Digitalization As A Factor In Increasing The Profitability Of Agricultural Production

Abstract

The digital transformation of a major part of human activities is the basis for the development of modern society. Digitalization of the economy is important in general and for agriculture in the context of changes in production under the influence of digitalization, identification and inclusion of existing innovative potential. Existing research and practice on the use of digital technologies in agriculture show many positive effects, but agribusiness owners, employees, and government agencies are ultimately interested in only one effect: profit and profitability of production. The authors consider the mechanism of indirect influence of digital technologies and software application on profitability indicators in agriculture. The article provides the generalized data on the profitability of agriculture for certain branches of agriculture in Russia, which indicate a significant fluctuation in values. In such a case, the focus is on the variety of profitability indicators. Based on the peculiarities of the production process in agriculture, the author substantiates the need to use both digital agents and programs for managing agricultural production, which will have a significant impact on the volume of production, product quality (sales price) and cost of production. As a result of the increase in profit, the value of assets and capital is expected to increase. The effect of using digital technologies in agriculture will be an increase in the profitability of agriculture, and, consequently, its investment attractiveness. Thus, the article substantiates the positive impact of digitalization of agriculture on all indicators of profitability, but to varying degrees.