Use of financial instruments to increase the capitalization of agro-industrial complexes

Perm State Agro-Technological University, 614990 Perm, Russia

^* Corresponding author: profur1@ngs.ru

Abstract

The main characteristics of agricultural production in Russia and around the world are: capital intensity, dependence on natural factors, seasonality and relative instability of markets. These factors lead to increased needs of agro-industrial enterprises and their associations in sufficient sources of financing their own activities. Financial sources should not only be sufficient to ensure the main activity but also to assume some safety margin to overcome the decline in financial stability in cases of low yields, seasonal fluctuations in supply and demand, a sharp deterioration in weather conditions. At the same time, producers of agricultural products, goods and services have low investment attractiveness. This is caused by long payback times, technological complexity, high risks of such activities. As a rule, agricultural producers do not have sufficient financial resources to develop production, and at the same time face difficulties in attracting long-term investment from external sources. In such circumstances, financial instruments can become an important and effective way to ensure financing and increase the capitalization of agro-industrial complexes. Therefore, an important task of the economy and the organization of agricultural production can be recognized as the development of effective mechanisms to attract investment and the formation of their own working capital funds of agricultural producers by issuing and organizing the turn of corresponding financial instruments, including securities.