ASSESSMENT OF THE EFFICIENCY OF THE INVESTMENT OBJECTIVE OF CHANGING THE SOIL TILLAGE SYSTEM UNDER THE CONDITIONS OF A SPECIFIC COMPANY

Abstract

The topic of the research is based on the possibility of improving the economic results in crop production by changing the tillage technology. The aim of the paper is to compare the effectiveness of the investment objective of buying a new seeder that allows the use of strip till technology and the existing minimization method of tillage in the conditions of a specific company. The company owns the other necessary mechanization. Investment objectives are developed in a Microsoft Excel spreadsheet using its @Risk add-on. Variant solutions are developed using a different ratio of utilization of land cultivation methods and subvariant in a different combination of financing the investment plan. Using the net present value (NPV) criterion, the deterministic efficiencies of individual variants of investment plans are compared in the conditions of a small, medium and large enterprise.

Based on the obtained results, we can conclude that the original variant minimization method of tillage achieves better NPV values in the conditions of a small business compared to the other variants in which the purchase of a new seed drill is assumed. However, what is significantly more efficient compared to the original method of soil cultivation are the subvariants that use strip-till technology, but count on sowing as a form of services.

In the conditions of a medium-sized and large company, if the share of strip-till technology is calculated to be higher than 30%, it is already more advantageous to acquire a seed drill compared to the original variant. However, the best variant in the case of a medium-sized enterprise is still the variant with the realization of sowing in the form of services, but in the conditions of a large enterprise it is already the variant counting on the procurement of its own seed drill.

The results obtained by the simulation analysis fully confirmed the conclusions from the deterministic efficiency evaluation. In the comparative comparison, the stochastic dominance rule of the first degree was applied in most cases, with a preference for variants of new technology, but with the provision of sowing in the form of services in the conditions of a small and medium-sized enterprise and in the conditions of a large enterprise by purchasing one's own seeder.