Activities of farms in Ukraine: theoretical foundations, current development trends, and economic indicators

Abstract

The article examines the theoretical foundations of the functioning of farms in Ukraine, determines their place and role in the structure of the agricultural sector of the economy. The main functions of farms, including production, economic, social, environmental, innovation, and food security functions, are considered, as well as the specific features of their functioning as independent agricultural business entities. The main internal and external factors determining the performance of farms are analyzed, including limited access to financial resources, war-related risks, price instability, rising production costs, insufficient technical equipment, labor shortages, marketing and sales problems, and the need to adapt to European integration requirements. A comprehensive approach to assessing the efficiency of farm activities is applied, taking into account the production, economic, social, and environmental components. The main indicators for assessing the efficiency of resource potential utilization, financial performance, social impact, and environmental performance of farms are identified. Current trends in the development of the farming sector in Ukraine under conditions of full-scale war are analyzed. A decline in agricultural production volumes is identified, and the main factors influencing their dynamics are determined. Changes in the structure of agricultural production, the role of farms in ensuring food security, and the trend toward increasing the area of agricultural land used by farms are characterized. The prospective directions for the development of the farming sector are substantiated, including technological modernization, production diversification, development of agricultural cooperation, processing, storage infrastructure, and direct sales channels. Particular attention is paid to the potential transformation of economically viable household farms into family farms. It is determined that the further development of the farming sector will largely depend on the availability of financial resources, the effectiveness of state support, infrastructure restoration, adaptation to climate change, and the deepening of European integration processes.