Management of investment opportunities for fixed assets reproduction

The presented scientific article substantiates relevant problems concerning the process of fixed assets reproduction of the agricultural organizations, as well as the process of formation of their own investment capital. It is a well-known fact that organizations in the agrarian sector of the economy need investments, while the existing process of forming their own investment capital at agricultural enterprises in the Orel region does not provide necessary level of the fixed assets reproduction. The significance of these problems is aggravated by the fact that over time depreciation allocations have lost their investment purpose, since not more than half of their total amount is directed to investing into the fixed assets reproduction. To form the means for reproduction optimally, it is necessary to work on a gradual increase in the capital intensity of production and at the same time pay attention to reducing its material intensity. With the help of the methodology that takes into account influence of the market prices, the replacement cost of fixed assets of organizations in the agricultural sector of the economy was calculated. In the course of the study, it was found that the valuation of fixed assets at the replacement cost of the second order does not always lead to an increase in the amount of depreciation funds. Identification of fixed assets not used in the production process is considered as one of the ways to increase profit from sales and, accordingly, the profitability of products, since it is this event that will reduce production costs. In addition, emphasis was placed on the evaluation of fixed assets at an updated cost, which will increase the amount of real depreciation charges compared to the original values. Improving the existing mechanism for investing in the reproduction of fixed assets of agricultural enterprises in modern conditions must be carried out on the basis of a combination of cost and resource approaches to the formation of equity.