Normative monetary evaluation of agricultural projects towards sustainable land and soil management

Authors

DOI:

https://doi.org/10.51599/is.2023.07.01.08

Keywords:

agricultural project, effect, greening of production, innovation, market turnover of lands, normative monetary evaluation, project management, rent, sustainable land and soil management.

Abstract

Purpose. The purpose of the paper is to describe and reveal the issue of the efficiency of agricultural projects regarding the sustainable management of land (soil) resources based on improvement of project management with the necessary elements of normative monetary evaluation (NME).

Results. The paper deals with agricultural projects and the mechanism for the formation of economic evaluation. The problem of sustainable land and soil management (SL&SM) is quite acute in the world, but it is decisive for Ukraine. In the conditions of low interest of agrarian business in issues of sustainable reproduction of land potential and greening of production, the need for accuracy of evaluations when creating projects is becoming increasingly important. Since July 2021, the market for agricultural land has been opened in the country, which only increases the need to use effective tools that take into account the consequences of changes in the capitalization of land (soil) resources as a reason for creating projects. The need to take into account in land use not only economic results, but also ecological, technological and other types of effects is revealed. A lot of scientific and practical papers are presented taking into account these types of effects in the direction of reproduction of soil fertility and their protection. These research and developments cover the issues of agricultural reclamation of solonetzic soils (salinity), processing of poultry manure into high-quality composts with ameliorative action, contamination of the earth (soil) with heavy metals, optimal choice of agricultural technologies and machine-tractor units, etc. In general, the success of agrarian business is closely related to activity in the project development and innovation. Innovativeness and accuracy in the calculation of effects are fundamental to sustainable land and soil management (SL&SM). For this aim, the pivotal scheme of the flow process for ensuring sustainable land and soil management (SL&SM) has been developed, where the influence of agricultural projects on them is linked using numerical approaches. At the same time, in order to develop an agricultural project with high implementation efficiency, an addition to the previous scheme was proposed, which combines a comprehensive assessment (CA) with the adjustment of sustainable development goals, namely setting the aim and goals (SAGs). Due to formalization of the decision-making algorithm for project management, a block  (element) of economic assessment of object changes (EAOC) related to land (soil) was determined based on the method of normative monetary evaluation (NME). Some of the methods for calculating the NME have shown which them have advantages and are more accurate.

Scientific novelty. For the first time, this study presents and discusses a  pivotal scheme for ensuring sustainable land and soil management that highlights the impact of agricultural projects and the importance of monetary evaluation for their effectiveness. The relationship between the comprehensive assessment (CA) of agricultural projects and the formation of sustainable land and soil management (SL&SM) is clearly shown. It is compiled according to the rules of the algorithm and indicates the sequence of actions to develop a managerial decision on the problem.

Practical value. It has been determined that the basis of changes in the economic assessment of lands and soils can be their normative monetary evaluation (NME). Therefore, agricultural projects with the usual approach to the economic assessment of the effects must also take into account the indirect action on the object of influence – land (soil). The offered scheme for evaluating agricultural projects makes it possible to make timely adjustments to the goals (SAGs) set and to fully implement them in the direction of sustainable land and soil management (SL&SM).

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How to Cite

Ulko, Y. (2023). Normative monetary evaluation of agricultural projects towards sustainable land and soil management. Journal of Innovations and Sustainability, 7(1), 08. https://doi.org/10.51599/is.2023.07.01.08

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Economic sciences