Economic Value-Added of Agricultural Business

The paper is devoted to the problem of increasing the investment attractiveness of the agricultural business, indicated in the national priorities of the state for agriculture. The paper demonstrates that this problem is hard to solve only through budgetary mechanisms for attracting financial and credit resources to the agricultural sector. The paper reveals the decrease in private investment and overall investment activity in the agricultural business against the background of borrowed capital growth on the example of the Penza Region producers. The conditions of uncertainty require effective tools, adequately describing the return on the investment process or means of supporting the adoption of investment decisions. The methodology for diagnosing the investment attractiveness of the agricultural business is generalized. It is systematized by the indicators of the method of assessing economic value-added and supplemented with models of the functional dependence of the profitability spread on invested capital, which makes it possible to substantiate the effectiveness of potential investments and show the return on invested capital. The research information resources were financial reporting data in the context of agro-industrial enterprises in the region. We considered two possible scenarios of rising prices for products: in the conditions of openness of the domestic market (Scenario 1) and the conditions of “anti-sanction” (Scenario 2). The performed analytical and model calculations show the presence of economic and financial incentives from investing financial resources in the agricultural business in both scenarios. The owners of the invested funds will receive significant value in the first scenario, and large profitability of the agricultural business in the second one. The study results will be useful to AIC management bodies for coordinating strategic decisions to create a favorable investment climate in agriculture.