Farm Accountancy Data Network Data Research Articles

Evaluation of nitrogen balances and nitrogen use efficiencies on farm level of the German agricultural sector

CONTEXTUse of Nitrogen (N), an essential macronutrient, must be optimised in order to ensure food security and food sovereignty, mitigate negative externalities of food production and achieve ambitious (inter-)national environmental, climate and sustainability goals. Nitrogen use efficiency (NUE) is an appropriate indicator for assessing N utilisation on farms. OBJECTIVEThe aim of the study was to evaluate N performance of the German agricultural sector, to generate knowledge gain regarding methodological design and estimating N indicators based on farm accounting data, to estimate the role and extent of externalities, and to increase understanding of interrelations between farm characteristics and N performance in order to support policymakers in finding targeted N mitigation measures. METHODSUsing data from the German Farm Accountancy Data Network (FADN) covering 5923 farms between the years 2016/17 and 2018/19, we calculated mean farm-level NUE and N balance values for six farm types, considering input and output parameters on farm level as well as externalities. We also developed two explanatory models to identify interrelations between N performance indicators investigated, and regional, socio-economic and farm structural characteristics. RESULTS AND CONCLUSIONSThe results indicated an increasing trend in NUE from dairy, to pig and poultry, and arable farms, but large variance within each farm type, indicating efficiency reserves in N use. Livestock farms undercut NUE and exceed N surpluses to such an extent that the sustainability goal for 2030 for the national N balance as defined in German Sustainable Development Strategy could be jeopardised. Different levels of externalisation, namely feed imports and manure exports, may deepen this gap. Multiple regression analysis revealed statistically significant interrelations between N performance and independent variables such as soil fertility, crop selection and diversity, production type, operating profit and consulting services received. Thereby, structural patterns and strategies in order to reduce N waste and increase NUE were identified. However, main source of uncertainty was due to the lack on imported manure amounts from FADN data. SIGNIFICANCEDetermination of N performance can improve understanding the complexity of agri-environmental interrelations and support policymakers in designing appropriate policies to improve N management.

Accounting for diversity while assessing sustainability: insights from the Walloon bovine sectors

Livestock production is confronted with significant challenges across all dimensions of sustainability. There is an urgent need to identify sustainable livestock systems that are environmentally friendly, economically viable for farmers, and socially acceptable. To this end, diversity assessments and data-driven indicator-based sustainability assessments can be helpful tools. These two mutually reinforcing approaches each have their own dilemmas and strengths; however, their combination is not straightforward. In this paper, we propose a method that simultaneously assesses the diversity and sustainability of production systems within one agricultural sector, without compromising either aspect, while overcoming the dilemmas of diversity and sustainability assessments. We test our method on the Walloon dairy and beef sectors (Belgium) and base our assessment on data from the European Farm Accountancy Data Network (FADN). We apply relevant classification criteria to the sample farms to group them into production systems. The core data was complemented with calculated environmental indicators to perform a comprehensive sustainability assessment, including structural, socio-economic, and environmental indicators. Our results confirm the importance of complementing sustainability assessments with diversity assessments. Our case study results show that a diversity of livestock systems coexist and that it is possible to overcome trade-offs between economic and environmental performances. Extensive grass-based systems present the best combination of economic and environmental results, which highlights the importance of preserving grassland resources at the regional level. The proposed method proves effective to improve the relevance of FADN data and supports the ongoing call to transform the FADN into a more comprehensive database that satisfactorily covers all dimensions of sustainability.

Measuring the economic sustainability of Italian farms using FADN data

In recent literature, the issue of sustainability and its measure has been addressed with different approaches that depend on the multidimensional nature of the concept and the specific sector and context to which it applies. The present work focuses on the economic sustainability component and suggests an operative measure at the farm level. The measure of economic sustainability has been applied to Italian family farms using Farm Accountancy Data Network (FADN). Based on this data, an efficiency indicator (EI) and two income indicators [a factor profitability indicator (FPI) and a comparable income indicator (CII)] expressing the ability to remunerate the entrepreneur's production factors at their opportunity cost and the farm's income capacity have been used in a principal component analysis (PCA) to build an economic sustainability index (SI). The index was used to describe Italian farms' economic sustainability levels but was also the cue to discuss problems related to identifying economic sustainability thresholds and the trade-off between efficiency and income components.

Italian farms during the COVID-19 pandemic: main problems and future perspectives. A direct analysis through the italian FADN

The spread of the COVID-19 virus in Italy during the first phasis of the pandemic (February-May 2020) has caused a large-scale crisis, with an almost immediate decrease of industrial production and a consequent contraction in domestic consumption and external trade. However, the issue of food security was immediately recognized as one of the most sensitive, so that the Government has decreed the priority role of the food system, which has been included among those considered fundamental services and economically essential, allowing the related activities to be carried out during the lockdown. Agricultural production activities transformation, and commercialization remained fully operative during the lockdown; nevertheless, the sector has faced many difficulties related to the contraction of some of the marketing channels (restaurants, on farm sales, agritourism, problems with the logistics and many other ones). To better understand the effects of the initial phasis of the pandemic on the Italian agricultural sector and provide useful information to the government and decision makers, a survey was carried out with a CAWI (Computer Assisted Web Interviewing) sent to over 10,000 farmers belonging to the sample of the Farm Accountancy Data Network (FADN). The number of respondents has been of 733 farms, which represents around 7% of the Italian FADN sample. The results of the questionnaire have been matched with FADN data on the structure and the economic performance of farms, allowing a more precise evaluation of the condition and effects of the pandemic. The results highlight a relevant effect of the COVID-19 pandemic emergency on the agricultural sector: 37% of the interviewed farmers declared a significant liquidity crisis, while 60% predicted a contraction in turnover. These effects are more relevant for the wine, olives, and horticulture types of farming and more frequent in medium/large farms. A better situation has been found for farms which usually outsource processing and/or marketing/sale of the products.

Ten years after: Diffusion, criticism and potential improvements in the use of FADN for Rural Development assessment in Italy

This article aims to contribute to the debate about the Farm Accountancy Data Network (FADN), on how to make it more usable, useful and reliable, both for research users and practitioners when studying policy assessment. Ten years ago, the Italian National Rural Network published a highly relevant report about FADN data use for Rural Development policy evaluation, providing a wide range of examples of its application. The report had the merit of providing a comprehensive and systematic overview of FADN uses for evaluation for the first time and not only for impact assessment.From this experience, this paper examines how the different Managing Authorities in Italy have used FADN data for the evaluation of the current 2014-20 Rural Development Programmes: how actually the database has been used in the Annual Implementation Reports, with a focus on indicators for competitiveness assessment. The paper highlights some recommendations, considering the next programming period and the application of the so-called New Delivery Model.

Modeling change in the ratio of water irrigation costs to farm incomes under various scenarios with integrated FADN and administrative data

The Water Framework Directive 2000/60/CE (WFD) of 2000 was issued by the European Union (EU) to prevent water deterioration and promote its restoration. It introduced a water pricing policy in the agricultural sector that is based on a ‘polluter-pays' principle.To date, some Member States have yet to comply with the pricing requirement for two main reasons: water cost estimates, as defined by the WFD, are particularly complex and difficult in the agricultural sector and farmers in marginal economic and environmental contexts may be unable to bear higher water costs.In Italy, water services are managed by regional administrations that also set irrigation water prices. This research estimated the effect of changes in irrigation water costs borne by farmers on farm incomes in a case study in the Aosta Valley Region where extensive farming is practice in a significantly naturallydisadvantage area. The analysis was modeled using four cost scenarios with economic data from the Farm Accountancy Data Network (FADN) integrated with irrigation water cost data provided by a regional administrative database. Estimated water costs averaged 2.65% and 1.06% of farm incomes, depending on the presence or absence of regional subsidies. Water costs represented higher income proportions on specialized grazing livestock farms, which is the predominant type of farming in Aosta Valley. These results raise concerns for WFD implementation, in particular, in mountain and agriculturallydisadvantaged areas with extensive and less-profitable farming.

Sustainability and competitiveness in farms: An evidence of Lazio region agriculture through FADN data analysis

The new legislative proposals related to the Common Agricultural Policy (CAP) reform 2021-2027 aim to promote a sustainable and competitive agricultural sector. The new CAP supports agriculture in making a much stronger contribution to climate, biodiversity, environment and improving farms' competitiveness in the agri-food sector, in a European context.The importance of a strong focus on results and performance in the CAP legislation requires a continuous assessment and monitoring of the effectiveness of the measures adopted in the Rural Development Programs (RDP) with respect to the specific goals set during the cap program. In order to assess the progress in improving the competitiveness and sustainability of the agri-food sector in reaching their targets and the objectives of the CAP, the need arises to investigate whether the RDP measures contribute to supporting the transition towards sustainable agriculture, to the competitiveness of the agri-food sector and to a balanced development of the rural areas. In this new legislative framework, where it becomes important to evaluate whether the CAP provides a much stronger contribution to achieving the specific objectives, our paper aims to describe agricultural sector in the Lazio region and to analyze the effects, in terms of sustainability and competitiveness, of the measures approved by RDP 2014-2020, which have almost expired. In particular, we provide a comparative analysis of the data collected by the Farm Accountancy Data Network (FADN), focusing on two different periods: one prior to the last programming and one referring to the latest available data. The collected data refer to farms, regarding their structural, economic, financial and patrimonial characteristics, as well as variables that describe attitudes and behaviour towards the environment. A multivariate analysis (clustering) is applied; it focuses on explorative factor analysis based on principal components, in order to identify homogeneous groups of farms with sustainability and competitiveness and identify similar characteristics and potential for development trajectories. The results found that farms are moving towards more sustainable and multifunctional development paths. The assessment of EU goals for social, environmental, and economic sustainability in agriculture and rural areas are a basis for discussion among public decisionmakers involved in the reforming process of the explanatory measures of the new strategic objectives of the post-2020 CAP.Our results can offer a contribution to meeting the current challenges posed by the EU to ensure a smooth transition to the future CAP program. Major challenges that raise policy debate on the considerable potential of the FADN for assessing sustainability and farm competitiveness in the EU framework which places strong emphasis on results and performance.

Use and users of FADN data in Italy

The Farm Accountancy Data Network (FADN) is a sample survey that annually gathers information from more than 80,000 European farms. Its main aim is to provide data to the EU Commission used in the assessment of farm profitability and in the evaluation of Common Agricultural Policy (CAP) impacts.FADN results are also used and published nationally in almost all the Member States. The Italian fadn (named RICA - Rete Italiana di Contabilità Agricola) provides data for stakeholders and researchers, serving as an important source of information for specific analysis and meeting a wide range of policy needs.Data are stored in an online database, available for institutional users under an agreement or a formal accession request. For non-institutional users, a public Datawarehouse supplies/provides selected information already aggregated by farm type, economic size, and region. Like other surveys, FADN can be considered as a public good, whose general benefit and utility depends also on its impact on users. One way to evaluate these benefits is the identification of users, the data used and their level of satisfaction. This monitoring activity is not performed in the Italian FADN: users and usage are not always tracked and the information about their satisfaction is lacking. The paper investigates this aspect (which has been called "inherent data dissemination" for the first time, focusing on the extent and ways in which fadn is made available: the most important area of analysis covered by the data. Two instruments are examined: the FADN database online (BDR) and the request forms submitted to CREA to ask for customized tables based on a set of selected variables. The first tool has been analyzed by submitting a questionnaire to the list of users, while for the request forms, all the submissions processed during the period 2011-2020 have been examined.

Assessment of Farm Accountancy Data Network System in Croatia

Croatia is the newest member of the EU Farm Accountancy Data Network (FADN). So far, no comprehensive evaluation of the national FADN system has been conducted, and this study based on a survey of staff involved and a desktop analysis was conducted to fill this gap. The three main elements of the Croatian FADN system are the National FADN Committee, the Ministry of Agriculture as Liaison Agency (LA) and the Croatian Bureau for statistics. All FADN survey activities are carried out by LA and the main burden of data collection lies with the data collectors and the farms. The system operates in accordance with relevant EU legislation and currently its main objective appears to be the fulfilment of its obligations to the FADN network. Other benefits like analysis of CAP measures etc. are not yet exploited. The main challenges are further development of quality assurance systems, the motivation of staff and farms to participate, the increased use of FADN data, and the expected changes in transformation of the FADN into the sustainability data network (FSDN). Croatia will successfully meet these challenges if it strengthens its capacity for FADN research and data analysis and establishes an effective quality assurance system.

Old Wine in New Bottles: Exploiting Data from the EU’s Farm Accountancy Data Network for Pan-EU Sustainability Assessments of Agricultural Production Systems

The paper presents insights from carrying out a pan-EU sustainability assessment using Farm Accountancy Data Network (FADN) data (the old wine) with societal metabolism accounting (SMA) processes (the new bottles). The SMA was deployed as part of a transdisciplinary study with EU policy stakeholders of how EU policy may need to change to deliver sustainability commitments, particularly to the UN Sustainable Development Goals. The paper outlines the concepts underlying SMA and its specific implementation using the FADN data. A key focus was on the interactions between crop and livestock systems and how this determines imported feedstuffs requirements, with environmental and other footprints beyond the EU. Examples of agricultural production systems performance are presented in terms of financial/efficiency, resource use (particularly the water footprint) and quantifies potential pressures on the environment. Benefits and limitations of the FADN dataset and the SMA outputs are discussed, highlighting the challenges of linking quantified pressures with environmental impacts. The paper concludes that the complexity of agriculture’s interactions with economy and society means there is great need for conceptual frameworks, such as SMA, that can take multiple, non-equivalent, perspectives and that can be deployed with policy stakeholders despite generating uncomfortable knowledge.

Sources of Greenhouse Gas Emissions in Agriculture, with Particular Emphasis on Emissions from Energy Used

The relationship between agriculture and climate change is two-sided. Agriculture is the branch of the economy most affected by the ongoing processes. It is also a large emitter of greenhouse gases and there are more and more voices about the need to reduce emissions. The purpose of the study was, based on FADN (Farm Accountancy Data Network) data, to determine the structure of greenhouse gas emissions in farms and to identify types of farms where it is possible to reduce GHG (greenhouse gas) emissions through better energy use. The emission volume was determined on the basis of the IPCC (Intergovernmental Panel on Climate Change) methodology modified for the FADN data. The emissions related to the production of energy were found to be of minor importance compared to other emission sources. Only in the horticultural crop type is the emission from the Energy section the dominant stream of GHG emission. The greatest emissions come from livestock production. Therefore, the emphasis on reducing emissions should not be placed on the Energy sector because, except for the type of horticultural farm, there is not much potential for reduction. The introduction of taxes for GHG emissions at the level of 27.31 EUR/t would reduce farm income from 21% for the type of field crops to 40% for the type of herbivorous animals. The exception is low-emission permanent crops, where the decrease in income would be only 3.85%.

Development of agri-environmental footprint indicator using the FADN data: Tracking development of sustainable agricultural development in Eastern Europe

The emphasis put on environmental issues of the European Union (EU) agricultural sector in the strategies like the European Green Deal, Biodiversity and Farm to fork strategy give new directions to the Common Agricultural Policy (CAP) changing the EU agricultural practice into a more environment-and climate-friendly manner. The modified support rules and obligations for farmers will necessitate adopting new farm management practices on farms. This paper proposes the Agri-environmental Footprint Index (AFI) as a tool to identify the current state of the environmental situation and to track the changes and achievements on farms. The proposed approach is applied for the case study in Lithuania for 2017. The farm-level data from the Lithuanian Farm Accountancy data Network (FADN) are exploited. The paper relies on the multivariate statistical techniques (Shannon Entropy and Principal Component Analysis) and multi-criteria approach (Simple Additive Weighting) to construct the composite indicators. The results are analyzed across farming types and farm size classes. The most environmentally beneficial farms are characterized as medium-sized (in economic terms) and specialized in field crops-grazing livestock. The highest share of farms with a low value of AFI was found for the largest farm size class and for farms specialized in horticulture (using Shannon entropy weighting) and orchards (using Principal Component Analysis (PCA) weighting). The results of AFIs using Shannon entropy and PCA weighting across farming types tended to differ. Therefore, in order to apply the proposed tool in practice, testing different weighting schemes is preferable.

Financial sustainability in Italian farms: an analysis of the FADN sample

PurposeThe paper examines the factors that influence the production of cash flows in a sample of Italian farm accountancy data network (FADN) farms to generate information useful for calibrating policies to support farmers' investments.Design/methodology/approachAn econometric analysis on the sample estimates the influence of structural, economic, commercial and financial variables on CAFFE, i.e. the cash flow that includes the payments to the farmer's resources and the free cash flow on equity (FCFE). The econometric problem of endogeneity is treated by adopting the Hausman test to choose between fixed and random effects models. The results for Italian agriculture and its types of farming (TFs) are examined based on the FCFE/capital depreciation ratio, where FCFE subtracts from CAFFE the opportunity cost payments to the farmer's resources. This ratio identifies TFs with problems of sustainability of the production system.FindingsThe results show that increasing the productive dimension, in particular the endowment of farmland and working capital, is still essential to stimulate the production of cash flows of Italian agriculture. Without this growth, increasing the depreciable capital base is ineffective. FCFE does not compensate for depreciation in several TFs, which in various cases could also improve by improving economic efficiency and commercial position.Research limitations/implicationsAssessing the factors that most influence cash flows can help to better calibrate rural development measures to the territories and farming types that most need public support. Our analysis procedure can be applied to all production systems equipped with farm accounting networks; however, the criteria for rewarding farmer resources and calculating the replacement value of agricultural capital need to be better discussed.Originality/valueThe specification of rural development policies rarely takes into account the financial sustainability conditions of farms, as well as the factors that determine them, in defining the support parameters and the selection criteria for funding. Our approach, based on the analysis of FADN data, considers these aspects and provides ideas for better calibrating public support for investments among agricultural territories, sectors and types of farms.

Analysing the efficiency of diversified farms: Evidences from Italian FADN data

Based on data drawn from the national section of the EU Farm Accountancy Data Network (FADN) database, the study investigates the efficiency of a panel sample of Italian farms practising other gainful activities. An output-oriented Data Envelopment Analysis is performed for each year from 2012 to 2017. A second step of analysis is carried out by using the Malmquist Index in order to analyse inter-temporal productivity changes and to decompose its variation into three components, that is, the variations in pure technical efficiency, the variation in scale efficiency and the technological progress for every two years. Results show there is much room for improving the performances of diversified farms, even when considering the variability observed among farms in terms of efficiency scores and across the investigated period. Some variables at contextual and farm levels – farm's location and size– relate to the efficiency performances of diversified Italian farms. Over the investigated period of time, the technological change supports farms' performances and contrasts some situations of low managerial efficiency.

In search of factors determining the participation of farmers in agri-environmental schemes – Does only money matter in Poland?

The growing awareness of the negative impact of agriculture on the natural environment creates social expectation towards the reduction of this impact through the pro-environmental activities of farmers. Agri-environmental programmes are one of the key instruments of EU agricultural policy aimed at encouraging farmers to do so. Due to their voluntary nature and involvement of farmers in these activities, there has been a scientific discussion for a long time on the factors determining the participation of farmers in these programmes. Numerous analyses carried out mainly for agriculture of Western European countries, do not give unequivocal answers on the factors which influence the involvement of farmers in agri-environmental measures, which additionally might be different for Central-Eastern Europe. This is a significant problem for policymakers deciding on the distribution of financial support. Our analysis of 594 commercial farms, a subsample of the Polish FADN (Farm Accountancy Data Network), uses both FADN data and the outcomes of interviews with farmers. Results show that farmers who see a clear economic interest for their farm, most often participate in AES (Agri-environmental Schemes). Risk aversion turned out also to be an important determinant but is rarely analysed in the literature. On the other hand, factors related to the attitudes of farmers towards the environment have a small impact (if any) on participation. This is important information for policymakers, as it indicates the educational needs in terms of farmers' understanding of the relationship between farming and the environment, and also indicates that moving away from the model of incentives based on financial incentives would probably involve a reduction in the scale of agri-environmental measures by farmers.

Income Levels and Farm Economic Viability in Italian Farms: An Analysis of FADN Data

In the European Union legislative proposals for the next Common Agricultural Policy (CAP) the income support remains an essential part of the CAP. This paper analyses agricultural income levels, the role of EU aids in ensuring fair levels of income and how different socio-economic and structural characteristics affect farms’ economic viability. Italian Farm Accountancy Data Network (FADN) data have been processed and economic viability has been assessed by comparing Farm Net Income to a reference income and by estimating a profitability index to check whether the agricultural activities remunerate factors owned by the farmer and his/her family. After an explorative analysis, two multinomial logit models have been estimated to evaluate how structural and socio-economic characteristics affect the likelihood of a farm to be viable with and without EU aids. Both structural farm characteristics and farmer’s production strategies explain the likelihood of a farm to be viable in the short and in the medium-long term. Farms are more likely to be viable as the size increases and the higher the capital intensity, while viability likelihood decreases with the farmer’s age, when the holder is a woman, and the farm is localized in Southern Italy. CAP payments do not modify the factors that affect farm viability but can change their weight.

Relations between Agri-Environmental, Economic and Social Dimensions of Farms’ Sustainability

Attempts to measure sustainability of farms are usually based on indicators of a set of sustainability dimensions. According to the literature, analyses should (but quite often do not) cover not only the level, but also the relations between the sustainability dimensions, because we could expect complementarity, synergies or competition between the sustainability goals. The aim of this paper was to measure and assess the interdependencies between dimensions of farms’ sustainability. The research was carried out on 601 farms that participate in the Polish Farm Accountancy Data Network (FADN), with the use of standard FADN data supported by additional information from interviews. Based on many variables, economic, environmental, social, and composite sustainability indices were collected. From the correlation and correspondence analyses it was concluded that the farms reached the balance of all three dimensions simultaneously when the level of sustainability indices was medium, while a high level of sustainability in one dimension made it very difficult to reach a high level in the others. It was also emphasized that assessing farms’ sustainability with the use of a simple aggregation of variables may be not correct since sustainability goals may compete with each other.

Explaining determinants of Agri-tourism income: evidence from Italy

PurposeThe purpose of this paper is to analyze the income sources of Italian farm tourism businesses, considering some economic, social and environmental variables that represent internal business factors and highlighting their contribution to the development of this income.Design/methodology/approachThe empirical analysis is based on the Italian section of the Farm Accountancy Data Network (FADN) that includes 365 Italian farm tourism businesses. FADN is an instrument to assess the income of European agricultural holdings and the impacts of the Common Agricultural Policy. The analysis has been carried out through a Multivariate Regression Model.FindingsThe results of this paper have showed that some economic variables (food service, direct selling and public subsidies) determine an increase in farm income, whereas an increased number of family employees may have a negative impact on this income.Research limitations/implicationsExternal factors, such as proximity to urban or cultural centres, may impact on agri-tourism income, but these are not considered in the statistical analyses. Another limit of this paper is the exclusion of tourists’ motivational variables and others mostly referring to the market (pricing policies, promotional strategies, etc.). Furthermore, this paper focuses on a specific country and this could reduce the generalization of its results.Practical implicationsThanks to the selected regression drivers, farmers who offer tourism services could recognize a priori their entrepreneurial opportunities and understand the variables on which to focus to increase their income, which could be in turn strengthened by policies seeking to develop the endogenous potential.Social implicationsAgri-tourism can fulfill various functions in the regional economy, with positive implications for the quality of life of rural societies.Originality/valueOn the European level, there is currently a lack of research studying the variables affecting agri-tourism revenue and entrepreneurial choice that mostly define profitability. This may be the first time that FADN data set has been utilized for researching farm tourism businesses in Europe.

Sustainability indicators for improved assessment of the effects of agricultural policy across the EU: Is FADN the answer?

Policy reform of the CAP and society’s expectations of agriculture have resulted in a growing need for improved information on the effectiveness of policy in achieving high-level objectives for more sustainable practice in agriculture. This is a high priority given its importance for consumers, public policy and private industry. Data collection programmes will need to adapt their scope if their information is to adequately address new information needs about high-level objectives. Assessment of sustainability at the farm level is hindered by the lack of data with which to derive appropriate, meaningful, and relevant indicators. This is particularly problematic for assessment of agricultural sustainability across the European Union (EU). Various databases exist at the EU scale regarding agricultural data sources and we identify one of these, the EU Farm Accountancy Data Network (FADN), as having considerable potential to assess farm-level sustainability at EU level. We critique several examples of published work that has attempted to assess agricultural sustainability using: FADN data alone; FADN data in combination with data from supplementary surveys, and; FADN data in combination with data from other EU databases. We conclude that the FADN would need to broaden its scope of data collection if it is to address the new information needs of policy, and we discuss the challenges in expanding FADN with a view towards wider farm-level assessment of sustainability. These include careful selection of indicators based on various criteria, the representativeness of the FADN, and the need to include new themes to address environmental, social, and animal welfare effects of policy.

Determination of the relationship between outputs and inputs in agriculture in the EU member states

The EU member states have established FADN (The Farm Accountancy Data Network) system to collect and process accounting data from agricultural holdings. The system is based on precisely defined methodology that is unique for all member states. At EU level, the data are integrated from all member countries, and bring common agricultural policy measures aimed at improving operations and improving financial results achieved in farms. This system operates on the representative sample of about 80.000 agricultural farms from the EU, which represent about 5 million of commercial farms. In this paper we present relationship of outputs and inputs in the agricultural sector of the EU Member States. On the basis of FADN data, there is a possibility of long-term planning of investment in agricultural production, the level of subsidization of agricultural production and adjusting the type and volume of production to market demand.