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1. Definition
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Name
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NET
FARM INCOME
|
|
Brief
definition
|
Net
Farm Income
|
|
Unit of measure
|
Euros
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2.
Position within the logical framework DPSIR
|
Type
of Indicator
|
Driving
Force
|
3.
Target and political pertinence
|
Objective
|
The
indicator contributes to the definition of the socio-economic
context of the area affected by desertification.
|
|
Importance
with respect to desertification
|
The
farm income plays a very important role in defining
the strategies of the farmers with respect to the
land. If the farmers get sufficient income from the
farm, they will adopt all possible strategies to preserve
the soils not only to safeguard the environment (from
the social point of view) and patrimony (from a private
point of view) but also as an important continuing
income source.
|
|
International
Conventions and agreements
|
The
UNCCD emphasized the role of measures to develop the
economic environment improving the long-term prospects
of rural economies by the creation of incentives for
productive investment and access to the means of production.
|
|
Secondary objectives
of the indicator
|
The indicator can give
a measure of the loss of land productivity implied
by desertification processes, and the economic and
social consequences that result from decreasing the
productive capacity of land resources.
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4.
Methodological description and basic definitions
|
Definitions
and basic concepts
|
Net
Farm Income is defined as: Total Output (A) less
All Inputs (B) plus net public receipts (subsidies
less farm taxes)
where:
(A)
Total Output is the Value of all production from the
farm
- Sales
- Value of home-grown
feed and seed
- Consumption by
the farm household
- Benefits in kind
- Changes in value
of livestock
- Changes in stocks
of products
(B)
All input is the sum of Direct inputs (B1) plus
overheads plus depreciation plus
return to fixed factors
- Direct inputs (B1)
- Maintenance of
buildings and machinery
- Depreciation of
buildings and machinery
- Insurance and other
overheads costs
- Labour costs (paid
and imputed)
- Rent (paid and
imputed)
- Interest (paid
and imputed)
(B1)
Direct inputs, which vary according to farm production
(including those produced on the farm)
- Seed and plants
- Fertiliser
- Crop protection
products
- Animal feed
- Miscellaneous crop
and livestock costs
- Energy (fuels,
electricity) and water
- Contract work
|
|
Benchmarks
Indication of the values/ranges of value
|
I°
range: < Local Mean -St. Dev.
II° range: >Local Mean - St. Dev. < Local Mean
III° range: > Local Mean < Local Mean + St.
Dev.
IV° range: > Local Mean + St. Dev
|
|
Methods
of measurement
|
As
described in "Definitions and basic concepts"
|
|
Limits
of the indicator
|
Farm
income is likely to be influenced by several exogenous
factors, the effects of which can be hardly separated.
These concern the situation of agricultural markets
(including CMOs), structural aids, and the socio-economic
situation of the Region, etc.
|
|
Linkages
with other indicators
|
This
indicator is closely related to Parallel Employment, EU Production Subsidies, Farm size
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5.
Evaluation of data needs and availability
|
Data
required to calculate the indicator
|
Net
Farm Income
|
|
Data
sources
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Monitoring
(UE Evaluation), on-farm enquiry (interview, sample,
case study..), national/regional accounts or statistics.
|
|
Availability of data
from national and international sources
|
FADN
(Farm Accountancy Data Network); Eurostat
FADN The Farm Accountancy Data Network (FADN)
is a system of sample surveys, on a Community-wide
scale, carried out each year. The FADN survey covers
all the different types of activity on farms and also
collects data on some of their non-agricultural activities
(such as tourism and forestry).
|
6.
Institutions that have participated in developing the indicator
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Main
institutions responsible
|
University
of Basilicata, Italy
|
|
Other
contributing organizations
|
Universities
of Athens, Lisbon, Murcia
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7.
Additional information
|
Bibliography
|
European
Commission Directorate General for Agriculture VI/12004/00
Final (Part D) - Explanatory Sheets
European
Commission Directorate General for Agriculture VI/12004/00
Final (Part C) - Economic terminology
European
Commission - Eurostat (2000): Farm structure, Historical
results - Survey from 1966/67 to 1997
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Other
references
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Contacts
Name and address
|
University
of Basilicata
Prof Giovanni Quaranta
email: quaranta@unibas.it
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