Value-added indicator fiches (common result and impact indicators) Guido Castellano Agri L 4 - Evaluation of measures applicable to agriculture; studies Evaluation Expert Committee meeting, 23 June 2009

Background Requests for clarification on the measurement of the value added indicators included in the CMEF have been submitted by the Member States to the Helpdesk during the last months A working group has been set up in DG AGRI, supported by the Helpdesk, to address these questions

Concerned indicators result indicator # 2, “increase in gross value added in supported holdings/businesses”, measured by gross value added of supported agricultural, food or forestry holdings; result indicator # 7, “increase in non-agricultural gross value added in supported businesses”, measured by gross value added of supported businesses; impact indicator # 1, “economic growth”, measured by the net additional value added (PPS); impact indicator # 3, “labour productivity”, measured by gross value added per full time equivalent.

Main issues raised by the Member States result indicators #2 and #7 do not reflect the gross value added concept but rather the measurement of profit; result indicators #2 and #7 allow only for a limited use of FADN data; methodological problems for the measurement of result indicators #2 and #7 (e.g. how to determine the labour costs to be deducted); terms such as turnover, sales and output are used interchangeably in the result indicators #2 and #7 and impact indicator #1 fiches (problems of interpretation); the measurement of impact indicator #1 (net additional value added) can lead to possible misinterpretations (i.e. gross/net value added versus gross/net effects of the policy intervention)

Approach followed for tackling these issues Ensuring the overall consistency of the CMEF Simplification Supporting the possibility of comparing and aggregating data at the EU level Enhancing possibilities for the Member States to make use of FADN information as data source for the quantification of these indicators

Amendments to the indicator fiches definitions of result indicators #2 and #7 brought in line with the measurement of gross value added definitions of result indicators #2 and #7 brought in line with the FADN methodology Minor revisions of the definition of impact indicators #1 and # 3 (consistency in terminology)

New definitions Result indicator #2:

New definitions Result indicator #7:

New definitions Impact indicator #1:

New definitions Impact indicator #3:

Timing The proposed modifications in the measurement of the value added result indicators would apply from the year 2010 onwards. Detailed explanations concerning the above-mentioned modifications of the indicator fiches will be made available through the web page of the Helpdesk.