Conversion and transmission of national farm returns and analyses with regard to FADN

Lead Institute BW Institute of Farm Economics

Conversion and transmission of national data for the European Commission

A magic wagon that has a European flag on one visible side and a German flag on the other.

Conversion and transmission of national farm returns to the Farm Accountancy Data Network of the European Union (FADN) and methodological developments in terms of policy advice

The Farm Accountancy Data Network (FADN) is a harmonised data base throughout the EU that consists of accounting data from a representative sample of agricultural holdings. Based on this income, structural and production developments can be analysed. The European Commission uses the FADN extensively to evaluate the impacts of the CAP and to design new policy measures.

Background and Objective

In 2012 the Federal Ministry of Food and Agriculture transferred the responsibilities of the national Liaison Agency for the FADN to the Thünen Institute of Farm Economics. We are working with the FADN Committee, which serves, among others, to address future requirements of the data base (e.g., with regard to the latest CAP reform). We also develop proposals for a better coverage of other gainful activities and how income indicators can be adjusted.

Target Group

Federal Ministry of Food and Agriculture, European Commission, farmers and society, rearchers with access to FADN data

Approach

We are validating the data conversion and implementing new requirements of the FADN farm return. Furthermore, we investigate the causes of differences, for example with regard to stock validation and income indicators between the national farm return and the FADN. Using FADN we perform comparative analyses across Member States.

Data and Methods

We apply various statistical and econometric methods depending on the concrete issue and use time-series and cross-sectional analyses at the farm level. Based on a special weighting system the results can be extrapolated to the sector level.

Our Research Questions

What are the key developments for e. g. specialist milk or fieldcrop farms in various Member States? What are the distributional impacts of the CAP reform? Are current income indicators appropriate given the developement of new types of businesses?

Preliminary Results

Currently, we are carrying out a comparative analysis of the income situation of identical farms using the national farm return and the FADN. Our findings show that the incomes according to FADN are significantly lower, particularily for farms with the status "legal persons" in the New Länder of Germany. These differences are due to incnsistencies with regard to stock valuation schemes, data coverage and data conversion.