KEY INDICATORS OF ECONOMIC EFFICIENCY OF AGRICULTURE
One of the most pressing problems of the further acceleration of agricultural development under current conditions is to further increase the efficiency of the industry. Efficiency of production – is a complex economic category, which reflects the action of economic laws and is manifested most important aspect of the enterprise – its effectiveness.
In characterizing the economic efficiency of agricultural production system is used natural and cost indicators.Natural performance indicators are the crop and animal productivity. Physical indicators are the basis for calculating the cost indicators: gross and marketable products, gross and net income, earnings and profitability.
The effectiveness of the company as it reflects the synthetic level of success or the success of the entire production and business enterprise policy and should characterize the different aspects of its activities. Therefore, although in general, effectiveness ratio of effect to the costs for a more complete analysis of the enterprise is necessary to analyze various aspects of economic and financial situation through a system of economic indicators.
For the best and most efficient production of cost-effectiveness should be measured quantitatively by means of specific indicators, but its measurement must take into account the value of productive capacity. The role of economic efficiency indicators is to quantify the content of the criterion.
Currently, many scientists believe that:
1. Summary measure of economic efficiency of agricultural production should reflect the main results of production, ie production volume, product quality, costs per unit of output. Hence, this indicator should be expressed in monetary terms.
2. Production efficiency – a category depends on many factors, so it should be measured and recorded the whole system of indicators of economic efficiency, and in no way any one.
Among scientists there is no consensus regarding the category summary measure of agricultural production.Some suggest using this as a net profit, while others – gross income, and others all the gross output.
Considerable diversity of opinion writers, there is also about the choice of the relative performance of production, without which no analysis of production – financial performance, forecasting and management of enterprises.
In our view, in accordance with the basic methodological and methodological assumptions about the production effect (result) and resources (cost) of production, as well as taking into account the requirements for the summary measure of economic efficiency, that such an indicator at the companies in the market conditions are as follows: Gross income, net profit, profit. However, the availability of summary measure, which is the profit or income, not exclude, but on the contrary, even suggests the use of other indicators to more fully and deeply reflect the diversity of the content of economic efficiency.
Only on this basis may seek means of increasing agricultural production with less cost. Distinguish two concepts of economic efficiency of production – and expensive resource. The resource concept allows to assess the effectiveness of the entire mass of productive resources used in the production process, and costly – only consumed in a process – of these resources.
Classification of resources and costs reveals what resources or cost savings can be achieved social labor, increase production efficiency. Depending on this classification, the main factors increasing the economic efficiency of resources and costs are: labor, land or material resources.
The system performance of most authors is the following:
1. The ratio of gross output value:
- To a unit of land area;
- On average one worker per 1 man-hour, 1 person-day;
- 100 rubles of basic production assets;
- 100 rubles in production costs (the reverse indicator – the cost of production);
2. The ratio of gross income for the same indicators.
3. The ratio of net income and earnings:
- To a unit of land area;
- On average one employee;
- To the cost of fixed assets;
- To the cost of production sold (gross) production.
All the above figures reflect the level and effectiveness of all types involved in the production of resources and costs.
The final indicator of the efficiency of the enterprise is profitability – it is an economic category, which expresses the rate of return (profitability) of the enterprise.
To evaluate the profitability of using the gross and net income and profits.
Gross income (WA) – the difference between the value of gross production (AEP) at current prices and material costs (MOH):
VD = SVP-MH
Net income (BH) – the difference between the value of gross production (AEP) at current prices and production costs (PP or PS):
BH = R – CT or
BH = WA-OT
where OT – labor costs.
Profit as an economic category characterizes the financial result of business enterprise.