Theoretical substantiation of the system of factors influencing the agricultural development: the Ukrainian context

Purpose. The article aims to develop a system of factors that potentially affect agricultural production development in Ukraine, their theoretical substantiation, and classification by the nature of the impact. Design / Method / Approach. The presented list of factors is based on statistical indicators of the State Statistics Service of Ukraine and open data of international financial, economic, and agricultural organizations. General scientific methods of economic analysis and logical procedures founded on a systemic approach are widely used. Findings. According to the results of the research, the first and basic stage of the proposed algorithm for identifying key factors that affect the development of agriculture has been implemented. Selected and theoretically substantiated 29 factors are classified according to six meaningful groups – natural and climatic, economic, socio and demographic, production and technological, ecological, and expendable. Theoretical Implications. Theoretical substantiation allows us to formulate hypotheses regarding the relationship between factors and the agriculture development level in Ukraine that can be confirmed or rejected based on the results of the following stages of the algorithm. Practical Implications. The identification of key factors for farming development helps to focus on the most crucial elements, increasing the effectiveness of the state agricultural policy. In addition, their integration into the indicator system of economic security will contribute to the consideration of risks for agricultural activity when determining the state of the national economy. Originality / Value. Factors characterizing the challenges and threats associated with Russian aggression and affecting the functioning of Ukraine’s agriculture in wartime conditions are proposed to be added to the initial set of variables. Research Limitations / Future Research. In further research, economic analysis of theoretically based variables should be carried out using multiple regression models and the principal components technique to determine the most significant factors.