Food Options at Farm Level Farm Level Economics and Data Processing 23 April 2008

1. Food Options at Farm LevelFarm Level Economics and Data Processing 23 April 2008 Stéphane De CaraIngo Huck UMR Economie Publique Research Unit Sustainability INRA and Global Change Hamburg University

2. Objectives FADN structure From farm-level data to inputs for the EU-FASOM model: Computation of inputs Scaling-up at the desired resolution Overview

3. 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 Farm-level data

4. 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) Objectives

5. Country / Region Altitude Economic Value FADN Farmtype Year Economic Size FADN Data Structure • 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

6. Crop Area Revenue Livestock Units FADN Values Subsidies Inputs Bottom-up approach • From farm-level to country • Finer resolution • Types of farming • Size • Soil types / HRUs (EPIC)

7. 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 Farm-level information

8. 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 Deriving crop- or animal-specific input costs

9. 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 Automatic Generation of Detailled and Aggregated Data for EU-FASOM

10. 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 Conclusions