).

Figure 1.4 - Classification of investments in agriculture according to various criteria

- infrastructure development is also an important factor. High world grain prices enable producers to enter export markets.
- interventions in the grain market. In order to influence the price of the country's domestic market, governments can create special funds, the grain reserves of which can be replenished through government purchases in harvest years. The grain is placed in private storage and remains there until the situation changes and domestic grain prices increase due to significant exports or a poor harvest.

In order to attract investment in the agro-industrial complex, it is possible to use interesting instruments for investing in agriculture, in particular the creation and development of various agricultural funds, which would significantly reduce the minimum investment amount, making this sector accessible to a wider range of investors. In fact, all these funds are different versions of mutual funds (mutual investment funds), differing from each other in the degree of freedom in choosing instruments and, consequently, in the ratio of risk and return. It makes sense to invest in them for a period of at least 1 year.

Funds are the optimal tool for those investors who see the potential of the industry, but do not want or cannot study in detail the processes occurring in it, and are ready to invest for a fairly long period.

For non-professional investors, in this case, there is only one option that can fully realize their investment goals - structured products. These could be structured growth products for soybeans and corn that mature in the fall. Such a product allows you to most effectively play out a successfully seen trend in a specific product or currency. Moreover, the trend can be either rising or falling, and the product can be no less exotic than soybeans and corn. In essence, a structured product is a kind of bet made between the investor and the market. If the investor is correct in his assumption, he can receive excellent returns. And if not, oddly enough, get your money back (or at least most of it). The degree of safety of money in an unsuccessful situation is determined during the creation of the product (usually 90 or 100%) and is called capital protection.

In other words, you can invest effectively and fairly safely in agriculture simply by observing the general state of the sector and noticing relatively stable trends in some of the crops. Or simply by choosing your favorite crop, such as wheat, and studying its seasonality.

In modern economic conditions, it is the state that must carry out the functions of regulating investment activities in agriculture. This industry needs government investment support more than others.

Therefore, the most important condition determining economic growth in agricultural production is a well-developed investment program, which forms and strengthens the resource potential of the industry and improves the quality characteristics of production factors.

At the same time, the investment program must take into account a number of key factors that determine the particular complexity of investment in agriculture. First of all, we are talking about climatic and weather conditions (amount of rain, duration of drought, etc.), as well as the duration of the production process and its seasonality.

Thus, investments in modern economic research are understood, first of all, as long-term investments of capital in various sectors of the economy, infrastructure, social programs, and environmental protection within the country and abroad. Investments are necessary to improve the country's economy and solve many social problems on this basis, primarily to raise the living standards of the population.

At the same time, effective agricultural production is impossible without investment. Investment in the agro-industrial complex as a whole has its own characteristics, which consist in recognizing them as an active form of involving accumulated or borrowed capital in the production process; in the production process, invested capital together with other production factors is not used autonomously, but as an element of an interacting complex; investments in agricultural production are associated with a risk factor; use of leasing for the purpose of temporarily increasing fixed assets used in production.

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