Food Options at Farm Level

Farm Level Economics and

Data Processing 23 April 2008

Stéphane De Cara Ingo HuckUMR Economie Publique Research Unit Sustainability

INRA and Global Change

Hamburg University

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200822

Overview

• Objectives

• FADN structure

• From farm-level data to inputs for the EU-FASOM model:– Computation of inputs

– Scaling-up at the desired resolution

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200833

Farm-level data

• Account for heterogeneity of conditions of production among European farms

• Important inputs for the model to compute opportunity costs due to land-use competititon between food and non-food production

• Only part of the information needed :– Non-food options

– EPIC simulations

=> Need to aggregate data at a harmonized resolution

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200844

Objectives

Providing EU-FASOM with economic (revenue, costs) and farms’ structure data

• Costs, subsidies and sales revenues for the activities modelled in EU-FASOM (crop and livestock)

• Derive input demand (fertiliser, electricity, labour, fuel, heat) for livestock and crop activities

• Grassland area required for animal feeding• Provide flexible aggregation across types of farming,

sizes, altitudes, etc. at desired resolution (country)

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200855

FADN Data Structure

Economic Value

Year

Economic Size

Farmtype

Altitude

Country /Region

FADN

• Detailed information about structure, total costs and revenues, subsidies

• Sample representative at the regional scale

• Scaling up results using FADN weights

• EU-FASOM Sets• Consistency across the EU • Coverage

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200866

Bottom-up approach

Revenue

Subsidies Inputs

Livestock Units

Crop Area

FADN Values

- From farm-level to country- Finer resolution

-Types of farming-Size-Soil types / HRUs (EPIC)

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200877

Farm-level information

• FADN provides whole-farm economic information (total costs) for each cost item– Wages and Rent– Pesticides, Seeds, Fertilizers– Fuel, Heat and Electricity– Labour

• EU-FASOM requires crop- or animal-specific costs

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200888

Deriving crop- or animal-specific input costs

• Revenues (output, prices) are given for each crop or livestock activity

• Input costs are allocated proportionally to each activity’s share in total revenue

• Simplifying assumption about the underlying production function

• Alternative methods (econometric, survey-based data) to be further investigated

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 200899

Automatic Generation of Detailled and Aggregated Data for EU-FASOM

• Automatic processing of FADN information within EU-FASOM

• The model produces information about the required inputs costs and revenues for– Different Farm Sizes/Farm Types or aggregated

Size/Farm Types classes– Country specific mean values

• The tables generated at the desired resolution are subsequently used in EU-FASOM

ENFA - European Non-Food Agriculture, Final Meeting, 23-24 April 20081010

Conclusions

• Processing of a large amount of information that allows flexible aggregation of EU-FASOM inputs and outputs

• FADN provides important information about economic performances at the farm-level

• However, there is a strong need for information about agricultural practices at the farm-level – Crop- and livestock-specific costs

– Physical quantities of inputs