2009/12/02 Valuation of forage crops Valuation of forage crops (doc ASA/AAP/116)

2009/12/02 Valuation of forage crops Figures on forage

2009/12/02 Valuation of forage crops Background Analyses indicate low comparability of the values for forage production – and consequently – of intermediate consumption of feed. The problem were already observed some years ago, but have since been “pending” because of other priorities. The introduction of Standard Output for farm classification is a good opportunity to raise the issue again, as new attempts have been taken to calculate output of forage.

2009/12/02 Valuation of forage crops Guidance by the EAA-regulation and Manual Sale of forage has to be valuated – as sale of other kind of goods. …(only) crop products used in animal feed (marketable or not) are to be recorded in the agricultural output of the industry (para 2.056) Products used for intermediate consumption should be valuated at the purchase prices for similar goods and services applicable at the time of the insertion in the production process (para 2.110) Challenge: to measure the output volume and to find a price.

2009/12/02 Valuation of forage crops Standard output New parameters for classification of farm – related to Farm Structure Survey and FADN. (Annex III) An annual output value per unit of all agricultural activities has to be calculated – since 2003 These activities include 8 types of forage plants The output of an agricultural characteristic means the monetary value of gross agricultural production at farm-gate price – similar to EAA-principles A handbook has been developed as guidance for the Member States – including examples on forage (Annex IV) Prices on hay is in the example proposed as a reference for valuation (annex II)

2009/12/02 Valuation of forage crops Proposed actions Study the work done on forage in the Standard Output context. Summit information to Eurostat on the EAA-valuation on forage by crop categori (production, prices and value per hectare) - end of February (Eurostat will submit a template) Analyses by Eurostat – until the end of April Feedback from MS by the end of June about plans to eventually revise the valuation Include the revised data in the final data in September

2009/12/02 Valuation of forage crops Questions to the working party Does the delegates agree about the need to improve the comparibility of values for forage? Can the proposal to benefit from the work done in the Standard Output context be supported? Can the proposed actions and schedule be agreed upon?