Directorate E: Sectoral and regional statistics Unit E.1: Agriculture and fisheries

EAA Inventory 2015 Methodological inventory/questionnaire on the compiling of Economic Accounts for Agriculture

Questionnaire identification

Country United Kingdom Institution Department for Environment, Food and Rural Affairs Author David Fernall/Helen Mason Date Monday, 18 March 2019

The Economic Accounts for Agriculture (EAA) provide detailed information on income from agricultural activity. The methods are laid down in the regulation (EC) 138/2004 of the European Parliament and of the Council. Member States are requested to provide an inventory on how the data are compiled.

EAA Inventory 2015

PART A - GENERAL FRAMEWORK ...... 2

A1 INSTITUTIONAL FRAMEWORK ...... 2 A2 COMPILATION OF THE EAA: GENERAL REMARKS ...... 3 A3 DATA USERS AND CONFIDENTIALITY ...... 3 PART B - STANDARD QUESTIONS – QUICK GUIDE ...... 5

B1 DATA SOURCES ...... 5 B2 LEVEL OF DETAIL ...... 5 B3 CALCULATION PROCEDURE ...... 5 B4 ADJUSTMENTS ...... 5 B5 ESTIMATIONS ...... 5 B6 NUMERICAL EXAMPLE ...... 5 B7 SUBSIDIES AND TAXES ON PRODUCTS ...... 6 B8 PROVISIONAL AND SEMI-DEFINITIVE ACCOUNTS AND AGRICULTURAL INCOME INDEX VERSUS DEFINITIVE ACCOUNTS ...... 6 B9 UNIT VALUES ...... 6 PART C - COMPONENTS OF THE PRODUCTION ACCOUNT: OUTPUT ...... 8

C1 GENERAL ...... 8 C2 INDIVIDUAL ITEMS ...... 8 PART D - COMPONENTS OF THE PRODUCTION ACCOUNT: INTERMEDIATE CONSUMPTION ...... 36

D1 GENERAL ...... 36 D2 INDIVIDUAL INTERMEDIATE CONSUMPTION ITEMS ...... 36 D3 CALCULATION OF NON-DEDUCTIBLE VAT ...... 49 PART E - COMPONENTS OF THE GENERATION OF INCOME ACCOUNT...... 50

E1 COMPENSATION OF EMPLOYEES ...... 50 E2 OTHER TAXES ON PRODUCTION ...... 52 E3 OTHER SUBSIDIES ON PRODUCTION ...... 54 PART F - COMPONENTS OF THE ENTREPRENEURIAL INCOME ACCOUNT ...... 56

F1 RENTS AND OTHER REAL ESTATE RENTAL CHARGES TO BE PAID ...... 56 F2 INTEREST PAID ...... 58 F3 INTEREST RECEIVED ...... 59 PART G - ELEMENTS OF THE CAPITAL ACCOUNT ...... 61

G1 GROSS FIXED CAPITAL FORMATION (GFCF) ...... 61 G2 CONSUMPTION OF FIXED CAPITAL (CFC) ...... 63 G3 CHANGES IN STOCKS ...... 64 G4 CAPITAL TRANSFERS (INVESTMENT GRANTS, OTHER CAPITAL TRANSFERS) ...... 65

EAA Inventory 2015 Page 1 of 66 PART A - GENERAL FRAMEWORK

A1 INSTITUTIONAL FRAMEWORK

A1.1 INSTITUTIONAL SETTINGS, INTERDEPENDENCY EAA WITH OTHER STATISTICS

A1.1.1 Which Institution(s) are responsible for the compilation of the Economic Accounts for Agriculture (EAA) and of the unit values of agricultural products?

England – Department for Environment, Food and Rural Affairs (Defra) – take the lead on issues. Scotland – Scottish Executive Environment and Rural Affairs Department (SEERAD), Scottich Executive Wales – Department for Environment and Countryside, Welsh Assembly Government Northern Ireland – Department of Agriculture, Environment and Rural Affairs, Northern Ireland

Although each administration produces its own agricultural accounts, UK accounts are compiled by Defra in York. They are not constructed as a combined set of accounts from each administration, but are produced on a UK basis.

A1.1.2 Which Institution(s) are responsible for the compilation of the Agricultural Income Index?

Defra

A1.1.3 Is there interdependency between EAA and National Accounts (NA)?

Yes

A1.1.4 If previous answer is “Yes”, then is the bridge table compiled?

Yes

A1.1.5 Is there interdependency of EAA and Regional Economic Accounts for Agriculture (REAA)?

Yes

A1.2 UPDATES TO EAA

A1.2.1 At which time of the year are the updates of the EAA carried out?

November and April

EAA Inventory 2015 Page 2 of 66 A1.2.2 Which years are covered by each of these updates? (i.e. update in September of year n for the years n-1, n-2, n-3)

November n, April n-1.

A1.3 CONSISTENCY WITH NATIONAL EAA

A1.3.1 If national EAA are different from those transmitted to Eurostat: what are the differences? Why are these differences kept? Are they documented? (if so, please transmit documentation.)

The EAA are a satellite to the national account. Differences are outlined in attached spreadsheet. Differences are due to UK preferring to take a slightly different accounting approach. The differences are in presentation but not in underlying methodology.

A1.3.2 Are there, apart from the Eurostat Regulation, any further methodological guidelines available at national level? (If so, please transmit these guidelines.)

Yes, a quality report (attached).

A2 COMPILATION OF THE EAA: GENERAL REMARKS

A2.1.1 For which years are retropolations1 carried out and (if they are not yet available) when will they be available?

None. All volume, price and value data are estimated annually. This is considered to provide more reliable estimates than adjusting a benchmark year.

A2.1.2 Details of retropolation method used in your country: for which items are estimations made? On which assumptions are these estimations based?

None

A3 DATA USERS AND CONFIDENTIALITY

A3.1.1 Who are the main users of economic accounts for agriculture data? (e.g. National Accounts; other units / departments in your organisation (please specify); other international organisations (please specify); ministry of agriculture; other ministries; scientific institutes and universities; other users (please specify); unknown)

Office for National Statistics, Defra, OECD, FAO.

1 Retropolation represents the calculation of backwards time series which are consistent with the adjusted benchmark year.

EAA Inventory 2015 Page 3 of 66 A3.1.2 Are there any confidentiality rules applied to microdata used for EAA compilation in your country? If yes, please describe your confidentiality rules.

Data for 5 or fewer units must be suppressed to avoid disclosure.

A3.1.3 If applicable, please provide any comments on the amount of data affected by embargo.

In practice no data needs to be suppressed to avoid disclosure.

EAA Inventory 2015 Page 4 of 66 PART B - STANDARD QUESTIONS – QUICK GUIDE

B1 DATA SOURCES 1. What are the data sources used to compile quantities, prices, values, volume indexes and price indexes (at least the most important ones)? If your calculations are based (inter alia) on quantities, prices and price indices: please specify the links (if any) to corresponding data sent to Eurostat (balance sheets, production statistics, agricultural price statistics). 2. On which methods of data collection are these data sources based? 3. Comment on the representativeness of the data sources used.

B2 LEVEL OF DETAIL When compiling the EAA, at which level of detail do you work (e.g. for cattle: cattle (excluding calves), calves, etc.)? Please specify for each item.

B3 CALCULATION PROCEDURE Please indicate in the Excel table the relations between basic data and EAA results. If you work with more level of detail than the EAA, please add the necessary rows to the table. However, it is sufficient if all those sub-items for which the same calculation method is applied are grouped together in one line. In this case, please make sure to give a complete enumeration of the sub-positions concerned in the first cell of the row.

B4 ADJUSTMENTS If adjustments to any of the data are made, in the framework of compiling the EAA at national level, please describe these adjustments. In particular, if any of these data refer to another reference period than the calendar year, please specify how the relevant calendar year figures are determined.

B5 ESTIMATIONS If estimations are made, please specify. Give also details on the assumptions underlying these estimations.

B6 NUMERICAL EXAMPLE Taking into account your replies to the previous questions (particularly to questions 1 and 3 to 5): please give an example of

EAA Inventory 2015 Page 5 of 66 how the EAA results are calculated. For this purpose, the table given under question 1 can be used; however, its use is not obligatory. If you use the EAA elaboration tables of Appendix III of the EAA/EAF manual (rev. 1), please join them to your examples.

B7 SUBSIDIES AND TAXES ON PRODUCTS 1. List of subsidies on products and taxes on products relevant for the product in question; 2. Data sources; 3. Allocation: if the subsidies and / or taxes on products refer to a group of products (e.g. CAP reform subsidies referring to cereals, oilseeds and protein crops), please explain how their allocation to the individual products is done; 4. Price component or value? How are the subsidies and / or taxes on products incorporated in the EAA: as price component (i.e. by calculating a basic price for output items or a purchaser price for intermediate consumption items) or as values? 5. Accruals principle: for which of the subsidies / taxes on products mentioned above (point B7.1) did the application of the accruals principle under the new methodology confer changes? 6. Reference period: when subsidies / taxes on products refer to a reference period different from the calendar year, in which way are the relevant values allocated to calendar years?

B8 PROVISIONAL AND SEMI-DEFINITIVE ACCOUNTS AND AGRICULTURAL INCOME INDEX VERSUS DEFINITIVE ACCOUNTS The Questions (1) to (7) refer to the compilation of the definitive EAA. Please provide, under this heading, a short description of differences in the way of calculation of the provisional, the semi- definitive accounts and of the Agricultural Income Index.

B9 UNIT VALUES Further information on the calculation of unit values (if calculated for the product in question) is only required if there are deviations from the EAA methodology.

EAA Inventory 2015 Page 6 of 66 Please note:

If it is not possible to answer these questions because of the aggregate level of the products concerned (e.g. fruits, vegetables), please describe the approach chosen for the individual products (at least the most important ones) being part of that aggregate.

The codes referred to in this questionnaire are the same as used in the data transmission tables and in Eurobase.

EAA Inventory 2015 Page 7 of 66 PART C - COMPONENTS OF THE PRODUCTION ACCOUNT: OUTPUT

C1 GENERAL

C1.1.1 Could you please list the products concerned by the intra- unit/branch consumption? (Details concerning the calculation for each of these products should be given under the respective product group).

Feed wheat, feed barley, feed oats, fodder maize, protein crops, seed potatoes, straw, contract work, leasing of quota, total capital formation in livestock

C2 INDIVIDUAL ITEMS

C2.1 CEREALS

C2.1.1 Data sources

• Volume - harvest estimates using Cereal Production Survey • Areas - June Agricultural Survey • Supply and balance sheets (quantities) • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • agricultural prices from Corn Returns • Stocks – Cereal stocks survey

C2.1.2 Level of detail

Wheat Barley Oats Rye Other cereals

C2.1.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.1.4 Adjustments

None

EAA Inventory 2015 Page 8 of 66 C2.1.5 Estimations

None

C2.1.6 Numerical example

Wheat area = 2,000,000 ha yield = 8 t/ha total production = 16 m tonnes average price = £120 per tonne change in stocks = -20,000 tonnes value of change in stocks = -20,000 x 120 = £2.4m value of intra-branch consumption = £6m volume of commercial sales = 15,000,000 t Volme of intra-branch consumption=50,000 t value of commercial sales = 16 x 120 = £1,920m output at basic prices = 1,920 + 6 - 2.4 =£1,923,600

C2.1.7 Subsidies and taxes on products

No subsidies on product related to cereals for UK

C2.1.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.1.9 Unit values

As standard

C2.1.10 Details on the calculation of intra-unit/branch consumption (quantities, prices, subsidies etc.)

Inter/intra farm transfer of cereals for animal feed is estimated from usage surveys.

C2.1.11 Products covered by the item ‘other cereals’ (code 01900)

Triticale, mixed corn.

C2.1.12 Details concerning their calculation, particularly confirmation that research & development as well as certification of seeds are not included in the EAA.

Estimated yields are applied to areas collected from June Agricultural Survey.

EAA Inventory 2015 Page 9 of 66 C2.2 OILSEEDS AND OLEAGINOUS FRUITS (INCLUDING SEEDS)

C2.2.1 Data sources

• Volume - harvest estimates using Production Survey • Areas - June Agricultural Survey • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • prices from industry journal

C2.2.2 Level of detail

Oilseed rape, linseed

C2.2.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.2.4 Adjustments

None

C2.2.5 Estimations

None

C2.2.6 Numerical example

Click here to enter text.

C2.2.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.2.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.2.9 Unit values

As standard

EAA Inventory 2015 Page 10 of 66 C2.2.10 Products covered by the item ‘other oleaginous products’ (code 02190)

Linseed

C2.3 PROTEIN CROPS (INCLUDING SEEDS)

C2.3.1 Data sources

Volume - harvest estimates using Production Survey • Areas - June Agricultural Survey • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • prices from industry journal

C2.3.2 Level of detail

Peas for stockfeed, beans for stockfeed

C2.3.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.3.4 Adjustments

None

C2.3.5 Estimations

None

C2.3.6 Numerical example

Click here to enter text.

C2.3.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.3.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

EAA Inventory 2015 Page 11 of 66 C2.3.9 Unit values

As standard

C2.3.10 Details on the calculation of intra-unit/branch consumption (quantities, prices, subsidies etc.)

Assumed to be zero

C2.4 RAW TOBACCO

C2.4.1 Data sources

Not produced in UK

C2.4.2 Level of detail

N/A

C2.4.3 Calculation procedure

N/A

C2.4.4 Adjustments

N/A

C2.4.5 Estimations

N/A

C2.4.6 Numerical example

N/A

C2.4.7 Subsidies and taxes on products

N/A

C2.4.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

N/A

C2.4.9 Unit values

N/A

EAA Inventory 2015 Page 12 of 66 C2.5 SUGAR BEET

C2.5.1 Data sources

Volume - harvest estimates from sector body (British Sugar) • Areas - June Agricultural Survey • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • prices from sector body (British Sugar)

C2.5.2 Level of detail

Sugar beet

C2.5.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.5.4 Adjustments

none

C2.5.5 Estimations

none

C2.5.6 Numerical example

Click here to enter text.

C2.5.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.5.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.5.9 Unit values

As standard

EAA Inventory 2015 Page 13 of 66 C2.6 OTHER INDUSTRIAL CROPS

C2.6.1 Data sources

Click here to enter text. Volume - harvest estimates using Production Survey • Areas - June Agricultural Survey • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • prices from expert opinion

C2.6.2 Level of detail

Hops, mustard, flax, hemp, turf, other industrial crops

C2.6.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.6.4 Adjustments

None

C2.6.5 Estimations

None

C2.6.6 Numerical example

Click here to enter text.

C2.6.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.6.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.6.9 Unit values

As standard

EAA Inventory 2015 Page 14 of 66 C2.6.10 Products covered by the items ‘fibre plants’ (code 02910) and ‘other industrial crops: others’ (code 02930): enumeration limited to the most important ones (e.g. 10 most important species).

Fibre plants are flax and hemp. Other industrial crops are hops, mustard, turf and other

C2.7 FORAGE PLANTS

C2.7.1 Data sources

Volume - harvest estimates using Production Survey • Areas - June Agricultural Survey • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • prices from expert opinion

C2.7.2 Level of detail

Maize, hay and dried grass, grass for grazing, grazing for horses

C2.7.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.7.4 Adjustments

None

C2.7.5 Estimations

None

C2.7.6 Numerical example

Click here to enter text.

C2.7.7 Subsidies and taxes on products

No subsidies on product for this item for UK

EAA Inventory 2015 Page 15 of 66 C2.7.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.7.9 Unit values

As standard

C2.7.10 Details on the calculation of intra-unit/branch consumption (quantities, prices, subsidies etc.)

Click here to enter text.

C2.7.11 Products covered by the items ‘fodder root crops (including forage beet)’ (code 03200) and ‘other forage plants’ (code 03900)

Click here to enter text.

C2.8 FRESH VEGETABLES

C2.8.1 Data sources

• Volume - harvest estimates by expert opinion • Areas - June Agricultural Survey • Overseas trade statistics exports and imports (quantities and prices) – HMRC data • prices from survey of market traders

C2.8.2 Level of detail

36 categories of field vegetables and salads.

C2.8.3 Calculation procedure

Volume is calculated as area x yield Intra branch consumption is total production minus sales minus change in stocks Total commercial value = Volume x weighted average price

C2.8.4 Adjustments

None

C2.8.5 Estimations

Production volumes are estimated by expert opinion

EAA Inventory 2015 Page 16 of 66 C2.8.6 Numerical example

Click here to enter text.

C2.8.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.8.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.8.9 Unit values

As standard

C2.8.10 products covered by the item ‘other fresh vegetables’ (code 4190): enumeration limited to the most important ones (e.g. 10 most important species)

The most important other vegetables: lettuce, carrots, mushroom, onions, cabbage, calbrese, brussel sprouts, cucumbers, peas and beans, celery, leeks.

C2.9 NURSERY PLANTS, ORNAMENTAL PLANTS AND FLOWERS (INCLUDING CHRISTMAS TREES)

C2.9.1 Data sources

Total value estimated by expert opinion

C2.9.2 Level of detail

Shrubs, trees, flowers, pot plants, bedding plants

C2.9.3 Calculation procedure

Values are directly estimated using expert opinion.

C2.9.4 Adjustments

None

C2.9.5 Estimations

None

EAA Inventory 2015 Page 17 of 66 C2.9.6 Numerical example

Click here to enter text.

C2.9.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.9.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.9.9 Unit values

As standard

C2.9.10 Field of observation / ’nursery plants’ (04210) versus ‘ornamental plants and flowers (including Christmas trees)’ (04220): details on how the distinction between both categories has been made?

Nursery plants are generally cut whereas ornamental are live plants i.e. with roots

C2.9.11 Field of observation / ’nursery plants’ (04210): details on how the distinction between agricultural and forestry tree nurseries has been made?

Forestry tree nurseries data is from a different source

C2.9.12 Content / ‘Ornamental plants and flowers (including Christmas trees)’ (04220): confirmation that Christmas trees have been covered.

Yes

C2.10 PLANTATIONS

C2.10.1 Data sources

Not applicable

C2.10.2 Level of detail

Not applicable

EAA Inventory 2015 Page 18 of 66 C2.10.3 Calculation procedure

Not applicable

C2.10.4 Adjustments

Not applicable

C2.10.5 Estimations

Not applicable

C2.10.6 Numerical example

Not applicable

C2.10.7 Subsidies and taxes on products

Not applicable

C2.10.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Not applicable

C2.10.9 Unit values

Not applicable

C2.11 POTATOES (INCLUDING SEEDS)

C2.11.1 Data sources

Total area from June survey of agriculture. Total value estimated by expert opinion using data from industry body (British Potato Council)

C2.11.2 Level of detail

Main crop, early and seed potatoes

C2.11.3 Calculation procedure

Click here to enter text.

C2.11.4 Adjustments

None

EAA Inventory 2015 Page 19 of 66 C2.11.5 Estimations

None

C2.11.6 Numerical example

Click here to enter text.

C2.11.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.11.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.11.9 Unit values

As standard

C2.12 FRUITS (TOTAL, CODE 06000)

C2.12.1 Data sources

Areas from June survey of agriculture Production estimated by expert opinion Prices collected from weekly survey of wholesale markets

C2.12.2 Level of detail

Apples, pears, cherries, plums, strawberries, blackcurrants, raspberries, other soft fruit

C2.12.3 Calculation procedure

Total value = volume of production x weighted average price for each fruit item

C2.12.4 Adjustments

None

C2.12.5 Estimations

None

EAA Inventory 2015 Page 20 of 66 C2.12.6 Numerical example

Click here to enter text.

C2.12.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.12.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.12.9 Unit values

As standard

C2.12.10 Products covered by the items ‘other fresh fruit’ (code 06190), ‘other citrus fruit’ (code 06290), tropical fruit‘ (code 06300)‚ ‘other grapes‘ (code 06490) and ‘other olives’ (code 06590): enumeration for each, limited to the most important ones (e.g. 10 most important species)

Other fresh fruit; Strawberries, raspberries, cooking apples, cider apples, blackcurrants, cherries. Other code numbers referred to this question are not applicable to the UK.

C2.13 WINE

C2.13.1 Data sources

N/A

C2.13.2 Level of detail

N/A

C2.13.3 Calculation procedure

N/A

C2.13.4 Adjustments

N/A

C2.13.5 Estimations

N/A

EAA Inventory 2015 Page 21 of 66 C2.13.6 Numerical example

N/A

C2.13.7 Subsidies and taxes on products

N/A

C2.13.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

N/A

C2.13.9 Unit values

N/A

C2.13.10 In the EAA, a part of wine production of the wine manufacturing industry (NACE 11.02) is considered as agricultural activity. Please give details on how this part is separated from the non-agricultural part.

N/A

C2.14 OLIVE OIL

C2.14.1 Data sources

N/A

C2.14.2 Level of detail

N/A

C2.14.3 Calculation procedure

N/A

C2.14.4 Adjustments

N/A

C2.14.5 Estimations

N/A

C2.14.6 Numerical example

N/A

EAA Inventory 2015 Page 22 of 66 C2.14.7 Subsidies and taxes on products

N/A

C2.14.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

N/A

C2.14.9 Unit values

N/A

C2.14.10 In the EAA, a part of olive oil production of the oil manufacturing industry (NACE 10.41) is considered as agricultural activity. Please give details on how this part is separated from the non-agricultural part.

N/A

C2.15 OTHER CROP PRODUCTS

C2.15.1 Data sources

Area from June survey of agriculture Volumes estimated based on average yields Price data provided by experts in the sector

C2.15.2 Level of detail

Grass and clover seed, straw, seeds – sugar beet, seeds – other root and fodder crops, veg seed, flower seed, seeds – young plants

C2.15.3 Calculation procedure

Click here to enter text.

C2.15.4 Adjustments

None

C2.15.5 Estimations

None

C2.15.6 Numerical example

Click here to enter text.

EAA Inventory 2015 Page 23 of 66 C2.15.7 Subsidies and taxes on products

None

C2.15.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.15.9 Unit values

Click here to enter text.

C2.15.10 ‘Seeds’ (09200): products covered by this item.

Grass and clover seed, seeds – sugar beet, seeds – other root and fodder crops, veg seed, flower seed, seeds – young plants

C2.15.11 Products covered by the item ‘other crop products: others’ (code 09900)

none

C2.16 CATTLE (INCLUDING CALVES)

C2.16.1 Data sources

Prices published by industry levy body (AHDB) Production levels estimated from in-house surveys of producers and slaughterhouses Trade data from HMRC

C2.16.2 Level of detail

Clean cattle, cull cows and bulls, calves

C2.16.3 Calculation procedure

Output value = Home sales + Own consumption + Export sales - Import + Change in Stocks Total value = volume x average price

C2.16.4 Adjustments

None

EAA Inventory 2015 Page 24 of 66 C2.16.5 Estimations

None

C2.16.6 Numerical example

Click here to enter text.

C2.16.7 Subsidies and taxes on products

Scottish Suckler Beef Support Scheme (Scotland). The data is provided by Scotland and considered good.

C2.16.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.16.9 Unit values

As standard

C2.16.10 Please specify the method on the basis of which cattle output and its components have been calculated.

See above

C2.17 PIGS

C2.17.1 Data sources

Prices published by industry levy body (AHDB) Production levels estimated from in-house surveys of producers and slaughterhouses Trade data from HMRC

C2.17.2 Level of detail

Clean pigs, sows and boars

C2.17.3 Calculation procedure

Output value = Home sales + Own consumption + Export sales - Import + Change in Stocks Total value = volume x average price

EAA Inventory 2015 Page 25 of 66 C2.17.4 Adjustments

None

C2.17.5 Estimations

None

C2.17.6 Numerical example

Click here to enter text.

C2.17.7 Subsidies and taxes on products

No subsidies on product for this item for UK

C2.17.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.17.9 Unit values

As standard

C2.17.10 Please specify the method on the basis of which pig output and its components have been calculated.

As above

C2.18 POULTRY

C2.18.1 Data sources

Prices published by industry levy body (AHDB) Production levels estimated from in-house surveys of producers and slaughterhouses Trade data from HMRC

C2.18.2 Level of detail

Broilers, ducks, geese, turkeys

EAA Inventory 2015 Page 26 of 66 C2.18.3 Calculation procedure

Output value = Home sales plus export live poultry plus hatching eggs for export less live poultry imports less hatching eggs imports

Home sales = packing station sales x packing station price

C2.18.4 Adjustments

None

C2.18.5 Estimations

None

C2.18.6 Numerical example

Click here to enter text.

C2.18.7 Subsidies and taxes on products

None for UK for these products

C2.18.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.18.9 Unit values

As standard

C2.18.10 Please specify the method on the basis of which poultry output and its components have been calculated.

As above

C2.18.11 Please provide details on the treatment of hatching eggs (see also: eggs)

Hatching eggs for export are included but hatching eggs for import are excluded in the value of produciton.

EAA Inventory 2015 Page 27 of 66 C2.19 SHEEP AND GOATS

C2.19.1 Data sources

Prices published by industry levy body (AHDB) Production levels estimated from in-house surveys of producers and slaughterhouses Trade data from HMRC

C2.19.2 Level of detail

Clean sheep and rams; ewes and rams

C2.19.3 Calculation procedure

Output value = Home sales + Own consumption + Export sales - Import + Change in Stocks Total value = volume x average price

C2.19.4 Adjustments

None

C2.19.5 Estimations

None

C2.19.6 Numerical example

Click here to enter text.

C2.19.7 Subsidies and taxes on products

Scottish upland Sheep support scheme (Scotland). The data is provided by Scotland and considered good.

C2.19.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.19.9 Unit values

As standard

EAA Inventory 2015 Page 28 of 66 C2.19.10 Please specify the method on the basis of which the output of sheep and goats and its components have been calculated.

As above

C2.20 EQUINES, OTHER ANIMALS

C2.20.1 Data sources

This item is almost insignificant for UK. As a result a simple estimation is made using expert opinion and carrying forward data from an earlier study.

C2.20.2 Level of detail

Horses; rabbits and game; dogs; deer

C2.20.3 Calculation procedure

See above

C2.20.4 Adjustments

None

C2.20.5 Estimations

None

C2.20.6 Numerical example

Click here to enter text.

C2.20.7 Subsidies and taxes on products

None for this item for UK

C2.20.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.20.9 Unit values

As standard

EAA Inventory 2015 Page 29 of 66 C2.20.10 Products covered by the item ‘other animals’ (code 11900).

Rabbits and game;deer;dogs. For dogs it is just the value of meat at the end of their life that it used.

C2.20.11 Please specify the method on the basis of which the output of equines and of other animals, and their components have been calculated.

As above

C2.21 MILK

C2.21.1 Data sources

Estimated from in-house surveys of milk availability and usage by dairies in England and Wales and Milk price surveys. Scotland and Northern Ireland run similar surveys and provide separate data to arrive at UK totals.

C2.21.2 Level of detail

Cows’ milk

C2.21.3 Calculation procedure

Survey accounts for around 90% of the total milk available for processing (based on the long term comparison with RPA volume data) so the survey data is raised to 100% of milk delivered to dairies in England and Wales. Volumes provided by Scotland and Northern Ireland are added to England and Wales volumes to arrive at UK volumes. Total value = volume x average price (obtained from the Survey of purchasers of milk on farm). Scotland, Northern Ireland provide prices and a weighted average is used.

C2.21.4 Adjustments

None

C2.21.5 Estimations

None

C2.21.6 Numerical example

See calculation procedure

C2.21.7 Subsidies and taxes on products

None for this item for UK

EAA Inventory 2015 Page 30 of 66 C2.21.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.21.9 Unit values

As standard

C2.21.10 For which years have penalties for exceeding milk quotas been applied? Which are the corresponding amounts?

None

C2.22 EGGS

C2.22.1 Data sources

Volume and price data collected from quarterly egg-packers survey of all processors, raised to calculate production figures. Price information is collected from the Egg Packers Survey. Trade data from HMRC

C2.22.2 Level of detail

Intensive eggs;free-range eggs, other including barn

C2.22.3 Calculation procedure

Output value = Eggs for human consumption production x average price (excludes trade in hatching eggs)

C2.22.4 Adjustments

None

C2.22.5 Estimations

None

C2.22.6 Numerical example

Click here to enter text.

C2.22.7 Subsidies and taxes on products

None for this item for UK

EAA Inventory 2015 Page 31 of 66 C2.22.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.22.9 Unit values

As standard

C2.22.10 Please provide details on the treatment of hatching eggs (see also: poultry).

Only eggs for human consumption are included here. Hatching eggs are included under poultry.

C2.23 OTHER ANIMAL PRODUCTS (RAW WOOL, SILKWORM COCOONS, OTHERS)

C2.23.1 Data sources

These items are very low value for the UK. Estimates are based on data from industry bodies; the British Beekeepers Association and Wool Marketing Board.

C2.23.2 Level of detail

liquid milk; cheese ;wool; honey

C2.23.3 Calculation procedure

Value and volume information for components are provided by industry bodies. The data are considered to be fit for purpose.

C2.23.4 Adjustments

None

C2.23.5 Estimations

None

C2.23.6 Numerical example

Click here to enter text.

C2.23.7 Subsidies and taxes on products

None for these items for UK

EAA Inventory 2015 Page 32 of 66 C2.23.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Data for the last 2 months of the calendar year must be estimated/forecast for the provisional accounts. Otherwise all data sources are the same.

C2.23.9 Unit values

As standard

C2.23.10 Products covered by the item ‘other animal products’ (code 12930).

liquid milk;cheese ;wool ;honey

C2.24 AGRICULTURAL SERVICES (INCLUDING RENTING OF MILK QUOTA)

C2.24.1 Data sources

The source of value data is the Farm Business Survey (FBS).

C2.24.2 Level of detail

Contract work and machinery rental; Milk Quota – Expenditure;

C2.24.3 Calculation procedure

Farm Business Survey is based on the average accounting period from March to February. Values are £ per farm for the FBS period and converted to the calendar year. Conversion to calendar year is as applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year. Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Outputs per farm (FBS). Separate data for Wales, Scotland and Northern Ireland is added to produce the value for United Kingdom.

C2.24.4 Adjustments

See above to convert survey year to calendar year.

C2.24.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

EAA Inventory 2015 Page 33 of 66 C2.24.6 Numerical example

C2.24.7 Subsidies and taxes on products

C2.24.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

n/a

C2.24.9 Unit values

None

C2.25 NON-AGRICULTURE SECONDARY ACTIVITIES (INSEPARABLE)

C2.25.1 Data sources

The source of value data is the Farm Business Survey (FBS).

C2.25.2 Level of detail

Non-agricultural hirework; Farmhouse rents; Farm cottage rents; Other rents (e.g. from farm buildings); Sundry woodland sales; Recreation; Tourist accommodation and catering; Rural crafts and similar on-farm activities; Farm retailing (not included within net farm income); Any other on- farm income (now includes processing of farm produce); Miscellaneous insurance receipts;

C2.25.3 Calculation procedure

Farm Business Survey is based on the average accounting period from March to February. Values are £ per farm for the FBS period and converted to the calendar year. Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Outputs per farm (FBS). Separate data for Wales, Scotland and Northern Ireland is added to produce the value for United Kingdom.

C2.25.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

EAA Inventory 2015 Page 34 of 66 C2.25.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

C2.25.6 Numerical example

C2.25.7 Subsidies and taxes on products

Click here to enter text.

C2.25.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

C2.25.9 Unit values

As standard

C2.25.10 Exhaustive list of activities covered

Non-agricultural hirework; Farmhouse rents; Farm cottage rents; Other rents (e.g. from farm buildings); Sundry woodland sales; Recreation; Tourist accommodation and catering; Rural crafts and similar on-farm activities; Farm retailing (not included within net farm income); Any other on- farm income (now includes processing of farm produce); Miscellaneous insurance receipts;

C2.25.11 Which criterion has been used for assessing the inseparability of these activities?

These are non-agricultural activities closely linked to agricultural production and resources.

C2.25.12 What is the relative importance of each of these inseparable activities (e.g. “the share of agro-tourism services recorded as inseparable in the EAA amounts to 30 % of all agro-tourism services”).

Approximate ratios are as follows : Non agricultural receipts - 4; House cottage and other rents - 30; Sundry woodland sales- 1; Recreation - 2; Other miscellaneous revenue - 10

EAA Inventory 2015 Page 35 of 66 PART D - COMPONENTS OF THE PRODUCTION ACCOUNT: INTERMEDIATE CONSUMPTION

D1 GENERAL

D1.1.1 Short overview on data sources used for the individual intermediate consumption items.

The source of value data is the Farm Business Survey (FBS) with the exception of Animal Feedingstuffs and some seeds. Animal feedingstuff is sourced from the GB Compound Animal Feed Survey run by Defra and seeds are estimated for farmers purchases and income from seeds.

D2 INDIVIDUAL INTERMEDIATE CONSUMPTION ITEMS

D2.1 SEEDS AND PLANTING STOCK

D2.1.1 Data sources

Both the quantity and value of seeds is estimated for farmers purchases and income from seeds – see D.2.1.3 for details on data sources.

D2.1.2 Level of detail

There are 3 main aspects of detail to the calculation which are: a) farmers purchases of seed (excludes inter and intra-farm purchases) referred to as input of seeds. b) farmers sales of seed of the national farm referred to as output of seeds. c) inter and intra farm trade in farm saved seed.

Categories: wheat, barley, oats, potatoes, sugar beet, oilseed rape, grass and clover, maize, peas for stockfeed, beans for stockfeed, other root and fodder crops, carrots, cauliflowers, other vegetables, flowers

EAA Inventory 2015 Page 36 of 66 D2.1.3 Calculation procedure

The source value is taken from the Farm Business Survey (FBS) based on the average accounting period from March to February. Values are £ per farm for the FBS period and converted to the calendar year for all seeds and young plants (see adjustment D2.1.4). Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Outputs per farm (FBS). The grossed value is broken down by seed type using information supplied by Farm business advisors to separate input and outputs, there are 15 categories in total. Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom.

D2.1.4 Adjustments

Conversion to calendar year is as applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

D2.1.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

D2.1.6 Numerical example

Click here to enter text.

D2.1.7 Subsidies and taxes on products

D2.1.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

D2.1.9 Unit values

Unit values are not calculated in this group

D2.1.10 Intra-unit/branch consumption: details on the calculation of intra- unit/branch consumption (quantities, prices, subsidies etc.)

The value of intra-farm use of potato seeds are shown in 19011. Total value estimated by expert opinion using data from industry body (British Potato Council).

EAA Inventory 2015 Page 37 of 66 D2.2 ENERGY; LUBRICANTS

D2.2.1 Data sources

The source of value data is the Farm Business Survey (FBS).

D2.2.2 Level of detail

Electricity; Heating fuel for all purposes; Machinery and vehicle fuels and oil apportioned by Red diesel, Derv and petrol:- Petrol, Derv and petrol:- Derv, Representative for other machinery and vehicles fuel and oil’ Lubricants plus specialist contractor fuel and oil

D2.2.3 Calculation procedure

Farm Business Survey is based on the average accounting period from March to February. Values are £ per farm for the FBS period converted to the calendar year for electricity, heating fuel and machinery and vehicle fuels and oil (see adjustment D2.2.4). Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). For machinery and vehicle fuels only the grossed value is broken down by fuel type using information supplied by farm business advisors. Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom.

D2.2.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

D2.2.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

D2.2.6 Numerical example

D2.2.7 Subsidies and taxes on products

Click here to enter text.

D2.2.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

EAA Inventory 2015 Page 38 of 66 D2.2.9 Unit values

Unit values are not calculated for this group

D2.2.10 Products covered by the item ‘other’ (code 19029)

Zero value

D2.3 FERTILISERS AND SOIL IMPROVERS

D2.3.1 Data sources

The source of value data is the Farm Business Survey (FBS).

D2.3.2 Level of detail

Straight fertilisers – nitrogenous; Straight fertilisers – phosphatic; Straight fertilisers – potassic; Compound fertilisers; Other fertilisers and soil improvers.

D2.3.3 Calculation procedure

Farm Business Survey is based on the average accounting period from March to February. Values are £ per farm for the FBS period converted to the calendar year for fertilisers (see adjustment D2.3.4). Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). The total fertiliser grossed value is broken down by fertiliser type as shown at D2.3.2 using information supplied by farm business advisors. Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom.

D2.3.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

D2.3.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

D2.3.6 Numerical example

EAA Inventory 2015 Page 39 of 66 D2.3.7 Subsidies and taxes on products

Click here to enter text.

D2.3.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.3.9 Unit values

Unit values are not calculated for this group

D2.4 PLANT PROTECTION PRODUCTS, HERBICIDES, INSECTICIDES AND PESTICIDES

D2.4.1 Data sources

The source of value data is the Farm Business Survey (FBS).

D2.4.2 Level of detail

Fungicides; Insecticides; Herbicides; Other pesticides

D2.4.3 Calculation procedure

Farm Business Survey is based on the average accounting period from March to February. Values are £ per farm for the FBS period converted to the calendar year for crop protection product costs (see adjustment D2.4.4). Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). The total crop protection product grossed value is broken down by crop protection type as shown at D2.4.2 using information supplied by farm business advisors. Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom.

D2.4.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

D2.4.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

EAA Inventory 2015 Page 40 of 66 D2.4.6 Numerical example

Click here to enter text.

D2.4.7 Subsidies and taxes on products

Click here to enter text.

D2.4.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.4.9 Unit values

Unit values are not calculated for this group

D2.5 VETERINARY EXPENSES

D2.5.1 Data sources

The source of value data is the Farm Business Survey (FBS).

D2.5.2 Level of detail

Veterinary products and veterinarian fees

D2.5.3 Calculation procedure

Business Survey is based on the average accounting period from March to February. Values are £ per farm for the FBS period converted to the calendar year for veterinary products and veterinary costs (see adjustment D2.5.4). Once converted to a calendar year basis the data is grossed up to all farm level using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). The total veterinary expenses gross value is broken down by between veterinary products and vet fees as shown at D2.5.2 using information supplied by farm business advisors. Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom

D2.5.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

EAA Inventory 2015 Page 41 of 66 D2.5.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

D2.5.6 Numerical example

Click here to enter text.

D2.5.7 Subsidies and taxes on products

Click here to enter text.

D2.5.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.5.9 Unit values

Unit values are not calculated for this group

D2.6 FEEDINGSTUFFS

D2.6.1 Data sources

The source of quantity of compounds data is the GB Animal Feedingstuffs survey and the source of compound price data is the Sales, Value and Volumes survey, both run by Defra. Results are published at https://www.gov.uk/government/statistics/animal-feed-production. Separate data for Northern Ireland is provided by the Department of Agriculture, Environment and Rural Affairs (DAERA) to produce the quantity for United Kingdom. The source of straights prices are taken from the HGCA as well as some constant price information for some items, under advice from agricultural consultants. HMRC trade data

D2.6.2 Level of detail

Compounds, straights and feed produced and used on farm or purchased from other farms.

D2.6.3 Calculation procedure

Values for compounds and straights are calculated by multiplying the quantities by the corresponding price.

EAA Inventory 2015 Page 42 of 66 D2.6.4 Adjustments

Click here to enter text.

D2.6.5 Estimations

Estimates for straights are derived by calculating the tonnage used as straights for each item. These are evaluated by taking the quantities produced from the survey results combined with data from commercial sources as well as the amount imported (data sourced from Her Majesty’s Revenue and Customs) and subtracting the tonnage used as raw materials sourced from the Compound Feedingstuff survey.

D2.6.6 Numerical example

Click here to enter text.

D2.6.7 Subsidies and taxes on products

Click here to enter text.

D2.6.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.6.9 Unit values

Click here to enter text.

D2.6.10 Details on the calculation of intra-unit/branch consumption (quantities, prices, subsidies, etc.)

Feed produced and used on farm or purchased from other farms are calculated for feed wheat, feed barley, feed oats, fodder maize, protein crops.

D2.6.11 Distinction between both intra-unit consumption and trade between holdings?

Click here to enter text.

D2.6.12 Please confirm that the subsidies on products (if applicable) have been deducted when recording the relevant items under intermediate consumption.

n/a.

EAA Inventory 2015 Page 43 of 66 D2.6.13 Please give information on the link between the values recorded as intra-unit/branch consumption under this heading (code 19061 and 19063) and the relevant output products (or groups of products)

The link between 19063 and relevant output products are feed wheat £144m feed barley £190m, feed oats £20m, fodder maize £186m and protein crops £0m. These values are included in the value of outputs and cost value. (values for 2015 as at Nov 18)

D2.7 MAINTENANCE OF MATERIALS

D2.7.1 Data sources

The source of value data is the Farm Business Survey (FBS).

D2.7.2 Level of detail

Vehicle, machinery and other plant equipment repairs

D2.7.3 Calculation procedure

Data on the maintenance of materials is extracted from the FBS survey expenditure on machinery and equipment repairs based on the average accounting period from March to February. Values are £ per farm for the FBS period converted to the calendar year machinery and equipment repairs (see adjustment D2.7.4). Once converted to a calendar year basis the data is grossed up produce a value of all machinery repairs on all farms using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom

D2.7.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

D2.7.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

D2.7.6 Numerical example

EAA Inventory 2015 Page 44 of 66 D2.7.7 Subsidies and taxes on products

n/a

D2.7.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.7.9 Unit values

Unit values are not calculated for this group

D2.8 MAINTENANCE OF BUILDINGS

D2.8.1 Data sources

The source of value data is the Farm Business Survey (FBS).

D2.8.2 Level of detail

Farm maintenance; occupier and landlord

D2.8.3 Calculation procedure

Data on the maintenance of buildings is extracted from the FBS survey expenditure on ‘tenant type repairs and current upkeep of land’ based on the average accounting period from March to February. Values are £ per farm for the FBS period converted to the calendar year machinery and equipment repairs (see adjustment D2.8.4). Once converted to a calendar year basis the data is grossed up produce a value of all machinery repairs on all farms using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Separate data for Wales, Scotland and Northern Ireland are added to produce the value for United Kingdom

D2.8.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year. An adjustment for Own Capital Account Capital formation of 0.5 total OACF is deducted with the other half deducted from the labour (comp of employees) calculations. The OACF is taken from the Farm Business Survey and represents the value of work done and materials provided by the farm as a proportion of the capital investment in in building works by the occupier or landlord.

EAA Inventory 2015 Page 45 of 66 D2.8.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values

D2.8.6 Numerical example

Click here to enter text.

D2.8.7 Subsidies and taxes on products

n/a

D2.8.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.8.9 Unit values

Unit values are not calculated for this group

D2.9 AGRICULTURAL SERVICES

D2.9.1 Data sources

The source for value data is the Farm Business Survey (FBS).

D2.9.2 Level of detail

Contract work and machinery rentals

D2.9.3 Calculation procedure

Data on agricultural services is extracted from the Farm Business Survey on ‘machinery costs, contract work and machinery rental’ based on average accounting periods from March to February. Values are £ per farm for an FBS period so they must be converted to calendar years and grossed up for all farms (see adjustments D2.9.4). The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Separate data for Wales, Scotland, and Northern Ireland is added to produce a value of United Kingdom.

D2.9.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

EAA Inventory 2015 Page 46 of 66 D2.9.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ value.

D2.9.6 Numerical example

Click here to enter text.

D2.9.7 Subsidies and taxes on products

n/a

D2.9.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.9.9 Unit values

Unit values are not calculated for this group

D2.9.10 If the values recorded under this heading (code 19090) are different from those recorded under the corresponding output heading (code 15000 ( )), please explain the reasons.

For 2015 data the values are identical (as at Nov 18)

D2.10 OTHER GOODS AND SERVICES

D2.10.1 Data sources

The source for value data is the Farm Business Survey (FBS).

D2.10.2 Level of detail

Values are for water, insurance, bank charges, professional fees, miscellaneous crop, livestock and other farming costs.

EAA Inventory 2015 Page 47 of 66 D2.10.3 Calculation procedure

Data on is extracted from the FBS survey expenditure on miscellaneous crop, livestock and other farming costs, water costs, insurance, bank charges and professional fees on the average accounting period from March to February . Values are £ per farm for the FBS period converted to the calendar year (see adjustment D2.10.4). Once converted to a calendar year basis the data is grossed up produce a costs on all farms using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Separate data for Wales, Scotland and Northern Ireland is added to produce the value for United Kingdom

D2.10.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

D2.10.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

D2.10.6 Numerical example

Click here to enter text.

D2.10.7 Subsidies and taxes on products

n/a

D2.10.8 Provisional and semi-definitive accounts and Agricultural Income Index versus definitive accounts

Click here to enter text.

D2.10.9 Unit values

Unit values are not calculated for this group

D2.10.10 Products covered by this item (code 19900)

Water, insurance, bank charges, professional fees, miscellaneous crop, livestock and other farming costs

EAA Inventory 2015 Page 48 of 66 D3 CALCULATION OF NON-DEDUCTIBLE VAT

D3.1.1 Please specify, if applicable, how non-deductible VAT on intermediate consumption has been calculated.

n/a

D3.1.2 Please give a numerical example.

n/a

EAA Inventory 2015 Page 49 of 66 PART E - COMPONENTS OF THE GENERATION OF INCOME ACCOUNT

E1 COMPENSATION OF EMPLOYEES

E1.1.1 Data sources

Compensation of employees is defined as the total amount paid by the industry to employees in terms of gross wages and income contributions. The Farm Business Survey (FBS) provides data for the labour costs for paid workers in England (£/hour). These data cover the cash payment made to the working including overtime plus bonuses and employer and employee share of social contributions. Farm Structure Survey provide persons employed and farmwork (AWU) by working time (% AWU) of worker numbers, this is used to convert part-time to AWU equivalents. The Farm Business survey provides the ‘Other employment expenses’ used to calculate the level of insurance and other payments for workers. Data from Wales, Scotland and Northern Ireland are added to the England value to produce an estimate for the United Kingdom.

E1.1.2 Level of detail

Paid labour comprising of Salaried Managers, Regular Full-time, Regular Part- time, Paid casual and seasonal workers. Employees Social contribution. Specialist labout contractors

EAA Inventory 2015 Page 50 of 66 E1.1.3 Calculation procedure

Unit values for England are calculated from Farm Business Survey data, by worker type £ per hour, based on the average accounting period from March to February, converted to the calendar year (see adjustment E1.1.4). Labour input figures for England are extracted from the Farm Structure Survey (June Survey), by worker type as follows: Salaried managers, Regular Full-time, Regular Part-time, Paid casual and seasonal workers. Agricultural labour numbers for each employment category are modified as follows: - part time workers converted to full time (Annual Work Unit) equivalent using Farm Structure Survey co-efficients. - a 3 year exponential moving average is used to smooth out any outliers/break in labour number series. -adjusted for Own Account Capital Formation (see E1.1.14)

England calculation by each worker type are as follows: Unit value (hourly rate) x England labour number (smoothed annual average) x hours worked per AWU (2200 hours)

An estimate of ‘Other employment expenses’ is derived from Farm Business Survey data and added (accounts for approximately 1% of the value of compensation of employees in England)

Estimates of Compensation of employees for Scotland, Wales and Northern Ireland are added to produce the value for United Kingdom.

E1.1.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

An adjustment for Own Capital Account Capital formation (OCAF) is made (this is in association with the deduction from the Farm maintenance calculations) This is distributed pro-rata across all labour categories. The OACF is taken from the Farm Business Survey.

The total compensation of employees also includes an estimate of specialist labour contractors. Specialist contractor paid labour is calculated as a proportion (35%) of expenditure by farms for specialist contractor work, equal to Expenditure on contract work and machinery rentals less agricultural hire work, all data extracted from the Farm Business Survey grossed to all farm equivalent.

EAA Inventory 2015 Page 51 of 66 E1.1.5 Estimations

FBS data is produced one year in arrears so cannot be used as an appropriate figure for the current year of the accounts. An estimate is calculated using a forecast unit value indicator (based on expert advice) and UK June Census employment data for the current year.

E1.1.6 Numerical example

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E1.1.7 List of items covered (see particularly Annex 1 of Regulation (EC) No 138/2004, paragraph 3.016 and 3.018)

Follows EC 138/2004 annex 1, 3.016 and 3.018 – see level of detail E1.1.3

E2 OTHER TAXES ON PRODUCTION

E2.1.1 Data sources

Data are sourced from the Farm Business Survey.

E2.1.2 Level of detail

Item covered cost of vehicle licences

E2.1.3 Calculation procedure

Data on ‘vehicle tax & other general farming costs’ is extracted from the Farm Business Survey based on average accounting periods from March to February. Values are £ per farm for an FBS period so they must be converted to calendar years and grossed up for all farms (see adjustments E2.1.4). The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). In order to raise the England estimate to UK level the Gross Stock Value of Vehicles estimated as part of the vehicle perpetual inventory model is used to estimate a raising factor based on the Gross Stock Value of vehicles in the UK as a percentage of England. This gross figure is apportioned between the different vehicle types. In 2015 a ratio of 1.7 was applied.

E2.1.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

EAA Inventory 2015 Page 52 of 66 E2.1.5 Estimations

Estimates for the forecast year for United Kingdom are supplied by Farm Business advisors and applied to the previous years’ values.

E2.1.6 Numerical example

Click here to enter text.

E2.1.7 List of items covered (see particularly Annex 1 of Regulation (EC) No 138/2004, paragraph 3.048)

Primarily items covered in paragraph 3.048 (b)

E2.1.8 Are there any ‘taxes on production’ in your country which are not explicitly mentioned in the Annex 1 of Regulation (EC) No 138/2004?

n/a

E2.1.9 If so, details on the concrete scheme (who pays them, under which conditions)

n/a

E2.1.10 For which of the items given in your reply to question A did the application of the accruals principle under the new methodology confer changes?

United Kingdom attributes payment values on the year at which payment becomes due and not on an “as-paid” basis.

E2.1.11 Please specify, if applicable, how under-compensation of VAT has been calculated.

n/a

E2.1.12 Please give a numerical example

n/a

EAA Inventory 2015 Page 53 of 66 E3 OTHER SUBSIDIES ON PRODUCTION

E3.1.1 Data sources

Rural Payments Agency Rural Development Programme, England Animal Plant Health Agency Department of Agriculture, Environment and Rural Affairs (Northern Ireland) Welsh Assembly, The Department for Rural Affairs and Heritage The Scottish Government, Rural and Environment Science and Analytical Services

E3.1.2 Level of detail

Values are provided by scheme on an annual basis, see list of schemes included for 2015 at E 3.1.7.

E3.1.3 Calculation procedure

Values for each scheme in England are provided by the relevant scheme administration teams in Defra. Similar data for schemes run in Wales, Scotland and Northern Ireland are provided separately. Combined to produce UK level data. The data are considered to be fit for purpose and robust.

E3.1.4 Adjustments

n/a

E3.1.5 Estimations

Estimations are provided by data suppliers when actual data is not available and are based on payments to date grossed up to derive an annual figure. These estimates are considered to be of a good quality

E3.1.6 Numerical example

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EAA Inventory 2015 Page 54 of 66 E3.1.7 List of items covered (see particularly Annex 1 of Regulation (EC) No 138/2004, paragraph 3.064)

In 2015: 1. Basic Payment Scheme data (by component) 2. Animal disease compensation data: 3. Sites/Areas of Special Scientific Interest: 4. Countryside Stewardship Scheme 5. Organic Farming 6. Environmentally Sensitive Areas 7. Tir Gofal 8. Less Favoured Areas schemes 9. Countryside management scheme 10. Rural stewardship scheme 11. Environment Stewardship Scheme 12. EU Dairy fund 13. Glastir 14. Rural Priorities 15. Land Managers Options 16. New Entrants Scheme

E3.1.8 Are there any ‘other subsidies on production’ in your country which are not explicitly mentioned in the Annex 1 of Regulation (EC) No 138/2004?

No

E3.1.9 If so, details on the concrete scheme (who receives them under which conditions)

n/a

E3.1.10 For which of the items given in your reply to question A did the application of the accruals principle under the new methodology confer changes?

United Kingdom attribute subsidy values on the date at which payment become due and not on as paid basis.

E3.1.11 Please specify, if applicable, how over-compensation of VAT has been calculated.

Not applicable

E3.1.12 Please give a numerical example

Not applicable

EAA Inventory 2015 Page 55 of 66 PART F - COMPONENTS OF THE ENTREPRENEURIAL INCOME ACCOUNT

F1 RENTS AND OTHER REAL ESTATE RENTAL CHARGES TO BE PAID

F1.1.1 Data sources

Farm Business Survey (Defra). June Survey Royal Institute of Chartered Surveyors (RICS) rental area and price data

F1.1.2 Level of detail

Data are available by type of rent including type of tenancy agreement

EAA Inventory 2015 Page 56 of 66 F1.1.3 Calculation procedure

The value of rent attempts to measure the aggregate annual cost to UK agriculture of renting in land, which distinguishes between rents flowing within agriculture and outside agriculture, i.e. between farmer and farmer and farmers to non-agricultural landowners. Additionally, farmers’ aggregate rental revenue and expenditure are measured, although these are offset and only rent flowing out of agriculture will actually be accounted for in the total income. The different elements as follows: Gross Rent – the total rent actually paid out by farmers. This is calculated as annual rate of change in rented land values multiplied by the total tenanted area for each tenant type. (Calculated for both flows of rent within agriculture and externally). Benefit value of dwellings – a deduction from Gross Rent to reflect the fact rent paid out by farmers often includes rent for private housing, either for the farmer or his workers, which strictly should not be accounted to the farm business. This is calculated using a constant coefficient (10%, industry advised) applied to overall gross rent. Not calculated for seasonal tenancies. Adjusted Gross rent – gross rent less benefit of dwellings. Landlords’ expenses – Expenses incurred by landlords in relation to the tenanted land owned along with Landlords’ depreciation are subtracted from Adjusted Gross Rent to determine the Net rent earned by landlords from their tenants after costs. This is calculated using a constant coefficient (5%, industry advised) applied to overall gross rent. Not calculated for seasonal tenancies. Landlords’ depreciation - This is that part of the total depreciation cost of UK agriculture in respect of buildings and works which is borne by landlords. In practice this is now estimated as a proportion of total buildings and works depreciation calculated in the Perpetual Inventory Model (PIM) for buildings. Scotland and Northern Ireland provide their own estimate for landlords’ share. Net rent - Adjusted Gross Rent less Landlords’ expenses less Landlords’ depreciation. Tenancy types: Full Agricultural Tenancies (FATs), accounts for around 33% of the gross value of rented land Farm Business Tenancies (FBTs), accounts for around 50% of the gross value of rented land Seasonal in, accounts for around 10% of the gross value of rented land Seasonal out, not included in calculations and accounts for around 7% of the gross value of rented land.

Rental data are provided by Scotland, wales and Northern Ireland and added to the England value to calculate a value for the UK.

EAA Inventory 2015 Page 57 of 66 F1.1.4 Adjustments

see above

F1.1.5 Estimations

See above

F1.1.6 Numerical example

Click here to enter text.

F1.1.7 Are there any taxes related to this item which have to be recorded in the EAA?

No

F1.1.8 If so, are they recorded explicitly in the generation of income account or implicitly in the entrepreneurial income account (in which latter case the rental payments recorded include taxes related to them)?

n/a

F2 INTEREST PAID

F2.1.1 Data sources

Farm Business Survey (Defra) Bank of England Office Of National Statistics

F2.1.2 Level of detail

Interest paid

F2.1.3 Calculation procedure

Data related to ‘interest paid on loans’ is extracted from the FBS survey expenditure for the average accounting period from March to February. The loans recorded must exceed 12 months and relate to the farm business. Values are £ per farm for the FBS period converted to the calendar year (see adjustment F2.1.4). Once converted to a calendar year basis the data is grossed up produce a costs on all farms using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Separate data for Wales, Scotland and Northern Ireland is added to produce the value for United Kingdom.

EAA Inventory 2015 Page 58 of 66 F2.1.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year. Total Interest paid is adjusted for FISIM.

F2.1.5 Estimations

To produce an estimate for the forecast year for United Kingdom the annual average base lending rate obtained from the Bank of England is applied to the annual average lending to agriculture, hunting and fisheries. Only the interest paid by agriculture sector is needed, a constant coefficient is used to adjust for the borrowing by fisheries.

F2.1.6 Numerical example

F2.1.7 Are there any subsidies related to this item which have to be recorded in the EAA?

No

F2.1.8 If so, are they recorded explicitly in the generation of income account or implicitly in the entrepreneurial income account (in which latter case the interest payments recorded exclude subsidies related to them)?

n/a

F3 INTEREST RECEIVED

F3.1.1 Data sources

Farm Business Survey (Defra) Bank of England Office of National Statistics

F3.1.2 Level of detail

Interest received

EAA Inventory 2015 Page 59 of 66 F3.1.3 Calculation procedure

Data related to ‘interest received on savings’ is extracted from the FBS survey expenditure for the average accounting period from March to February. The loans recorded must exceed 12 months and relate to the farm business. Values are £ per farm for the FBS period converted to the calendar year (see adjustment D2.10.4). Once converted to a calendar year basis the data is grossed up produce a costs on all farms using a grossing ratio. The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Separate data for Wales, Scotland and Northern Ireland is added to produce the value for United Kingdom

F3.1.4 Adjustments

Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year. Total Interest received is adjusted for FISIM using ratio’s derived from financial information collected by the Office of National Statistics.

F3.1.5 Estimations

To produce an estimate for the forecast year for United Kingdom the year on year percentage change is applied to the previous year value.

F3.1.6 Numerical example

Click here to enter text.

EAA Inventory 2015 Page 60 of 66 PART G - ELEMENTS OF THE CAPITAL ACCOUNT

G1 GROSS FIXED CAPITAL FORMATION (GFCF)

G1.1 GFCF IN AGRICULTURAL PRODUCTS

G1.1.1 Data sources

June Survey of Agriculture and Horticulture Livestock Populations at December, United Kingdom United Kingdom Slaughter Survey Commodity Price series, Defra Market report price series, Agriculture & Horticulture Development Board (AHDB)

G1.1.2 Level of detail

Livestock: Dairy Cattle, Breeding Cows, Bulls, Breeding Sows, Breeding pigs, Ewes, Rams.

G1.1.3 Calculation procedure

Capital formation in livestock is the production of livestock that will serve as fixed assets. It includes the production of dairy cows and breeding animals (excludes poultry and the production of animals reared solely for slaughter). The calculation is value of entries less the value of withdrawals plus an adjustment for work in progress. Work in progress is valued using an average year price. Cattle: Estimates are made for dairy cows, beef cows and bulls. Cows are considered as entering the breeding or dairy herd when they first calve. Estimates are calculated from the UK December livestock population survey results and June Surveys with forecasts based on GB results if UK information is not available. Slaughter survey results are used for withdrawals. Livestock market prices are gathered from the Defra commodity price series. Pigs: Estimates are made for all sows and breeding pigs. The estimates are calculated from December survey results with forecasts based on GB trends if UK information is not available. The estimated entry price and withdrawal price for sows including estimate for mortality is used. Sheep: Estimates are made for ewes and for rams. December survey results and forecasts are made for provisional annual results (based on GB trends if UK forecasts not available).The entry price and withdrawal prices are gathered from Defra and AHDB price series. For all components Northern Ireland provide separate estimates.

EAA Inventory 2015 Page 61 of 66 G1.1.4 Adjustments

An adjustment is made for mortality, a constant coefficient is used based on industry expert advice.

G1.1.5 Estimations

None

G1.1.6 Numerical example

Click here to enter text.

G1.2 GFCF IN NON-AGRICULTURAL PRODUCTS

G1.2.1 Data sources

Farm Business Survey Office of National Statistics, Building and Works investment index Office of National Statistics, Producer Price inflation series.

G1.2.2 Level of detail

Buildings: Building and works Equipment: Plant & machinery, Vehicles, Plant and Machinery of Specialist Contractors.

G1.2.3 Calculation procedure

Buildings and works: Uses gross investment data for ‘buildings and improvements, glass house’ from Farm Business Survey. Plant & machinery: Uses gross investment data for ‘machinery’ from the Farm Business Survey. Vehicles: Uses gross investment data for ‘Cars, all terrain vehicles, motorcycles’ and ‘Lorries, vans and trucks’ from the Farm Business Survey. The Farm Business Survey data is based on average accounting periods from March to February. Values are £ per farm for an FBS period so they must be converted to calendar years and grossed up for all farms (see adjustments G1.2.4). The grossing ratio applied is based on total England Standard Output’s from the June Agricultural Survey divided by the average Standard Output per farm (FBS). Wales, Scotland and Northern Ireland provide separate figures which are added to the England value to produce an estimate for the United Kingdom.

G1.2.4 Adjustments

An adjustment Conversion to calendar year is applied as follows, 1/6 of the previous FBS account year and 5/6 of the current FBS account year.

EAA Inventory 2015 Page 62 of 66 G1.2.5 Estimations

Estimates for the forecast year for United Kingdom are based on the percentage year change in the investment volume index applied to the previous years’ value.

G1.2.6 Numerical example

Click here to enter text.

G2 CONSUMPTION OF FIXED CAPITAL (CFC)

G2.1.1 Data sources

Farm Business Survey Office of National Statistics, Building and Works investment index Office of National Statistics, Producer Price inflation index

G2.1.2 Level of detail

Buildings: Building and works Equipment: Plant & machinery, Vehicles, Plant and Machinery of Specialist Contractors.

G2.1.3 Calculation procedure

Depreciation is estimated within a Perpetual Inventory Model (PIM). It is assumed all assets will eventually be retired. Buildings are depreciated using a bell curve distribution with a mean of 30 years. Plant and Machinery are depreciated using a bell curve distribution with a mean of 20 years. Vehicles are depreciated using a bell curve distribution with a mean of 10 years. The above length of service factors are applied to the GFCF volumes for specific years and the sum of the values over the life cycle equals the amount of depreciation.

G2.1.4 Adjustments

none

G2.1.5 Estimations

none

G2.1.6 Numerical example

Click here to enter text.

EAA Inventory 2015 Page 63 of 66 G2.1.7 Goods covered by the item ‘others’ (code 21900)

Not applicable

G2.1.8 Please specify how consumption of fixed capital has been calculated

Click here to enter text.

G2.1.9 Average economic life of the various fixed assets for which CFC is calculated

PIM model used Buildings - 30 years. Plant and Machinery - 20 years. Vehicles - 10 years.

G2.1.10 Mortality function used

Not applicable

G3 CHANGES IN STOCKS

G3.1.1 Data sources

Not calculated

G3.1.2 Level of detail

Click here to enter text.

G3.1.3 Calculation procedure

Click here to enter text.

G3.1.4 Adjustments

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G3.1.5 Estimations

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G3.1.6 Numerical example

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EAA Inventory 2015 Page 64 of 66 G4 CAPITAL TRANSFERS (INVESTMENT GRANTS, OTHER CAPITAL TRANSFERS)

G4.1.1 Data sources

Animal Plant Health Agency Rural Development Programme England Scotland Wales NI

G4.1.2 Level of detail

Scrapie Capital Grants

G4.1.3 Calculation procedure

Scrapie: Data for England are published by AHPA and considered fit for purpose. Capital Grants; Data is provided by Rural Development Programme Enlgand and DA’s. Further work is needed to establish if all grants are covered in data provision.

G4.1.4 Adjustments

G4.1.5 Estimations

Click here to enter text.

G4.1.6 Numerical example

Click here to enter text.

G4.1.7 List of items covered (see Annex 1 of Regulation (EC) No 138/2004, 3.091 and 3.096))

investigating

G4.1.8 Are there any ‘capital transfers’ in your country which are not explicitly mentioned in the Annex 1 of Regulation (EC) No 138/2004?

EAA Inventory 2015 Page 65 of 66 G4.1.9 If so, details on the concrete scheme (who receives them under which conditions)

No

EAA Inventory 2015 Page 66 of 66 Attachment for A1. 3.1. 2018

Item RowID TIFF RowID Eurostat Difference Item(s) Value

Output crops 25 9,162 113 9,162 0

Output livestock 43 14,843 144 14,501 342 Livestock Meat + GFCF 26 9,634 117 9,377 257 Eurostat excludes poultry GFCF 257 Livestock products 38 5,210 132 5,124 85 TIFF includes cheese, other liquid milk and other milk products 85

Other ag services 44 1,155 152 1,155 0 Inseperable activities 47 1,246 159 1,331 -85 Eurostat includes cheese, other liquid milk and other milk products -85

Output at Market price (no subsidies) 48 26,406 164 26,149 257 Eurostat excludes poultry GFCF 257 Intermediate consumption 80 16,769 168 16,769 0

GVA at market price (no subs) 81 9,637 9,380 257

Subsidies on products 60 47 165 47 0

GVA at basic price (incl subs) 82 9,684 191 9,427 257 Eurostat excludes poultry GFCF 257

Consumption of fixed capital 83 4,284 192 3,040 1,244 Eurostat do not include consumption of livestock capital 1,244 Equipment 84 2,004 193 2,004 0 Buildings 85 1,036 194 1,036 0 Livestock 86 1,244

Net Value Added basic price (GVA - CFC) 92 5,400 197 6,387 -987 Eurostat excludes poultry GFCF and consumption of livestock capital -987

Taxes 93 -95 199 -95 0 Subsidies 94 3,287 200 3,287 0

Factor income (NVA less taxes plus subsidies) 95 8,592 201 9,579 -987 Eurostat excludes poultry GFCF and consumption of livestock capital -987

Employees 96 2,751 198 2,751 0 Rent 97 571 203 571 0 Rent out 98 696 Rent in 99 -124

Interest 100 420 420 0 Interest paid 204 436 Interest received 205 16

Difference: Total income from farming (TIFF) 101 4,850 206 5,837 -987 output poultry GFCF (£257m) -987 Entrepreneurial income (Eurostat) input consumption of livestock capital (-£1244m)

14 March 2019

Summary quality report for Total Income from Farming releases

1. Introduction This report is an overview note that pulls together key qualitative information on the various dimensions of quality as well as providing a summary of methods used to compile the output. It relates to estimates of Total Income from Farming and aims to provide users with information on usability and fitness for purpose of these estimates. Methods and terminology used in the economic accounts for agriculture can be obtained from the following publications: Manual on the Economic Accounts for Agriculture and Forestry EAA/EAF 97 Agriculture in the United Kingdom

2. Summary of quality 2.1 Relevance The degree to which statistics meet current and potential user needs. Economic Accounts for Agriculture (EAA) provide the basis for analysing the economic performance of the agricultural industry and are used by government and the European Commission to make decisions on support for the agricultural industry. The Economic Accounts for Agriculture have a legal basis in the EU regulation (EC) No 138/2004 of the European Parliament and of the Council of 5 December 2003 on the economic accounts for agriculture in the Community (as subsequently amended). They are compiled in accordance with the European System of Accounts 2010 (ESA 2010), adapted to the economic and structural developments in agriculture. Under EU law, the structure of the ESA 2010 is consistent with the worldwide guidelines on national accounting set out in the System of National Accounts 2008 (2008 SNA). The EU regulation does not oblige any Member State to use the EAA methodology in compiling agricultural accounts for its own purposes. The UK, when compiling agricultural accounts, including the calculation of Total Income from Farming, follows the EAA but differs in some respects, principally the inclusion of Gross Fixed Capital Formation of livestock in the value of total livestock production.

Enquiries on this publication to: Helen Mason, Rm 201 Foss House, Kings Pool, 1-2 Peasholme Green, York, YO1 7PX Tel: 0208 026 6256 email: [email protected] enquiries to: Tel: 0345 051 8486. A National Statistics publication. National Statistics are produced to high professional standards. They undergo regular quality assurance reviews to ensure that they meet customer needs. They are produced free from any political interference. For general enquiries about National Statistics, contact the National Statistics Public Enquiry Service: tel. 0845 601 3034 email [email protected]. You can find National Statistics on the internet at www.statistics.gov.uk. Total Income from Farming is income generated by production within the agriculture industry including direct payments and represents business profits and remuneration for work done by owners and other unpaid workers. It is the preferred measure of aggregate income for the agricultural industry in the UK and is designed to show the performance of the whole of the agricultural industry. Three estimates of Total Income from Farming for the UK are published by Defra each year. A summary early forecast estimate is published in December of the reference year (accounting period). A first estimate is published four months after the end of the reference year (end of April) and a second estimate is published eleven months after the end of the reference year (end of November).

2.2 Accuracy The closeness between an estimated result and the (unknown) true value.

There is no simple way of measuring the accuracy of Total Income from Farming – that is, the extent to which the estimate measures the underlying ‘true’ value of Total Income from Farming for a particular period – because it is compiled from multiple data sources. One dimension of measuring accuracy is reliability, which is measured using evidence from analyses of revisions to assess the closeness of early estimates to subsequently estimated values. The following analyses use successive annual estimates of key aggregates and identifies reasons for revisions.

2.2.1 Revisions – general Revisions are broadly defined as any change in value of a statistic previously released. There is a trade-off between accuracy and timeliness. Revisions are inevitable whenever statistics are produced promptly despite the fact that some relevant information is still outstanding. Revisions to Total Income from Farming can only be avoided if either the first publication is delayed until after the final piece of information is received or if information which becomes available after the time of first publication is ignored, even if it suggests a different picture. Revisions are therefore treated as improvements in quality. They may be categorised as:  Revisions to a source. These occur when data becomes available after statistics are compiled. This is particularly relevant to the first estimate of Total Income from Farming, which may have elements based on incomplete data for the calendar year.  More sources. For some parts of the accounts, e.g. for most elements of intermediate consumption, forecasts are made until the actual source becomes available.  New methods. The methods used to compile the accounts are the subject of continuous improvement as new sources become available or new methods for making estimates are developed.  New international standards. The economic accounts for agriculture are compiled in line with international frameworks, standards and definitions. Meeting new international standards will often lead to revisions.

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2.2.2 Revisions to gross output, intermediate consumption and ‘other components’

Chart 1 examines the effect data revisions had on historical data and successive annual estimates of the current price value measure of gross output, intermediate consumption and ‘other components’ released from April 2011 to April 2018. The chart shows that revisions had little impact over the period of interest (2010-17), i.e. from the time 2010 data published in April 2011 to 2017 data published in April 2018. Chart 1: Revisions to gross output, intermediate consumption and ‘other components’, current prices values

Gross output Between April 2011 and April 2018 revisions have occurred owing to:  first estimates being updated with more complete data for the year  methodological changes being made to some components including: o the calculation of the value of potatoes; a data quality check identified certain limitations in the methodology to improve figures for stock feed and source data used for estimating the tonnage of potatoes sold for human consumption [introduced in April 2015 and 2017]. o the calculation of the value of other animals for meat production back to 1985; following a methodology review of all minor items [introduced in April 2015].  estimates of protein crops were introduced to meet new international standards [introduced in April 2014].

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 revisions to the estimates Gross Fixed Capital Formation (GFCF) in Cattle back to 2005; following identification of an error in the “Number of entries into the breeding herds” which is a fundamental part of the overall calculations [introduced in April 2014]. The average (absolute) revision between the first estimate and the estimate published the following year for the period was +0.9%. The revisions ranged between +0.3% (April 2014) and +2.0% (April 2011). Intermediate consumption Between April 2011 and April 2018 revisions have occurred owing to:  estimates for most costs are initially forecasted replaced with actual data the following year.  methodological changes have been made to some components including: o changes to the cost of plant protection products to correct an error in the interpretation of the data [introduced in April 2015]. o changes to the cost of seeds to rectify an error in the data following a review of methodology [introduced in April 2015].  inclusion of a new data source in the estimate to the cost of fertilisers [introduced in April 2014].  revisions to animal feed data to correct errors found when the straight feed data was reviewed [introduced in April 2015].  data source revisions to Financial Intermediation Services Indirectly Measured (FISIM) time series, resulting in relative changes between interest costs and FISIM costs [introduced in April 2015]. The average size of the (absolute) revision between the first estimate and that in the following year between 2010 and 2017 was 0.8%. The revisions ranged between -1.0% (April 2010) and +1.8% (April 2012). ‘Other components’ ‘Other components’ is used here to refer to the aggregated value of ‘consumption of fixed capital’, ‘other taxes on production’, ‘other subsidies on production’, ‘compensation of employees’, ‘rents’ and ‘interest’. It may also be calculated as the value of Gross Value Added at basic prices minus the value of Total Income from Farming. Between April 2011 and April 2018 revisions have occurred owing to:  estimates being initially forecasted and then updated with actual data  methodological changes being made to some components, including: o the calculation of the consumption of capital formation; extension of the period over which the capital is consumed and change in the profile of consumption [introduced in April 2015]. o the calculation of rent data; an improved method of calculating land area [introduced in April 2015 and 2016]. 4

 revisions to estimates of maintenance owing to revisions to a data source [introduced in April 2013].  data source revisions to interest time series, resulting in relative changes between interest and FISIM costs [introduced in April 2015]. The average size of the revision between the first estimate and that in the following year between 2010 and 2017 was +3.3%. The revisions ranged between -2.8% (April 2016) and +10.9% (April 2011). 2.2.4 Revisions to Gross Value Added and Total Income from Farming

‘Gross Value Added’ is derived as the difference between the ‘value of output’ and the ‘value of intermediate consumption’, while ‘Total Income from Farming’ is derived as ‘Gross Value Added’ less ‘consumption of fixed capital’, ‘other taxes on production’, ‘compensation of employees’, ‘rents’ and ‘interest ‘plus ‘other subsidies on production’ (i.e. the ‘other components’ referred to on page 4). As a result, both Gross Value Added and Total Income from Farming are sensitive to small percentage revisions in the values of output and intermediate consumption, and in the case of Total Income from Farming, revisions to the ‘other components’ (see also the sensitivity analysis on page 6). Chart 2 examines the effect data revisions had on successive annual estimates of the current price value measure of Gross Value Added and Total Income from Farming, released from April 2011 to April 2018. Chart 2: Gross Value Added at basic prices and Total Income from Farming, current prices values

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Gross Value Added at basic prices Chart 2 shows that the different versions of the series are consistent however the impact of the aggregated revisions to output and intermediate consumption can be seen. The average (absolute) revision between the first estimate and the estimate published the following year for the period 2010-17 was 1.9%. The revisions ranged between -0.5% (2014), a consequence of a +0.3% revision to output and +0.8% revision to intermediate consumption, and +3.2% (2011), a consequence of a +2.0% revision to output and +1.3% revision to intermediate consumption. Total Income from Farming The cumulative impact of revisions to the many elements that make up Total Income from Farming is shown in Chart 2. The chart shows that the different versions of the series is broadly consistent over the period but, as it is sensitive to small percentage change in the ‘values of output’, ‘intermediate consumption’ and the ‘other components’, revisions can be very pronounced. The average size of the revision between the first estimate and that in the following year between 2010 and 2017 was 3.8%. The revisions ranged between -4.0% (2012) and +10.4% (2016).

2.2.7 Sensitivity analysis of Total Income from Farming The estimate of Total Income from Farming is sensitive to changes in output, intermediate consumption and ‘other components’. 'Other components' refers to the aggregated value of consumption of fixed capital, other taxes on production, other subsidies on production, compensation of employees, rents and interest, which may also be calculated as the difference between the values of Gross Value Added at basic prices and Total Income from Farming. The extent to which Total Income from Farming is dependent on small shifts in the values of output, intermediate consumption and ‘other components’ is illustrated in Table 1 using 2017 values. In 2017 if the value of output was to move by +1.0%, then the value of Total Income from Farming would move by 4.6% while if the value of intermediate consumption was to move by +1.0%, then the value of Total Income from Farming would move by -2.8%. Total Income from Farming is less sensitive to changes in the value of ‘other components’; if this was to move by +1.0% then the value of Total Income from Farming would move by - 0.8%. In practice, revisions are likely to occur to all of these aggregates. Scenario 6 illustrates a situation where output moves by -1.0% and intermediate consumption and ‘other components’ each move by +1%, which leads to a -8.2% revision to Total Income from Farming.

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Table 1: Sensitivity Analysis – Total Income from Farming Baseline Scenario Scenario Scenario Scenario Scenario Scenario (2017) £m 1 2 3 4 5 6 Output 26 340 1.0% 0.0% 0.0% 1.0% 0.0% -1.0% Intermediate 16 040 0.0% 1.0% 0.0% 1.0% 1.0% 1.0% Consumption Gross Value Added 10 300 2.6% -1.6% 0.0% 1.0% -1.6% -4.1% at basic prices

Other 4 557 0.0% 0.0% 1.0% 1.0% 1.0% 1.0% Components 1 Total Income 5 743 4.6% -2.8% -0.8% 1.0% -3.6% -8.2% from Farming 1 The value of 'other components' is the aggregated value of 'consumption of fixed capital', 'other taxes on production', 'other subsidies on production', 'compenstion of employees', 'rents' and 'interest', or the difference between the values of Gross Value Added and Total Income from Farming.

2.2.8 Other analysis Broader measures for examining accuracy include:  analysis of data content available at different stages of the publication process for Total Income from Farming. Approximations of data content available for each stage are presented in table 2 below, for example there is around 90% content data available to produce value of output estimates by April of the following year yet only 30% content data available to produce intermediate consumption estimates.  describing how basic ‘raw’ data are transformed by a series of adjustment to give the statistical estimates that are used to compile the agricultural accounts. An inventory of methods will be published in due course. Table 2: Data content available at different stages of the publication process for Total Income from Farming; approximation as a % of value Stages of the publication process April year n+1 November year+1 April year+2 Output 90% 98% 100% Intermediate 30% 80% 100% consumption Subsidies data 100% 100% 100% Other costs 55% 90% 100% n = reference year

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2.3 Timeliness and punctuality Timeliness refers to the lapse of time between publication and the period to which the data refer. Punctuality refers to the time lag between the actual and planned dates of publication. A first estimate of Total Income from Farming is published four months after the accounting period in April and a second estimate of Total Income from Farming is published nine months after the accounting period in November 2018. A major improvement in timeliness was achieved with the first publication of an early forecast of Total Income from Farming for 2017 in February 2018. These summary statistics were published in the interests of openness and transparency as they were already in the public domain (http://ec.europa.eu/eurostat/data/database) to meet a requirement by the European Commission. Subsequent annual early forecasts will be published in December, a month before the end of the accounting period. Total Income from Farming release dates are pre-announced through a 12-month release calendar available on the statistics announcement page on gov.uk https://www.gov.uk/government/statistics. The specific release date should be confirmed at least four weeks in advance, as outlined in the UK Statistics Authority Code of Practise framework https://www.statisticsauthority.gov.uk/code-of-practice/the- code/trustworthiness/t3-orderly-release/. 2.4 Accessibility and clarity Accessibility is the ease with which users are able to access the data, also reflecting the format(s) in which the data are available and the availability of supporting information. Clarity refers to the quality and sufficiency of the metadata, illustrations and accompanying advice. Total Income from Farming statistics are disseminated via electronic publication. To meet accessibility standards statistics are published in pdf(a) document and ODS dataset form. These may be downloaded from the gov.uk website free of charge at 9.30am on the day of release. Different formats may be requested.

Contact details of the lead analyst for enquiries about the Total income from Farming series are published on releases.

2.5 Comparability The degree to which data can be compared over time and domain. Every effort is made to ensure that the series is comparable over time. A comparable time series is available back to 1973. Where possible, changes to methodology are applied to the whole series to ensure this comparability is maintained. Since international standards such as SNA 2008 and ESA 2010 are used in the production of the agricultural accounts and methods are defined in EU legislation, the figures should be directly comparable with the accounts of other countries and Member States. The revision policy of other countries may differ however and caution should be exercised when comparing historic data.

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2.6 Coherence The degree to which data from different sources or methods, but which refer to the same phenomenon, are similar. Data in the Total Income from Farming releases are broadly consistent with the following Defra output: Farm Business Income Inconsistencies occur because:  Farm Business Income is designed to compare performance across different types of farming while Total Income from Farming assesses the economic situation for the whole of the UK agricultural sector.  Farm Business Income covers the 12 month period March to February while Total Income from Farming covers calendar years.  The Farm Business Survey, which produces estimates of Farm Business Income, has a higher threshold for inclusion than the aggregate agricultural accounts, which produces Total Income from Farming.  Farm Business Income treats stocks as the change in the book value of stocks between the start and end of the accounting year while Total Income from Farming treats stocks as the physical change in stocks valued at average calendar year prices.  The first estimate of Total Income from Farming produced in April is made before results from the Farm Business Survey are available for use in making estimates of inputs and other costs so estimates of Farm Business Income that are published in October following the accounting year will be inconsistent with estimates of Total Income from Farming until these are revised in the following November. 3. Summary of methods Defra produces a summary early forecast and a comprehensive set of annual production and income accounts twice yearly of which the main components are Total Income from Farming estimates. Indicators of economic activity such as output, intermediate consumption, gross value added and net value added, are all integrated within the accounts. The accounts are estimates of an underlying reality using an output or production approach based on statistical surveys, administration data, forecasts and model-based estimates, and are not compiled though ‘accounting’ in the common sense of the word. For the early forecast published in December, forecasts and models are used to estimate components for which survey results or other data are not yet available. Summary statistics are only produced at this stage. Later estimates are based on more complete information. See section 3.1 production stages for more information. For the first estimate published in April, forecasts and models are used to estimate components, in particular intermediate consumption and other costs, for which survey results or other data are not yet available. The key principle that drives estimation of Total Income from Farming in the UK is that the purpose is to analyse the production process and primary income generated by the

9 agricultural industry thus the accounts are based on the industry concept rather than institutional sectors or sub-sectors.

3.1 Production stages The main stages of the production process for Total Income from Farming are outlined here. 3.1.1 Early forecast. This forecast is published one month before the end of the accounting period (i.e. calendar year). The production outputs are largely based on survey results and administration information available up to early October applying the relative change over 12 months to these aggregated data. Most intermediate consumption and other costs use modelling techniques and are derived from price data and estimates of volume changes based on professional advice. A level of estimation is necessary for variables where no market information is available. As a result the data cannot be produced with the same statistical reliability as the later first and second estimates detailed below. Only summary high level statistics are published at this stage. First estimate. This estimate is published four months after the end of the accounting period. It is based on 65 per cent ‘actual’ data by value from survey results and administration data, and on model-based estimates largely for output or production data, with most intermediate consumption and other costs being derived from price data, estimates of volume changes based on professional advice, and a variety of modelling techniques. A full dataset for the production and income account with revisions to previous years is published (see also ‘third estimate’). Other analyses, such as volume indices and national breakdowns are published in the following month in the statistical compendium, ‘Agriculture in the United Kingdom’.

3.1.2 Second estimate. This estimate is published eleven months after the end of the reference year. The estimate of Total Income from Farming is improved by basing most estimates of intermediate consumption and other costs on the results of the Farm Business Survey results for England that are published in October. At this point, Total Income from Farming is based on 90 per cent of actual data by value. A revised dataset for the aggregate agricultural accounts is published.

3.1.3 Third estimate. This estimate is published in April of year n + 2 following the reference year at the same time as the first estimate for the next reference year (see ‘First estimate’ above). In this release, Defra publishes a full dataset incorporating estimates made by the devolved administrations in compiling agricultural accounts for Scotland, Wales and Northern Ireland. At this point, the estimate of Total Income from Farming is based on 100% ‘actual’ data by value.

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Methodological improvements may also be made and, where possible, applied to the whole series to ensure comparability of the time series is maintained.

3.2 Deflation Aggregate agricultural accounts are produced at current prices and give the value of Total Income from Farming at specific points in time. Growth in Total Income from Farming at current prices reflects the effect of inflation as well as real growth in Total Income from Farming. Total Income from Farming is ordinarily expressed in real terms, i.e. excluding inflationary issues. It is deflated using the Gross Domestic Product deflator. A principal change since the quality report was published in July 2013 is the replacement of Retail Price Index (RPI) by the Gross Domestic Product (GDP) deflator to convert current prices into real term prices. This followed the Retail Price Index (RPI) losing its ‘National Statistics’ accreditation. At the time various options were considered and consultation with the devolved administration and the Office of National Statistics took place before the GDP deflator was selected.

4. Sources of data and methods of calculation for compiling economic accounts for agriculture One of the main characteristics of economic accounts for agriculture is the adoption of the ‘quantity x price' formula when measuring the output of the large majority of products. The valuation of crop output is normally based on resources, i.e. the estimate of quantities produced (harvested) based on estimates of areas under crops and yields, or on uses, i.e. on estimates of purchases by the user branches of agricultural products, exports net of imports, to which should be added certain quantities used for intermediate consumption by the agricultural industry, changes in producer stocks and use for own account (much of which is own final consumption). The latter approach can be highly appropriate in cases where the buyers of these agricultural products are readily identifiable and the four other components of uses are limited (for example, products requiring preliminary processing before they can be used, such as sugar beet, tobacco, etc.). Statistics on slaughtering, exports/imports of live animals and the size of herds are the main sources of data for measuring the output of animals. The output of animal products (mainly milk) is generally estimated using sales to user branches (dairies, packers) because of the specific uses to which they are put. Most intermediate goods (seeds and planting stock, fertilisers, pesticides, etc.) are largely based on representative samples of farm business accounts with averages being raised by information from farm structure surveys.

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