Economic efficiency of winter wheat production on the base of a typical farm of the central region of Ukraine

Abstract

Ukrainian fertile lands and favorable climate conditions provide enormous opportunities for the agricultural sector development and formation of a highly efficient economic cluster. With a practical management approach, the agricultural potential could meet domestic needs and form a significant part of export earnings. The volume and quality of agri-food may satisfy not only internal food security but also contribute to the European, Asian and African. However, due to the longer production cycle compared to industry, agricultural enterprises at the stage of choosing a production program can not anticipate and respond quickly to changes in market conditions, increasing the competitiveness of goods and attractiveness to consumers based on existing production schemes. Therefore, the primary purpose of our study is to create a roadmap of management decisions when planning a production program through efficiency evaluation of growing winter wheat in a typical farm in Central Ukraine. For this purpose, we opt for a methodology based on marginal revenue, total costs, production and profitability thresholds along with payback of production factors. Due to climate change, the importance of growing winter crops is becoming increasingly essential and superior attention should be paid to improving their economic efficiency. Thus, the problem and relevance of the article is due to the requirements for sustainable successful operation of agricultural enterprises in a market environment and, therefore, the feasibility of using available calculation methods to assess the economic efficiency of production to facilitate management decision-making.