Impact of investments on the viability of farms

Viktoria Mendeva

Abstract: Investments are determining factor for economic growth and viability of farms. The development of the economic viability of farms is directly related to their financial condition. Based on neoclassical economic theory, financial condition is accepted as a process of sustainable development. Farm solvency means efficient use of capital and resources to achieve financial balance. The assessment of solvency is based on a system of indicators that are part of the analysis. The aim of the study is to establish the effectiveness of investments in farms and their impact on farm viability. It has been done a comparative analysis of two farms viability, having different legal status. As a result of the analysis, it is concluded that the evaluation of financial performance related to viability should be performed in accordance with the specifics of plant- growing and stock – breeding. The results of the analysis indicate that as a result of the planned upgrades, the investment in both farms produce positive effects related to their viability.

Keywords: agriculture; efficiency; investments; sustainability; viability

Date published: 2017-10-09