Investment in agriculture: structural restructuring or technological upgrading

The article demonstrates the objective necessity of the application of technological and social standards to implement the restructuring of the national economy in a given direction. Investment activity allows carrying out technological modernization, but it only indirectly affects the structural proportions, as focused on the profitability of investments. The state has a system of standards and rules of food production and life quality to achieve the desired structural transformations in agriculture. A low elasticity of food demand, population growth, improving the quality of life are prerequisites for sustainable growth of investments in agricultural production. During 2010-2014 14% increase in the volume of production was accompanied by a decrease in the availability of tractors and harvesters in a 1.5-fold increase in use of fertilizers and chemicals for crop protection. Large cattle and pig breeding develop at a quickened pace. In poultry, new construction has slowed to almost 1.5 times. Modernization has led to structural changes in the industry, subjecting the reproductive process certain transformations. The ratio of large-scale and small-scale production changed in favor of the former, because modernization was carried out mainly in agricultural enterprises, which reduced the share of production in private farms from 49.3% to 40.5% during 2005-2014. Structural changes occurred in the combined sectors of crop and livestock production towards greater crop specialization. The share of livestock in total production decreased from 51.5% to 48.5%, but due to the growth of livestock production in the agricultural organizations made possible the increase in consumption of meat and dairy products. The state, through a system of technological standards creates a vector of structural transformation: setting the list of the best technologies, state support is provided to business entities with a given technological level of production. But in any case, the technological modernization of the industry must be conducted in line with changes in consumer preferences and quality requirements for food.