Methodological foundations of economic assessment of yield of agricultural crops

Abstract

The methodology for assessing levels of land productivity in terms of cost recovery is presented in theoretical and practical aspects. Based on the method for grading the yield of agricultural crops, methodological approaches have been proposed to substantiate the indicators of four productivity levels, which form four zones: unprofitable, moderate, rational and optimal yield. At the breakeven point, whereby revenue from sales and total production and sales costs are equal, the company does not incur losses, but does not receive profit either. After overcoming the breakeven point, the enterprise begins to make a profit with each subsequent unit of production. In the zone of moderate productivity, the company makes a profit which allows simple reproduction. In the zone of rational productivity of land, the profit of the enterprise provides for a partial upgrade of production, necessary in conditions of expanded reproduction. To conduct an extensive upgrade of the production base in conditions of expanded reproduction, the enterprise should reach the optimal level of yield. Formulas are given by which enterprises can forecast their profit per unit of area as a multiple of fixed costs. A number of examples for calculating different levels of crop yield based on a case study of a particular enterprise in 2018 are presented. The suggested method will allow researchers to substantiate economic evaluation of yield levels achieved for each type of crop cultivated at any given agricultural enterprise. This methodology will also provide specialists of agricultural enterprises, teachers and students of higher educational institutions with modern methodological tools for the economic assessment of yield levels for cultivated crops.