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Farm Accountancy Cost Estimation and Policy Analysis of European Agriculture (FACEPA)
Project
Project code: vTI-BW-08-86, TI-BW-08-PID1528, 212292
Contract period: 01.04.2008
- 30.09.2011
Budget: 2,214,277 Euro
Purpose of research: Basic research
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? Information on production costs is scarce. Often, data on costs is available only as generalized figures for planning purposes, or for a few selected farms. Representative farm level data, as is provided by the national and EU farm accountancy data networks (FADN), often does not comprise detailed information on how costs are allocated to individual activities or products. Against this background the EU research project FACEPA aims at determining productions costs on the basis of farm accounting data using statistical methods, and to use the results for policy impact analysis. We specifically are interested in the question whether it is possible to formulate one single model for all EU member states. Together will partners in different EU member states we have developed an econometric model which estimates production costs for a wide range of products on the basis of accounting data. Costs are differentiated for different inputs, e.g. fertilisers, plant protection, etc. We discussed and validated the results with experts from agricultural advisory services in nine EU member states. In addition, in cooperation with partners of the Universite catholique de Louvain, we estimated flexible cost functions for different farm types. By integrating these in mathematical programming models it is possible to assess ex-ante farm-level adjustments to policy changes.
Section overview
Subjects
- Agroeconomics