Profitability of agriculture and the state of the main sectors of agriculture funds currently do not allow to run even simple reproduction only at their own expense  wescom credit union .

 Organization of the system of financing of agriculture in order to update the fixed assets and working capital, can become the basis for economic growth in production, not only in agriculture, but also in related industries - engineering, food, light and chemical industries.

With the development of market economy, many new ways to finance the production, and the capacity to raise funds. However, the farms have lost previous secure funding, and public support is minimized. Some of the same sources of funding that are widely used by large companies, remain inaccessible to the farms because of high interest rates, the reluctance of banks to lend to agriculture because of high-risk, complex procedures for obtaining credit, etc. In this regard, agricultural enterprises should be especially careful to approach the issue of a range of funding sources - when choosing the most suitable one, or when choosing the optimal combination of these sources. In these circumstances, the company is very important to determine which costs it will face, attracting funds from one source or another.

For the borrower the question of determining the effectiveness of the loan is also important, as there is some economic border business loan, beyond which the loan becomes unprofitable. To do this, the value of fees for credit commensurate with the income that can be obtained from the operation of the business of the project (for example, income from the sale of meat from animals kept for fattening). If the income from the project will be significant, with the payment of the loan fixed interest should take. Otherwise, on such credit terms should be abandoned. However, in practice the solution of this question is not so easy. The fact that the final result in the form of income from this activity consists of the entire life cycle of the project. It is the overall result should be commensurate with the amount of borrowed funds attracted entrepreneur. But this is not a final solution to the question of the effectiveness of credit, as the credit amount may be only part of the investment, and the final result is due to all the cumulative cash.

Evaluate the effectiveness of short-term loan can be made in terms of his term payback. A performance evaluation of credit can be carried out using well-known performance evaluation of business projects. One of the most important and most common is the internal rate of return (profitability). Internal rate of return characterizes the net profit (net of gross income) per unit of investments by Investors in each interval of the life cycle of the project. Typically, the life cycle of the project includes a set of intervals (years). And initially engaged in investment fees, and then, after the entry into operation of the project, there will be ongoing costs and the corresponding results. That these cash flows are equivalent to each other, it is necessary to consider the factor of time, ie hold discounting.

To compare the different times cash flow necessary to bring them to any time period, for example, to the initial point. In that case, the formula for the calculation of the total funds (costs or benefits) would be:

R = Σ, where
R - the total value of cash flows for the entire period of time;

Rt - the cash flow in the t-th interval;

Ec - the discount rate funds.

For the farmer, there are several possible sources of credit. In assessing the effectiveness of such credit facilities should take into account specific features of agricultural production:
- The process of reproduction in agriculture is longer than in other industries, so the capital turnover is slower;
- High uncertainty of forecasting cash flows due to the dependence of the results on the natural environment;

- The efficiency of credit greatly influence factors of macroeconomic instability  wescom credit union .

The effectiveness of the credit - this is a complex function that depends on the one hand, on the procedure for granting credit, and on the other - from production, where the credit is used. In assessing the effectiveness of agricultural credit should proceed from the fact that the process of issuing the credit tranches and extinctive payments spread over time. Therefore, to assess the comparability of the threads that their total value at a certain time, for example, at the beginning of the loan process. The assessment process can be divided into four stages. At the first stage, the period of operation of the credit process. At the second stage, the value of these tranches. In the third stage, the optimum flow of income from the use of credit. In the fourth stage, the efficiency of lending.

We propose to describe the method of calculation, enter the following notation:

K1, K2, ..., Km - the value of the credit tranches for periods;

D1 D2, ..., Dn - income from the use of credit in the life cycle of the project.

Cost-effectiveness of the loan can be defined as the sum of the discounted stream of income from the project to the sum of the discounted loan tranches. Discounted sum of the credit tranches are as follows:

Q0 =; Q1 =; Qm =, where

Qm - discounted value tranche Km;
Km - total m-th tranche;
m - number of loan tranches;
Qn - standard discount the costs and benefits of the project, Qn = qr + qo + qc;

 qr - guaranteed rate for dividends on investments in highly reliable bank;
qo - minimum limit profitability of the project, who can set up the company and so taking them on their own;
qc - insurance rates, taking into account the risk of investments.

Discounted income from the sale of the business project, respectively, for 1, 2, ..., n periods will be calculated as follows:
R1 =; R2 =; Rn =; where

n - the number of periods from receipt of profits, and hence the loan.
If the discount factor of the credit tranches indicate di =, (i = 0, m ¯), and the present value of the income stream factor designated as di =, (i = 1, ¯ n), the effectiveness of the loan is determined as follows:
E =
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