Assessment of restraining factors in financing climate transition programs for agricultural organizations

¹ Russian State Agrarian University - Moscow Timiryazev Agricultural Academy, Moscow, Russia
² Financial University under the Government of the Russian Federation, Moscow, Russia

^* Corresponding author: banasti@mail.ru

Abstract

Agriculture is fraught with numerous risks that can lead to bankruptcy for agricultural enterprises and hinder the climate transition. It is possible to increase the volume of financing for climate transition programs if you understand the level of financial stability of enterprises and correctly assess the risk factors that hinder sustainable development. This research focuses on evaluating the ability of agricultural enterprises to finance climate transition programs. The article examines quantitative indicators of the financial condition and performance efficiency of the agro-industrial complex industry and the largest agricultural enterprises for 2015 and 2023. By using comparative analysis methods and official statistics data, we arrive at a conclusion regarding the main problems associated with the risks of insolvency and reduced financial stability, the prerequisites for the financial insolvency of agricultural enterprises, and the increasing burden on the budget system due to the measures of state support. The livestock industry demonstrates poorer performance than the crop production industry. We propose to use economies of scale and form mixed farms, combining crop farming with livestock farming. This will help reduce negative risk factors and ensure financing for climate transition programs.