How to improve FADN
efficiency in the field of
economic analysis
Tomaž Cör
Belgrade, 15th-16th September 2016
Use of FADN data
 Farmers for their own purposes;
 Agricultural Advisory Service;
 Start of the strategic farm management;
 Universities and other research institutions
(models)
 Statistical Office;
 MAFF;
 Strategic analyses,
 Monitoring and Reporting.
Do you know who this is?
Why Monitoring and Evaluation
of RDP and how?
 Importance of knowing if our policy or in our
case Rural Development Program is going the
right way - by using CMEF Common
Monitoring and evaluation framework).
 A key-tool for programming, monitoring and
evaluation is so-called “Intervention logic”,
which establishes the causal chain from the
budgetary input, via the output and the results of
measures, to their impact.
 The intervention logic guides the progressive
assessment of a measure’s contribution to
achieving its objectives.
Intervention logic
Why indicators?
 Indicators are used as a tool to assess different effects
on particular level (output, result, impact):
 how far the expected objectives have been achieved
by measures or whole programme
 indicators should be specific, measurable,
available/achievable in a cost effective way, relevant
for the programme and timely available
 indicators can not always be filled with quantitative
statistical data; in some cases, indicators might also
include qualitative assessments or logical assumptions
 Indicators are common (proposed by EC) and
additional/national. Each MS can define additional
indicators due to program’s specialty or monitoring
improvement.
Types of indicators?
 Baseline indicators: important reference points.
 Input indicators: they refer to the budget or other
resources allocated at each level of the assistance.
 Output indicators: they measure activities directly
realized within programs.
 Result indicators: they measure the direct and
immediate effects of the intervention.
 Impact indicators: they refer to the benefits of the
program both at the level of the intervention but also
more generally in the program area.
Data gathering
 Data sources:
 statistical data (SORS)
 approved applications by different measures (IT
support; AAMRD)
 economic and other results: FADN reports (holdings),
accountancy reports-AJPES (enterprises) and other
reports
 impact assessment of different measures on economic
operations of beneficiaries
 cooperation with other institutions (Agricultural
Institute, Environmental agency, DOPPS - BirdLife
Slovenia)
Economic indicators
 One of the most important objectives of the RDP is
increase of competitiveness.
 Result indicator for competitiveness is Productivity Gross value added on Annual working unit
(GVA/AVU).
 It is important to assess, how is/was productivity
meliorated by the invested grunts. If we want to do
that, we have to know the value of the same indicator
before and after the investment on single farm level.
 Formula to calculate GVA:
GVA = output - intermediate consumption.
Economic indicators
 In Slovenia, farmers are not obligate to do any kind of
bookkeeping so it was quite an important question, how
to measure this.
 Possibilities for economic indicators (GVA, GVA/AWU)
 Estimations on the basis of gross margin (Statistics)
 Not precise, a lot of speculations - but cheap.
 Introduction of some kind of bookkeeping.
 Precise but demanding - legal base needed.
“Compulsory” farms
 For this purpose we have invented so called
„Compulsory FADN farms“ – farms that received
investment grants from RDP.
 Since previous programming period “Compulsory”
farms have to start with FADN accountancy when
they received the letter from paying agency, that their
application for the grants has been excepted.
 In new RDP FADN data is used also for preparation
of the business plans – if the business plans are based
on FADN or two sided bookkeeping, the applications
get additional points at the evaluation, so they have
advantage.
“Compulsory” farms
 Legal basis for introduction of FADN to the recipients
of RDP investment money was first in natoinal RD
regulation and then also in public tender
documentation.
 30 days after the approval of application the
applicants should start with FADN accountancy.
 For at least 5 years after receiving the money they
should send every year standard FADN results in
the electronic form (1 excel line) to the FADN
unit at the Ministry of Agriculture, Forestry and
Food(MAAF).
“Compulsory” farms
Accountancy offices
Kranj, Ptuj, Ljubljana, Celje,
Maribor, Nova Gorica,
Murska Sobota, Novo mesto
MAFF
Agency RS of Agricultural
Markets and Rural
Development
arround 2000
individual farms
EC, DG Agri
“Compulsory” farms
 “Compulsory” farms are responsible for collection
and processing of the data!!!
 Agricultural Advisory Service is available for
help.
 Farms can process data by themselves or they can
hire accountancy office to do that for them.
 Standard results for one year should be sent to the
FADN Unit at MAAF by the end of March next
year.
 The price for processing the data at the
accountancy office is between 200 and 250 €.
Calculating the indicators
 Calculation of economic indicators from Standard
Results:
 Taking the data on farm level and compere it to
data before the investment (from application
documentation), so we can assess if the
investment was justified and according to
business plan.
 GVA (SE 310), AWU (SE 010), income...
 Calculation on national level
 GVA/AWU, income of supported activity
Conclusions
 It is important to know, where you are and where are
you going with RDP.
 Economic indicators for farms are difficult to access
without any kind of bookkeeping.
 FADN results can be very good source of the
economic data, both for preparation of business plans
and annual reports.
 Legal basis for this kind of FADN data use should be
prepared.
Thank you for your attention!