Development of an econometric model for assessing the impact of production cost components on the formation of incomes of agricultural enterprises

Abstract

The object ofresearch isthe financial and economic activity ofagricultural enterprises that grow plant products. The problem isthatsome components ofthe production cost have different effects onthe growth ofincomes ofagricultural enterprises, and therefore they need tobe identified for the purposes ofmanaging the production ofplant products. Therefore, there isa need todevelop econometrically substantiated tools that will provide aquantitative assessment ofthe impact ofthe structural components ofthe production cost ofplantproducts onthe formation ofnet incomes ofagricultural enterprises. This makes itpossible tointegrate the results ofthe analysis into the system ofstrategic management ofsuch enterprises. Aneconometric model ofthe dependence ofnet incomes onthe production cost ofagricultural enterprises has been constructed. Statistically significant factors ofinfluence have been identified and the degree oftheir elasticity has been established. Ithas been proven that the optimization ofindividual elements ofthe production cost has adifferenti-ated effect onthe formation ofnet incomes ofagricultural enterprises. The results obtained have allowed toform the basis ofanalytical support for the management ofplant production for making management decisions toincrease the efficiency ofagricultural enterprises. The research did not take into account global economic and political events, although they often change the structure ofincomes and expenses inthe agricultural sector. War, changes inforeign trade, inflation – all this significantly affects the results. The results obtained can beused inpractice – the developed analytical tools work well inthe crop production management system ofagricultural enterprises. The multiple regression model helps management personnel see how individual components ofthe production cost ofcrop products affect net incomes, and quickly find inefficient areas ofresource use. This opens the way for expense optimization, increasing profitability and improving the financial performance ofan agricultural enterprise.