Food Options at Farm Level

Farm Level Economics and Data Processing

23 April 2008

Stéphane De Cara Ingo HuckUMR Economie Publique Research Unit SustainabilityINRA and Global Change

Hamburg University

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Overview

• Objectives• FADN structure• From farm-level data to inputs for the

EU-FASOM model:– Computation of inputs– Scaling-up at the desired resolution

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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

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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)

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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

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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)

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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

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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

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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

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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