Analysis of the Investment Attractiveness of Agricultural Enterprises in Periods of Instability and Insurance of Agricultural Risks

Abstract

The study aims to evaluate the investment attractiveness of agricultural enterprises under conditions of economic and political instability using PE Agrotemp Plus as a case study, to identify the key financial factors ensuring enterprise stability, and to assess the effectiveness of agricultural risk insurance in strengthening financial resilience. The relevance of the research is driven by heightened uncertainty in the external environment, increased exposure of agricultural producers to climatic and market risks, and limited access to financial resources in periods of macroeconomic instability. A comprehensive methodological approach was applied, including a detailed analysis of the enterprise’s financial performance indicators, capital structure, dynamics of equity and borrowed capital, equity-to-debt ratio, and the efficiency of financial management decisions. Special attention was paid to risk management instruments, particularly insurance of production, climatic, and market risks, which play a crucial role in mitigating potential financial losses and stabilizing cash flows in the agricultural sector. The results of the study indicate a stable growth of equity capital at PE Agrotemp Plus from UAH 44,900 thousand in 2021 to UAH 52,431 thousand in 2024, reflecting effective financial policy and the enterprise’s capacity for self-financing. At the same time, borrowed capital decreased from UAH 14,679 thousand to UAH 6,940 thousand, leading to an optimized capital structure and an improved equity-to-debt ratio of 88.3% to 11.7% in 2024. The use of agricultural risk insurance contributes to the reduction of potential financial losses, enhances financial security, and increases the investment attractiveness of the enterprise. Overall, PE Agrotemp Plus demonstrates a rational capital structure, financial stability, and adaptability to crisis conditions. The balanced combination of equity, borrowed funds, and agricultural risk insurance ensures sustainable development and creates favorable conditions for attracting investment even in an environment of prolonged economic and political instability.