Diversification of economic activity of agricultural business structures based on the use of renewable energy sources

Abstract

Successful development of agriculture and ensuring the country's food security are only possible with the production of all agricultural products, which objectively requires the development of processes of diversification of economic activities of agribusiness structures. At the same time, in recent years, the processes of diversification of agricultural production have been accompanied by complex and problematic trends associated with a reduction in the production of certain types of products (animal husbandry), the curtailment of species activities and ecologically and socially unjustified deepening of specialization towards the crop industry. This also causes a low number of additional environmental and social problems in rural areas; for a successful solution, it is necessary to improve diversification processes, considering the goals and principles of sustainable development. The article proposes using alternatives to traditional renewable energy sources (RES) further to develop diversification of business structures in the agricultural sector. It is determined that using renewable energy sources also contributes to the achievement of sustainable development in rural areas and is a promising direction for the agricultural economy of European countries. A brief description of the potential of RES in Ukraine, particularly in agriculture, is provided. The author's version of alternative renewable energy sources for agriculture and rural areas is presented. The following sectors of agricultural management are identified as the main ones for using renewable energy sources: irrigation, greenhouse management, agromonitoring systems, water supply, drainage and desalination, seed sowing, and bakeries. The current structure of agricultural production has been analyzed, and the main trends in its change have been identified. The analysis showed that grain and technical oilseed products occupy the maximum share of the agricultural production structure in Ukraine. The main problematic aspects and prospects for using RES in Ukraine's agriculture as a direction of diversification of economic activity of agrarian business structures are systematized. The introduction and use of RES as a direction of diversification of the activities of agricultural structures can contribute to building up the strategic potential of competitiveness and sustainability of the agricultural sector and rural areas of the country. Keywords: diversification, renewable energy sources, economic activity, agricultural enterprises, production, agriculture, sustainable development