The agricultural machinery market for crop production and prospects for its development in the postwar period

Abstract

Due to the hostilities, the largest losses in the agricultural sector of Ukraine’s economy were caused by the loss of agricultural machinery – 20.9% of it was destroyed or damaged. Therefore, ensuring the effective functioning of the market for agricultural machinery is a key factor in restoring the material and technical base of agricultural enterprises. The research aims to investigate the current state of the agricultural machinery market and the impact of military operations on it and to identify effective ways of its development. The following methods were used in the study: dialectical method of scientific knowledge, monographic, statistical, and economic, economic and mathematical, expert evaluation, and graphical. The general trend towards a decrease in the share of households with certain types of machinery in 2015-2022 is determined. Disproportions between large and small forms of management in the provision of machinery, as well as restrictions on access to financial resources for small agricultural enterprises, have been identified. The study identified a general decline in the size of the Ukrainian machinery market due to the loss of production capacity in the east and south of the country. Imports of agricultural machinery – tractors by 57.0%, combine harvesters by 30.0%, seeders by 33.8%, disc harrows by 45.1%, and cultivators by 38.9% – also decreased significantly in quantitative terms. The analysis of state support for agricultural machinery and agricultural enterprises is carried out. A forecast of the development of the agricultural machinery market for crop production under positive and negative scenarios, including risks and challenges that may arise during and after military operations, is made. Recommendations for the development of the market of agricultural machinery for crop production have been developed, including implementation of the state’s protectionist policy; preservation of human resources; evacuation of agricultural machinery enterprises from the war zone; simplification of business to stimulate investment activity; state support for small farms, etc. The implementation of these recommendations will help restore the effective functioning of the agricultural machinery market and the logistics of agricultural production in Ukraine