Methodical Approach for Determining the Needs of Agricultural Engineering in Business Unit

Elena Vidinova

Abstract: The increase of the labor productivity in the agriculture and the competitiveness of agricultural products depend on a lot of factors. The supplying of the production with the need amount and quality farm machinery is one of them. The aim of the article is to submit a method of approach for determining the needs of agricultural engineering in business unit. The scanty financial resource and the public interest for the using way tax-payer resources call for to work out a method for a rational combination between quantity of the farm machinery and its using. In the development stages of the project is necessary to use methods of analysis, comparison and minimum cost as the main focus of the results obtained from the purchase of machinery (subject to the investment in the project), namely: • Do you purchase leads to an increase in depreciation and what is the increase; • Increase in depreciation is accompanied by a rise in labor productivity; • What is the growth rate of depreciation and labor productivity after the purchase of machinery to the project; • What is the growth rate of depreciation and the rate of reduction of labor costs (including manual). It is done a critical analysis of an applied method for a valuation of investment projects for the farm machinery and is made a suggestion for an improvement a method of approach for a valuation of these projects.

Keywords: agricultural machines; agriculture; investment project

Date published: 2018-01-29