Economic accounts in agriculture

NOTES ON METHODOLOGY
 

Source and methods of data collection
Economic accounts in agriculture for the Republic of Croatia are calculated on the basis of survey data of the Croatian Bureau of Statistics, administrative data from the Croatian Agriculture Extension Service and the Paying Agency for Agriculture, Fisheries and Rural Development.

Methodology for the development of Economic Accounts in agriculture is based on Regulation (EC) no. 138/2004. European Parliament and the Council of 5 December 2003 on the economic accounts in agriculture in the Community, Manual of Economic accounts in agriculture and forestry EEA / EAF 97 (Rev. 1.1. - Eurostat), and Manual for Agricultural labour input (Eurostat, 2010) http://epp.eurostat.ec.europa.eu/portal/page/portal/agriculture/data/main_tables as well as on the following regulations:

The Commission Regulation (EC) No. 306/2005 of 24 February 2005 amending Annex I to Regulation (EC) No. 138/2004 of the European Parliament and of the Council on the economic accounts for agriculture in the Community.

The Commission Regulation (EC) No. 909/2006 of 20 June 2006 amending Annexes I and II to the Regulation (EC) No. 138/2004 of the European Parliament and of the Council on the economic accounts for agriculture in the Community.

The Commission Regulation (EC) No. 212/2008 of 7 March 2008 amending Annex I to Regulation (EC) No. 138/2004 of the European Parliament and of the Council on the economic accounts for agriculture in the Community.

Data have been revised in accordance with the European System of National Accounts ESA 2010. A revision of agricultural subsidies and agricultural labour input expressed by annual work units (AWU) has also been conducted. The recalculation of subsidies has had the greatest impact on the value of the output of agricultural industry and other components of agricultural economic accounts.

The subsidies have been recalculated in accordance with the acquis communautaire and national laws and ordinances (Regulation (EC) No. 138/2004 , Commission Regulation (EC) No. 306/2005, Regulation (EU) No. 1307/2013, Agricultural Act, NN, Nos 149/2009, 127/2010, 50/2012, 120/2012, 148/2013, 30/2015; Ordinance on the Implementation of Direct Payments and IACS measures of rural development, NN, Nos 145/12, 29/13, 27/14, 35/15, 20/16, 39/16 and 91/16).

Agricultural labour input expressed by annual work units (AWU) has been recalculated on the basis of the CBS Farm Structure Survey (FSS) 2013 and available data from FSS 2016, while for agricultural holdings that were not included in the aforementioned surveys, estimation method has been used

.

Coverage
Economic accounts in agriculture cover the whole agricultural production (by both private family farms and business entities).

DEFINITIONS

Agricultural production equals the sum value of outputs of crops, animals, animal products, agricultural services and the value of inseparable non-agricultural secondary activities.

Crop production includes the production of cereals, industrial crops, fodder, horticultural products, fruits, vegetables and other unspecified agricultural products.

Output of livestock production includes the production and products of livestock, poultry and other animals.

Production of agricultural products includes the production of milk, eggs and other unspecified agricultural products.


The accounting period is a calendar year.
The agricultural production is valuated at basic prices, which means that all subsidies on products and services are included and all taxes on products and services are excluded.

Agricultural goods and services consist of agricultural value of production of all agricultural goods (crop and animal production) and agricultural services.

Inseparable non-agricultural secondary activities are activities that cannot be separated from main activities and should be conducted on a farm (processing of milk, grapes, olives, fruits and vegetables).

Intermediate consumption is the value of inputs used for agricultural production. It is valuated at purchase prices.

Gross value added at basic prices equals the agricultural production at basic prices less intermediate consumption at purchase prices.

Fixed capital consumption is the value of depreciation of fixed capital goods as a result of normal wear and tear in the course of the production process.

Net value added at basic prices equals the gross value added at basic prices less fixed capital consumption.

Compensation of employees is defined as a total remuneration, in cash or in kind, during the period of one year.

Other subsidies on production are payments (other than subsidies on products) mainly intended for the assumption of production costs or support for changes in the method of production.

Factor income equals net value added less taxes on production plus other subsidies on production.

Net operating surplus/mixed income equals the factor income less compensations of employees.

Net entrepreneurial income equals the net operating surplus/net mixed income less paid rents and interest plus received interest that refers exclusively to agricultural production.

Gross fixed capital formation is the value of newly acquired assets in a current year, which can be used for more than one year in the process of agricultural production and can originate from domestic production and from import (in the case of import, it can also refer to used assets).

Agricultural labour input comprises all persons and employees who work as salaried or non-salaried labour force on typical agricultural jobs in agricultural industry. It is measured by annual work units.  The annual work unit (AWU) is a quotient of a total number of working hours done in the agricultural activity during a year and an average number of working hours, which amounts to 1 800 hours per annum for paid work.