The goal of any business is to make a profit. And it is profit that is the main criterion of its effectiveness. It is believed that the higher the profit, the more successful and efficient the business is.
Agricultural business, like all other types of business, seeks to make a profit. Profit for a business in the agricultural sector is also an important criterion for assessing its effectiveness. But it is not the only one.
The fact is that farmers make their profit on the land in interaction with nature. Only the top layer of the earth (soil) has fertility, i.e. the ability to meet the needs of the plants being grown. This makes it possible to provide fodder for animals and to provide people with the food they need.
In addition, in other industries, due to the acceleration of scientific and technological progress, various means of production can be replaced by more advanced ones, while in agriculture, soil is an irreplaceable means of production.
If business in the agricultural sector is focused only on making a profit, there is a very high risk of predatory use of land.
As a result of this attitude to land, the quality of Ukrainian soils is declining every year. Thus, Ukrainian black soil has lost a third of its humus over the past 100 years.
Continuous mechanical tillage leads to a decrease in the content of organic matter and nutrients in the soil, as well as soil erosion. As a result, the productivity of the land decreases.
Great civilizations that failed to prevent soil degradation did not survive. Modern agricultural business can suffer the same fate if its main goal is only to maximize profits.
However, if the soil is used properly and natural laws are taken into account, it can not only be protected from water and wind erosion, but also improve its quality. In this case, it is possible not only to preserve but also to increase soil fertility.
Therefore, the condition of such an important means of production as soil is also a very important criterion for the success of a business in the agricultural sector.
Efficient agribusiness is not only about maximizing profits with minimal inputs. It is also about restoring, preserving and improving the fertility of the soil on which it operates.
Obviously, business in the agricultural sector should be evaluated not only by the amount of profit but also by the condition of the soil. Only those agribusinesses are efficient that take care of the soil that generates their profits.
It is soil fertility that will determine the efficiency of agribusiness not only now, but also in the future!