Institute of

Farm Economics

Economic Situation and Factor Input

We provide orientation in the data overload
We provide orientation in the data overload (© lucadp/123RF Stock Foto)

The description and analysis of agricultural incomes are of great importance since they form the basis for political interventions at national and European level

Incomes are not only determined by price developments on agricultural markets, but depend also on the conditions of the legal, technical and political framework. Based on comprehensive evaluations of agricultural statistics and using own survey data we analyse the economic situation of farms in Germany and the European Union. For this we identify among others how profitable the production factors (e. g. land, labour and capital) are allocated and how changes in factor and output prices influence the financial stability. Furthermore, we investigate production and investment decisions and associated income effects as well as adjustments in the use of production factors. In this context, we examine farm strategies such as cooperation, diversification and specialization as well as the success factors for farm developments. Focuses of our research are currently the analysis of income developments and distributions in different farm types and regions as well as the assessment and evaluation of the impact of agricultural policy measures. An important database for our studies is the Farm Accountancy Data Network (FADN). In close cooperation with the Federal Ministry of Food and Agriculture and the European Commission we work to further develop this network.

Dossier - Einkommen in der Landwirtschaft, ein Dauerbrenner

Einkommen und Beschäftigung - Einsiedlerhof Falkenberg

Zusätzliche Informtionen zu Einkommen und Beschäftigung finden Sie im Dossier.

Projects of Economic Situtaion and Factor Input

Impact analysis of EU and national agricultural policies (©  Thünen-Institut/MA)
Impact analysis of EU and national agricultural policies

The next reform is just around the corner - that much is clear to anybody following agricultural policy in Germany and the EU. While some may groan in exasperation, these continuous adjustments reflect the extremely dynamic change of framework conditions and societal expectations that the agricultural sector is faced with.
Agricultural policy continues having a significant impact on farm incomes (©  artemsam/123RF Stock Foto)
Distributional effects of CAP liberalisation

The Common Agricultural Policy (CAP) of the EU has a significant influence on farm incomes. But does the CAP reduce income gaps in the agricultural sector? What (unintended) distributional effects would further liberalisation of the European agricultural sector entail?
Bauer vor Weizenfeld (©  Fotodesign Märzinger/Fotolia)
Agricultural policy instruments to support farm level risk management

Both climate change and increasing liberalisation of EU agricultural policy involve the danger of increasing volatility and economic risk at the farm level.
Further development of the Thünen model network - Farm models (©  fotolia/Volker Schlichting)
Further development of the Thünen model network - Farm models

EU agricultural policies as well as international trade policies have changed considerably during the last decades. This has led to an increased demand from policy makers and scientists for model-based quantitative assessments of the consequences of respective policy reforms.
Conversion and transmission of national data for the European Commission (©  fotolia.com/O. Böhmer)
Conversion and transmission of national farm returns and analyses with regard to FADN

The Farm Accountancy Data Network (FADN) is a harmonised data base throughout the EU that consists of accounting data from a representative sample of agricultural holdings. Based on this income, structural and production developments can be analysed. The EU Commission uses the FADN extensively to evaluate the impacts of the CAP and to design new policy measures.
Is organic farming profitable for farms? Information from the Farm Accountancy Data Network provides an answer. (©  BLE, Bonn/Thomas Stephan)
Analysis of the economic situation of organic farming

The organic area shall further grow in view the German government. This requires that the organic management is profitable. Book-keeping records of the Farm Accountancy Network provide relevant information, if this was the case in the last years.
Description of the horticulture cluster (©  Thünen-Institut/BW)
The cluster horticulture in Germany

In national accounting statistics in Germany horticulture is limited to primary production and a few selected horticultural services. Contrary, all actors of the value chain are involved in producing horticultural products. For this reason official statistics do not reflect the economic performance of the horticultural sector completely.
EU-Forschungsprojekt „Farm Accountancy Cost Estimation and Policy Analysis of European Agriculture” (©  FACEPA)
Production cost estimation and policy impact analyses using farm accountancy data

Only those who know the costs can make the right decisions. This phrase holds true for farmers and policy makers alike. However: how to accurately determine costs?