Economic accounts for agriculture - values at n-1 prices
methods, notes and classification
DATA_DESCR The Economic Accounts for Agriculture (EAA) provide detailed information onáincome in the agricultural sector. The purpose is to analyse the production process of the agricultural industry and the primary income generated by this production. The accounts are therefore based on the industry concept. The EAAáaccounts are detailed data on value of output (producer prices and basic prices), intermediate consumption, subsidies and taxes, consumption of fixed capital, rent and interests, capital formation etc. The valuesáare in current as well as in constant prices. Agricultural Labour Input (ALI) and Unit Values (UV)áare an integrated part of theáoverall concept of Economic Accounts for Agriculture. The Economic accounts for agriculture (EAA) are a satellite account of the European System of Accountsá(ESA95), providing complementary information and concepts adapted to the particular nature of the agricultural industry. Although their structure very closely matches that of the national accounts, their compilation requires the formulation of appropriate rules and methods. National Statistical Institutes or Ministries of Agriculture are responsible for data collection and calculation of national EAA, in accordance with EC Regulations. Eurostat is responsible for the EU aggregations. Regional data EAAáaccounts are compiled at regional level (NUTS2), but only in values in current prices.áThe labour input data and Unit values are not broken down to regional level. Please note that for paragraphs where no metadata for regional data has been specified, the regional metadata is identical to the metadata provided for the national data.
CLASS_SYSTEM The EAA is an integral part of the European system of accounts and therefore for their compilation the Eurostat's general classification of economic activities, NACE Rev. 2, is used. The list of activities which defines the agricultural industry corresponds to division 01 of that classification: Crop and animal production, hunting and related service activities.áá Regional data The territorial classification of regional data is broken down according to the NUTS classification. For most countries the regional data is available at NUTS 2 level.
STAT_CONC_DEF A detailed methodology can be found in Annex I of the EAA Regulation and in the Manual on the economic accounts for Agriculture and Forestry EAA/EAF 97 (Rev.1.1). A detailed methodology on agricultural labour input can beáconsulted in Target methodology for agricultural labour input (ALI) statistics (Rev.1). All these documents can be found in the annexes. When differences between the Manuals and the Annex in the regulation are found, pre-eminence should be given to the Annex. The EAAáare satellite accounts of the European System of Accounts (ESA95) providing complementary information and concepts adapted to the particular nature of the agricultural industry. The EAA accounts consist of a sequence of inter-related accounts. As the EAA are based on the industry concept, the sequence of accounts in accordance with the ESA 95 has to be limited to the first accounts of the current accounts: - the production account and - the generation-of-income account whose balancing items are value added and operating surplus, respectively. Nevertheless, it is thought that, given the specific features of agriculture, it should be possible to compile other accounts, at least in part, in so far as the relevant flows can be clearly attributed to them. The accounts in question are the following: - the entrepreneurial income account (one of the current accounts) and - the capital account (one of the accumulation accounts). The Economic Accounts for Agriculture provide a wide range of indicators on the economic activities in the agricultural sector: Output, Intermediate consumption, Gross and net value added, Compensation of employees, Other taxes and subsidies on production, Net operating surplus or net mixed income, Property income, Net entrepreneurial income, etc. at current and at constant prices. Labour indicators are also obtained, where the Annual work units (AWUs) are the most important. AWUs are defined as full-time equivalent employment (corresponding to the number of full-time equivalent jobs), i.e. as total hours worked divided by the average annual number of hours worked in full-time jobs within the economic territory. A distinction is drawn between non-salaried and salaried AWUs, which together make up total AWUs. One person cannot represent more than one AWU. This constraint holds even if someone is working in the agricultural industry for more than the number of hours defining full time. The agricultural labour input of persons who work less than full time on agricultural holdings is calculated as the quotient of the number of hours actually worked (per week or per year) and the number of hours actually worked (per week or per year) in a full-time job.áTotal hours worked do not cover work for the private household of the holder or manager. Unit values refer to the concept of the output of agricultural activity. They are obtained by dividing current values (in producer prices and in basic prices) by the corresponding physical quantities. They differ from prices in that variation in unit values includes any variation in quantity. The following equations illustrate these relationships: Unit value statistics:áááááunit valueá =á (current value) / ( physical quantity)EAA in general:ááááááááááá unit valueá =á ("pure" price) / (volume Three synthetic indicators are defined in the EAA: Indicator A: Index of the real income of factors in agricultural per annual work unit. This yardstick corresponds to the real net value added at factor cost of agriculture per total AWU Indicator B: Index of real net agricultural entrepreneurial income per unpaid annual work unit. This indicator presents the changes in net entrepreneurial income over time, per non-salaried AWU. Indicator C: Net entrepreneurial income of agriculture. This income aggregate is presented as an absolute value (or in the form of an index in real terms). It allows comparability over time of the income of the agricultural industry between Member States. Regional data The concept for compiling of EAA at regional level is described in chapter 7 in the Manual and the definition of unit valuesáis described in chapterá6 in the Manual. The providing of these data is based on a gentlemen's agreement and not on legal base. Not all national tables are necessarily available at regional level. To consult the list of available national- and regional- datasets, please consult the annex.
STAT_UNIT The overall unit is the agricultural sector; However, ináorder to provide more detailed information and to analyse flows generated by the production process and the use of goods and services, it is necessary to select units which emphasise relationships of a technico-economic kind. This requirement means that, as a rule, institutional units must be broken-down into smaller and more homogeneous units with regard to the kind of production. Local kind-of-activity units (local KAUs) are intended to meet this requirement as a first but practically oriented operational approach (ESA 95, 2.105). The local KAU is defined as the part of a KAU which corresponds to a local unit. The KAU groups all the parts of an institutional unit in its capacity as producer contributing to the performance of an activity at class level (four digits) in NACE Rev.á2 (the reference classification for economic activities) and corresponds to one or more operational subdivisions of the institutional unit. The institutional unit's information system must be capable of indicating or calculating for each local KAU at least the value of output, intermediate consumption, compensation of employees, the operating surplus and employment and Gross Fixed Capital Formation (ESA 95, 2.106). The agricultural holding, which is the unit currently used for statistical studies of agriculture (censuses, surveys of the structure of agricultural holdings), is the local KAU most appropriate to the agricultural industry (even though certain other units, such as wine or olive oil cooperatives, or units performing contract work, etc., have to be included in it). Nevertheless, it should be pointed out that the variety of agricultural activities that can be performed on agricultural holdings makes them a special type of local KAU. The strict application of the ESA rule to units and their group should in fact result in a division of the agricultural holding into several separate local KAUs in cases where several activities of the NACE Rev.á2 four-digit class are performed on the same holding. The adoption of the agricultural holding as the local KAU of the agricultural industry in the national accounts and EAA is based on a statistical approach.
STAT_POP Although the ESA gives pre-eminence to local KAUs, the unit best suited to analyse the production process is the unit of homogeneous production. This unit is used to analyse inputs and outputs, since it corresponds exactly to a type of activity. Institutional units are thus divided into as many UHPs as there are activities (other than ancillary). By grouping these units of homogeneous production it is possible to break down the economy into "pure" (homogeneous) branches. A UHP cannot, as a rule, be directly observed. Therefore, the accounts of homogeneous branches cannot be compiled on the basis of groups of UHPs. The ESA describes a method for compiling these accounts. It involves attributing secondary production and the corresponding costs of activity branches to the appropriate homogeneous branches (ESA, 9.53. to 9.61.) The use of the local KAU as the basic unit for the agricultural industry entails recording non-agricultural secondary activities where they cannot be distinguished from the main agricultural activity. Inseparable non-agricultural secondary activities of local agricultural KAUs are defined as activities closely linked to agricultural production for which information on any of output, intermediate consumption, compensation of employees, labour input or GFCF cannot be separated from information on the main agricultural activity during the period of statistical observation. Only that part of a specific non-agricultural secondary activity which is inseparable must be included. As a consequence, a given non-agricultural activity will be included in the agricultural industry if it is impossible to separate it from the main agricultural activity of a local KAU, but will be excluded if it can be separated from the main agricultural activity, in which case the secondary activity gives rise to a non-agricultural local KAU. The selection criterion for inseparable non-agricultural secondary activities is not so much the nature of the product as the type of activity. For example, agro-tourism services provided by a farm must only be included if they cannot be separated from its agricultural activities. This would probably not be the case when these activities become important. Thus, non-agricultural products accounted for in the production of the agricultural industry may vary geographically and over time.
REF_AREA European Union, Candidateáand EFTA countries The regional EAA refersáto NUTS2 as the most detailled level in the countries mentioned.
BASE_PER Accounts for year n are calculated at current prices, at prices of year n-1 and at prices of yeará2000 and 2005. Value, volume and price indices are also obtained for reference years: n-1=100, 2000=100 and 2005=100. Labour input data areáshown as total annual work unitsáand as indicesá2005=100
UNIT_MEASURE Accounts data are given in: Millions of euro (from 1.1.1999)/Millions of ECU (up to 31.12.1998), Millions of national currency (including 'euro fixed' series for euro area countries) MIO_PPS Millions of PPS (Purchasing Power Standard) Furthermore, the core data and the indicators are expressed using indices. The reference years is 2005 = 100 and n-1 = 100, respectively Agricultural labour input data are given in Thousands of annual work units (AWU)á Indices related to 2005=100 Unit value statistics are given in 1000 tonnes (Quantities)á Euro per tonnes (unit value) National currency per tonnes (unit values)
Methods 
Explanatory Notes 
Variables