Applying the factor analysis to assess the development potential of the grain industry

Abstract

Subject. The article explores the impact of various factors on assessment of the grain industry development and formation of its production potential in the future, using the case of agricultural agro-district of the Nizhny Novgorod Oblast. Objectives. The purpose is to assess the resource potential of the grain industry development based on the use of factor and correlation analyses of the main components affecting the agricultural production of grain crops. Methods. The study employs general scientific (analysis and synthesis, formalization, analogy and comparison) and special (statistical, correlation, factor analysis) research methods. Results. We analyzed the production of grain crops in the context of agro-climatic zones of the Nizhny Novgorod Oblast as part of municipalities of the region, performed the factorial and correlation analysis of the influence of individual parameters and conditions on grain production. The paper graphically presents the distribution of areas of the agricultural agro–district under study by two factors, i.e. the production potential of the organization and the personnel and resources to increase the volume of production in the future. Conclusions. The considered methods of analyzing factors and conditions of grain production determined a close relationship between the system-forming resources in agriculture, which are land and labor. The study defines their structural contribution to the formation of reserves for improving the efficiency of the grain industry and enhancing its potential in the future.