Nepochatenko Olena, Doctor of Economic Sciences, Professor, Professor of the Department of Finance, Banking and Insurance, Uman National University, Uman, Ukraine

ORCID: 0000-0002-1212-6335
e-mail: nepochatenko1@gmail.com

Trusova Natalia, Doctor of Economic Sciences, Professor, Professor of the Department of Finance, Accounting and Taxation, Dmytro Motornyi Tavria State Agrotechnological University, Zaporizhzhia, Ukraine

ORCID: 0000-0001-9773-4534
e-mail: trusova_natalya5@ukr.net

Determinants of Stabilization of Financial Stability of Agrarian Business Entities in the Face of Challenges and limitations of Industry Risks

Abstract. Introduction. The article provides a thorough analysis of the factors that contribute to the financial stability of Ukrainian agricultural businesses amid growing industry risks. These risks have intensified due to military operations, the destruction of logistics infrastructure, fluctuations in global agricultural markets, changes in climate, and the instability of the domestic financial environment.

Purpose. The study aims to identify the structural, economic, institutional, and market factors that influence the financial stability of agricultural businesses, as well as to develop a scientifically based model to minimize industry risks and evaluate their effect on the financial stability of agricultural enterprises during and after the war.

Results. A comprehensive study has been carried out on institutional instruments that ensure the financial stability of Ukrainian agrarian business entities in an unstable economic environment. This study also covers structural transformations of the agrarian market, as well as increased risks caused by changes in global supply chains and fluctuations in resource prices. A thorough analysis of the dynamics of key financial indicators of agrarian businesses in the pre-war and war periods was conducted. This analysis revealed patterns in the transformation of financial stability and identified critical points of decline during periods of peak industry risk. Particular attention was paid to studying the relationship between liquidity, solvency, capital turnover, operating profitability, and the overall risk exposure of agrarian entities.

Conclusions. The results of the analysis enabled the formation of an innovative model for minimizing agricultural risks. This model combines insurance tools, price fluctuation hedging, digital risk factor monitoring, financing source diversification, and intra-farm financial flow optimization. This model aims to increase the adaptive capabilities of agricultural businesses, reduce their financial vulnerability, and ensure they can function sustainably in uncertain conditions. The results obtained are significant for making strategic decisions regarding risk management and the financial stability of agricultural businesses in Ukraine.

Keywords: financial stability; agrarian business; industry risks; risk management; institutional factors; risk minimization model.

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