Type of indicator

Quantitative

Relative dimension and aggregated criteria

Economic sustainability: Resilience: Pressure of debts

Description

This indicator is equal to the ratio of loan repayments to farm gross margin, where all farming enterprises are taken into consideration. It gives an indication of the share of farm profits utilised to pay off loans.

Indicator calculation

πΏπ‘œπ‘Žπ‘› π‘Ÿπ‘’π‘π‘Žπ‘¦π‘šπ‘’π‘›π‘‘π‘  / πΉπ‘Žπ‘Ÿπ‘š π‘”π‘Ÿπ‘œπ‘ π‘  π‘šπ‘Žπ‘Ÿπ‘”π‘–π‘›

Unit

€/€

Indicator interpretation

Higher values indicate larger pressure of debts, and thus lower resilience capacity and economic sustainability

Rating Scale

Scale

 

Values (€/€)

 

DEXi interpretation

 

References

 

= 25th percentile

 

0

 

High

 

Based on the data from MilKey case study farms (10 farms)

Quantile method

[25th percentile; Median]

 

[0; 0.13]

 

Medium to high

 

[median; 75th percentile]

 

[0.13; 0.22]

 

Low to medium

 

>= 75th percentile

 

>= 0.22

 

Low