The Secondary Equipment Market in the Positive Economic Development of the Agricultural Sector

Author Name(s): Airat A. Zamaidinov, Asiyа K. Subaeva, Natalya R. Aleksandrova
Author Email: subaeva.ak@mail.ru

Abstract

Technical support to and technological modernization of agriculture is an important direction in the development of agricultural production. At present, there is a tendency in agriculture to the obsolescence and break down of equipment. Partly, the acquisition of high-performance equipment and the introduction of resource-saving technologies, the use of combined soil cultivating and sowing units compensates for the deficit. At the same time, the level of supply with technical means of many agricultural enterprises does not allow for timely fulfillment of all technological operations in the set agrotechnical time limits [1]. As a consequence, the role of secondary technology in raising the level of agricultural machinery remains one of the important directions. The object of the study is Ulyanovsk Region. The study presents statistical data for 2011. The grouping of agricultural enterprises in Ulyanovsk region by their financial and economic indicators made it possible to divide all agricultural enterprises of the region into three groups and make recommendations for the development of technical potential. In this situation, the role of secondary machinery in increasing the level of technical provision of agriculture is becoming increasingly important.

Introduction

Agricultural engineering is one of the important factors in the development of the agro-industrial complex. The growth rate of the development of the agrarian sector depends on the level of technical availability. In conditions of financial instability of many agricultural enterprises, the secondary market of agricultural machinery is a convincing alternative to renewal of fixed production assets.

The largest part of the AIC of the regions of Russia feels an acute shortage in technology, so the use of the secondary market is the most acceptable. The main goal of this market is to provide agricultural producers with cheaper additional equipment, which becomes relevant against the background of low purchasing power [2].

The advantages of the market of second-hand agricultural machinery are low price in comparison with the new products; proven performance of machinery and equipment; the possibility of direct contact between the seller and the buyer, which shortens the delivery time of equipment; alternative methods of payment under contracts of sale; simplification of resale in a short time with more favorable conditions; braking of losses in the price in comparison with the new technology losing a high share in its price in the first years of operation. Disadvantages are: physical and moral wear and tear of machinery, non-provision of guarantees for operating units and for the whole range of machinery and equipment; and the risk in payments and supplies related to transportation and insurance [3].

Conclusion

Thus, the new and second-hand agricultural machinery market is subject to certain changes. It is mobile; the state comprehensively supports both the development of domestic agricultural machinery, and the financial and economic incentives for machinery buyers. The measures taken should strengthen the positions of Russian producers of agricultural products and machinery and raise their competitiveness

References

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