Investment Potential of the Grain Product Subcomplex in the Conditions of War and Post War Recovery

Abstract

The article determines the volume of grain production in all categories of entities in Ukraine and, in particular, Poltava region in conditions of full-scale war. The economic potential for activating investment processes in grain production is determined. The need for investments in the development of the industry is justified, which are due to the need to replace the outdated material and technical base, especially fixed assets, its improvement and modernization. It is found that in terms of the level of provision of agriculture with material and technical resources, Ukraine lags behind developed countries, and their quantity and quality do not meet technological needs. On average, in Ukraine, per 1 hectare of agricultural land there is 6-7 times less fixed assets than in agricultural enterprises in developed countries. The dynamics of investments in the technical renewal of grain production of agricultural enterprises of the Poltava region during 2018-2022 were analyzed. It was found that the largest share in the structure of investment sources in 2021, namely 79%, was occupied by own funds and loans of enterprises, 8.1% of equipment was purchased under financial leasing, with partial compensation of the cost – 7.5%. According to the author's estimates, during 2022-2024, the indicated negative trends deepen even more. The need for investments in preserving soil fertility and increasing their productivity is substantiated. The main reasons that lead to the depletion and degradation of soils in Ukraine and a decrease in the content of humus and nutrients in them are identified. The results of agrochemical monitoring of studies of agricultural soils of the Poltava region are analyzed, which indicate a decrease in their fertility. Recommendations have been developed to justify investment directions in the grain production sector in Ukraine during the war and post-war recovery phase: technical and technological renewal, development of the processing sector, improvement of soil quality, expansion and modernization of infrastructure, as well as effective risk management.