DOI: n/a
Abstract
This article argues that investment in the agricultural sector has its characteristic problems, originating from the specific production process in that sector, on the one hand, and the state of the economic climate in the country, on the other. A special emphasis is laid on the fact that investment in that sector carries high risk, with a very few opportunities for its minimization. The combination of biological and non-biological means of production predetermines the investment process arrangement in time. Admission of any divergences has a negative impact on the incomes and the return of investments. Inability to form regular financial revenues from agricultural activities leads to uncertainty among investors and credit institutions alike. In addition to problems, associated with the production characteristics, there are social, macroeconomic, and foreign trade problems, which also impede the efficiency of the investment process in the agricultural sector. Entrepreneurs in that sector, in contrast to those in other sectors of the economy, have limited financial potential and capabilities at their disposal. Because of this, the bank credits and the funds, provided by state-, European, and non-governmental programs aiding agricultural producers remain the only possible source of income for financing their business activities.