The goal of the research presented in this paper is to examine economic efficiency and financial feasibility of investments in agricultural land, from the agricultural producer’s viewpoint and to contribute successfully to the formulation of the answer to the question if this investment is justified under analysed conditions. Material for this study was collected during the years of 2011 and 2012, through the method of interview, which was carried out with holders of family farms from Srem Administrative District. The analysis of economic efficiency of investments in agricultural land is based on dynamical methods for investment evaluation. Analyses have shown that investing in 5 ha of agricultural land amounting to 575,000.0 RSD per ha at discount rate of 7.0% would be profitable when applying the 30 year investment horizon, and also is feasible under the given financial conditions.
Author(s), editor(s), contributor(s):
Todorović, Saša (Poljoprivredni fakultet, Beograd-Zemun (Srbija)) Ivanović, Sanjin (Poljoprivredni fakultet, Beograd-Zemun (Srbija))