Type of indicator

Quantitative

Relative dimension and aggregated criteria

Economic sustainability : Profitability: Economic return

Description

  • This indicator calculates the total production value (i.e. gross output), where all farming enterprises are taken into consideration. It is equal to the total value of crops and crop products, livestock and livestock products, and earnings from gainful activities (e.g., biogas production, commercial forestry).
  • Farm gross output is divided by unpaid labour input to represent the economic value of unpaid family labour.
  • Labour units are calculated based on the amount of hours worked on the farm. They are expressed in Annual Work Units (AWU), where 1,800 hours = 1 AWU (Eurostat, 2019b). Following the FADN methodology, the total amount of hours worked by each worker is capped at 1,800 hours per year.

Indicator calculation

[(π‘†π‘Žπ‘™π‘’π‘  π‘Žπ‘›π‘‘ 𝑒𝑠𝑒 π‘œπ‘“ π‘π‘Ÿπ‘œπ‘π‘  π‘Žπ‘›π‘‘ π‘π‘Ÿπ‘œπ‘ π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘ , π‘Žπ‘›π‘‘ π‘™π‘–π‘£π‘’π‘ π‘‘π‘œπ‘π‘˜ π‘Žπ‘›π‘‘ π‘™π‘–π‘£π‘’π‘ π‘‘π‘œπ‘π‘˜ π‘π‘Ÿπ‘œπ‘‘π‘’π‘π‘‘π‘ ) βˆ’ (π‘ƒπ‘’π‘Ÿπ‘β„Žπ‘Žπ‘ π‘’π‘  π‘œπ‘“ π‘™π‘–π‘£π‘’π‘ π‘‘π‘œπ‘π‘˜)+(πΈπ‘Žπ‘Ÿπ‘›π‘–π‘›π‘”π‘  π‘“π‘Ÿπ‘œπ‘š π‘œπ‘‘β„Žπ‘’π‘Ÿ π‘”π‘Žπ‘–π‘›π‘“π‘’π‘™ π‘Žπ‘π‘‘π‘–π‘£π‘–π‘‘π‘–π‘’π‘ )] / πΏπ‘Žπ‘π‘œπ‘’π‘Ÿ 𝑒𝑛𝑖𝑑𝑠 π‘œπ‘“ π‘’π‘›π‘π‘Žπ‘–π‘‘ π‘“π‘Žπ‘šπ‘–π‘™π‘¦ π‘šπ‘’π‘šπ‘π‘’π‘Ÿπ‘ 

Unit

€/AWU

Indicator interpretation

Indicators interpretation:

Higher values indicate larger output levels and thus better economic performance.

Scale definition

Scales Values (€/AWU) Dexi interpretation References
>=75th percentile >= 243515.96 High + Based on the FADN data distribution for EU specialised dairy farms (European Commission, 2022). Quantile method, 2016-2018 data.
[median; 75th percentile] [131313.42; 243515.96] Medium to

high
[25th percentile; median] [41206.30; 131313.42] Medium to

low
< 25th percentile < 41206.30 Low –