SIMULATION MODEL OF DEVELOPMENT OF INVESTMENT AND INNOVATION ACTIVITY OF ORGANIZATIONS IN CROP AND LIVESTOCK FARMING

Agriculture is one of the key sectors of the economy, ensuring food security, job creation, and sustainable regional development. In the face of globalization, climate change and growing demand for food, organizations in crop and livestock production are faced with the need to adopt innovative technologies and increase investment attractiveness. The design of simulation models facilitates accelerated adaptation to the constantly changing conditions of the country's economic system. This study highlights the significance and advantages of simulation modeling as a tool for agriculture. An adapted system of simultaneous equations is presented, based on which a production function for the simulation model was developed. The production function was adjusted based on a correlation matrix and verification econometric tests conducted using the Gretl software package. Resulting variables and data determinants for the designed model were identified. The simulation model was developed in the AnyLogic environment, where it underwent five development scenarios with a forecast period of 15 years. Following the scenario analysis, final values for the 5th, 10th, and 15th years of the forecast are presented.