The economic interest and favorable conditions of activity - the main factors determining the efficiency of agricultural organizations

In the article the question of efficiency of agricultural production is observed and the main factors determining the results of economic activities in agriculture are highlighted and grouped. Production efficiency is one of the key categories of market economy, which is directly linked with the achievement of ultimate goals of the organization. It requires to improve a concept of efficiency of agricultural production and to identify the main factors influencing the final result of the activities. Production efficiency is directly related to use of resources. In this case, the level of management efficiency describes the degree of opportunities usage of the controlled object (labour force, land, materials, financial resources). To improve the efficiency of agricultural organizations the main factors determining the results of economic activities in agriculture should be identified. Thus, the main factors determining the results of economic activities in agriculture include: 1) entrepreneurial interest; 2) favorable conditions for doing business. Entrepreneurial interest is a motivation that encourages the head of the enterprise (entrepreneur) to conduct a particular activity with the aim of obtaining maximum benefits, considering the level of uncertainty, the value of which allows lowering the possible losses as a result of occurrence of risk situation. The process of selecting areas of agricultural activity depends not only on the size of the profit, but the means to achieve it, the resource availability, costs incurred, possible loss, the presence of entry barriers and state support for specific activities, etc. No less important element, stimulating the investment activity in agriculture is the creation of favorable conditions for doing business. Thus, to stimulate activities in the agricultural production the measures that allow farmers to reduce or compensate possible losses in case of occurrence of risk situation must be taken. The lack of such measures reduces the investment attractiveness of enterprises due to the high level of uncertainty and difficulties in forecasting financial result. Thus, choosing new production or expanding current production the head of the company estimates the effectiveness of this particular production and expediency in the conduct of this activation the basis of the described factors.