Deliverable Factsheet Date: 15/11/2010 Deliverable 7.2 Working Package 7 Partner responsible UWA (Aberystwyth University) Other partners participating UNWE, LEI Nature Economic analysis Dissemination level Project report publishable as review paper Delivery date according to DoW Month 22 Actual delivery date Month 30 Finalization date Month -- Relevant Task(s): 7.2 & 7.3 Brief description of the deliverable The analysis includes the following aspects: A preliminary analysis of FADN and national data, including accessibility, availability of variables and access to the data. Methodology for the classification of low-input conventional holdings. Analysis of FADN whole farm data to highlight crop protection (CP) and other input usage, output and overall profitability of organic, conventional and low-input classified holdings at all-EU, EU region, country and FADN farm type level. Analysis of national farm survey data to highlight crop protection (CP) and other input usage, output and overall profitability of organic, conventional and low-input classified holdings for various crop enterprises. Modelling the profitability of typical farm types and enterprises at varying levels of crop protection usage and potential levy/tax systems employed for the focus group participating countries. A summary of the financial and crop protection usage position of EU farms and the likely effects of tax/levy systems. Followed methodology / framework applied The study is predominantly based on farm financial data from the Farm Accountancy Data Network and national data from UK and NED, through peer reviewed journal articles, books and published reports and in some cases, unpublished reports and personal communications have also been used to complement published material. 1 Target group(s) TEAMPEST partners and academic community Key findings / results The evidence presented in this report highlights the variability in Crop Protection (CP) usage both between farm types and crop enterprises, but also the variation within these groups. The highest CP product usage per hectare was by Horticulture, Orchard, wine and other Permanent Crop farm types. Within the limited crop enterprise data available; Potatoes, Onions and Sugar beet were identified as requiring the highest CP product inputs. Splitting the data into low, medium and high CP cost and organic groups helped to identify variance in profitability and other factors between the different groups. At whole farm level, conventional high CP use holdings were the most profitable and the largest economically, with variable performance on organic holdings. At crop enterprise level, results were more variable with organic enterprises achieving the highest gross margins, but within conventional farming high CP use systems were generally (but not exclusively) the most profitable. A range of flat rate crop protection cost increases, simulating a tax or levy on crop protection inputs, was applied to both whole farm and crop enterprise data to identify the effects this may have on whole farm profitability and enterprise GM. Although the tax/levy increased CP costs proportionally more for the highest CP users, the effect on profitability was often proportionally lower due to CP costs being a small proportion of total costs (e.g. at 25% CP tax/levy, Cereal farm type profitability would fall by 10%, but Horticulture would only fall by 2%). At enterprise level, cereal enterprise gross margins reduced more than higher CP intensity crops such as potatoes or sugar beet. The imposition of the tax/levy on crop protection inputs resulted in a reduced difference in profitability between low, medium, high CP input and organic groups, but didn’t alter the overall position that higher input systems resulted in higher profitability per hectare. Therefore it can be concluded that a flat rate tax/levy would probably not achieve a potentially desirable shift of farmers from high input to lower input or organic systems, due to the lower profitability of low input systems and a lack of new organic markets. Interactions with other WPs deliverables / joint outputs WP no. Relevant tasks Partner(s) involved Context of interaction 3 3.1, 3.2 & 3.3 SLU Taxation/levy methods/rates 5 5.2 and 5.3 WU/UCY Taxation/levy methods/rates 6 6.1, 6.2 and 6.3 UCY Taxation/levy methods/rates 8 8.1 UNWE Taxation/levy methods/rates 2 Project no. 212120 Project acronym: TEAMPEST Project title: Theoretical Developments and Empirical Measurement of the External Costs of Pesticides Collaborative Project SEVENTH FRAMEWORK PROGRAMME THEME 2 Food, Agriculture and Fisheries, and Biotechnology Title of Deliverable: D7.2 Results of FADN Data Analysis and Typical Farm Models from the Participating Countries. Due date of delivery: March 2010 Actual submission date: November 2010 Start date of project: 1st May 2008 Duration: 36 months Lead contractor for this deliverable: Aberystwyth University Version: Draft Confidentiality status: Confidential 3 WP 7 - Results of FADN Data Analysis and Typical Farm Models from the Participating Countries Tasks 7.2, 7.3, and associated Deliverable 7.2 – Results of FADN Data Analysis and Typical Farm Models from the Participating Countries Authors: Moakes, S. and P. Nicholas* Institute of Biological, Environmental and Rural Sciences, Aberystwyth University, Gogerddan Campus, Aberystwyth SY23 3EB *Communicating author 4 Executive Summary TEAMPEST project Tasks 7.2 and 7.3 were to determine the level of Crop Protection (CP) product usage at an EU and national level and to examine the effects of a potential CP tax/levy on farm profitability. This data would then be used in farmer focus groups in Task 7.4, to illustrate the possible effects of a CP tax/levy and their potential for encouraging movement towards lower crop protection, particularly pesticide and input systems. CP product usage was assessed through the analysis of FADN data for 151,313 farm holdings collected between 2004 and 2007, and national farm accounts data for UK (2005-08) and Holland (2004-07). CP usage is defined by FADN (2007) as “Plant protection products, traps, baits, bird scarers, anti-hail shells, frost protection etc. (excluding those used for forests).” and were identified from farm expenditure and calculated per hectare by dividing by the farm’s utilizable agricultural area (UAA). Whole farm analysis of FADN data To ensure the results reflected the true nature of EU agriculture, the data was proportionally weighted, which maintained the correct statistical error whilst allowing for the correct relative representation of individual farm data within the EU. The results were assessed as a whole dataset but also as sub-groups by country, region, and farm type and by the intensity of CP usage compared to the average for that farm type. Farm CP usage intensity differentiation was achieved through the use of quartiles (specific to farm type) to classify holdings into low, medium and high CP cost groups (<Q1=low, Q1 to Q3=med, >Q3=high). Average CP costs for all EU farms were €246/ ha, but the median was only €79/ha and a standard deviation of €1161/ha, indicating a large variability in the data and that some very high CP cost holdings were increasing the mean value. Differentiating into conventional and organic farm types highlighted the high overall CP costs of conventional farms at €249/ha while organic holdings were at €93/ha. Organic holdings are also severely limited in the range of chemicals approved for use by European organic certification standards, so costs were not directly comparable. Table 1 below, highlights the average CP costs of the eight farm types studied, split by CP cost level into low, med, high and organic groups. Table 1 Average EU CP costs for farm type, split by CP cost level (€/ha) CP Level Farm type Low (LCP) mean Cereals, oilseeds & pulses Other Fieldcrops Horticulture Wine Orchards Olives Other permanent crops Mixed cropping 6 16 60 28 40 9 14 6 sd 5 12 47 21 29 8 11 6 Med (MCP) n 6907 6426 4030 2386 3174 1710 1864 3282 mean 48 92 689 202 255 61 98 53 sd 20 36 440 93 112 27 45 27 High (HCP) n mean 18347 17387 8617 8203 6436 3309 3492 8728 142 345 5588 778 843 219 552 328 sd 80 2 7774 479 414 100 1006 335 Org (ORG) n 10664 2542 4902 4740 4692 894 2972 5345 mean 10 25 494 179 242 38 85 25 sd 26 2 1140 181 272 47 134 66 n 887 856 296 336 553 420 231 642 Analysis of Variance (ANOVA) tests indicated that CP costs for all eight farm types were significantly different at the 0.05 level. The profitability of most farm types was also significantly different though Fieldcrops, Permanent crop and Mixed farms were similar, as were Wine, Orchard and Olive types with the Other Permanent Crops farm type. The FADN data was also assessed for correlations between CP and other variables, such as fertiliser costs and profitability, which were all found to be significant at the 0.01 level. Fertiliser was found to be the most closely correlated, particularly for Fieldcrops, Horticulture and Mixed farm types, which indicates that any change to CP costs would probably result in changes to fertiliser usage as well. Profitability was strongly correlated for Wine and Horticulture types and wheat yield strongly correlated for Cereal and Olive farm types. Overall, higher CP costs were slightly negatively correlated to physical farm size, which points 5 towards smaller farms spending more on CP products, while economic size and labour input were weakly positively correlated with greater CP costs. National crop enterprise data analysis Crop enterprise data was also utilised from UK and NED to assess CP usage by individual crop enterprises. This data was also classified into differing CP cost groups, to assess variability in gross margin at different levels of CP costs, as shown in Table 2 below. Potatoes, particularly seed potatoes, onions and sugar beet have the highest CP costs for those crops investigated. Table 2 Average CP costs for enterprise type, split by CP cost level (€/ha) CP Input Level Enterprise Winter Wheat UK Wheat NED Potatoes (maincrop) UK Potatoes (maincrop) Potatoes (seed) NED NED Sugar Beet UK Sugar Beet NED Spring Barley UK Beans UK Winter Oilseed UK Onions NED Low (LCP) mean sd 100 31 77 45 273 123 340 85 376 102 102 26 134 37 23 16 45 24 97 22 283 116 Med (MCP) mean sd 168 19 174 24 552 77 555 67 629 85 182 23 235 34 78 19 103 19 156 21 554 95 High (HCP) mean sd 247 44 276 65 971 304 792 112 1004 206 265 26 389 101 157 48 179 38 241 47 883 164 Org (ORG) mean sd 3 16 2 12 56 70 12 72 5 21 49 107 1 5 1 4 17 41 n 646 729 61 416 388 66 890 326 183 220 320 Effect of applying a CP taxation/levy to farm data In Task 7.3, various tax/levy scenarios were applied to the datasets described above. After consultation with other WP, a tax/levy scenario document was received that outlined various tax/levy scenarios to be assessed within the TEAMPEST project. The only variable available for analysis within Task 7.2/7.3 was CP expenditure; therefore a tax/levy could only be applied on a flat-rate basis to conventional CP expenditure. The tax/levy rates assessed were 10%, 15%, 20% and 25%, applied to the CP costs of individual farms. Due to the nature of the data Task 7.3 was unable to differentiate by a tax or levy system, but Task 7.4 will build on the results of Task 7.3 to examine both the direct financial effects of a CP tax/levy, but also illicit how farmers perceive the application of a tax that would return funds to central government, or a CPindustry enforced levy system that could be used to encourage safer use of CP products for farmers and society as a whole. Applying a CP tax/levy to whole farm data resulted in varying levels of profitability reduction, as shown in Table 3 below. Cereal and Orchard farm types were the worst affected, indicating their relatively high CP costs in relation to their profitability. Although in monetary terms Horticulture was the worst affected, the percentage reduction was smaller than many other farm types, a result of the high value of output compared to CP costs. The analyses of the effects of a CP tax/levy at enterprise level are presented in Table 4 below, and indicate that some enterprise gross margins would fall by up to 10%. Reflecting the whole farm results above, cereal and pulse crops appeared to be the hardest hit, whilst crops that used higher levels of CP products such as potatoes and sugar beet would see a smaller percentage effect on gross margin from a tax/levy. This may have policy implications as a tax/levy may not achieve a reduction in CP usage in the highest CP intensity systems. 6 Table 3 Percentage change in profitability at 15 or 25% tax rates of EU farms by farm type and CP cost level (Whole farm data, FADN) Farm type COP FIELD HORT WINE ORCH OLIVE PERM MIXED CP Tax/Levy rate 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% % change in profit (FNVA) Low CP -0.2% -0.4% -0.3% -0.5% 0.0% -0.1% -0.2% -0.4% -0.2% -0.4% -0.1% -0.2% -0.1% -0.1% -0.1% -0.2% Med CP -1.4% -2.4% -1.1% -1.8% -0.4% -0.7% -1.1% -1.9% -0.9% -1.5% -0.4% -0.7% -0.6% -0.9% -0.5% -0.9% High CP -3.0% -5.0% -1.2% -2.0% -0.9% -1.6% -0.9% -1.5% -2.2% -3.7% -1.3% -2.2% -0.6% -1.1% -1.2% -2.0% ORG 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Table 4 Percentage change in profitability at 15% or 25% tax rates, split by farm type and CP cost level (Enterprise data, UK & NED) Crop type Wheat Country UK NED Potatoes (maincrop) UK NED Sugar Beet NED Beans UK Winter OSR UK Onions NED CP Tax/Levy rate Low CP 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% 15% 25% -2% -3% -2% -3% -1% -1% -1% -2% -1% -1% -2% -3% -1% -2% -2% -3% % change in gross margin per ha Med CP -3% -5% -3% -5% -2% -4% -2% -4% -1% -2% -4% -7% -2% -4% -2% -4% High CP -5% -8% -6% -9% -4% -6% -4% -6% -3% -4% -6% -10% -4% -6% -5% -8% ORG 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% Conclusions and policy implications Task 7.2 highlighted horticulture and permanent crop farm types as the most intense CP users, though there was a large difference in conventional farm CP usage within these farm types. This indicates that lower input management techniques are possible for these farm types and could be adopted, however, profitability was also generally lower for low CP intensity systems (e.g. 44% lower for Cereal, 87% lower for Wine types), which would inhibit its uptake. 7 An analysis of crop enterprise data from UK and NED indicated that the most CP intensive crops were potatoes, onions and sugar beet, but that the highest crop gross margins were achieved by organic farms and not necessarily by the high CP input systems. Task 7.2 examined the effect of imposing a tax/levy to the data, with Cereal and Orchard farm types the most severely affected, whilst the high CP intensity Horticulture farm type profitability fell by just 2%. This reflects that relative to output, CP costs are higher for Cereal and Orchard farms, but a lesser percentage of total costs on Horticulture holdings. The imposition of a flat rate tax/levy would have a variable effect on the profitability of farms and crop enterprises and may not reduce usage where it is intended. Due to the larger percentage effect on Cereal farms, a tax/levy may reduce CP usage on high input Cereal farms, but not reduce CP usage to a large extent within Horticulture holdings due to the smaller percentage effect. The data analysis also identified that some organic farm types and enterprises performed well financially, but the organic market is limited in size and is not suitable for all farms, so only a small proportion of farms could move in this direction. A move to lower input systems, although desirable to reduce CP use would appear to result in lower profitability for the farmer, compared to higher CP intensity systems. Therefore, from this financial analysis it can be concluded that a CP tax/levy system would need to be a “targeted” mechanism to ensure a reduction in usage on the most CP intense holdings, and that a tax/levy is unlikely to result in the wider adoption of low input or organic techniques due to poorer financial performance and a lack of new markets respectively. However, Task 7.1 identified that financial drivers are not the only reasons for using CP products, and it is hoped that the farmer focus groups within Task 7.4 will illicit other motivations for the use of CP products and determine how a tax or levy could be used to enable more effective use of CP products. 8 Table of contents Executive Summary................................................................................................................... 5 Effect of applying a CP taxation/levy to farm data ................................................................................... 6 Conclusions and policy implications ........................................................................................................ 7 1 Introduction..................................................................................................................... 15 2 Economic analysis of FADN data .................................................................................. 16 2.1 A preliminary analysis of FADN and national data, including accessibility and availability of parameters ................................................................................................................................................... 16 2.1.1 Whole Farm Data..................................................................................................................... 16 2.1.2 Cropping Enterprise Data ........................................................................................................ 16 2.1.3 Conventional and organic data ................................................................................................ 17 2.1.4 Weighting of data .................................................................................................................... 17 2.1.5 ANOVA methodology ............................................................................................................. 17 2.1.6 Methodology for the classification of low-input conventional holdings ................................. 17 2.2 Analysis of FADN whole farm data............................................................................................... 19 2.2.1 Crop Protection usage .............................................................................................................. 19 2.2.2 ANOVA analysis of CP costs and profitability by farm type.................................................. 22 2.2.3 Correlations of CP costs and other factors by farm type ......................................................... 23 2.2.4 Cereals, Oilseeds and Pulses (COP) ........................................................................................ 23 2.2.5 Other fieldcrops (FIELD) ........................................................................................................ 28 2.2.6 Horticulture (HORT) ............................................................................................................... 31 2.2.7 Wine (WINE) .......................................................................................................................... 35 2.2.8 Orchards (ORCH) .................................................................................................................... 38 2.2.9 Olives (OLIVE) ....................................................................................................................... 42 2.2.10 Other Permanent Crops (PERM) ............................................................................................. 43 2.2.11 Mixed Cropping (MIXED) ...................................................................................................... 46 2.2.12 Whole farm data summary ...................................................................................................... 50 2.3 Analysis of national farm survey data for UK and Netherlands .................................................... 51 2.3.1 Winter Wheat (UK) ................................................................................................................. 51 2.3.2 Spring Barley (UK) ................................................................................................................. 52 2.3.3 Beans (UK) .............................................................................................................................. 52 2.3.4 Potatoes – Maincrop (UK) ....................................................................................................... 53 2.3.5 Sugar Beet (UK) ...................................................................................................................... 54 2.3.6 Winter Oilseed Rape (UK) ...................................................................................................... 55 2.3.7 Potatoes - Maincrop (NED) ..................................................................................................... 55 2.3.8 Potatoes - Seed (NED)............................................................................................................. 56 2.3.9 Sugar Beet (NED) .................................................................................................................... 57 9 2.3.10 Onions (NED) .......................................................................................................................... 57 2.3.11 Winter Wheat (NED) ............................................................................................................... 58 2.3.12 Crop enterprise data summary ................................................................................................. 59 2.4 Effect of applying CP taxation/levy ............................................................................................... 60 2.4.1 Effect of applying CP taxation/levy to whole farm data ......................................................... 60 2.4.2 Effect of applying CP taxation/levy to national crop enterprise data ...................................... 62 2.4.3 Summary of the effects of a CP tax/levy ................................................................................. 70 3 Conclusions and Policy Recommendations .................................................................... 71 4 Relevance to other work packages in TEAMPEST ........................................................ 73 5 References....................................................................................................................... 74 6 Appendix......................................................................................................................... 75 6.1 Appendix 1: FADN farm typologies .............................................................................................. 75 6.2 Appendix 2: FADN requested variable list .................................................................................... 76 6.3 Appendix 3: UN EU region classification...................................................................................... 79 6.4 Appendix 4: Additional data tables ................................................................................................ 81 10 List of tables and figures Figure 1 CP costs across EU regions (FADN 2004-2007) .............................................................................. 20 Table 1 Average EU CP costs for farm type, split by CP cost level (€/ha) ....................................................... 5 Table 2 Average CP costs for enterprise type, split by CP cost level (€/ha) ..................................................... 6 Table 3 Percentage change in profitability at 15 or 25% tax rates of EU farms by farm type and CP cost level (Whole farm data, FADN) ................................................................................................................................. 7 Table 4 Percentage change in profitability at 15% or 25% tax rates, split by farm type and CP cost level (Enterprise data, UK & NED) ........................................................................................................................... 7 Table 5 Descriptive statistics for CP costs (€/ha) (2004-2007, TEAMPEST TF14 farm types only) ............. 18 Table 6 Quartile statistics for conventional farm CP costs (€/ha) (2004-2007) .............................................. 18 Table 7 CP/ha for General TF farm types (€/ha, un-weighted FADN EU27, 2004-2007).............................. 19 Table 8 CP/ha for selected FADN TF14 farm types (€/ha, FADN 2004-2007) .............................................. 19 Table 9 Mean cp/ha by EU region (2004-2007, TEAMPEST TF14 farm types only) .................................... 20 Table 10 Mean cp/ha by country (2004-2007, TEAMPEST TF14 farm types only) ...................................... 21 Table 11 Mean cp/ha by farm type and CP input level (2004-2007) .............................................................. 21 Table 12 Mean fnva/ha by farm type and CP input level (2004-2007) ........................................................... 22 Table 13 CP usage ANOVA analysis at farm type level ................................................................................. 22 Table 14 FNVA ANOVA analysis at farm type level ..................................................................................... 23 Table 15 Correlations of CP/ha with other variables by farm type ................................................................. 23 Table 16 COP crop inputs (€ per hectare) ....................................................................................................... 24 Table 17 COP profitability and wheat yield (€/ha and t/ha) ............................................................................ 24 Table 18 COP area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ............................... 25 Table 19 COP ANOVA analysis of inputs, profitability and fixed factors at different CP input levels ......... 27 Table 20 COP ANOVA analysis of differences in CP input and profitability at different CP input levels across EU regions ............................................................................................................................................ 27 Table 21 COP correlations of CP/ha with other variables in EU regions........................................................ 28 Table 22 FIELD crop inputs (€ per hectare).................................................................................................... 28 Table 23 FIELD profitability and wheat yield (€/ha and t/ha) ........................................................................ 29 Table 24 FIELD area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ............................ 29 Table 25 FIELD ANOVA analysis of inputs, profitability and fixed factors at different CP input levels ...... 30 Table 26 FIELD ANOVA analysis of differences in CP input and profitability at different CP input levels across EU regions ............................................................................................................................................ 30 Table 27 FIELD correlations of CP/ha with other variables in EU regions .................................................... 31 Table 28 HORT crop inputs (€ per hectare) .................................................................................................... 31 Table 29 HORT profitability and wheat yield (€/ha and t/ha)......................................................................... 32 Table 30 HORT area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ............................ 33 Table 31 HORT ANOVA analysis of inputs, profitability and fixed factors at different CP input levels ...... 33 11 Table 32 HORT ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions .................................................................................................................................. 35 Table 33 HORT correlations of CP/ha with other variables in EU regions .................................................... 35 Table 34 WINE crop inputs (€ per hectare)..................................................................................................... 36 Table 35 WINE profitability and wheat yield (€/ha and t/ha) ......................................................................... 36 Table 36 WINE area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ............................. 37 Table 37 WINE ANOVA analysis of inputs, profitability and fixed factors at different CP input levels....... 37 Table 38 WINE ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions .................................................................................................................................. 38 Table 39 WINE correlations of CP/ha with other variables in EU regions ..................................................... 38 Table 40 ORCH crop inputs (€ per hectare) .................................................................................................... 39 Table 41 ORCH profitability and wheat yield (€/ha and t/ha) ........................................................................ 39 Table 42 ORCH area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ............................ 40 Table 43 ORCH ANOVA analysis of inputs, profitability and fixed factors at different CP input levels ...... 40 Table 44 ORCH ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions .................................................................................................................................. 41 Table 45 ORCH correlations of CP/ha with other variables in EU regions .................................................... 41 Table 46 OLIVE crop inputs (€ per hectare) ................................................................................................... 42 Table 47 OLIVE profitability and wheat yield (€/ha and t/ha) ....................................................................... 42 Table 48 OLIVE area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ........................... 42 Table 49 OLIVE ANOVA analysis of inputs, profitability and fixed factors at different CP input levels ..... 43 Table 50 PERM crop inputs (€ per hectare) .................................................................................................... 43 Table 51 PERM profitability and wheat yield (€/ha and t/ha)......................................................................... 44 Table 52 PERM area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) ............................ 44 Table 53 PERM ANOVA analysis of inputs, profitability and fixed factors at different CP input levels ...... 45 Table 54 PERM ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions .................................................................................................................................. 46 Table 55 PERM correlations of CP/ha with other variables in EU regions .................................................... 46 Table 56 MIXED crop inputs (€ per hectare) .................................................................................................. 47 Table 57 MIXED profitability and wheat yield (€/ha and t/ha) ...................................................................... 47 Table 58 MIXED area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) .......................... 48 Table 59 MIXED ANOVA analysis of inputs, profitability and fixed factors at different CP input levels .... 48 Table 60 MIXED ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions .................................................................................................................................. 49 Table 61 MIXED correlations of CP/ha with other variables in EU regions .................................................. 49 Table 62 UK Winter Wheat enterprise analysis at varying CP Level ............................................................. 51 Table 63 UK Winter Wheat ANOVA analysis at varying CP Level ............................................................... 51 Table 64 UK Spring Barley enterprise analysis at varying CP Level ............................................................. 52 Table 65 UK Spring Barley ANOVA analysis at varying CP Level ............................................................... 52 12 Table 66 UK Beans enterprise analysis at varying CP Level .......................................................................... 52 Table 67 UK Beans ANOVA analysis at varying CP Level ........................................................................... 53 Table 68 UK Potatoes enterprise analysis at varying CP Level ...................................................................... 53 Table 69 UK Potatoes ANOVA analysis at varying CP Level ....................................................................... 54 Table 70 UK Sugar Beet enterprise analysis at varying CP Level .................................................................. 54 Table 71 UK Sugar Beet ANOVA analysis at varying CP Level ................................................................... 54 Table 72 UK Winter Oilseed Rape enterprise analysis at varying CP Level .................................................. 55 Table 73 UK Winter Oilseed Rape ANOVA analysis at varying CP Level .................................................... 55 Table 74 NED Potatoes (Maincrop) enterprise analysis at varying CP Level................................................. 56 Table 75 NED Potatoes (Maincrop) ANOVA analysis at varying CP Level .................................................. 56 Table 76 NED Potatoes (seed) enterprise analysis at varying CP Level ......................................................... 56 Table 77 NED Potatoes (seed) ANOVA analysis at varying CP Level .......................................................... 57 Table 78 NED Sugar Beet enterprise analysis at varying CP Level ................................................................ 57 Table 79 NED Sugar Beet ANOVA analysis at varying CP Level ................................................................. 57 Table 80 NED Onion enterprise analysis at varying CP Level ....................................................................... 58 Table 81 NED Onions ANOVA analysis at varying CP Level ....................................................................... 58 Table 82 NED Winter Wheat enterprise analysis at varying CP Level ........................................................... 58 Table 83 NED Winter Wheat ANOVA analysis at varying CP Level ............................................................ 59 Table 84 COP Effects of taxation on CP and profitability (FNVA) by CP cost group ................................... 60 Table 85 FIELD Effects of taxation on CP and profitability (FNVA) by CP cost group ............................... 60 Table 86 HORT Effects of taxation on CP and profitability (FNVA) by CP cost group ................................ 60 Table 87 WINE Effects of taxation on CP and profitability (FNVA) by CP cost group ................................ 61 Table 88 ORCH Effects of taxation on CP and profitability (FNVA) by CP cost group ................................ 61 Table 89 OLIVE Effects of taxation on CP and profitability (FNVA) by CP cost group ............................... 61 Table 90 PERM Effects of taxation on CP and profitability (FNVA) by CP cost group ................................ 62 Table 91 MIXED Effects of taxation on CP and profitability (FNVA) by CP cost group .............................. 62 Table 92 UKI average enterprise GM at 0% CP tax and 25% CP tax rates, at varying CP Levels ................. 63 Table 93 UKI Winter Wheat GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) 64 Table 94 UKI Spring Barley GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) 65 Table 95 UKI Beans GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) ............ 65 Table 96 UKI Potatoes GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels)......... 65 Table 97 UKI Sugar Beet GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) .... 66 Table 98 UKI Winter Oilseed Rape GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) ............................................................................................................................................................. 66 Table 99 NED average enterprise GM at 0% CP tax and 25% CP tax rates at varying CP Levels ................ 68 Table 100 NED Potatoes (maincrop) GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) ............................................................................................................................................................. 68 13 Table 101 NED Potatoes (seed) GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) ......................................................................................................................................................................... 68 Table 102 NED Sugar Beet GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) 69 Table 103 NED Onions GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) ...... 69 Table 104 NED Wheat GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) ....... 70 Table 105 FADN - General TF farm typologies ............................................................................................. 75 Table 106 FADN – TF14 farm typologies ...................................................................................................... 75 Table 107 Mean cp/ha by country for each year 2004-2007, (TEAMPEST TF14 farm types only) .............. 81 14 1 Introduction This report has been prepared to fulfil Tasks 7.2 and 7.3 of Work Package 7 of the TEAMPEST project. Task 7.2 aimed to analyse full farm data sets of Farm Income Data (FADN) for low-pesticide input and conventional farms with arable, horticulture and permanent crop enterprise, with more detailed assessments carried out in UK, Bulgaria and the Netherlands. Only organic holdings could be identified specifically in the FADN data but expenditure on pesticides could be used as a proxy to identify other low-pesticide input systems. Task 7.2 led onto 7.3, modelling scenarios of different relative profitability for a number of typical farm types (of varying arable, horticulture and permanent crop enterprise mixes) in UK, Bulgaria and the Netherlands , with the identification of typical farms. The process used to address the aims outlined above included: A preliminary analysis of FADN and national data, including accessibility, availability of parameters and application for access to data. Methodology for the classification of low-input conventional holdings. Analysis of FADN whole farm data to highlight crop protection (CP) and other input usage, output and overall profitability of organic, conventional and low-input classified holdings at all-EU, EU region, country and FADN farm type level. Analysis of national farm survey data to highlight crop protection (CP) and other input usage, output and overall profitability of organic, conventional and low-input classified holdings for various crop enterprises. Modelling the profitability of typical farm types and enterprises at varying levels of crop protection usage and potential levy/tax systems employed for the focus group participating countries UK, BG and NED. A summary of the financial and crop protection usage position of EU farms and the likely effects of tax/levy systems. This study is predominantly based on the analysis of FADN and national farm economic data, but includes reference to peer reviewed journal articles, books and published reports. The study builds upon Task 7.1 that hypothesised that economic viability is a key driver to the uptake, or not, of a farming system or practice, and investigated the role other factors might play in driving farmer decision making. Tasks 7.2 and 7.3 aim to provide an economic analysis and tools to highlight the possible financial advantages/disadvantages to producers of reducing pesticide usage by increasing the uptake of organic and other low pesticide input farming systems. Task 7.3 specifically attempts to analyse the financial impacts of the application of various tax/levy scenarios on typical farm types. 15 2 Economic analysis of FADN data Task 7.2 commenced with a preliminary analysis of FADN and national data, including accessibility, availability parameters and the possible classification of low-input conventional holdings. With the available data, an analysis of FADN whole farm data was completed, including the calculation of a low-input classification methodology, crop protection usage at EU, regional, country and FADN farm type levels which were subsequently split by CP cost level. 2.1 A preliminary analysis of FADN and national data, including accessibility and availability of parameters Prior to data analysis an assessment of data availability was carried out, to clarify data variables collected through various agencies and the accessibility of this data to the project for analysis and use within TEAMPEST. 2.1.1 Whole Farm Data The Farm Accountancy Data Network (FADN) was highlighted as the principle data source for whole farm data for WP7 within the project Document of Work (DoW). The FADN was established in 1965 under Council Regulation 79/65, is derived from national surveys, and is the only source of micro-economic data that is harmonised, i.e. the bookkeeping principles are the same in all countries across the EU (FADN, 2009a). The FADN data is publicly available through an interactive database website (http://ec.europa.eu/agriculture/rica/database/database_en.cfm) that provides average results by farm type, country and other factors. However, the TEAMPEST task required the analysis of individual farm data as farm holdings would be classified according to their level of CP costs (See Appendix 1: FADN farm typologies for a full list). A total of 66 variables (See Appendix 2: FADN requested variable list, page 75), were requested from FADN in an application for individual farm data for the years 2004 through to 2007. The request was submitted to FADN through the project co-ordinator in mid-December 2008, however due to some communication delays the 2004 to 2006 data was not received until August 2009 and the 2007 data followed in February 2010. In total, data for 229,073 individual farms was received from FADN, with 151,313 data sets used for the TEAMPEST analysis due to the specific farm types studied. Data for 2004-2006 covered the EU25 countries, with the addition of Romania and Bulgaria to form the EU27 in 2007. As an initial step, data for all countries over the four years was compiled into a single data sheet in Microsoft Excel 2007 and then imported into SPSS software (IBM, 2010) for analysis. To ensure data was more comparable between groups of farms the main variables considered within TEAMPEST were re-calculated on a per hectare basis by dividing the per farm cost by the Utilisable Agricultural Area (UAA). To ensure confidentiality of FADN surveyed holdings, published average data must contain data from at least 15 holdings. This ensures that no one holding is identifiable from the data and helps to balance out extreme values. Due to the classification of holdings by farm type, whether they are conventional or organic, EU region and CP expenditure level some groups were smaller than 15 farms and therefore data could not be published and is marked by an “a” in data tables. 2.1.2 Cropping Enterprise Data In addition to FADN data, the project anticipated the use of more detailed national data for analysis of CP usage at a crop enterprise level, rather than at whole farm level. Aberystwyth University already had access to detailed UK national data due to other farm economic analysis work carried out for the UK government, but also required more detailed data for the Netherlands and Bulgaria as they were identified to carry out farmer focus groups in Task 7.4. Negotiations with Dutch TEAMPEST partner LEI allowed remote access to the detailed Dutch farm economic data, which became available to AU in spring 2010. Due to the remote access system for accessing the Dutch data (to maintain data confidentiality), there were some difficulties in analysing the data and reporting the results which slowed progress. However, both UK and Dutch data included crop area, output and input data for a range of arable and horticultural enterprises, though data was 16 limited for some crops. Both systems employed a combination of manual and automatic allocation of costs and outputs to an enterprise. Detailed Bulgarian data was found to be not available, as Bulgaria had only joined the FADN system for the 2007 data year, so only the whole farm data could be utilised for their focus groups in Task 7.4. 2.1.3 Conventional and organic data Due to the different farming methods and type of pesticides used, this report presents results split by conventional and organic farming. CP costs for organic farming will be mainly for physical or biological pest control, though a few, naturally occurring chemicals are permitted for use under EU organic farming rules (COMMISSION REGULATION (EC) No 889/2008, 2008 ). Contrasts between organic and conventional farming are of particular relevance to the profitability analysis as farmers are unlikely to adopt organic farming methods without the prospect of similar or improved financial returns. Farm data from farms that were inconversion have been excluded from the results are they are in a transitional phase and will not accurately reflect the true performance of established organic farms. 2.1.4 Weighting of data The FADN database uses a special system of weighting. The FADN sample is a subset of the EUROSTAT Farm Structure Survey (FSS) and farms are weighted according to their FADN region, farm type and economic size to represent the full sample of FSS farms. To simply use the FADN weighting value would however artificially inflate the confidence level of the data by creating a very large sample of replicated data that would under-estimate the standard errors (Maletta, 2007). Therefore, for the FADN data analysis, each holding was proportionally weighted to ensure that the FADN weighting of the holding was accounted for, but that statistical tests for significance were calculated correctly by maintaining the original sample size. All FADN data results have been calculated using proportional weighting according to the sample; national enterprise data analysis was not weighted. 2.1.5 ANOVA methodology Analysis of variance (ANOVA) techniques were used to ascertain the significance of differences between different farm types and groups within these types. Based on techniques described within the SPSS statistics program, (IBM, 2009), during exploratory analysis the Levene statistic was found to be significant indicating that variance between the groups was not homogenous, and therefore “Tamhane” posthoc multiple comparison methodology was used for the ANOVA analyses to identify differences between group means via a robust test. ANOVA data tables are presented as posthoc results, to indicating differences between groups, which were assumed to be significant at a P value of 0.05 or lower. 2.1.6 Methodology for the classification of low-input conventional holdings To enable an assessment of the relative profitability of organic, conventional and low input farms it is necessary to classify farms into these sub-groups. The FADN system identifies organic and conventional farms and splits these into various general or more detailed farm typologies, but there is no classification system for recognising low input farms. Therefore a method for identifying farms with lower usage of CP products was necessary to achieve the aims of WP7. An analysis of existing low input classification systems that had been applied to similar data sets was carried out through a review of existing literature. Two possible systems were identified as potential methods; the IRENA (Indicator Reporting on the Integration of Environmental Concerns into Agriculture Policy) project and the SEAMLESS (Systems for Environmental and Agricultural Modelling; Linking European Science and Society) project. The IRENA operation was launched in 2002, to further develop agri-environmental indicators for monitoring the integration of environmental concerns into the common agricultural policy (CAP). A joint exercise between DG Agriculture and Rural Development, DG Environment, Eurostat, DG Joint Research Centre, and the European Environment Agency (EEA), (EEA, 2005). As part of the project a methodology to classify farms in terms of intensity was developed: IRENA indicator 15 assessed; a) Trends in the share of agricultural area managed by low-input, medium-input or high-input farm types (based on the average expenditure on inputs per hectare). The agricultural intensity of holdings was defined as: Low-input farms 17 spend less than €80 per ha per year on fertilisers, crop protection and concentrated feedstuff. Medium-input farms spend between €80 and €250 per ha per year and high-input farms more than €250 per ha per year on these inputs. The SEAMLESS project, an EU 6th Framework funded project’s main objective was to develop an integrated framework (SEAMLESS-IF) to support ex-ante analysis of policies that enable analysis at the full range of scales (Elbersen et al., 2006). As part of this work a system for allocating typology of farm holding intensity was developed, based on farm output per hectare: Low < €500 per ha, medium €500-€3000 per ha, high €3000+ per ha. After some exploratory data analysis and due to the very specific nature of the TEAMPEST project it was decided that rather than use an indirect measure, FADN crop protection costs (SE300) divided per hectare of Utilizable Agricultural Area (UAA) would be utilised as the primary measure for intensity of CP usage. The next stage was to determine the cut off values to determine low, medium and high CP usage. The dataset comprised of a large number of holdings that used no CP products, but a small number that used a very high level. With the IRENA and SEAMLESS low intensity figures in mind, quartiles or percentiles were considered to be the best option for identifying holdings with low CP input. Table 5 indicates that overall, for all conventional TEAMPEST farm types, a quartile 1 (Q1) figure of €28/ha and a quartile 3 (Q3) figure of €194/ha. Holdings with a CP/ha value of less than Q1 were classed as low input, whilst holdings with a CP/ha above Q3 were classed as high input holdings. The EU25 data for each year shows slight variation, with the conventional farm mean highest in 2007, but the median figure lowest in 2007, indicating that some producers spent more on CP in 2007 but that overall, producers spent less. Table 5 Descriptive statistics for CP costs (€/ha) (2004-2007, TEAMPEST TF14 farm types only) All farms Conv. Org. 2004-07 Mean Median 246 79 2004-07 2004 2005 2006 2007 2004-07 2004 2005 2006 2007 249 255 240 246 257 93 119 84 80 90 Q1 28 Q3 194 29 30 31 29 28 0 0 0 0 0 197 201 200 200 187 71 93 84 52 68 81 84 83 81 75 12 13 13 7 16 sd n 1161 151313 1174 933 819 956 1679 297 345 219 328 280 147092 35477 36423 36492 38700 4221 897 925 1201 1198 Although useful for highlighting overall CP input levels, considerable variation between farm types indicated that CP intensity values for each farm type should also be calculated. There for, analysis of the FADN dataset as a whole utilises the overall Q1 and Q3 figures for intensity classification, but analysis of data split by farm type utilises Q1 and Q3 figures specific to each farm type, (see Table 6, e.g. Low input Cereal farms ). Table 6 Quartile statistics for conventional farm CP costs (€/ha) (2004-2007) Conventional farms Q1 (low input) Q3 (high input) Cereals, oilseeds & pulses (COP) Other fieldcrops (FIELD) Horticulture (HORT) Wine (WINE) Orchards (ORCH) Olives (OLIVE) Perm. crops combined PERM) Mixed crops (MIXED) 17 37 155 69 92 23 34 17 88 168 1771 395 478 120 196 116 n 35918 32398 17549 15329 14302 5913 8328 17355 18 2.2 Analysis of FADN whole farm data Crop protection costs were identified within FADN datasets as variable SE300, and defined as: “Plant protection products, traps, baits, bird scarers, anti-hail shells, frost protection etc. (excluding those used for forests).” (FADN, 2007) The definition presented some issues to the TEAMPEST project as the project is focused primarily on the effects of the use of pesticides. Variable SE300 may contain a variety of crop protection costs, not exclusively chemical pesticides. Only the Netherlands appeared to have some detailed data concerning the breakdown of SE300 data, and a very detailed study would be required to identify the exact composition of SE300 within varying farm types and in different countries or regions. Due to the difficulty in allocating actual CP costs to these various items this analysis assumed that the majority of conventional farm/holding CP costs identified within SE300 were CP chemical products. 2.2.1 Crop Protection usage To ensure an in-depth analysis of CP usage, the FADN dataset was split by farm type. Initially the dataset was sorted by EU FADN farm typology (General TF) and assessed for the mean value of crop protection (CP) used per hectare. Table 7 shows that over the four year period 2004-07, the four (General TF) farm types with the highest CP usage were Fieldcrops, Horticulture, Permanent Crops and Mixed Cropping. At this point the livestock based farm types were excluded from any further analysis as their CP usage per hectare was substantially lower. Table 7 CP/ha for General TF farm types (€/ha, un-weighted FADN EU27, 2004-2007) General TF farm type Mean Field crops sd Range n 94 149 12913 70059 1733 4266 255650 17845 Permanent crops 222 461 24619 45412 Grazing livestock 17 34 1293 83003 Granivores 52 196 15790 15023 Mixed cropping 108 277 15113 17997 Mixed livestock 27 42 856 15296 Mixed crops-livestock 44 68 3420 35302 157 901 255650 299937 Horticulture Total To allow for more detailed analysis, the more comprehensive FADN (TF14) farm typology classifies Fieldcrops and Permanent Crops into smaller sub-groups, so four farm types split into eight farm types. Table 8 below highlights the variance in these sub-groups; in particular between Cereals, Oilseeds and Pulses (COP) and Other fieldcrops (FIELD) farms, and with Olives (OLIVE) and Orchards (ORCH) compared to other Permanent Crop (PERM) types. Table 8 CP/ha for selected FADN TF14 farm types (€/ha, FADN 2004-2007) TF14 Cereals, oilseeds & pulses (COP) Other fieldcrops (FIELD) Horticulture (HORT) Wine (WINE) Orchards (ORCH) Olives (OLIVE) Perm. crops combined (PERM) Mixed crops (MIXED) Mean 61 136 1756 303 347 88 190 110 Conventional sd range 66 2427 211 12913 4489 255650 377 5170 371 5024 95 1000 546 24619 211 15113 n 35918 32398 17549 15329 14302 5913 8328 17355 Mean 10 25 494 179 242 38 85 25 Organic range 26 299 60 582 1140 14388 181 1112 272 1610 47 428 134 1085 66 1003 sd n 887 856 296 336 553 420 231 642 19 Following farm type assessment, CP costs were assessed by EU region (classified by UN, 2010), to identify how CP costs varied across the EU. Overall it can be seen that they were considerably higher in the Western EU states than other areas. At farm type level this pattern was similar for all types except type 34 (Other Permanent Crops), with Northern areas having higher CP usage. Figure 1 CP costs across EU regions (FADN 2004-2007) 600 CP costs (€/ha) 500 400 300 200 100 0 East North South Conv. West Org. Table 9 Mean cp/ha by EU region (2004-2007, TEAMPEST TF14 farm types only) EU Region Farm Type All types COP Eastern Type Conv Org Conv Org Conv Org Conv Org Conv Org Conv Org Conv Org Conv Org Conv Org Mean sd 213 1949 19 115 43 33 6 12 84 102 FIELD 5 19 1499 6406 HORT a a 236 158 WINE nd nd 269 232 ORCH 51 107 nd nd OLIVE nd nd 167 199 PERM a a 57 135 MIXED 12 24 nd=no data, a=data excluded as n<15 Northern Southern Western n Mean sd n Mean sd n Mean sd n 24724 295 195 8 65 5 82 6 1960 109 nd nd 236 1 nd nd 1079 a 46 2 1381 149 51 14 87 25 5230 884 nd nd 322 1 nd nd 2626 a 115 6 13598 790 219 117 47 12 153 56 1516 628 228 189 348 253 88 38 166 87 140 39 691 225 74 24 230 83 2770 624 269 180 380 269 95 47 359 136 246 88 77305 2230 504 119 109 17 186 20 2699 485 518 170 566 282 a nd 549 a 165 20 1711 579 51 42 280 60 4811 1582 538 183 439 352 a nd 1620 a 171 55 31465 906 8732 54 6142 65 2117 14 559 nd 2417 19 nd nd 346 5 4411 133 6586 307 3694 297 1719 65 nd nd 386 34 nd nd 355 2 858 85 12277 279 15974 283 8180 71 8834 187 9454 439 5909 420 6811 218 9866 333 8323 247 6588 211 5533 146 5936 144 2045 61 4 nd 816 6 2220 91 20 Overall CP usage in each EU state is shown in Table 10, spilt by conventional and organic farming methods. The highest levels of CP costs were in Netherlands, Belgium and Bulgaria. The lowest levels were in the Baltic states of Lithuania, Estonia and Latvia. The high level of CP usage on organic farms in Belgium appears to be an anomaly within a small sample and does not reflect usage in similar countries such as the Netherlands. Table 10 Mean cp/ha by country (2004-2007, TEAMPEST TF14 farm types only) Conventional Country mean BEL BGR CYP CZE DAN DEU ELL ESP EST FRA HUN IRE ITA LTU LUX LVA MLT NED OST POL POR ROU SUO SVE SVK SVN UKI 873 1285 271 324 200 392 184 218 32 370 185 105 252 26 610 21 423 2211 134 197 64 70 317 128 65 111 265 sd 1899 8082 476 1137 1236 1095 736 726 148 855 644 64 661 44 448 94 1154 5151 155 1474 433 142 2654 759 73 144 963 Organic mean n 1941 a a 40 7 41 131 213 0 178 84 a 73 0 a 2 a 151 23 16 88 a 2 25 31 14 4 1305 1141 1477 2566 3435 10942 13127 20229 790 14548 5459 185 37456 2454 152 1355 769 2558 1960 14042 3794 484 1263 976 1032 453 3140 sd n 2706 a a 59 251 116 198 337 0 381 129 a 146 3 a 11 a 1057 42 115 161 a 7 36 43 49 12 28 4 12 18 341 367 168 326 26 214 46 4 1572 106 1 70 3 74 222 207 110 3 73 134 17 39 36 a=data excluded as n<15 Following the data analysis by organic and conventional farming methods, the conventional data was subdivided by CP cost level, utilising quartiles as the cut-off values to define holdings as low (LCP) (quartile 1), medium (MCP) (between quartile 1 and 3) and high (HCP) (above quartile 3) CP usage in addition to organic (ORG) data, (as described previously). Data was also split by EU region to take account of the wide variation in agricultural conditions across the EU, as identified in Table 9. Table 11 Mean cp/ha by farm type and CP input level (2004-2007) CP Level Farm type Low (LCP) mean COP FIELD 6 16 sd 5 12 Med (MCP) n 6907 6426 mean 48 92 sd 20 36 High (HCP) n 18347 17387 mean 142 345 sd 80 2 Org (ORG) n 10664 2542 mean 10 25 sd 26 2 n 887 856 21 HORT WINE ORCH OLIVE PERM MIXED 60 28 40 9 14 6 47 21 29 8 11 6 4030 2386 3174 1710 1864 3282 689 202 255 61 98 53 440 93 112 27 45 27 8617 8203 6436 3309 3492 8728 5588 778 843 219 552 328 7774 479 414 100 1006 335 4902 4740 4692 894 2972 5345 494 179 242 38 85 25 1140 181 272 47 134 66 296 336 553 420 231 642 TEAMPEST deliverable 7.1 identified that profitability was a significant factor in the farmer’s CP product decision process. Table 12 displays the profitability (FNVA) of the various farm types at varying CP cost levels. It can be seen that HORT holdings were by far the most profitable per hectare, whilst the permanent crop types; PERM and WINE were the next most profitable and COP holdings the least profitable. Organic holding profitability was lower than HCP holdings but often similar or superior to LCP and MCP holdings, suggesting potential to move to this type of system. However, in terms of conventional systems, it appears from this data that increasing CP costs result in increased profitability, and this is studied by farm type in later sections. Table 12 Mean fnva/ha by farm type and CP input level (2004-2007) Farm type COP FIELD HORT WINE ORCH OLIVE PERM MIXED CP Level Low Mean 399 837 27074 1656 2630 1473 3357 1025 sd 962 1682 82310 4228 3544 1434 26444 14229 Med n 6907 6426 4030 2386 3174 1710 1864 3282 Mean 493 1267 24771 2654 4174 2298 2575 1542 High sd 2317 1976 54229 4135 4037 1767 4977 2979 n 18347 17387 8617 8203 6436 3309 3492 8728 Mean 712 4238 89683 12649 5767 2522 12943 4072 sd 2648 2 201004 20336 5161 1663 229011 9227 Org n 10664 2542 4902 4740 4692 894 2972 5345 Mean 375 1012 13149 3134 3510 2364 5181 1235 sd 393 2 29133 4035 3679 1596 45600 2541 2.2.2 ANOVA analysis of CP costs and profitability by farm type Farm types were briefly assessed for CP costs and profitability (Farm Net Value Added) factors to provide a simple comparison between farm types. The results of the CP costs analysis indicate that most farm types were significantly different to each other. COP and OLIVE farms had significantly lower CP costs than nearly all other types and HORT farms had significantly higher CP costs. Table 13 CP usage ANOVA analysis at farm type level COP COP FIELD HORT WINE ORCH OLIVE PERM MIXED n/a 74* 1674* 241* 284* 26* 128* 48* FIELD -74* n/a 1600* 167* 210* -47* 55* -26* HORT -1674* -1600* n/a -1433* -1390* -1647* -1545* -1626* WINE -241* -167* 1433* n/a 43* -214* -112* -193* ORCH -284* -210* 1390* -43* n/a -258* -156* -236* OLIVE -26* 47* 1647* 214* 258* n/a 102* 22* PERM -128* -55* 1545* 112* 156* -102* n/a -80* MIXED -48* 26* 1626* 193* 236* -22* 80* n/a *. The mean difference is significant at the 0.05 level. HORT farms were statistically the most profitable, whilst COP farms were the least profitable. More detailed ANOVA analysis is presented in the separate farm type sections subsequently. 22 n 887 856 296 336 553 420 231 642 Table 14 FNVA ANOVA analysis at farm type level COP COP FIELD HORT WINE ORCH OLIVE PERM MIXED n/a 1362* 40541* 4355* 3641* 1633* 4832* 1502* FIELD -1362* n/a 39179* 2994* 2280* 271* 3471 140 HORT -40541* -39179* n/a -36185* -36899* -38908* -35709* -39039* WINE ORCH -4355* -2994* 36185* n/a -714* -2723* 477 -2853* -3641* -2280* 36899* 714* n/a -2009* 1191 -2139* OLIVE PERM -1633* -271* 38908* 2723* 2009* n/a 3200 -131 MIXED -4832* -3471 35709* -477 -1191 -3200 n/a -3330 -1502* -140 39039* 2853* 2139* 131 3330 n/a *. The mean difference is significant at the 0.05 level. 2.2.3 Correlations of CP costs and other factors by farm type CP costs were then assessed by splitting the data into farm type, with various parameters assessed including CP, fertiliser and other crop cost inputs, profitability indicated by FNVA and Family Farm Income and wheat yield as a physical output, and fixed factors such as farm physical size, economic size and labour input. Bi-variate correlations identified fertiliser as the most closely correlated variable, though the profitability measures and wheat yield were also closely correlated in some farm types. Most variables were positively correlated, though farm area was negatively correlated for many farm types indicating an increase in CP costs per hectare with smaller farm area. More detailed correlations for each farm type are presented subsequently. Table 15 Correlations of CP/ha with other variables by farm type Fert CP level Other crop costs Net value added Gross farm inc. All types COP FIELD HORT WINE ORCH OLIVE PERM MIXED .654** .303** .334** .374** .205** .240** .737** .478** .272** .637** .261** .411** .469** .072** .624** .442** .169** .311** .375** .030* .188** .427** .512** .081** .614** .210** .286** **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 farms .381** .265** .300** .441** .651** .380** .206** .103** .311** Wheat Yield (t/ha) .289** .495** .342** .204** .308** .356** .587** .337** .264** Land area Econ. Size -.036** .082** -.023** -.049** -.146** -.061** -.082** -.052** -.030** .100** .240** .066** .087** .210** .133** -.034** .065** .059** Labour .137** .071** .112** .175** .111** .175** .133** .154** .043** 2.2.4 Cereals, Oilseeds and Pulses (COP) COP farms exhibited a wide range of CP usage within the same farm type, which was reflected in other crop inputs. CP usage ranged from a LCP average of €6/ha through to €142/ha in the HCP group. Southern Europe had the highest overall CP usage in the HCP group, though the standard deviation was large indicating variability. Fertiliser costs were higher overall for all farms, the average for each group ranging from €55/ha to €160/ha. It could be possible that crop yield is more dependent on fertiliser usage at lower levels of intensity, but as fertiliser costs increase CP costs increase rapidly to reach a similar cost level per hectare. 23 Table 16 COP crop inputs (€ per hectare) CP level LCP MCP HCP ORG EU region All EU East North South West All EU East North South West All EU East North South West All EU East North South West CP mean 6 8 9 5 7 48 44 48 45 62 142 117 133 158 138 10 6 5 12 17 Fert. sd 5 6 5 5 6 20 18 20 19 18 80 38 37 132 40 26 12 14 24 42 mean 55 48 54 57 50 102 82 91 118 105 160 135 118 214 143 33 20 19 50 35 Other Crop Costs sd 40 39 40 40 50 63 44 42 77 48 279 59 41 497 47 50 26 37 53 58 mean 4 3 12 3 2 11 5 19 14 3 36 7 29 100 3 13 3 22 4 14 sd n 18 9 23 18 8 33 17 30 43 12 564 21 47 1021 13 29 11 35 13 36 6907 1021 1110 4646 130 18347 6369 3866 5507 2605 10664 1342 1610 2124 5588 887 54 307 279 247 COP farm profitability, indicated by GFI and FNVA per hectare increases with increased level of CP costs. Profitability was highest in Southern Europe (despite a lower wheat yield), as were CP costs, possibly reflecting a difference in farm type in that region (possibly cereals and permanent crops resulting in a higher profit). Organic farm profitability was highest in the Western region at a higher level than Western conventional COP farms, though organic profitability was lower than conventional farms in other regions. Wheat yields were highest on Northern HCP cost farms; the lowest conventional yields were in Southern and Eastern Europe. The high CP costs group’s wheat yield was 109% higher than the LCP cost group, though CP costs were 2267% higher. Organic farm yields were similar to LCP yields at 3.5t/ha. Table 17 COP profitability and wheat yield (€/ha and t/ha) CP level LCP MCP HCP EU region All EU East North South West All EU East North South West All EU East North Gross Farm Inc. Net Value Added mean mean 520 342 568 554 448 698 381 610 966 569 967 444 630 sd 1078 318 2696 860 375 2378 261 1509 3433 405 2816 297 1073 399 208 389 443 269 493 260 387 710 372 712 282 433 sd 962 249 2333 791 403 2317 250 1287 3378 349 2648 317 924 Wheat yield (t) n 6907 1021 1110 4646 130 18347 6369 3866 5507 2605 10664 1342 1610 mean 3.3 3.2 3.5 3.3 4.9 4.9 4.2 5.5 4.7 5.9 6.9 5.4 7.7 sd n 1.5 1.6 1.7 1.4 2.0 1.9 1.6 1.9 1.9 1.5 1.7 1.3 1.7 3215 836 839 1449 91 12906 5629 3274 1823 2180 8613 1262 1536 24 ORG South West All EU East North South West 1753 648 564 340 402 598 821 4955 327 407 203 309 417 419 1363 447 375 220 224 445 545 4684 321 393 220 333 407 396 5.4 7.2 3.5 2.9 3.6 2.4 3.8 2124 5588 887 54 307 279 247 1.7 1.5 1.6 1.1 1.6 1.2 1.7 523 5292 514 43 196 55 220 The HCP cost farms were the largest for all regions except the South which had the smallest farms (tending to indicate that Southern COP farms may be different in nature to other regions). Northern and Western region farms within the HCP cost group were the largest economically, but Eastern region farms had the highest labour input. Table 18 COP area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level LCP MCP HCP ORG EU region All EU East North South West All EU East North South West All EU East North South West All EU East North South West Land area mean 61 54 69 62 59 57 67 91 27 97 102 138 156 20 132 80 81 83 59 104 sd 116 170 91 105 47 142 215 132 40 160 175 344 181 38 173 110 213 92 77 129 Econ. Size mean 17 10 15 18 27 24 16 38 15 55 67 41 102 20 89 29 15 28 21 46 sd 27 30 18 28 22 49 49 50 24 80 101 106 124 43 106 40 43 30 39 49 Labour mean 1.0 1.7 1.2 0.9 1.3 1.2 1.7 1.1 0.9 1.4 1.5 2.7 1.5 1.0 1.6 1.3 2.3 1.1 1.0 1.6 sd n 1.6 3.6 1.4 0.5 0.6 2.4 4.2 1.7 0.6 1.5 2.3 7.0 1.6 1.2 1.6 1.8 5.4 1.5 0.8 1.4 6907 1021 1110 4646 130 18347 6369 3866 5507 2605 10664 1342 1610 2124 5588 887 54 307 279 247 25 Table 19 indicates differences between CP cost levels for various factors listed on the left of the table. CP input differences indicated significantly different levels of CP costs between each group, which was the same for fertiliser and similar for other crop costs. Profitability was significantly different between MCP, HCP and ORG farms, but not significantly different between organic and LCP farms. Farm physical size was significantly different for both HCP and ORG farms, but not significantly different between LCP and MCP farms. The economic sizes of all farm types were significantly different, with the high input farms the largest. Labour input was also significantly different for most farm types, though MCP and ORG farms were identical. 26 Table 19 COP ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med High Med Org Low High High Org -41* -136* -4* 41* -94* 37* CP -47* -105* 22* 47* -58* 69* FERT -7* -32* -9* 7* -26* -2 OCC -178* -447* -44 178* -269* 134* GFI -94* -313* 23 94* -219* 118* FNVA 5 -41* -18* -5 -45* -23* UAA -7* -50* -12* 7* -43* -5* ESU -.15* -.42* -.21* .15* -.27* 0 AWU *. The mean difference is significant at the 0.05 level. Org Low Med Org Low Med High 136* 105* 32* 447* 313* 41* 50* .42* 94* 58* 26* 269* 219* 45* 43* .27* 132* 127* 24* 403* 336* 22* 38* .20* 4* -22* 9* 44 -23 18* 12* .21* -37* -69* 2 -134* -118* 23* 5* 0 -132* -127* -24* -403* -336* -22* -38* -.20* Table 20 highlights differences in CP costs and profitability of farms differing by CP cost level and EU region. Although there was little difference between LCP holdings, average CP cost per hectare was significantly lower for Southern region farms. All but Eastern and Southern region holdings were significantly different for MCP farms and all HCP EU regions were different. For the organic holdings CP costs were similar in the North and East and in the South and West. For profitability (FNVA), the greatest range in profitability for conventional farms was between Southern and other regions within the HCP group, though smaller, often significant differences were also seen between other regions. The Western region farms were the most profitable for the organic farms, being significantly higher than other regions. Table 20 COP ANOVA analysis of differences in CP input and profitability at different CP input levels across EU regions EU region comparison CP Variable level East North West East South West South West East North West East North South LCP 0 3* 1 0 3* MCP -3* -1 -17* 3* 2* HCP -16* -41* -20* 16* -25* ORG 0 -6* -11* 0 -6* Net LCP -181 -235* -61 181 -54 value MCP -127* -450* -112* 127* -323* added HCP -151* -1080* -165* 151* -930* ORG -4 -225* -325* 4 -221* *. The mean difference is significant at the 0.05 level. 1 -14* -5* -12* 120 15 -14 -321* -3* 1 41* 6* 235* 450* 1080* 225* -3* -2* 25* 6* 54 323* 930* 221* -2* -17* 20* -5 174* 338* 916* -100* -1 17* 20* 11* 61 112* 165* 325* -1 14* 5* 12* -120 -15 14 321* 2* 17* -20* 5 -174* -338* -916* 100* CP per ha South North It can be seen from Table 21 that fertiliser and wheat showed the best correlation with CP costs, as would be expected from data in 27 Table 16 and Table 17. In general, the correlation with profitability was poor and insignificant. Land area, economic size and labour were significantly correlated for some groups, and in particular for Northern region holdings. Table 21 COP correlations of CP/ha with other variables in EU regions Fert CP level EU reg Other crop costs Net value added LCP East 0.02 0.06 0.02 North .212** 0.06 -0.01 South .232** 0.00 -.064** West .176* 0.07 .215* MCP East .397** 0.01 .091** North .174** .130** .035* South .318** .117** 0.02 West .294** -0.03 0.03 HCP East .111** 0.01 0.01 North .204** -0.01 0.03 South .306** .303** .573** West .231** .075** .076** ORG East .359** 0.22 0.16 North .758** .213** 0.09 South .427** 0.07 .139* West .777** -0.04 0.09 **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 Gross farm inc. Wheat Yield (t/ha) .113** 0.00 -.034* 0.09 .119** 0.03 .036** 0.03 .082** 0.01 .594** .114** 0.12 .127* .362** 0.06 .198** .152** .152** 0.00 .177** .464** .254** .289** .058* .213** -.096* .284** 0.21 .585** .345** .673** Land area Econ. Size 0.00 0.02 -.070** .224* .039** .080** -.105** .073** -0.02 .143** -0.01 0.00 0.27 .324** -.141* -0.06 0.02 .089** -0.03 0.10 .076** .254** .038** .150** -0.02 .185** 0.02 .029* .355** .298** 0.04 0.08 Labour -.062* -0.02 -.072** 0.11 .033** .038* .061** .053** -0.01 .125** .245** 0.01 0.22 0.06 0.03 0.07 2.2.5 Other fieldcrops (FIELD) FIELD farms exhibited a wider range of CP usage within the same farm type than COP farms; CP usage ranging from a low average of €16/ha through to €345/ha in the HCP group. As with COP farms, Southern Europe had the highest overall CP usage in the HCP group, though the standard deviation was large indicating variability. Fertiliser costs were higher than CP costs for LCP groups but lower than CP costs for the HCP groups, the average ranging from €68/ha to €289/ha. Other crop costs were also higher for FIELD type farms, reflecting the greater importance of CP and other crop costs for FIELD farms. Table 22 FIELD crop inputs (€ per hectare) CP level LCP MCP HCP EU region All EU East North South West All EU East North South West All EU East North South CP mean 16 19 12 16 17 92 79 91 92 110 345 286 258 372 Fert. sd 12 11 12 12 13 36 32 34 36 34 92 178 129 333 mean 68 61 57 74 75 139 126 118 153 131 289 299 159 320 Other Crop Costs sd 66 47 55 76 59 86 84 56 95 59 340 269 74 283 mean 18 16 19 17 57 42 43 50 45 25 144 102 155 148 sd 66 44 48 65 194 159 97 65 188 179 697 172 270 543 n 6426 1422 1107 3649 248 17387 4196 2239 7348 3604 8585 524 348 4977 28 ORG West All EU East North South West 312 25 5 6 56 20 411 60 19 25 83 60 217 61 15 18 121 71 489 115 23 38 162 107 153 51 88 20 35 96 1134 112 134 26 107 156 2736 856 65 297 283 211 Profitability, indicated by GFI and FNVA per hectare increased with higher levels of CP costs, and organic farm profitability between LCP and MCP conventional holdings. Profitability of FIELD farms was also highest in Southern Europe (despite a lower wheat yield), again indicating a possible difference in farm type in that region. Overall, Northern region farms were the least profitable, despite wheat yields being higher than average and equalling the Western region average yield of 8.1t/ha. Table 23 FIELD profitability and wheat yield (€/ha and t/ha) CP level CP level LCP Low MCP Med HCP High ORG Organic EU region All EU East North South West All EU East North South West All EU East North South West All EU East North South West Gross Farm Inc. Net Value Added mean mean sd 1093 825 649 1309 1121 1604 1235 730 2095 1184 4914 3409 1353 6234 2524 1345 1429 500 1551 2273 1766 1307 2099 1873 1643 2068 1270 876 2543 1546 16654 2526 1344 20609 5321 1621 996 423 1544 2379 837 628 435 1019 819 1267 966 491 1689 894 4238 2891 1015 5480 1937 1012 1142 297 1153 1806 Wheat yield (t) sd n 1682 1280 1820 1818 1444 1976 1207 742 2468 1407 16337 2531 1236 20280 4611 1464 901 406 1390 2189 6426 1422 1107 3649 248 1766 4196 2239 7348 3604 8585 524 348 4977 2736 856 65 297 283 211 mean 3.9 3.8 4.2 3.7 5.7 5.6 4.6 7.0 4.4 7.3 7.0 4.6 8.1 4.7 8.1 3.7 2.9 3.5 3.9 4.1 sd 1.6 1.2 2.0 1.7 2.1 2.7 1.4 1.9 4.2 1.8 2.3 1.7 1.9 1.8 1.6 1.6 1.3 1.5 1.8 1.6 n 2670 1042 607 846 175 10331 3487 1792 1896 3156 3397 249 260 703 2185 421 40 141 62 178 The organic farms were the largest in terms of land area, though the HCP group were the largest economically. In particular, Northern HCP farms were larger physically, economically and in labour requirement per farm than other regions. Table 24 FIELD area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level LCP MCP EU region All EU East North South West All EU East North South Land area mean 29 21 53 27 57 44 33 122 17 sd 64 76 80 47 116 134 159 191 38 Econ. Size mean 17 8 18 20 44 39 15 98 23 sd 38 34 28 36 92 106 76 150 59 Labour mean 1.3 1.7 1.3 1.0 1.5 1.7 2.4 1.7 1.2 sd n 1.7 2.5 1.9 0.9 1.7 3.1 4.7 3.3 1.3 6426 1422 1107 3649 248 17387 4196 2239 7348 29 HCP ORG West All EU East North South West All EU East North South West 101 35 16 207 11 87 52 18 66 47 61 195 89 87 294 31 82 87 36 92 107 58 97 58 11 278 30 124 42 7 35 42 73 177 135 63 423 95 111 76 22 57 89 90 1.9 2.1 3.5 4.0 1.6 2.4 1.6 2.5 1.1 1.4 2.1 3.5 2.9 5.1 4.6 2.1 2.6 1.9 3.2 1.7 1.2 1.6 3604 8585 524 348 4977 2736 856 65 297 283 211 Table 25 indicates differences between CP cost levels for various factors listed on the left of the table. As expected, CP input was significantly different between each group. Fertiliser costs were similar for LCP and ORG farms, but MCP and HCP fertiliser use was significantly higher. ORG farm other crop costs were significantly higher than LCP farms, similar to MCP but significantly less than HCP holdings. Profitability was significantly different between all farm groups; LCP the lowest and HCP the highest. Farm physical size was significantly different for all groups, the ORG farms being the largest and LCP farms the smallest. Both economic size and labour input were similar for MCP and ORG groups, but LCP farms were significantly lower and HCP farms were significantly larger. Table 25 FIELD ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med High Med Org Low High High Org -75* -329* -8* 75* -254* 67* CP -71* -220* 7 71* -150* 78* Fert -24* -127* -33* 24* -103* -9 OCC -511* -3822* -252* 511* -3311* 259* GFI -430* -3401* -174* 430* -2971* 255* FNVA -15* -7* -24* 15* 8* -9* UAA -22* -41* -25* 22* -19* -3 ESU AWU -.39* -.83* -.33* .39* -.44* 0 *. The mean difference is significant at the 0.05 level. Org Low Med Org Low Med High 329* 220* 127* 3822* 3401* 7* 41* .83* 254* 150* 103* 3311* 2971* -8* 19* .44* 320* 228* 94* 3570* 3227* -17* 16* .50* 8* -7 33* 252* 174* 24* 25* .33* -67* -78* 9 -259* -255* 9* 3 0 -320* -228* -94* -3570* -3227* 17* -16* -.50* Table 26 highlights differences in CP costs and profitability of farms differing by CP cost level and EU region. Although there was little difference between LCP cost holdings, average CP cost per hectare was higher for Eastern region farms and lower for Northern farms. Within the MCP group, Western region holding CP costs were significantly higher than other regions, though within the HCP and ORG groups Southern EU holdings had significantly higher CP costs. For profitability (FNVA), the greatest range in profitability for conventional farms was between Southern and other regions, though smaller but significant differences were also seen between other regions. As with COP farms, the Western region FIELD farms were the most profitable for the organic farms, being significantly higher than other regions, and Northern farms being the least profitable. Table 26 FIELD ANOVA analysis of differences in CP input and profitability at different CP input levels across EU regions EU region comparison CP Variable level CP per LCP East North North South West 7* 4* 2 East -7* South West South West East North West East North South -3* -5* -4* 3* -2 -2 5* 2 30 ha -12* -13* -31* 12* -1 MCP 28* -86* -25 -28* -114* HCP -1 -51* -15* 1 -50* ORG 193* -390* -191 -193* -584* Net LCP value 475* -723* 72 -475* -1198* MCP added 1876* -2590* 953* -1876* -4465* HCP 845* -11 -664* -845* -856* ORG *. The mean difference is significant at the 0.05 level. -19* -54* -14* -384* -403* -922* -1509* 13* 86* 51* 390* 723* 2590* 11 1 114* 50* 584* 1198* 4465* 856* -17* 60* 36* 200 795* 3543* -653* 31* 25 15* 191 -72 -953* 664* 19* 54* 14* 384* 403* 922* 1509* 17* -60* -36* -200 -795* -3543* 653* Correlations in Table 27 show that fertiliser and wheat showed the best correlation with CP costs, particularly for ORG farms and Western region HCP farms. Correlation with profitability was generally poor for most groups, but Western and Northern HCP correlation with CP costs was high and significant. Other factors had poor correlation though some groups were significant. Table 27 FIELD correlations of CP/ha with other variables in EU regions Other crop costs Fert CP level EU reg Net value added LCP East .331** .056* -0.02 North .259** .164** 0.01 South .146** .066** -0.01 West 0.10 -.180** -.160* MCP East .392** .232** .185** North .158** .159** .089** South .254** .084** .119** West .310** 0.00 .036* HCP East .346** -0.03 .133** North .254** .313** .588** South .632** .256** .194** West .916** .895** .823** ORG East .788** -0.03 -0.10 North .768** .170** .177** South .762** 0.10 -0.06 West .421** 0.04 .173* **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 Gross farm inc. 0.01 0.02 0.01 -.141* .224** .089** .128** 0.03 .147** .607** .215** .830** -0.09 .232** 0.06 .182** Wheat Yield (t/ha) .158** .292** .131** -0.02 .188** .358** .051* .396** 0.12 .219** -0.05 0.00 .369* .526** 0.15 .443** Land area Econ. Size 0.00 .126** -.054** 0.09 .054** .129** -.040** .058** -0.05 -0.03 -.055** -.137** 0.18 .315** -.117* -0.05 0.02 .208** -0.01 0.06 .067** .265** .049** .117** -0.03 0.04 0.01 -.075** .362** .345** 0.01 0.08 Labour 0.01 .074* -.039* 0.04 .105** .043* .091** 0.03 .192** .149** .167** .181** 0.22 .281** 0.10 0.09 2.2.6 Horticulture (HORT) HORT farms had the widest range of CP usage within the same farm type, ranging from a LCP average of €60/ha through to €5588/ha for the HCP group. Northern and Eastern Europe had the highest overall CP usage within the HCP group, but with large standard deviations indicating variability. Fertiliser costs were higher than CP costs for all groups, the average ranging from €707/ha to €7625/ha, with extremely high costs for Northern region farms. Other crop costs were also extremely high for HORT type farms, the average for Northern region farms at €66,998/ha within the HCP group. ORG farm costs were most similar to MCP farms and varied considerably between regions. Table 28 HORT crop inputs (€ per hectare) CP level LCP EU reg All EU East North CP mean 60 68 27 Fert. sd 47 40 41 mean 707 240 2076 Other Crop Costs sd mean sd n 4871 572 8454 8137 622 63258 52996 4726 151942 4030 737 624 31 South 62 48 West 54 54 MCP All EU 689 440 East 611 440 North 598 431 South 701 428 West 765 456 HCP All EU 5588 7774 East 7098 14432 North 7962 8547 South 4556 4259 West 6183 6481 ORG All EU 494 1140 East a a North 109 884 South 628 624 West 485 1582 a. Data not shown as sample <15 464 2040 1571 1657 4781 1084 2557 7625 9981 21506 5758 7502 1265 a 192 1560 1287 1976 11839 4044 2732 10107 1595 7541 17001 32425 20068 10490 10083 2489 a 868 1256 3574 1266 9193 3938 2822 20523 2049 9202 17252 14713 66998 6566 30503 2175 a 742 884 4058 7128 29086 17091 6167 54769 14098 23194 49330 32655 107906 26081 65374 10649 a 2585 4847 15700 1892 777 8617 985 479 4385 2768 4902 395 616 1903 1988 296 14 65 71 146 Profitability (GFI and FNVA) per hectare was highest within the HCP group at €112,994/ha and lowest for the ORG group. Northern and Western region HORT holdings were the most profitable, but also had the highest costs seen in Table 28 above. Wheat yield was a less clear indicator of farm performance for HORT holdings as the majority of holdings did not grow wheat, particularly within the HCP group. Table 29 HORT profitability and wheat yield (€/ha and t/ha) CP level LCP EU region Gross Farm Inc. Net Value Added mean mean sd n 27074 3214 97828 18207 78902 24771 12470 45280 19153 55308 89683 72130 228041 53735 143912 13149 a 6706 12790 16748 82310 9163 165608 38136 150966 54229 25775 73463 30245 101986 201004 150970 221508 101051 308841 29133 a 32733 20024 37469 4030 737 624 1892 777 8617 985 479 4385 2768 4902 395 616 1903 1988 296 14 65 71 146 sd All EU 32419 95362 East 4227 9998 North 119942 192999 South 20872 45095 West 94366 168641 MCP All EU 30644 61597 East 18326 33210 North 53547 83386 South 22592 32134 West 68167 115415 HCP All EU 112994 228159 East 94466 174888 North 274903 246468 South 62585 106099 West 190167 349283 ORG All EU 16668 36558 East a a North 8191 38488 South 15230 23244 West 22014 48388 a. Data not shown as sample <15 Wheat yield (t) mean 3.7 3.4 4.4 3.8 5.1 4.6 3.6 7.5 3.9 6.3 4.8 a a a a 3.4 a 2.5 a 4.1 sd n 1.6 1.4 2.2 1.4 1.7 2.2 1.8 1.3 1.4 2.2 2.3 a a a a 1.6 a 1.3 a 1.5 549 237 61 132 119 587 143 71 63 310 10 4 2 1 3 45 3 15 2 25 The LCP and ORG farms were the largest in terms of land area, though the HCP group were the largest economically. Overall, Northern and Western HCP farms were larger physically, economically and had greater labour input than other regions. ORG farms had a similar area to LCP but were economically more equivalent to MCP farms. 32 Table 30 HORT area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level EU reg Land area mean sd Econ. Size mean LCP All EU 8 33 East 7 46 North 11 23 South 8 21 West 10 25 MCP All EU 5 26 East 3 21 North 31 151 South 4 9 West 9 18 HCP All EU 2 5 East 1 1 North 1 2 South 2 5 West 2 6 ORG All EU 8 22 East a a North 17 21 South 3 29 West 11 14 a. Data not shown as sample <15 42 16 68 36 135 69 18 364 45 171 109 19 298 46 247 62 a 48 30 108 Labour sd mean 127 70 135 84 283 233 67 1036 118 320 251 25 473 161 327 208 a 71 258 178 2.4 2.2 3.4 2.2 3.6 2.9 2.8 9.8 2.3 4.3 4.4 4.1 9.8 2.9 6.6 2.7 a 2.6 1.7 3.8 sd n 4.3 5.9 4.2 2.5 3.7 5.6 6.6 21.2 3.5 4.5 7.1 5.7 15.9 4.5 8.4 3.6 a 2.1 2.9 4.4 4030 737 624 1892 777 8617 985 479 4385 2768 4902 395 616 1903 1988 296 14 65 71 146 An ANOVA analysis of CP cost levels for various factors is shown in Table 31 below, which indicates that CP input was significantly different between each group. Fertiliser costs were significantly different between all groups except for MCP and ORG farms and other crop costs were all significantly different. Profitability of HCP farms was significantly higher than other groups and ORG profitability was significantly lower than other groups, with no significant difference between LCP and MCP farms. HCP farms were significantly physically smaller but larger economically and for labour input. Although LCP and MCP farms were significantly different for the three size measures, neither was statistically different to the ORG farms. Table 31 HORT ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med High Med Org Low High High Org CP -629* -5529* -434* 629* -4899* 195* Fert -864* -6918* -558* 864* -6053* 307 OCC 4199* -9115* 5962* -4199* -13314* 1763* GFI 1775 -80575* 15750* -1775 -82350* 13975* FNVA 2302 -62609* 13925* -2302 -64911* 11622* UAA 3* 6* 1 -3* 3* -2 ESU -26* -67* -20 26* -40* 6 AWU -.48* -1.99* -0.21 .48* -1.51* 0.27 *. The mean difference is significant at the 0.05 level. Org Low Med Org Low 5529* 6918* 4899* 6053* 5095* 6360* 434* 558* 9115* 80575* 62609* -6* 67* 1.99* 13314* 82350* 64911* -3* 40* 1.51* 15077* 96326* 76534* -6* 47* 1.78* -5962* -15750* -13925* 0 20 0.21 Med High -195* -307 -5095* -6360* -1763* -15077* -96326* -76534* 6* -47* -1.78* -13975* -11622* 2 -6 -0.27 33 Table 32 highlights differences in CP by cost level and EU region, and indicates that CP use on LCP holdings significantly varied across the EU, with the highest use in the Eastern region. For MCP holdings the Western region average CP cost per hectare was higher than other areas and lowest for Northern farms. Within the MCP group, Western region holding CP costs were significantly higher than other regions, though for the HCP group, Southern holdings used significantly less than other areas and ORG groups showed insignificant differences in CP costs except CP for Northern and Southern regions. In general, conventional Northern region holdings were significantly more profitable (FNVA) than other regions, with large differences to Southern and Eastern regions. Western ORG farms were the most profitable, but only significantly with Eastern ORG farms. 34 Table 32 HORT ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions EU region comparison CP level East North South North West East CP South 41* 5* 14* -41* LCP 13 -90* -155* -13 MCP -864 2542* 915 864 HCP 78 -442 -298 -78 ORG -94614* -14993* -75688* 94614* FNVA LCP -32810* -6683* -42838* 32810* MCP -155911* 18395 -71782* 155911* HCP -4030 -10114* -14071* 4030 ORG *. The mean difference is significant at the 0.05 level. South West East -27* -168* 1779* -376 -5* 90* -2542* 442 79621* 18926 26128* -10027 174306* -6084 -35* -103* 3406* -520* North West West East North South 35* 103* -3406* 520* 8* -64* -1627* 144 -14* 155* -915 298 27* 168* -1779* 376 -8* 64* 1627* -144 14993* -79621* -60695* 75688* -18926 60695* 6683* -26128* -36155* 42838* 10027 36155* 84130* -18395 -174306* -90176* 71782* -84130* 90176* -10042 10114* 6084 -3957 14071* 10042 3957 Correlations below show that fertiliser and profitability showed the best correlation with CP costs. HCP regions showed a significant level of correlation, in part due to the high level of CP costs as a percentage of total costs. Correlations were significant but less important at lower CP level groups and variable for the ORG group due to small samples. Weak correlations with land area may indicate an increase in CP costs per hectare on smaller holdings. Table 33 HORT correlations of CP/ha with other variables in EU regions Fert CP level EU reg LCP Other crop costs Net value added East .110** -0.01 0.07 North -.135** -.268** -.360** South -.123** -.191** -.168** West -0.07 -.182** -.328** MCP East .436** .375** .359** North .307** .176** .379** South .310** .086** .202** West .124** .190** .214** HCP East .816** .530** .565** North .112** .191** .303** South .590** .307** .392** West .232** .465** .470** ORG East a a a North .973** .879** .980** South .642** -0.09 0.18 West .558** 0.16 .460** **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 Gross farm inc. Wheat Yield (t/ha) Land area 0.06 -.380** -.177** -.351** .398** .387** .228** .239** .571** .315** .420** .519** a .982** 0.12 .512** .223** .741** .192* 0.13 .274** -0.06 0.12 0.18 0.51 -1.000** .a 0.12 0.88 0.38 1.000** 0.10 0.04 .304** -0.04 .303** -.067* -.093* -.126** -.201** -.133** -.125** -.076** -.077** a -0.08 -0.02 -0.14 Econ. Size 0.05 0.03 -0.01 .115** 0.01 .120** 0.01 .047* -.106* -0.01 -0.03 .165** a .439** 0.03 .311** Labour 0.03 .129* 0.03 0.16 .063** .388** .065** .064* -0.03 0.01 0.02 0.00 0.06 0.07 .384** .451** 2.2.7 Wine (WINE) There was a large range in CP costs between LCP and HCP holdings, with ORG CP costs similar to MCP costs. Fertiliser and other crop costs were very varied though generally increasing with CP costs. (Please note there were no wine holdings in the Northern region). 35 Table 34 WINE crop inputs (€ per hectare) CP level EU region CP mean Fert. sd All 28 21 East 29 22 South 27 20 West 33 25 All MCP 202 93 East 184 88 South 194 93 West 228 89 All HCP 778 479 East 496 116 South 660 311 West 940 600 All ORG 179 181 East a a South 189 180 West 170 183 a. Data not shown as sample <15 LCP mean 78 34 75 131 121 44 141 82 275 56 257 309 82 a 104 59 Other Crop Costs sd 96 58 84 203 120 126 122 93 384 82 235 517 107 a 107 103 mean 41 33 31 197 253 1188 151 349 930 275 1214 609 511 a 364 684 sd n 297 151 256 661 1539 5681 851 1010 9429 952 12706 1567 1357 a 996 1685 2386 47 2073 266 8203 383 4684 3136 4740 129 2077 2534 336 5 187 144 Profitability was highest for HCP holdings in the Western region, though large variability existed as indicated by the high standard deviation value. Interestingly Western LCP holdings achieved a higher profitability than MCP holdings. ORG holding performance was similar to the conventional MCP group. Table 35 WINE profitability and wheat yield (€/ha and t/ha) CP level LCP EU region Gross Farm Inc. mean sd All 2108 4886 East 2891 8186 South 1680 3025 West 8847 14376 MCP All 3529 4444 East 2964 6563 South 3353 3273 West 4089 6210 HCP All 15141 21915 East 2184 3294 South 6965 8297 West 26090 28440 ORG All 4123 4544 East a a South 4084 4005 West 4113 5135 a. Data not shown as sample <15 Net Value Added Wheat yield (t) mean sd n 1656 1121 1320 7046 2654 2279 2484 3164 12649 1332 5171 22636 3134 a 3136 3072 4228 8586 2865 11685 4135 6360 3124 5619 20336 3048 8310 26281 4035 a 3855 4259 2386 47 2073 266 8203 383 4684 3136 4740 129 2077 2534 336 5 187 144 mean 3.8 3.0 3.7 4.0 5.1 3.2 4.7 5.5 6.0 a 6.4 5.9 3.3 nd a 3.3 sd n 1.9 1.4 2.3 1.3 1.8 1.9 1.6 1.8 1.9 a 1.9 1.8 1.5 nd a 1.3 192 14 91 87 1104 38 393 673 112 1 33 78 52 0 8 44 The area of WINE holdings was largest for LCP and ORG holdings, whilst the HCP group were the largest economically and for labour requirements. 36 Table 36 WINE area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level EU region Land area mean sd Econ. Size mean All 16 22 East 30 101 South 16 20 West 24 28 All MCP 13 22 East 12 49 South 9 14 West 26 24 All HCP 8 14 East 8 15 South 6 12 West 12 14 All ORG 16 21 East a a South 12 11 West 23 27 a. Data not shown as sample <15 LCP 19 20 17 60 36 12 19 86 59 11 22 109 45 a 29 66 Labour sd mean 40 57 37 59 61 50 30 90 92 17 47 112 56 a 30 72 1.3 6.2 1.3 1.7 1.7 3.5 1.3 2.2 2.2 2.2 1.6 2.9 2.0 a 1.9 2.1 sd n 2.0 22.2 1.1 1.3 2.5 8.5 1.5 1.7 2.7 7.2 2.2 2.5 2.3 a 1.7 2.9 2386 47 2073 266 8203 383 4684 3136 4740 129 2077 2534 336 5 187 144 ANOVA tests indicated differences in most groups though ORG and MCP CP costs were not significantly different. Fertiliser costs were similar for ORG and LCP holdings but significantly different for other groups, and other crop costs were statistically different for all groups. HCP and LCP groups were statistically more and less profitable, respectively, than other groups, with no difference between MCP and ORG holdings. LCP holdings were the largest and significantly larger than MCP and HCP holdings, though similar to ORG holdings, whilst the HCP group was the largest economically and the LCP group was significantly smaller than others. ORG holdings were smaller than the HCP group but larger than LCP and MCP group averages. Labour requirements were highest for ORG and HCP holdings and significantly the lowest for the LCP group. Table 37 WINE ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med High Med Org Low High High Org -175* -750* -151* 175* -575* 24 CP -43* -197* -4 43* -154* 39* Fert -212* -889* -470* 212* -677* -258* OCC -1421* -13033* -2015* 1421* -11612* -594 GFI -999* -10994* -1478* 999* -9995* -479 FNVA 3* 8* 0 -3* 5* -3* UAA -17* -40* -26* 17* -23* -9* ESU -.35* -.84* -.68* .35* -.49* 0 AWU *. The mean difference is significant at the 0.05 level. Org Low Med Org Low Med High 750* 197* 889* 13033* 10994* -8* 40* .84* 575* 154* 677* 11612* 9995* -5* 23* .49* 599* 193* 419* 11018* 9516* -8* 14* 0 151* 4 470* 2015* 1478* 0 26* .68* -24 -39* 258* 594 479 3* 9* 0 -599* -193* -419* -11018* -9516* 8* -14* 0 Categorising CP cost level groups into EU regions showed that Western region conventional holdings had significantly higher CP costs than other regions, but that ORG regional differences were not significant. Profitability (FNVA) for conventional farms was highest in the Western region for all CP cost levels. The difference was largest for the HCP group, but also large for the LCP group, whilst Eastern ORG farms were more profitable but not significantly, probably due to a smaller sample and large variability. 37 Table 38 WINE ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions EU region comparison Variable CP level East South CP per ha South West LCP MCP HCP ORG LCP MCP HCP ORG 2 -4 -10 -44* -164* -443* -120 -101 -199 -5925* Net value -206 -885* added -3839* -21304* 1922 1985 *. The mean difference is significant at the 0.05 level. East -2 10 164* 120 199 206 3839* -1922 West West East -5* -34* -279* 18 -5727* -680* -17465* 63 4 44* 443* 101 5925* 885* 21304* -1985 South 5* 34* 279* -18 5727* 680* 17465* -63 Correlations shown below, indicate that fertiliser, other crop costs and profitability were correlated with CP costs in Southern and Western regions but poorly correlated in Eastern areas (possibly due to a smaller sample size). Land area, economic size and labour input were poorly correlated except for the Western region. Table 39 WINE correlations of CP/ha with other variables in EU regions Fert CP level EU reg LCP Other crop costs Net value added East .433** 0.04 0.14 North nd nd nd South .109** .076** .146** West -.521** -.133* -.598** MCP East .126* -0.05 -0.06 North nd nd nd South .200** .104** .166** West .076** .142** .124** HCP East .293** 0.11 0.09 North nd nd nd South .126** .098** .184** West .468** -.108** .641** ORG East a a a North nd nd nd South .512** 0.01 .232** West .592** .370** .423** **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 Gross farm inc. -0.08 nd .201** -.603** -0.06 nd .220** .147** 0.08 nd .228** .654** a nd .251** .445** Wheat Yield (t/ha) a nd .617** -0.04 .479** nd .197** .221** nd nd -0.04 -0.14 nd nd a 0.05 Land area Econ. Size 0.05 nd -.198** .265** 0.00 nd -.100** -.144** -0.01 nd -0.04 -.359** 0.32 nd -0.10 -0.14 0.09 nd 0.00 0.08 0.03 nd 0.02 .073** 0.03 nd 0.00 -.052** 0.34 nd 0.08 0.06 Labour 0.01 nd 0.00 0.03 -0.03 nd .040** .099** 0.05 nd 0.03 -.059** 0.46 nd 0.05 0.16 2.2.8 Orchards (ORCH) ORCH CP costs varied substantially between an average of €40/ha on LCP holdings and €843/ha on HCP farms, with ORG and MCP holdings at €242/ha and €255/ha respectively. As with some other farm type’s fertiliser costs were higher than CP costs on LCP holdings but lower than CP costs on HCP holdings. Other crop costs varied considerably both between and within ORCH holding groups. Northern holdings within MCP and HCP groups had particularly high other crop costs. 38 Table 40 ORCH crop inputs (€ per hectare) CP level LCP MCP HCP ORG EU region CP mean Fert. sd mean Other Crop Costs sd mean sd n All EU East 40 29 140 200 30 161 3174 49 26 66 54 27 195 532 North 26 24 31 32 39 98 115 South 39 30 153 214 21 106 2419 West 36 33 109 95 384 645 108 All EU East 255 112 251 210 72 226 6436 251 106 123 94 59 179 1538 North 255 111 73 86 1310 1978 167 South 255 113 284 219 65 166 4030 West 279 115 140 106 172 359 701 All EU East 843 414 412 530 236 785 4692 708 221 175 170 84 188 347 North 812 269 126 138 4167 4445 104 South 849 431 461 569 163 566 3005 West 906 364 203 149 773 1224 1236 All EU East 242 272 368 457 94 422 553 51 107 28 46 14 43 19 North 1 1 3 16 12 23 34 South 253 269 406 470 64 332 439 West 282 352 155 241 651 1054 61 ORCH holding profitability, indicated by GFI and FNVA per hectare generally increased with higher levels of CP costs, though there was considerable variation within each CP cost group. The highest average profitability group was Western ORG holdings, though the ORG average farm profitability was between LCP and MCP conventional holding averages. Table 41 ORCH profitability and wheat yield (€/ha and t/ha) CP level LCP MCP HCP EU region All EU East North South West All EU East North South West All EU East North South West Gross Farm Inc. mean 3150 1134 892 3452 4777 4948 2039 2727 5598 3986 7157 2775 5181 7434 8455 sd 3607 1130 1033 3703 5473 3951 1611 3793 4015 3808 5545 2545 3522 5530 5886 Net Value Added mean 2630 676 678 2925 4020 4174 1139 2259 4862 2918 5767 1542 4134 6087 6558 Wheat yield (t) sd n 3544 1076 987 3655 5129 4037 1548 3735 4117 3322 5161 2326 3460 5138 5525 3174 532 115 2419 108 6436 1538 167 4030 701 4692 347 104 3005 1236 mean 3.9 4.0 a 3.8 4.1 4.3 3.9 7.3 4.1 5.5 6.2 a a 6.3 6.2 sd n 2.5 1.2 a 4.0 1.5 1.6 1.0 2.0 1.5 2.1 1.8 a a 1.6 2.3 238 141 11 60 26 545 192 25 178 150 245 8 2 144 91 39 ORG All EU 4147 4091 East 1394 1290 North 521 543 South 4066 3386 West 8721 9257 a. Data not shown as sample <15 3510 982 239 3475 7078 3679 1357 511 3148 7939 553 19 34 439 61 4.1 a a 4.4 3.8 1.4 a a 1.7 1.0 39 2 3 18 16 The ORG holdings were again the largest in terms of land area, though the HCP group were the largest economically. Northern and Western HCP farms were larger physically, economically and in labour requirement per farm than other regions. Table 42 ORCH area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level LCP MCP HCP ORG EU region Land area mean All EU East North South West All EU East North South West All EU East North South West All EU East North South West Econ. Size sd 11 10 25 10 23 6 9 40 4 25 6 8 34 5 20 12 9 27 10 33 mean 26 23 34 26 34 12 14 61 8 28 11 12 51 8 17 22 17 36 15 63 17 7 18 18 41 17 8 83 15 83 33 9 129 25 122 27 8 24 24 81 Labour sd mean 65 15 27 70 42 39 15 130 30 113 61 16 210 46 98 49 14 28 40 119 1.1 1.5 1.3 1.1 1.7 1.4 2.2 4.1 1.1 3.3 1.9 2.5 7.5 1.5 5.2 1.5 1.0 1.6 1.4 3.2 sd n 1.0 1.8 2.2 0.8 1.1 1.5 2.4 7.6 0.8 3.4 2.4 2.4 11.4 1.2 4.8 1.8 0.9 2.0 1.5 4.4 3174 532 115 2419 108 6436 1538 167 4030 701 4692 347 104 3005 1236 553 19 34 439 61 ANOVA analysis tested for differences between CP cost groups, confirming that the HCP group had significantly higher CP costs and the LCP group had significantly lower costs, whilst the MCP and ORG groups were similar. Fertiliser and other crop costs followed a similar pattern though ORG and HCP fertiliser costs were not significantly different. The profitability of all groups was significantly different. The analysis of farm physical size identified LCP and ORG to be similar and MCP and HCP holdings to be similar but the two groups being significantly different to each other. Economically LCP and MCP groups were of similar size but HCP and ORG were significantly greater. Labour input was similar for ORG and MCP holdings but significantly different for LCP and HCP holdings. Table 43 ORCH ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor CP Fert OCC Low Med Med High Org -216* -112* -42* -803* -272* -206* -202* -228* -64* Low 216* 112* 42* High High Org -588* -160* -164* 14 -116* -22 Low 803* 272* 206* Med 588* 160* 164* Org Org 602* 44 142* Low Med High 202* 228* 64* -14 116* 22 -602* -44 -142* 40 -1798* -4007* -998* 1798* -2209* 801* GFI -1543* -3137* -879* 1543* -1593* 664* FNVA 5* 4* -1 -5* 0 -6* UAA 1 -16* -9* 0 -17* -10* ESU -.25* -.80* -.37* .25* -.55* 0 AWU *. The mean difference is significant at the 0.05 level. 4007* 3137* -4* 16* .80* 2209* 1593* 0 17* .55* 3009* 2257* -5* 7* .42* 998* 879* 1 9* .37* -801* -664* 6* 10* 0 -3009* -2257* 5* -7* -.42* Table 44 indicates differences in CP costs and profitability of farms differing by CP cost level and EU region. CP costs varied across regions with the Eastern region significantly lower than most other regions and Western region holdings having significantly higher CP costs than others. Profitability for LCP and HCP holdings was significantly higher in Western and Southern regions, whilst for MCP holdings Southern holdings were significantly more profitable, and the Western ORG group was significantly more profitable than other ORG regions. Table 44 ORCH ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions EU region comparison Variable CP per ha Net value added CP level LCP MCP HCP ORG LCP MCP HCP ORG East North South 22* -4 North West East South 10* 13* -22* -4 -28* 4 -103* -141* -198* 103* 50 -203* -231* -50 -3 -2249* -3344* 3 -2246* -1120* -3724* -1779* 1120* -2592* -4545* -5016* 2592* 743 -2493* -6097* -743 South West East North -12* -9 -10* 0 -24 4 -37 -94* -253* -281* West West East North South 12* 3 -13* 9 -3 0 -24* 28* 24 24* 141* 37 -57* 198* 94* 57* 203* 253* -28 231* 281* 28 -3341* 2249* 2246* -1095 3344* 3341* 1095 -2603* -659 3724* 2603* 1945* 1779* 659 -1945* -1953* -2424* 4545* 1953* -471 5016* 2424* 471 -3236* -6840* 2493* 3236* -3604* 6097* 6840* 3604* *. The mean difference is significant at the 0.05 level. Correlations in Table 45 were variable, but strongest for fertiliser and other crop costs. Profitability correlations identified a general increase as CP costs increased, but a strong negative correlation with profitability was identified in Western region LCP holdings. Land area and economic size were poorly correlated but labour input was strongly correlated for a few regions. Table 45 ORCH correlations of CP/ha with other variables in EU regions CP level EU reg LCP East North South West East North South West East North South West East North South MCP HCP ORG Fert Other crop costs Net value added Gross farm inc. 0.06 .378** 0.03 -0.08 .096** .233** .201** 0.02 0.07 .262** .472** .291** .598** 0.06 .628** 0.00 .224* .059** -.475** .050* .429** .128** .195** 0.06 .357** -0.02 .230** .507* -0.18 0.04 -0.06 -0.04 .312** -.527** .184** .234** .042** .292** -0.01 .285** .320** .186** 0.06 0.11 .482** 0.00 -0.02 .329** -.519** .258** .255** .050** .308** 0.04 .301** .372** .241** 0.09 -0.01 .448** Wheat Yield (t/ha) 0.07 a 0.04 0.24 0.07 0.09 0.02 .290** a a -0.16 -0.01 a .a 0.36 Land area -0.04 0.07 -.112** .213* -0.05 0.08 -0.03 -0.03 0.02 -0.14 -0.03 -.075** 0.19 0.09 -.242** Econ. Size 0.01 .311** -0.02 0.02 0.00 .198* 0.01 .165** 0.06 -0.12 .081** .096** 0.39 -0.30 0.05 Labour -0.02 0.04 .057** 0.06 .077** .224** .102** .291** 0.07 -0.06 .096** .091** 0.26 .554** .197** 41 West .519** -0.08 .274* **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 .313* 0.49 -0.24 -0.06 0.18 2.2.9 Olives (OLIVE) OLIVE farms were nearly all situated in the Southern EU region, so comparisons between regions were impossible, however within the Southern region there was a wide range of CP costs. CP usage ranged from a LCP average of €9/ha through to €219/ha in the HCP group. Fertiliser and other crop costs were less variable, though the ORG group had high average other crop costs. Table 46 OLIVE crop inputs (€ per hectare) CP level EU region CP mean Other Crop Costs Fert. mean sd LCP All EU 9 8 South 9 8 West a a MCP All EU 61 27 South 61 27 West a a HCP South 219 100 ORG South 38 47 a. Data not shown as sample <15 sd 72 72 a 116 116 a 189 103 mean 73 73 a 90 90 a 130 106 39 39 a 80 80 a 62 148 sd n 94 94 a 176 176 a 190 192 1710 1708 2 3309 3307 2 894 420 OLIVE farm type profitability increased with higher expenditure on CP, but ORG was as profitable as MCP and HCP groups but had lower CP costs. Table 47 OLIVE profitability and wheat yield (€/ha and t/ha) CP level EU region Gross Farm Inc. mean Net Value Added mean sd LCP All EU 1766 1495 South 1766 1495 West a a MCP All EU 2632 1842 South 2632 1842 West a a HCP South 2893 1730 ORG South 2902 1792 a. Data not shown as sample <15 1473 1473 a 2298 2298 a 2522 2364 Wheat yield (t) sd n mean 1434 1434 a 1767 1767 a 1663 1596 1710 1708 2 3309 3307 2 894 420 sd 3.4 3.4 nd 5.4 5.4 nd a a 1.3 1.3 nd 2.5 2.5 nd a a n 39 39 0 41 41 0 6 3 The ORG farms were the largest physically and economically, though HCP farms required more labour. Table 48 OLIVE area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level LCP MCP EU region All EU South West All EU Land area mean 10 10 a 9 Econ. Size sd 22 22 a 22 mean 10 10 a 16 Labour sd 27 27 a 37 mean 1.0 1.0 a 1.2 sd 0.6 0.6 a 0.7 n 1710 1708 2 3309 42 South 9 22 West a a HCP South 6 14 ORG South 12 21 a. Data not shown as sample <15 16 a 11 19 37 a 19 33 1.2 a 1.4 1.2 0.7 a 0.7 1.1 3307 2 894 420 ANOVA analysis of OLIVE farms confirmed CP costs of the different groups to be statistically different. Fertiliser costs were similar for MCP and ORG groups, whilst ORG other crop costs were significantly higher than all other groups. Gross Farm Income was significantly higher for ORG and HCP farms though Farm Net Value Added was similar for MCP, HCP and ORG farms. HCP farms were significantly smaller physically than other groups and smaller economically than ORG and MCP holdings, but had significantly higher labour requirements than other groups. Table 49 OLIVE ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med Med High Org Low High High Org CP -52* -210* -30* 52* -158* 23* Fert -44* -117* -31* 44* -73* 13 OCC -41* -23* -109* 41* 18 -68* GFI -866* -1127* -1136* 866* -261* -270* FNVA -825* -1049* -891* 825* -224* -66 UAA 1 4* -2 0 3* -3 ESU -5* 0 -9* 5* 5* -3 AWU -.16* -.36* -.19* .16* -.19* 0 *. The mean difference is significant at the 0.05 level. Org Low Med Org Low Med High 210* 117* 23* 1127* 1049* -4* 1 .36* 158* 73* -18 261* 224* -3* -5* .19* 180* 86* -86* -9 158 -6* -8* .17* 30* 31* 109* 1136* 891* 2 9* .19* -23* -13 68* 270* 66 3 3 0 -180* -86* 86* 9 -158 6* 8* -.17* 2.2.10 Other Permanent Crops (PERM) PERM type holdings exhibited a wide range in CP costs per hectare, possibly reflecting the nonspecialisation of this sector that was mainly situated with the Southern EU region. Average PERM holding CP costs ranged from €14/ha for LCP holdings to €552/ha for HCP holdings and were highest at €1953/ha for Northern HCP holdings. Fertiliser costs were also wide ranging and very high for Northern HCP farms, as were other crop costs too. ORG holding data indicates that their costs were similar to the MCP group. Table 50 PERM crop inputs (€ per hectare) CP level LCP MCP HCP EU region All EU East North South West All EU East North South West All EU East CP mean 14 15 6 15 4 98 104 84 97 120 552 474 Fert. sd 11 13 9 11 8 45 45 41 44 45 1006 276 mean 128 73 489 108 1082 169 123 370 158 654 698 724 Other Crop Costs sd 1734 68 1651 1728 2388 362 102 790 141 2078 2277 845 mean 236 103 1451 140 4972 156 167 1774 113 1559 2311 1625 sd n 2974 514 3708 2766 7361 1029 689 4913 755 4012 10665 2301 1864 55 88 1639 82 3492 185 107 2964 236 2972 106 43 North 1953 3324 South 494 641 West 811 1981 ORG All EU 85 134 East a a North a a South 87 136 West a a a. Data not shown as sample <15 7487 464 1507 273 a a 280 a 10207 1380 3224 3438 a a 3501 a 19977 1245 7833 416 a a 418 a 22827 9431 13712 4330 a a 4409 a 160 2208 498 231 5 2 218 6 There was a large range in profitability though in general, profitability increased with CP expenditure. The Northern and Western HCP holdings had the highest profit reflecting their higher expenditure on CP and other crop costs. Table 51 PERM profitability and wheat yield (€/ha and t/ha) CP level EU region Gross Farm Inc. mean sd LCP All EU 3819 28235 East 2590 4658 North 13145 40222 South 3125 27642 West 37914 40654 MCP All EU 3178 5611 East 1962 2474 North 8473 16512 South 2979 3074 West 12763 28278 HCP All EU 15458 229805 East 9362 14243 North 86491 104758 South 11753 249573 West 34346 48873 ORG All EU 5830 46206 East a a North a a South 5985 47055 West a a a. Data not shown as sample <15 Net Value Added Wheat yield (t) mean sd n mean 3357 1814 11756 2761 32887 2575 1417 7607 2413 10623 12943 7592 76761 9849 28216 5181 a a 5354 a 26444 3986 38823 25961 36990 4977 2436 15915 2920 24242 229011 13741 98808 249008 41660 45600 a a 46436 a 1864 55 88 1639 82 3492 185 107 2964 236 2972 106 160 2208 498 231 5 2 218 6 3.2 4.0 a 3.1 a 3.9 4.2 6.2 3.5 5.2 6.0 a a 5.9 6.7 1.6 nd a nd a sd n 1.8 1.1 a 1.8 a 1.3 1.1 1.1 1.3 1.4 1.8 a a 1.6 2.2 1.5 nd a nd a 131 21 2 104 4 337 82 17 193 45 240 8 2 188 42 12 0 1 0 11 ORG farms were the largest physically but Northern MCP holdings were the largest regional group at 93ha. These farms were also the largest economically, though between CP cost groups the HCP farms were the largest. Labour requirements were highest on the Northern HCP and MCP holdings. Table 52 PERM area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level LCP EU region All EU East North South West Land area mean 13 15 23 13 10 Econ. Size sd 19 51 24 17 31 mean 15 22 69 13 119 sd 38 56 107 19 201 Labour mean 1.3 2.1 3.4 1.2 3.7 sd 1.7 3.7 4.5 1.5 4.1 n 1864 55 88 1639 82 44 MCP HCP ORG All EU East North South West All EU East North South West All EU East North South West 8 10 93 7 19 6 8 8 5 11 15 a a 15 a 20 37 233 13 21 13 20 16 13 16 26 a a 22 a 19 15 749 15 133 39 19 125 26 125 23 a a 23 a 106 69 1646 35 195 133 35 221 115 202 38 a a 38 a 1.3 2.2 4.8 1.2 2.8 2.0 3.6 9.8 1.6 3.6 1.7 a a 1.7 a 2.3 8.4 7.3 1.0 2.8 3.3 10.5 11.5 1.9 3.3 2.8 a a 2.8 a 3492 185 107 2964 236 2972 106 160 2208 498 231 5 2 218 6 a. Data not shown as sample <15 ANOVA analysis identified that HCP holdings had significantly higher CP and other crop costs, whilst ORG and MCP groups had similar costs. HCP fertiliser costs were also significantly higher than LCP and MCP groups but not statistically different to ORG holdings. HCP Gross Farm Income was significantly higher than LCP and MCP groups but Farm Added Net Value was not statistically different to others. HCP farms were significantly smaller physically but also larger economically than others. Table 53 PERM ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med High Med Org Low High CP -83* -538* -71* 83* -455* Fert -41 -570* -145 41 -529* OCC 81 -2074* -180 -81 -2155* GFI 641 -11639* -2011 -641 -12280* FNVA 783 -9586 -1824 -783 -10369 UAA 5* 7* -2 -5* 2* ESU -4 -24* -8* 4 -20* AWU -0.02 -0.66* -0.35 0.02 -0.64* *. The mean difference is significant at the 0.05 level. High Org Org Low Med Org Low Med High 12 -104 -261 -2652 -2607 -7* -4 -0.33 538* 570* 2074* 11639* 9586 -7* 24* 0.66* 455* 529* 2155* 12280* 10369 -2* 20* 0.64* 467* 426 1895* 9628 7762 -9* 16* 0.32 71* 145 180 2011 1824 2 8* 0.35 -12 104 261 2652 2607 7* 4 0.33 -467* -426 -1895* -9628 -7762 9* -16* -0.32 ANOVA analysis identified significant regional variations in CP costs and profitability. Within the LCP group, Western region holding CP costs were significantly lower and profitability was significantly higher than other areas. For the MCP group the Western region group CP costs were significantly higher and profitability was higher than other regions. Within the HCP group the Northern region had significantly higher CP costs and profitability than other regions. The Southern and Eastern ORG groups had the highest CP costs but there were no significant differences between profitability of regions despite a large variation in average figures. 45 Table 54 PERM ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions EU region comparison Variable CP per ha Net value added CP level LCP MCP HCP ORG LCP MCP HCP ORG East North North South West 9* 0 11* East South -9* -9* South West 2 West East North West 0 9* 10* East North South -2 -10* -11* 20* 7 -16* -20* -13* -36* -7 13* -23* 16* 36* 23* -1479* -19 -337* 1479* 1460* 1143* 19 -1460* -317* 337* -1143* 317* 86 2 85 -86 -84* -1 -2 84* 83* -85 1 -83* -9942 -946 -31073* 9942 8996 -21131* 946 -8996 -30127* 31073* 21131* 30127* -6190* -996* -9205* 6190* 5194* -3015 996* -5194* -8209* 9205* 3015 8209* -69168* -2256 -20623* 69168* 66912* 48545* 2256 -66912* -18367* 20623* -48545* 18367* 174 -5008 -321 -174 -5181 -495 5008 5181 4686 321 495 -4686 *. The mean difference is significant at the 0.05 level. Correlations between CP costs and other variables are shown in Table 55 below. The best correlations were found to be within the HCP group for fertiliser, other crop costs and profitability measures, confirming the strong link between CP costs and profitability for the highest users of CP products. The ORG Southern group also showed strong correlations between CP costs and profitability indicating their greater use to increase profits, even though ORG farms would only be using organic approved CP products. Table 55 PERM correlations of CP/ha with other variables in EU regions Fert CP level EU reg LCP East North South West East North South West East North South West East North South West MCP HCP ORG .303* -0.11 -0.02 -0.10 0.14 0.14 .292** -0.08 .743** .632** .636** .348** a a .312** a Other crop costs -0.05 -0.11 -0.05 -.266* 0.05 0.08 0.01 -0.03 .794** .568** .537** .508** a a .403** a Net value added Gross farm inc. Wheat Yield (t/ha) Land area -0.16 -0.14 -.050* -.287** 0.12 0.11 0.03 -0.05 .627** .642** .065** .296** a a .413** a -0.17 -0.14 -0.05 -.291** 0.08 0.12 .054** -0.06 .657** .646** .081** .457** a a .415** a .518* 1.000** .360** .983* 0.17 0.13 .208** 0.03 0.01 -1.000** .144* 0.00 a a nd nd 0.07 0.16 -.243** -0.02 0.00 -.204* -.040* 0.01 -0.17 -0.15 0.00 -.127** a a -0.09 a Econ. Size 0.01 .257* -0.02 -0.05 0.02 -0.15 0.03 0.01 -0.04 -0.12 .098** -0.07 a a .256** a Labour 0.12 0.12 -.087** -0.18 0.03 0.17 -.038* -0.03 0.04 0.10 .248** 0.07 a a .400** a **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 2.2.11 Mixed Cropping (MIXED) MIXED farm type holding CP costs were less variable than some of the other types but still varied between €6/ha and €328/ha. Fertiliser and other crop costs also varied considerably both between and within CP cost groups. The Western region LCP group had low CP costs but high fertiliser and other crop costs compared to the other regions. 46 Table 56 MIXED crop inputs (€ per hectare) CP level LCP MCP HCP ORG EU region All EU East North South West All EU East North South West All EU East North South West All EU East North South West CP mean 6 7 6 5 5 53 48 48 55 76 328 271 252 351 252 25 12 2 39 20 Fert. sd 6 6 5 5 5 27 25 30 27 26 335 366 260 343 199 66 24 6 88 55 mean 52 38 23 65 179 99 79 82 115 108 295 157 214 331 231 65 41 10 97 43 Other Crop Costs sd mean 183 33 26 218 1089 83 46 57 102 67 436 152 753 413 675 212 62 20 297 70 46 4 6 80 414 35 26 30 43 37 214 237 436 209 203 39 12 21 56 60 sd n 2125 25 22 2914 4522 214 110 59 271 246 1385 1042 1782 1467 1102 135 35 65 176 143 3282 737 342 2150 53 8728 3193 345 4145 1045 5345 481 171 3571 1122 642 133 85 333 91 Profitability was over four times higher for HCP than LCP holdings, though there was considerable variation within each group, particularly within the Western region. Overall, Southern HCP MIXED farms were the most profitable, though Northern region HCP farms achieved the highest wheat yield at 7.4t/ha. ORG farm profitability was between LCP and MCP levels with an average wheat yield of 3.2t/ha. Table 57 MIXED profitability and wheat yield (€/ha and t/ha) CP level LCP MCP HCP ORG EU region All EU East North South West All EU East North South West All EU East North South West All EU East North Gross Farm Inc. Net Value Added Wheat yield (t) mean sd mean sd n 1259 464 326 1989 2898 1924 811 855 2941 1146 4941 3376 2857 5518 3129 1569 1150 636 14913 473 421 20702 12556 3132 870 827 3997 1789 10085 5069 10081 10690 10032 2927 1058 734 1025 264 234 1716 2320 1542 505 605 2489 813 4072 2823 2399 4584 2275 1235 911 391 14229 503 410 19764 10325 2979 660 749 3845 1566 9227 4904 9246 10018 7031 2541 950 709 3282 737 342 2150 53 8728 3193 345 4145 1045 5345 481 171 3571 1122 642 133 85 mean 2.9 2.8 2.9 3.1 4.2 4.1 3.9 5.2 4.3 5.8 5.4 3.6 7.4 5.4 6.6 3.2 2.8 2.7 sd n 1.8 1.3 1.2 2.9 1.6 1.5 1.3 2.1 1.6 1.6 2.1 1.4 1.6 2.0 1.8 1.6 1.2 1.7 1238 468 207 529 34 4562 2595 226 879 862 1866 254 109 663 840 234 62 38 47 South West 2017 1578 4007 1633 1611 1199 3466 1505 333 91 4.0 3.7 2.1 1.6 62 72 The average ORG farm was physically larger than the other groups, though Northern HCP and Western MCP farms were the largest individual groups. Economically, Northern and Western farms were the largest and also had the greatest labour requirements. Table 58 MIXED area, economic size and labour input (UAA ha, ESU/farm, AWU/farm) CP level LCP MCP HCP ORG EU region Land area mean All EU East North South West All EU East North South West All EU East North South West All EU East North South West 21 10 33 27 49 21 21 59 14 84 16 16 89 8 63 30 13 40 37 44 sd 37 29 44 41 38 126 173 103 31 221 67 134 200 25 88 67 81 44 57 67 Econ. Size mean 10 4 6 15 32 16 10 42 15 80 29 11 138 21 98 21 5 21 28 42 Labour sd mean 20 16 11 23 25 78 93 78 31 185 109 85 225 108 97 54 12 37 70 47 1.5 1.6 1.7 1.3 1.7 1.7 2.0 2.0 1.4 2.3 1.9 2.6 3.8 1.6 2.6 1.8 2.1 1.7 1.7 1.8 sd n 1.6 1.7 1.4 1.5 0.9 5.0 7.2 7.7 1.0 5.1 5.3 6.6 7.5 5.3 2.9 1.7 1.9 1.1 1.7 1.3 3282 737 342 2150 53 8728 3193 345 4145 1045 5345 481 171 3571 1122 642 133 85 333 91 ANOVA analysis highlighted that CP costs were significantly different between CP cost groups and that the HCP group had significantly higher fertiliser and other crop costs that other groups. LCP and ORG groups were similar for fertiliser costs and LCP, MCP and ORG groups were similar for other crop costs. Profitability was significantly higher for the HCP group, but statistically similar for LCP and ORG groups and MCP and LCP groups. Physically, ORG farms were significantly larger and HCP holdings were significantly smaller, but HCP farms were significantly larger economically. MCP, HCP and ORG farms required significantly more labour input than LCP farms. Table 59 MIXED ANOVA analysis of inputs, profitability and fixed factors at different CP input levels CP Level comparison Factor Low Med CP Fert OCC GFI FNVA UAA ESU -47* -47* 11 -665 -518 0 -7* High -322* -243* -168* -3683* -3047* 5* -20* Med Org -19* -13 7 -310 -210 -9* -12* Low 47* 47* -11 665 518 0 7* High Org High Org Low Med Org -275* -196* -179* -3017* -2529* 5* -13* 28* 34* -4 355* 308* -9* -5 322* 243* 168* 3683* 3047* -5* 20* 275* 196* 179* 3017* 2529* -5* 13* 303* 230* 175* 3372* 2837* -14* 8* Low 19* 13 -7 310 210 9* 12* Med High -28* -34* 4 -355* -308* 9* 5 -303* -230* -175* -3372* -2837* 14* -8* 48 AWU -0.21* -0.42* -0.37* 0.21* *. The mean difference is significant at the 0.05 level. -0.21 -0.15 0.42* 0.21 0.05 0.37* 0.15 -0.05 ANOVA analysis of regional variations in CP costs identified a mixed pattern. Within the LCP group Eastern farms had significantly higher CP costs, but with the MCP group the Western region CP costs were higher and the within the HCP group Southern farms had significantly higher CP costs. Northern ORG farms had significantly lower CP costs. Profitability was highest for Western region LCP farms, but not significantly, but Southern MCP and HCP farms were significantly more profitable than other regions. Low CP costs for Northern ORG farms are reflected in significantly lower profitability, with Southern ORG farms the most profitable. Table 60 MIXED ANOVA analysis of differences in CP input and profitability (FNVA) at different CP input levels across EU regions EU region comparison Variable CP per ha Net value added CP level East North South West North South West East South West East North West East North South 2* 0 18 9* 30 -100 424 519* 2* -7* -80* -27* -1453* -1983* -1760* -700* 3* -28* 19 -9 -2056 -308* 548 -288 -2* 0 -18 -9* -30 100 -424 -519* 0 -7* -98* -36* -1482* -1883* -2185* -1220* 1 -28* 1 -18* -2086 -208* 124 -808* -2* 7* 80* 27* 1453* 1983* 1760* 700* 0 7* 98* 36* 1482* 1883* 2185* 1220* 1 -21* 99* 18 -603 1676* 2309* 412 -3* 28* -19 9 2056 308* -548 288 -1 28* -1 18* 2086 208* -124 808* -1 21* -99* -18 603 -1676* -2309* -412 LCP MCP HCP ORG LCP MCP HCP ORG *. The mean difference is significant at the 0.05 level. MIXED farm type fertiliser and other crop costs were closely correlated to CP costs. Due to greater expenditure on inputs, profitability was also closely correlated for the HCP group. Wheat yield was correlated for some groups, but generally wheat yield, land area, economic size and labour input were poorly correlated. Table 61 MIXED correlations of CP/ha with other variables in EU regions Fert CP level EU reg LCP East North South West East North South West East North South West East North South MCP HCP ORG Other crop costs Net value added Gross farm inc. Wheat Yield (t/ha) Land area Econ. Size Labour .451** .381** -.058** -0.12 .084* .115* -0.02 -0.08 .254** -0.02 -.043* -0.14 .160** 0.07 -0.04 -0.14 .326** .265** 0.01 .401* 0.05 0.05 -.047* 0.15 0.03 .129* 0.03 0.16 0.06 0.00 -.081** 0.15 .479** .288** .254** .135** .185** .361** .087** 0.03 .179** .129* .057** 0.04 .328** .160** .072** 0.02 .102** .631** .115** .238** .054** .132* -0.01 0.01 .063** .388** .065** .064* .073** 0.02 .084** 0.02 .398** .236** .717** .389** .622** .356** .393** .329** .637** .352** .483** .509** .707** .357** .506** .498** 0.03 0.13 -.160** .133** -0.03 -0.09 -.065** -.193** -0.03 0.01 0.02 0.00 0.02 0.14 .060** .144** .548** .693** .272** 0.12 0.02 .191** .186* 0.03 .250** 0.16 0.14 .244** 0.17 -0.25 .388** 0.01 -0.03 0.00 0.06 0.07 .384** 0.09 -0.14 .305** 49 West .417** 0.09 0.02 0.01 .616** 0.15 .451** -0.04 **. Correlation is significant at the 0.01 level (2-tailed) *. Correlation is significant at the 0.05 level (2-tailed) a. Data not shown as sample <15 2.2.12 Whole farm data summary To summarise the findings of this section: Horticulture CP costs were much higher than any other farm type, as was profitability Permanent crop types such as Wine and Orchards also had high CP costs and farm profitability, Cereal farms had the lowest CP cost and profitability Across the EU, Western EU holdings had the highest CP costs Fertiliser costs were the most closely correlated to CP costs across all farm types Profitability of the high CP cost holdings was higher than lower input groups 50 2.3 Analysis of national farm survey data for UK and Netherlands National farm survey data was available to the TEAMPEST project in the UK and the Netherlands. There was sufficient data available to allow for analysis to be carried out on a number of different crop enterprises in each country, whilst ensuring groups were large enough for data publication after splitting into varying CP cost level groups. The national data was also used for the Farmer Focus groups carried out within Task 7.4. UK data, originally in Pounds (£) was converted to Euros (€) at the official EU (2010) currency conversion for each year to make data easier to understand in the European context, though differences in data collection techniques mean that enterprise data is not directly comparable between countries. 2.3.1 Winter Wheat (UK) UK Winter Wheat crop data indicated a significant variation in conventional CP costs, whilst fertiliser and other crop costs showed less variability. Organic seed costs were approximately twice as high as conventional costs, reflecting the higher output price of organic cereals. Overall, total variable costs and yields, (shown in Table 63) were significantly different between groups, with HCP farms the highest and organic farms the lowest. However, due to the high price of organic grains, the organic holdings had the highest Gross Margin (GM, enterprise output minus direct enterprise variable costs) and Net Margin (NM, enterprise output minus direct and indirect enterprise costs), despite the highest fixed costs. ANOVA analysis highlighted ORG farm profitability to be significantly higher than HCP farms but no different to LCP and MCP holdings. Table 62 UK Winter Wheat enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fertiliser Seeds Other Crop Costs Yield Gross Margin Fixed Costs Net Margin n 100 138 59 36 6.9 852 894 -117 MCP sd 31 67 27 62 1.8 366 294 413 142 mean 168 154 64 30 7.8 883 856 -83 HCP sd 19 69 23 47 1.5 368 279 403 mean 247 177 73 47 8.2 814 898 -184 286 ORG sd mean sd 44 71 30 78 1.6 369 366 514 3 14 120 23 4.1 1125 1029 12 16 42 57 39 1.6 540 349 451 142 76 Table 63 UK Winter Wheat ANOVA analysis at varying CP Level CP Level LCP Indicator MCP HCP MCP ORG LCP CP -68* -147* 96* 68* Fertiliser -16 -39* 123* 16 Seeds -6 -14* -61* 6 Other Crops Costs 6 -12 13 -6 Total Variable Costs -89* -219* 168* 89* Yield 0* -1* 3* 1* GM -31 38 -273* 31 Mach & Cont. 31 -1 -113* -31 Total Fixed Costs 38 -4 -135* -38 Net Margin -35 67 -130 35 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -79* -23* -8* -18 -130* 0* 69 -31 -41 102 165* 139* -56* 6 257* 4* -242* -144* -173* -95 147* 39* 14* 12 219* 1* -38 1 4 -67 79* 23* 8* 18 130* 0* -69 31 41 -102 243* 163* -48* 24* 387* 4* -311* -112* -131 -197* -96* -123* 61* -13 -168* -3* 273* 113* 135* 130 -165* -139* 56* -6 -257* -4* 242* 144* 173* 95 -243* -163* 48* -24* -387* -4* 311* 112* 131 197* 51 2.3.2 Spring Barley (UK) UK Spring Barley data also indicated a significant variation in conventional CP costs. Conventional farm fertiliser and seed costs showed less variability, with no difference in other crop costs between groups. Organic seed costs were significantly higher than conventional costs, whilst fertiliser and CP costs were significantly lower. Yield differences were less marked than for Winter Wheat, but were still significant, whilst GM was highest for ORG and MCP farms. Overall, ORG NM was significantly higher than HCP farms but not statistically higher than LCP and MCP holdings. Table 64 UK Spring Barley enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin Fixed Costs Net Margin n MCP sd 23 102 72 14 4.5 554 697 -190 69 mean 16 70 39 23 1.3 305 219 289 HCP sd 78 100 68 19 5.2 648 742 -175 139 19 49 27 34 1.3 324 243 318 mean 157 148 78 30 5.7 557 793 -337 69 ORG sd 48 94 27 47 1.5 344 316 417 mean 1 34 110 27 3.1 760 810 -108 49 sd 5 69 70 49 1.0 344 313 321 Table 65 UK Spring Barley ANOVA analysis at varying CP Level CP Level Indicator LCP MCP HCP MCP ORG LCP CP -55* -135* 22* 55* Fert 2 -46* 68* -2 Seeds 4 -5 -38* -4 Other Crops Costs -5 -16 -13 5 Total Variable Costs -55* -207* 36 55* Yield 0* -1* 1* 1* GM -94 -3 -206* 94 Mach & Cont. -13 -44 -70 13 Total Fixed Costs -45 -96 -113 45 Net Margin -15 147 -82 15 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -80* -48* -10 -11 -152* -0.5 91 -31 -51 162* 77* 66* -42* -8 90* 2* -112 -57 -68 -67 135* 46* 5 16 207* 1* 3 44 96 -147 80* 48* 10 11 152* 0.5 -91 31 51 -162* 156* 114* -33* 3 242* 3* -203* -26 -17 -229* -22* -68* 38* 13 -36 -1* 206* 70 113 82 -77* -66* 42* 8 -90* -2* 112 57 68 67 -156* -114* 33* -3 -242* -3* 203* 26 17 229* 2.3.3 Beans (UK) CP costs for beans were significantly different between groups, though fertiliser and other crop costs were similar. ORG seed costs were however significantly higher than the conventional holdings. Overall, ORG and LCP holdings had similar variable costs whilst MCP and HCP farms were significantly higher. Yields were similar between ORG and LCP holdings and LCP and MCP farms but statistically different between other groups. Fixed costs, including machinery and contracting charges were significantly higher for ORG holdings than conventional farms. Overall, there was no significant difference in UK Bean NM between the groups. Table 66 UK Beans enterprise analysis at varying CP Level Parameter (per hectare) CP Input Level LCP MCP HCP ORG 52 mean CP Fert Seeds Other Crop Costs Yield Gross Margin Fixed Costs Net Margin n sd 45 28 65 18 2.8 347 566 -254 32 mean 24 31 41 28 1.4 231 194 231 sd 103 33 62 13 3.4 387 595 -253 64 19 30 37 23 1.3 240 123 190 mean 179 26 81 40 4.2 469 622 -201 32 sd 38 34 40 76 1.6 350 213 364 mean sd 1 11 116 18 2.4 629 805 -241 55 4 44 54 33 1.2 439 284 346 Table 67 UK Beans ANOVA analysis at varying CP Level CP Level LCP Indicator MCP MCP HCP ORG LCP CP -59* -134* 44* 59* Fert -5 2 17 5 Seeds 3 -16 -51* -3 Other Crops Costs 5 -22 0 -5 Total Variable Costs -57* -172* 10 57* Yield -0.6 -1* 0.4 0.6 GM -40 -122 -282* 40 Mach & Cont. -3 -42 -207* 3 Total Fixed Costs -29 -57 -239* 29 Net Margin -1 -53 -13 1 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -76* 7 -19 -27 -114* -0.8 -82 -39 -27 -52 103* 22* -54* -5 68* 1* -242* -204* -210* -12 134* -2 16 22 172* 1* 122 42 57 53 76* -7 19 27 114* 0.8 82 39 27 52 178* 15 -35* 22 182* 2* -160 -165* -183* 40 -44* -17 51* 0 -10 -0.4 282* 207* 239* 13 -103* -22* 54* 5 -68* 0* 242* 204* 210* 12 -178* -15 35* -22 -182* -2* 160 165* 183* -40 2.3.4 Potatoes – Maincrop (UK) UK Potato CP costs varied significantly between groups, the HCP group costs over 3 times higher than the LCP group. Fertiliser costs were significantly lower for ORG holdings, whilst other variable costs were not significant (probably due to a small sample and large variability). ORG potato yield was significantly lower with no difference between the conventional groups, and overall, there was no significant difference in NM between the groups. Table 68 UK Potatoes enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin Fixed Costs Net Margin n 273 341 596 382 35.4 4702 2068 2282 10 MCP sd 123 102 207 247 9.6 1573 1056 1250 mean 552 528 766 240 31.6 3921 1962 1067 21 HCP sd 77 322 272 213 11.9 2169 1066 1561 mean 971 560 727 304 35.9 3948 2446 476 10 ORG sd 304 201 346 194 14.5 3047 1466 2646 mean 56 47 1723 301 15.1 4044 2570 291 20 sd 70 77 2282 309 10.0 5048 1579 3742 53 Table 69 UK Potatoes ANOVA analysis at varying CP Level CP Level Indicator LCP MCP MCP HCP ORG LCP CP -279* -698* 217* 279* Fert -187 -220 294* 187 Seeds -171 -131 -1128 171 Other Crops Costs 142 79 82 -142 Total Variable Costs -495* -970* -539 495* Yield 3.7 -0.5 20* -3.7 GM 780 754 658 -780 Mach & Cont. 277 8 -260 -277 Total Fixed Costs 106 -378 -502 -106 Net Margin 1215 1806 1991 -1215 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -419* -33 40 -63 -476 -4.3 -27 -268 -484 591 496* 481* -957 -60 -45 17* -122 -537* -608 776 698* 220 131 -79 970* 0.5 -754 -8 378 -1806 419* 33 -40 63 476 4.3 27 268 484 -591 915* 513* -997 3 431 21* -96 -268 -123 185 -217* -294* 1128 -82 539 -20* -658 260 502 -1991 -496* -481* 957 60 45 -17* 122 537* 608 -776 -915* -513* 997 -3 -431 -21* 96 268 123 -185 2.3.5 Sugar Beet (UK) CP costs for sugar beet were significantly different between groups, but other costs were statistically similar. LCP total variable costs were significantly lower than the HCP group but overall, yield and NM was similar between conventional farm groups (no ORG data was available). Table 70 UK Sugar Beet enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin Fixed Costs Net Margin n MCP sd mean 102 26 232 115 233 91 285 175 58.6 14.6 1185 543 780 246 28 509 HCP sd mean 182 23 165 97 202 58 373 208 58.5 12.9 1114 496 807 352 4 811 16 sd 265 192 208 411 59.6 1103 760 32 34 26 102 68 186 9.2 340 278 531 16 Table 71 UK Sugar Beet ANOVA analysis at varying CP Level CP Level Indicator LCP MCP CP Fert Seeds Other Crops Costs Total Variable Costs Yield GM Mach & Cont. Total Fixed Costs -80* 67 31 -88 -71 0.04 72 -41 -27 LCP MCP -163* 40 25 -126 -224* -0.98 83 -38 20 MCP 80* -67 -31 88 71 -0.04 -72 41 27 LCP MCP -83* -26 -6 -38 -153 -1.02 11 3 47 MCP 163* -40 -25 126 224* 0.98 -83 38 -20 MCP 83* 26 6 38 153 1.02 -11 -3 -47 54 Net Margin 24 -4 *. The mean difference is significant at the 0.05 level. -24 -28 4 28 2.3.6 Winter Oilseed Rape (UK) CP and total variable costs varied significantly between the groups, whilst fertiliser costs were significantly higher for the HCP group but similar for LCP and MCP groups. LCP and HCP yield and GM were significantly different, but overall NM was not statistically different between groups. Table 72 UK Winter Oilseed Rape enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) Low mean CP Fert Seeds Other Crop Costs Yield Gross Margin Fixed Costs Net Margin n 97 160 50 33 2.9 543 759 -310 55 Med sd 22 71 20 39 0.8 242 250 284 mean 156 161 50 22 3.2 604 745 -239 110 High sd mean 21 43 19 26 0.8 311 184 281 241 200 56 28 3.3 681 783 -227 55 sd 47 82 25 30 0.6 344 223 376 Table 73 UK Winter Oilseed Rape ANOVA analysis at varying CP Level CP Level Indicator LCP MCP MCP HCP LCP CP -58* -143* 58* Fert -1 -40* 1 Seeds 0 -6 0 Other Crops Costs 10 5 -10 Total Variable Costs -51* -187* 51* Yield -0.27 0* 0.27 GM -61 -139* 61 Mach & Cont. 21 -32 -21 Total Fixed Costs 14 -24 -14 Net Margin -72 -83 72 *. The mean difference is significant at the 0.05 level. HCP HCP LCP MCP -85* -39* -7 -5 -136* -0.17 -78 -53 -38 -12 143* 40* 6 -5 187* 0* 139* 32 24 83 85* 39* 7 5 136* 0.17 78 53 38 12 2.3.7 Potatoes - Maincrop (NED) NED main crop potato CP, fertiliser and seed costs were significantly different between all groups. Other crop costs were significantly higher for ORG and HCP farms. Yield was similar for conventional farm types but significantly lower for ORG holdings, but HCP and MCP holding GMs were significantly lower than ORG farms. 55 Table 74 NED Potatoes (Maincrop) enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin MCP sd mean 340 85 198 121 647 277 94 144 46.0 13.0 3765 2870 n HCP sd 555 67 232 114 786 342 141 254 47.0 11.0 3453 2761 88 mean ORG sd 792 112 266 125 844 350 193 266 49.0 11.0 3314 2783 176 mean sd 12 72 79 110 1152 454 350 422 22.0 10.0 5247 3861 88 64 Table 75 NED Potatoes (Maincrop) ANOVA analysis at varying CP Level CP Level Parameter LCP MCP HCP MCP ORG LCP CP -215* -452* 328* 215* Fert -35* -68* 119* 35* Seeds -140* -197* -505* 140* Other Crops Costs -46 -98* -256* 46 Yield -1.9 -3.7 23.4* 1.9 GM 312 451 -1482 -312 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -238* -34* -58* -52 -1.8 139 543* 153* -366* -209* 25.3* -1794* 452* 68* 197* 98* 3.7 -451 237* 34* 58* 52 1.8 -139 781* 187* -308* -157 27.0* -1933* -328* -119* 505* 256* -23.4* 1482 -543* -153* 366* 209* -25.3* 1794* -781* -187* 308* 157 -27.0* 1933* 2.3.8 Potatoes - Seed (NED) NED seed potato enterprises had higher CP costs than the main crop type, with significant differences between the CP groups. Fertiliser costs were similar for LCP and ORG holdings, which were significantly lower than MCP and HCP holdings. Other crop and seed costs varied significantly between conventional farms, but not ORG holdings, but yield was statistically different between all groups, varying between 25 and 35t/ha. LCP GM was lower than all other groups whilst MCP, HCP and ORG GM were statistically similar. Table 76 NED Potatoes (seed) enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin n MCP sd 376 102 139 96 878 416 156 336 27 6.2 3105 1880 91 mean HCP sd 629 85 207 93 1259 482 319 317 32 6.6 4593 2690 183 mean ORG sd 1004 206 231 122 1577 606 504 541 35 6.2 5301 2709 91 mean sd 5 21 111 159 1717 1496 676 996 25 9.0 6627 5642 23 56 Table 77 NED Potatoes (seed) ANOVA analysis at varying CP Level CP Level Parameter LCP MCP HCP MCP ORG LCP CP -253* -628* 372* 253* Fert -68* -92* 28 68* Seeds -380* -699* -838 380* Other Crops Costs -163* -348* -519 163* Yield -5.5* -8.3* 2 5.5* GM -1488* -2196* -3522* 1488* *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -375* -24 -318* -185* -2.9* -708 624* 97 -458 -356 7.6* -2034 628* 92* 699* 348* 8.3* 2196* 375* 24 318* 185* 2.9* 708 999* 120* -140 -172 10.4* -1325 -372* -28 838 519 -2.1 3522* -624* -97 458 356 -7.6* 2034 -999* -120* 140 172 -10.4* 1325 2.3.9 Sugar Beet (NED) NED sugar beet CP costs were significantly different but other costs were similar between groups. ORG yields were significantly lower but ORG GM was significantly higher than conventional groups and HCP was significantly lower than other groups. Table 78 NED Sugar Beet enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin n MCP sd 134 37 112 74 217 48 11 17 68.0 11.0 2585 626 218 mean HCP sd 235 34 116 76 226 52 10 18 69.0 12.0 2504 578 437 mean ORG sd mean 389 101 110 99 235 50 14 26 66.0 11.0 2205 595 218 sd 49 107 91 88 278 99 3 5 65.0 14.0 3426 1293 17 Table 79 NED Sugar Beet ANOVA analysis at varying CP Level CP Level Parameter LCP MCP HCP MCP ORG LCP CP -101* -256* 85* 101* Fert -4 2 21 4 Seeds -8 -17* -61 8 Other Crops Costs 1 -2 9* -1 Yield -0.9 1.6 3.2 0.9 GM 81 380* -841 -81 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -154* 6 -9 -3 2.5 299* 186* 25 -52 8* 4.1 -922 256* -2 17* 2 -1.6 -380* 154* -6 9 3 -2.5 -299* 341* 19 -43 11* 1.6 -1221* -85* -21 60 -9* -3.2 841 -186* -25 52 -8* -4.1 922 -341* -19 43 -11* -1.6 1221* 2.3.10 Onions (NED) CP costs varied significantly between CP groups for NED onions. Fertiliser costs were lowest for ORG and LCP farms, but seed and other crop costs were significantly higher for ORG farms but similar for conventional farms. Yield was significantly higher for HCP than ORG and LCP holdings, but GM was only significantly higher for ORG farms. 57 Table 80 NED Onion enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin MCP sd 283 116 161 103 676 398 113 280 47.0 13.0 2715 3003 n 71 mean HCP sd 554 95 192 99 625 200 102 177 54.0 14.0 3801 3734 mean ORG sd mean 883 164 222 97 642 368 219 463 57.0 14.0 2795 3513 145 sd 17 41 110 116 1220 1193 854 876 27.0 13.0 6786 5498 71 33 Table 81 NED Onions ANOVA analysis at varying CP Level CP Level Parameter LCP MCP HCP MCP ORG LCP CP -271* -601* 265* 271* Fert -31 -61* 51 31 Seeds 51 35 -544 -51 Other Crops Costs 11 -107 741* -11 Yield -6.2* -10.1* 20.2* 6.2* GM -1085 -79 -4070* 1085 *. The mean difference is significant at the 0.05 level. HCP ORG HCP ORG LCP MCP ORG LCP MCP HCP -329* -30 -17 -118 -3.9 1006 537* 82* -596* -752* 26.4* -2985* 601* 61* -35 107 10.1* 79 329* 30 17 118 3.9 -1006 866* 112* -579 -634* 30.2* -3991 -265* -51 544 741* -20.2* 4070* -537* -82* 596* 752* -26.4* 2985* -866* -112* 579 634* -30.2* 3991* 2.3.11 Winter Wheat (NED) NED Winter Wheat CP costs were significantly different for all groups, whilst fertiliser costs were significantly higher for MCP and HCP farms but similar for ORG and LCP holdings. Seed and other crop costs were statistically higher for ORG farms, but yields were lower. MCP and HCP yields were similar, but higher than LCP and ORG holdings. Overall, GM was significantly higher for ORG and MCP compared to LCP holdings. Table 82 NED Winter Wheat enterprise analysis at varying CP Level CP Input Level Parameter (per hectare) LCP mean CP Fert Seeds Other Crop Costs Yield Gross Margin n MCP sd 77 45 83 64 86 40 49 58 6.5 2.2 711 476 168 mean HCP sd 174 24 125 53 79 24 43 56 8.3 4.0 856 676 338 mean ORG sd 276 65 134 58 84 25 40 49 8.7 1.7 762 353 168 mean sd 2 12 92 109 118 83 97 54 5.0 1.6 946 477 55 58 Table 83 NED Winter Wheat ANOVA analysis at varying CP Level CP Level Parameter LCP MCP HCP MCP ORG LCP CP -97* -199* -76* 97* Fert -42* -51* -9 42* Seeds 7 2 -33* -7 Other Crops Costs 6 9 -48* -6 Yield -1.8* -2.1* 1.5* 1.8* GM -145* -51 -235* 145* *. The mean difference is significant at the 0.05 level. HCP -102* -9 -5 3 -0.4 94 HCP ORG 172* 33 -39* -54* 3.3* -90 LCP MCP 199* 51* -2 -9 2.1* 51 102* 9 5 -3 0.4 -94 ORG ORG 275* 42 -34 -56* 3.7* -184 LCP MCP HCP -76* 9 33* 48* -1.5* 235* -172* -33 39* 54* -3.3* 90 -275* -42 34* 56* -3.7* 184 2.3.12 Crop enterprise data summary To summarise the findings of this section: Potato, sugar beet and onion crops had the highest gross margins. Organic gross margins significantly higher than most conventional margins, despite lower yields. Most conventional CP cost level group gross margins were not significantly different, indicating that producers may not be adversely affected financially by moving to lower CP use. 59 2.4 Effect of applying CP taxation/levy The aim of this analysis was to discover the direct financial effect of the application of a CP tax/levy to the historical farm accounts data. A CP tax/levy was therefore applied at four different rates on a flat rate basis to the CP costs identified in the data. In reality a CP tax/levy system would probably differentiate by the toxicity of the product, but due to the nature of the data the tax could only be applied at a flat rate for all conventional CP expenditure. It is also likely that with the application of a CP tax/levy farmers may adjust their CP usage, which is studied in Task 7.4 and will be presented in TEAMPEST Deliverable 7.3. 2.4.1 Effect of applying CP taxation/levy to whole farm data The following tables show the effects of a flat rate tax applied to conventional whole farm CP expenditure on CP costs and profitability (Farm Net Value Added) variables. The difference between the average FADN figure (2004-2007) and the calculated figure (+25% CP tax) is shown to indicate the overall effect on profitability. COP farms have relatively low levels of CP expenditure, but in relation to profitability a potential 5% drop in profitability for HCP farms is quite substantial. Table 84 COP Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Net Value Added €/ha CP €/ha LCP MCP HCP Standard CP 6 48 142 +10% tax 7 52 156 +15% tax 7 55 163 +20% tax 7 57 170 +25% tax 8 59 177 % Difference (standard and 25% tax) ORG 10 10 10 10 10 LCP MCP 399 398 398 397 397 0% 493 488 486 483 481 -2% HCP ORG 712 698 690 683 676 -5% 375 375 375 375 375 0% FIELD farms had higher CP costs than COP farms but the overall effect is smaller on profitability due to the smaller percentage of CP costs as a proportion of total costs, with the HCP group only losing 2% profitability. Table 85 FIELD Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Standard CP +10% tax Net Value Added €/ha CP €/ha LCP 16 18 MCP 92 101 HCP ORG LCP MCP HCP ORG 345 380 25 25 837 836 1267 1258 4238 4204 1012 1012 +15% tax 19 105 397 +20% tax 20 110 414 +25% tax 20 114 431 % Difference (standard and 25% tax) 25 25 25 835 834 833 0% 1253 1249 1244 -2% 4187 4169 4152 -2% 1012 1012 1012 0% HORT holdings were the highest users of CP products so would be expected to be adversely affected by a CP tax/levy but similarly to FIELD farms their turnover is far superior to their crop costs so there was only a 2% reduction in the HCP group’s profit, despite a substantial €1400 increase in CP costs. Table 86 HORT Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Standard CP +10% tax Net Value Added €/ha CP €/ha LCP 60 66 MCP 689 758 HCP 5588 6147 ORG LCP MCP HCP ORG 494 27074 24771 89683 13149 494 27068 24702 89124 13149 60 +15% tax +20% tax +25% tax 69 72 75 792 827 861 6427 6706 6985 494 27065 24668 88844 13149 494 27062 24633 88565 13149 494 27059 24599 88286 13149 % Difference (standard and 25% tax) 0% -1% -2% 0% The effect on WINE holdings was similar to HORT units as turnover was far higher than CP costs, so only a 2% reduction in profit was expected for HCP holdings. Table 87 WINE Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Net Value Added €/ha CP €/ha LCP MCP HCP Standard CP 28 202 778 +10% tax 30 223 855 +15% tax 32 233 894 +20% tax 33 243 933 +25% tax 34 253 972 % Difference (standard and 25% tax) ORG 179 179 179 179 179 LCP MCP HCP ORG 1656 1653 1651 1650 1649 0% 2654 2634 2624 2614 2604 -2% 12649 12571 12533 12494 12455 -2% 3134 3134 3134 3134 3134 0% ORCH holdings were slightly more severely affected than other permanent crop type holdings due to a higher CP expenditure relative to profitability, and may be affected by up to 4% reduction in profit. Table 88 ORCH Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Net Value Added €/ha CP €/ha LCP MCP HCP ORG LCP MCP HCP ORG Standard CP 40 255 843 242 2630 4174 5767 3510 +10% tax +15% tax 44 46 281 294 927 970 242 242 2626 2624 4148 4135 5683 5641 3510 3510 +20% tax 48 307 1012 +25% tax 50 319 1054 % Difference (standard and 25% tax) 242 242 2622 2620 0% 4123 4110 -2% 5598 5556 -4% 3510 3510 0% OLIVE holdings were less reliant on CP expenditure to achieve profitability so profitability was only predicted to fall by 2%. Table 89 OLIVE Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Standard CP Net Value Added €/ha CP €/ha LCP 9 MCP 61 HCP ORG LCP MCP HCP ORG 219 38 1473 2298 2522 2364 +10% tax 10 67 241 +15% tax 10 70 252 +20% tax 11 73 263 +25% tax 11 76 274 % Difference (standard and 25% tax) 38 38 38 38 1472 1471 1471 1470 0% 2292 2289 2286 2283 -1% 2500 2489 2478 2467 -2% 2364 2364 2364 2364 0% PERM holdings were the least affected by the application of a CP tax/levy. Despite the addition of the 25% tax, profitability was only reduced by 1% in MCP and HCP groups. 61 Table 90 PERM Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Standard CP +10% tax +15% tax +20% tax Net Value Added €/ha CP €/ha LCP 14 16 16 17 MCP 98 107 112 117 HCP ORG LCP MCP HCP ORG 552 607 635 663 85 85 85 85 3357 3356 3355 3354 2575 2565 2560 2555 12943 12888 12861 12833 5181 5181 5181 5181 +25% tax 18 122 690 % Difference (standard and 25% tax) 85 3354 0% 2550 -1% 12805 -1% 5181 0% MIXED farms had a similar relationship between CP expenditure and profitability to FIELD farms which resulted in a similar 2% reduction in profit. Table 91 MIXED Effects of taxation on CP and profitability (FNVA) by CP cost group CP Tax Rate Net Value Added €/ha CP €/ha LCP MCP HCP ORG LCP MCP HCP ORG Standard CP +10% tax 6 7 53 58 328 361 25 25 1025 1024 1542 1537 4072 4039 1235 1235 +15% tax +20% tax 7 7 61 64 377 394 25 25 1024 1023 1534 1532 4023 4006 1235 1235 +25% tax 8 66 410 % Difference (standard and 25% tax) 25 1023 0% 1529 -1% 3990 -2% 1235 0% 2.4.2 Effect of applying CP taxation/levy to national crop enterprise data The same tax/levy rates were applied to enterprise data from UK and NED to highlight potential changes in gross margins of various crops. To obtain a better view of the likely effects of a tax/levy scheme, the conventional farm data was split into 5 groups, split by their CP costs, using 20% percentiles as the cut-off values, rather than Q1 and Q3 used earlier to determine groups. This resulted in five approximately equal sized conventional holding groups; Very Low CP costs (VLCP), Low CP costs (LCP), Medium CP costs (MCP), High CP costs (HCP) and Very High CP costs (VHCP), in addition to the group of organic farms (where available). 2.4.2.1 UKI Enterprise Data Table 92 indicates the effect of a 25% tax/levy applied to CP costs for the various CP cost groups. For all crops, the greatest effect was found in the highest CP usage group, but the percentage effect varied between crops, depending on the level of CP expenditure compared to output. Beans and oilseed rape were the worst affected even though potatoes saw the largest actual increase in CP costs. 62 Table 92 UKI average enterprise GM at 0% CP tax and 25% CP tax rates, at varying CP Levels Crop GM/ha Winter Wheat Standard CP CP+25% tax Spring Barley Beans Potatoes 867 844 Low 857 822 Med 838 796 High 936 887 V High 792 728 Org 1125 1125 Difference -3% -4% -5% -5% -8% 0% Standard CP CP+25% tax 570 565 652 639 604 585 623 597 559 517 760 760 Difference -1% -2% -3% -4% -7% 0% Standard CP CP+25% tax 365 356 327 307 350 324 477 444 470 423 629 629 Difference -3% -6% -7% -7% -10% 0% 4841 4780 3721 3612 4023 3882 4460 4298 3558 3298 4044 4044 Standard CP CP+25% tax Difference Sugar Beet V Low Standard CP CP+25% tax Difference Winter Oilseed Rape Standard CP CP+25% tax Difference -1% -3% -4% -4% -7% 0% 1235 1212 1076 1038 1101 1056 1182 1129 1050 982 nd nd -2% -4% -4% -5% -6% 551 528 521 489 564 526 741 694 661 598 -4% -6% -7% -6% -9% nd nd The ANOVA analysis of enterprise CP costs groups before and after applying a 25% CP tax/levy for the UK and NED enterprises is presented as post-hoc mean differences in Table 93 to 63 Table 104, with significant differences at the 0.05 level indicated by a *. Table 93 indicates that for most Winter Wheat CP cost groups their relationship did not change, but that with the addition of the tax/levy the ORG group GM became significantly higher than the HCP group Table 93 UKI Winter Wheat GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) VLCP LCP MCP HCP VHCP ORG GM/ha Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a 10 22 -10 -22 -29 -48 69 43 -75 -116 258* 281* n/a n/a -19 -26 79 65 -65 -94 268* 303* HCP 29 48 19 26 n/a n/a 98 91 -46 -68 287* 329* VHCP -69 -43 -79 -65 -98 -91 n/a n/a -144* -159* 189 238* n/a n/a ORG -258* -281* -268* -303* -287* -329* -189 -238* -333* -397* 333* 397* n/a n/a 75 116 65 94 46 68 144* 159* *. The mean difference is significant at the 0.05 level. The tax/levy did not have any significant effects on the differences in GM of Spring Barley enterprises. 64 Table 94 UKI Spring Barley GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP ORG Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a -82 -74 82 74 35 20 54 32 -11 -48 190 195 n/a n/a -47 -54 -28 -42 -93 -122 108 121 HCP -35 -20 47 54 -54 -32 28 42 -19 -12 n/a n/a 19 12 -46 -68 156 175 VHCP n/a n/a -65 -80 137 163 11 48 93 122 46 68 65 80 ORG n/a n/a -190 -195 -108 -121 -156 -175 -137 -163 -201* -243* 201* 243* n/a n/a *. The mean difference is significant at the 0.05 level. The tax/levy did not have any significant effects on the differences in GM of UK Bean enterprises. Table 95 UKI Beans GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP ORG Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a 39 49 -39 -49 -15 -32 111 88 105 67 264* 273* n/a n/a 23 17 150 137 144 115 303* 322* HCP 15 32 -23 -17 n/a n/a 127 120 120 99 279* 305* VHCP -111 -88 -150 -137 -127 -120 n/a n/a -7 -22 152 185 -105 -67 -144 -115 -120 -99 7 22 ORG n/a n/a -264* -273* -303* -322* -279* -305* -152 -185 -159 -206 159 206 n/a n/a *. The mean difference is significant at the 0.05 level. Despite large differences between CP cost groups none of the groups were found to differ significantly before or after applying a tax/levy. Table 96 UKI Potatoes GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a 1121 1168 -1121 -1168 -818 -898 -381 -482 -1283 -1481 n/a n/a 302 270 740 686 -162 -313 HCP 818 898 -302 -270 n/a n/a 437 417 -464 -583 VHCP 381 482 -740 -686 -437 -417 n/a n/a 1283 1481 162 313 464 583 902 1000 -902 -1000 n/a n/a ORG 798 736 -323 -432 -21 -162 417 254 -485 -745 65 ORG Standard CP CP+25% tax -798 -736 323 432 21 162 -417 -254 485 745 n/a n/a *. The mean difference is significant at the 0.05 level. Similar to potatoes, despite large differences between CP cost groups none of the groups were found to differ significantly before or after applying a tax/levy. Table 97 UKI Sugar Beet GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a 160 174 -160 -174 -135 -156 -53 -83 -185 -230 n/a n/a HCP 135 156 -25 -18 25 18 107 91 -26 -56 n/a n/a 82 73 -51 -74 VHCP 53 83 -107 -91 -82 -73 n/a n/a 185 230 26 56 51 74 132 147 -132 -147 n/a n/a *. The mean difference is significant at the 0.05 level. Applying the tax/levy resulted in only one change in statistical differences, with HCP and MCP holdings becoming non-significantly different, indicating that a medium level of CP costs would achieve a similar GM to a higher CP input. Table 98 UKI Winter Oilseed Rape GM at no tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a 30 39 -30 -39 13 -3 190* 166* 110 70 n/a n/a 43 36 220* 205* 140 109 HCP -13 3 -43 -36 n/a n/a 177* 169 96 73 VHCP -190* -166* -220* -205* -177* -169 n/a n/a -110 -70 -140 -109 -96 -73 80 96 -80 -96 n/a n/a *. The mean difference is significant at the 0.05 level. 2.4.2.2 NED Enterprise Data 66 Table 99 indicates the effect of a 25% tax/levy applied to CP costs for the various NED CP cost groups. For all crops, the greatest effect was found in the highest CP usage group, but the percentage effect varied between crops, depending on the level of CP expenditure compared to output. Wheat and onion enterprises were the worst affected even though potatoes saw the largest actual increase in CP costs. 67 Table 99 NED average enterprise GM at 0% CP tax and 25% CP tax rates at varying CP Levels Crop GM/ha Potatoes (cons.) Standard CP CP+25% tax VLCP 3706 3626 Difference Potatoes (seed) Standard CP CP+25% tax Standard CP CP+25% tax Wheat HCP 3578 3439 VHCP 2943 2782 ORG 3512 3307 5247 5247 -2% -3% -4% -5% -6% 0% 3833 3704 4629 4473 5113 4925 5385 5122 6627 6627 -3% -3% -3% -4% -5% 0% 2587 2556 2575 2528 2559 2501 2346 2275 2181 2078 3426 3426 Difference Onions 3748 3633 MCP 3034 2947 Difference Sugar Beet LCP -1% -2% -2% -3% -5% 0% 2706 2642 3651 3544 3679 3542 3859 3687 2505 2275 6786 6786 Difference -2% -3% -4% -4% -9% 0% Standard CP CP+25% tax 714 697 741 707 867 823 910 858 752 680 946 946 Difference -2% -5% -5% -6% -10% 0% Standard CP CP+25% tax Although there were few significant differences between CP cost groups for NED maincrop potatoes, applying the tax resulted in the VHCP and MCP groups GM becoming significantly lower than the ORG group, as was the HCP group. Table 100 NED Potatoes (maincrop) GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP ORG Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a -42 -7 42 7 -127 -187 -762 -844 -193 -319 1542 1621 n/a n/a -170 -194 -805 -851 -236 -326 1499 1615 HCP 127 187 170 194 n/a n/a -635 -657 -66 -132 1669 1809* VHCP 762 844 805 851 635 657 n/a n/a 569 525 2304* 2465* 193 319 236 326 66 132 -569 -525 ORG n/a n/a -1542 -1621 -1499 -1615 -1699 -1809* -2304* -2465* -1735 -1941* 1735 1941* n/a n/a *. The mean difference is significant at the 0.05 level. Through applying the tax/levy the CP costs groups became statistically more similar with the only significant difference remaining between the VLCP/LCP and VHCP groups. Table 101 NED Potatoes (seed) GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP Standard CP CP+25% tax Standard CP CP+25% tax Standard CP VLCP LCP MCP HCP n/a n/a -799 -757 799 757 1595* n/a n/a -1595* -1526* -796 -769 796 n/a -2079* -1978* -1280* -1221 -484 VHCP -2351* -2176* -1552* -1419* -756 ORG -3593 -3681 -2794 -2924 -1999 68 HCP VHCP ORG CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax 1526* 2079* 1978* 2351* 2176* 3593 3681 769 1280* 1221 1552* 1419* 2794 2924 n/a -452 484 452 756 649 1999 2155 n/a n/a 272 197 1515 1703 -649 -272 -197 n/a n/a -2155 -1515 -1703 -1242 -1505 1242 1505 n/a n/a *. The mean difference is significant at the 0.05 level. By applying the tax/levy the ORG group achieved a significantly higher GM than the HCP and VHCP groups that were non-significant with no CP tax/levy. Table 102 NED Sugar Beet GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP ORG Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a 12 28 -12 -28 -28 -56 -241* -281* -406* -478* 839 870 n/a n/a -16 -27 -229* -253* -394* -450* 851 898 HCP 28 56 16 27 n/a n/a -213* -225 -378* -422* 867 925 VHCP 241* 281* 229* 253* 213* 225* n/a n/a -165 -197* 1080 1151* 406* 478* 394* 450* 378* 422* 165 197* ORG n/a n/a -839 -870 -851 -898 -867 -925 -1080 -1151* -1245 -1348* 1245* 1348* n/a n/a *. The mean difference is significant at the 0.05 level. The only difference after applying the tax was a significance difference between the ORG and MCP groups. Table 103 NED Onions GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP ORG Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a -945 -902 945 902 973 900 1153 1046 -201 -367 4080* 4144* n/a n/a 28 -2 208 144 -1146 -1269 3135 3242 HCP -973 -900 -28 2 n/a n/a 180 146 -1175 -1267 3106 3244* VHCP -1153 -1046 -208 -144 -180 -146 n/a n/a -1354 -1413 2927 3098 201 367 1146 1269 1175 1267 1354 1413 ORG n/a n/a -4080* -4144* -3135 -3242 -3106 -3244* -2927 -3098 -4281* -4511* 4281* 4511* n/a n/a *. The mean difference is significant at the 0.05 level. The large percentage change in NED Wheat GM was highlighted by the VHCP group GM becoming significantly lower than both the MCP and ORG groups GM. 69 Table 104 NED Wheat GM at 0% tax and 25% CP tax rates (ANOVA analysis at varying CP Levels) GM/ha VLCP LCP MCP HCP VHCP ORG Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax Standard CP CP+25% tax VLCP LCP MCP n/a n/a -28 -10 28 10 153 126 197 161 39 -17 233* 249* n/a n/a 125 116 169 152 11 -27 205 240* HCP -153 -126 -125 -116 n/a n/a 44 35 -114 -143* 80 123 VHCP -197 -161 -169 -152 -44 -35 n/a n/a -158 -178 36 88 -39 17 -11 27 114 143* 158 178 ORG n/a n/a -233* -249* -205 -240* -80 -123 -36 -88 -194 -266* 194 266* n/a n/a *. The mean difference is significant at the 0.05 level. 2.4.3 Summary of the effects of a CP tax/levy To summarise this section: Cereal, Oilseed & Pulse and Orchard type holdings saw the greatest percentage reduction in profitability when the tax/levy was applied, whilst Permanent Crops had the least effect. Other farm types saw a 2% profit decrease at a flat rate of 25% CP tax/levy. Cereal and oilseed crop enterprise gross margins were more severely affected than potato and sugar beet enterprises, reflecting their lower relative output compared to CP costs. The CP tax/levy had the effect of reducing the gross margin of NED potato and sugar beet enterprises by enough to result in the organic gross margin being significantly higher, and for the very high input CP group GM to become significantly lower than the high CP group. 70 3 Conclusions and Policy Recommendations Results of FADN data analysis in Task 7.2 highlighted HORT and some permanent crop farm types (e.g. WINE and ORCH) as the most intensive CP product users, but there was a large difference in CP use on conventional farms within these farm types. Overall, the Western EU CP costs were more than double that of the other EU regions, whilst Holland, Bulgaria and Belgium had the highest CP costs by country, reflecting their predominant types of agriculture. The analysis of available crop enterprise data from UK and NED indicated that the most CP intensive crops were potatoes, onions and sugar beet, but that the highest crop gross margins were often achieved by organic farms and that within the conventional farming groups the high CP input systems did not necessarily achieve the highest gross margins (e.g. the medium CP cost group achieved the highest conventional GM for UK Spring Barley, the NED LCP maincrop potato group GM was 7% higher than the VHCP group). In Task 7.3, the application of a tax/levy to the CP cost data resulted in COP and ORCH farm type profitability being the most severely affected, whilst the CP intensive HORT farm type profitability fell by less than 2%. This reflects how high COP and ORCH farm CP costs are relative to their output, and how CP costs are of less importance on HORT holdings, despite being far higher in monetary value. The CP tax/levy did have the effect of reducing the high and very high CP input potato enterprise GM by enough for the organic enterprises to become significantly more profitable. Due to the nature of the data available a flat rate tax/levy was applied, but had a variable effect on the profitability of farms and crop enterprises, which may not reduce CP usage where it was intended. For example, due to the larger percentage effect on profitability of COP farms, a tax/levy may reduce CP usage on high input COP farms, but not reduce CP usage significantly within HORT type holdings due to the smaller percentage effect on profitability. The data analysis identified that financially, some organic farm types performed well in many farm types, especially for the permanent crop types with profitability at or above the level of conventional LCP and MCP holdings. At enterprise level, many organic holding gross margins were above conventional levels e.g. UK winter wheat and NED maincrop potatoes. However, due to the limited size of the organic market it would not be expected that a significant number of farms would be able to convert to organic farming and receive the premium prices necessary for reduced yield levels. The variability in CP use on conventional farms potentially indicated that lower input management techniques do exist and could be adopted more widely, but the analysis highlighted that profitability was also generally lower for low CP intensity systems (e.g. 44% lower for COP, 87% lower for WINE farm types), which would be likely to inhibit its wider uptake. Therefore, although desirable to reduce CP use, a move to lower input systems, would appear to result in lower profitability for the farmer (at whole farm level), compared to higher CP intensity systems. Therefore, from this financial analysis it can be concluded that a CP tax/levy system would have some affect on the profitability of conventional EU cropping holdings, but that this effect is variable. It cannot be assumed that the most intensive users per hectare will be the most severely affected as this depends on the relationship of CP costs to overall output. Whilst at crop enterprise level a CP tax/levy had the effect of reducing differences between CP input groups and organic holdings, at whole farm level the high CP input group remained the most profitable. A flat rate type of tax on all CP products is unlikely to achieve a significant reduction in CP usage, and a tax/levy system would need to be a “targeted” mechanism to ensure a reduction in usage on the most CP intense holdings (if this was desired from a policy perspective). However, based on this economic analysis alone a tax/levy is unlikely to result in the wider adoption of low input or organic techniques due to poorer overall farm profitability than high input conventional systems and a lack of large-scale new organic market potential, particularly within the current economic climate within the EU. In conclusion, although this analysis has shown that a CP tax/levy is unlikely to drastically change EU CP usage through economics alone, TEAMPEST Deliverable 7.1 (Little et al. 2009), identified that although important, profitability was not the only driver to CP product use. TEAMPEST Task 7.4 will illicit farmer 71 responses to a tax or levy to ascertain what other drivers may be influencing their choice of system now and in the future, which may identify more successful methods to reduce the intensity of CP usage. 72 4 Relevance to other work packages in TEAMPEST This work will be relevant to other aspects of the TEAMPEST project. Work package 5 will evaluate the impacts of tax and levy schemes on farm level decision making to gauge the micro-foundations of the alternative macro-level solutions. This is directly relevant to WP7 in that any tax or levy schemes on pesticide use will influence the economic viability of farming systems and is, therefore, likely to influence farmer decision making regarding the uptake of alternative lower pesticide input systems. Similarly, work package 6 aims to design agricultural support policies and optimum tax and levy schemes on pesticides which will again directly influence the economic performance of farm systems and the likely uptake of alternative low input farming practices. The outputs from work package 7 will be directly applied in work package 8 to case studies in Bulgaria and Portugal. 73 5 References Elbersen B., Kempen, M., van Diepen K., Andersen E., Hazeu G., Verhoog D. (2006) Protocols for spatial allocation of farm types, SEAMLESS Report No.19, SEAMLESS integrated project, EU 6th Framework Programme, contract no. 010036-2, www.SEAMLESS-IP.org, 107 pp, ISBN no. 90-8585-046-0. EC (2008) COMMISSION REGULATION (EC) No 889/2008 EU (2010) InforEuro, official EU currency conversion for GBP:Euro FADN (2007), Definitions of variables used in FADN standard results FADN (2009a) http://ec.europa.eu/agriculture/rica/index_en.cfm FADN (2009b) Weighting system of EU-FADN results http://ec.europa.eu/agriculture/rica/methodology3_en.cfm http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:250:0001:0084:EN:PDF http://ec.europa.eu/budget/inforeuro/index.cfm?fuseaction=currency_historique&currency=72&Language=e n IBM (2008) SPSS Statistics 16 software Little, A. and Nicholas, P. (2009) Socio-Economic Factors Influencing the Adoption of Organic Farming and Other Low Input Pesticide Systems: A Literature Review, TEAMPEST Deliverable D7.1, Theoretical Developments and Empirical Measurement of the External Costs of Pesticides project, EU 7th Framework Programme, contract no. 212120, http://www.eng.auth.gr/mattas/teampest/project.htm, 48 pp, Maletta, H. (2007) Weighting within SPSS http://www.spsstools.net/Tutorials/WEIGHTING.pdf 74 6 Appendix 6.1 Appendix 1: FADN farm typologies Table 105 FADN - General TF farm typologies General TF 1 Specialist field crops 2 Specialist horticulture 3 Specialist permanent Crops 4 Specialist grazing livestock 5 Specialist granivore 6 Mixed cropping 7 Mixed livestock 8 Mixed crops-livestock 9 Non classifiable Table 106 FADN – TF14 farm typologies TF14 13 Specialist COP 14 Specialist other fieldcrops 20 Specialist horticulture 31 Specialist wine 32 Specialist orchards - fruits 33 Specialist olives 34 Permanent crops combined 41 Specialist milk 44 Specialist sheep and goats 45 Specialist cattle 50 Specialist granivores 60 Mixed crops 70 Mixed livestock 80 Mixed crops and livestock 75 6.2 Appendix 2: FADN requested variable list selected NAME DESCRIPTION prefix suffix1 y A1 Region A 1 A y A2 Sub-region A 2 A y A24 Country A 24 A y A27 Econ.size in EUR A 27 y y A28 A29 General TF A Principal TF A 28 29 y A3 Farm Number A 3 y A32 Organic farming A 32 y A39 Less Area A 39 favoured suffix2 comment Related table Calculated by DG AGRI (cf Typology Regulation) A 1-digit Calculated by DG AGRI (cf Typology Regulation) A 2-digit Calculated by DG AGRI (cf Typology Regulation) A A From 2000 A The Netherlands do no provide data on LFA classification (use of code 4) and LFA payments. They considere LFA not significant for the country. In Germany all the LFA farms have been classified under code 2 (LFAOther than Mountain). This should not be the case any more for 2007 and following accounting years. A y A40 UAA irrigation under A 40 A y A41 Altitude zone A 41 y A43 Area under glass or plastic A 43 A A 76 y y y y y y A45 B48 C01YR JC74 JC75 JC76 Environmental constraints Area (EC no 1257/1999 and 1698/2005) A UAA in owner occupation B Unpaid-Reg Holder/Mgr 1 Y/B C Subs.for fertilizers and soil J Subs.for crop protection produ J Subs.for other specific crop c J 45 e.g.: the majority of the UAA of the farm is located in a 'Natura 2000' area or in an area linked to the Directive 2000/60/EC (water). A 48 B 01 YR Year of birth C C74 J C75 J C76 J y SE005 Economic size SE 005 in ESU A y SE010 Total labour input SE 010 in AWU B y SE011 Labour input SE 011 in hours B y SE025 Total Utilised Agricultural Area SE 025 Cereals SE y y y y SE035 SE041 SE042 SE046 Other field crops Energy crops Vegetables flowers SE SE and SE 035 041 042 046 area in ha B area in ha - including crops grown to produce energy B area in ha - including crops grown to produce energy B area in ha - type of crop = 10 B area in ha B y SE050 Vineyards SE 050 area in ha B y SE054 Permanent crops SE 054 area in ha B y SE055 Orchards SE 055 area in ha B y SE060 Olive groves SE 060 area in ha B y SE065 Other crops SE 065 permanent area in ha B y SE071 Forage crops SE 071 area in ha B y SE110 Yield of wheat SE 110 in q/ha - global ratio B y SE115 Yield of maize SE 115 in q/ha - global ratio B y SE131 Total output SE 131 K 77 y SE135 Total output crops & crop production SE 135 K y SE140 Cereals SE 140 K y SE145 Protein crops SE 145 K y SE146 Energy crops SE 146 K y SE150 Potatoes SE 150 K y SE155 Sugar beet SE 155 K y SE160 Oil-seed crops SE 160 K y SE165 Industrial crops SE 165 K y SE170 Vegetables flowers SE 170 & K y SE175 Fruit SE 175 K y SE180 Citrus fruit SE 180 K y SE185 Wine and grapes SE 185 K y SE190 Olives & olive oil SE 190 K y SE200 Other crop output SE 200 K y SE270 Total Inputs SE 270 F y SE281 Total costs SE 281 specific F y SE295 Fertilisers SE 295 F y SE300 Crop protection SE 300 F y SE305 Other crop specific costs SE 305 Gross Income SE y y y y y y SE410 SE415 SE420 SE425 SE425D SE631 Farm F S Farm Net Value Added SE Family Income SE Farm SE AWU SE Farm 415 S Farm Net Value Added / AWU Single payment 410 SE 420 425 425D This indicator is calculated for the whole farms including those without family labour Global ratio FNVA/AWU denominator SE010) S S (= S 631 J 78 y SE632 Single payment Area SE 632 J y SYS02 Farms represented SYS 02 A y SYS03 Sample farms SYS 03 A y SYS04 Exchange rate SYS 04 A y TF14 TF14 Grouping class A y YEAR Year class A 6.3 Appendix 3: UN EU region classification (http://unstats.un.org/unsd/methods/m49/m49regin.htm) 150 Europe 151 Eastern Europe 112 Belarus 100 Bulgaria 203 Czech Republic 348 Hungary 616 Poland 498 Republic of Moldova 642 Romania 643 Russian Federation 703 Slovakia 804 Ukraine 154 Northern Europe 248 Åland Islands 830 Channel Islands 208 Denmark 233 Estonia 234 Faeroe Islands 246 Finland 831 Guernsey 352 Iceland 372 Ireland 833 Isle of Man 832 Jersey 428 Latvia 440 Lithuania 578 Norway 744 Svalbard and Jan Mayen Islands 752 Sweden 826 United Kingdom of Great Britain and Northern Ireland 039 Southern Europe 008 Albania 020 Andorra 070 Bosnia and Herzegovina 191 Croatia 79 292 Gibraltar 300 Greece 336 Holy See 380 Italy 470 Malta 499 Montenegro 620 Portugal 674 San Marino 688 Serbia 705 Slovenia 724 Spain 807 The former Yugoslav Republic of Macedonia 196 Cyprus* 155 Western Europe 040 Austria 056 Belgium 250 France 276 Germany 438 Liechtenstein 442 Luxembourg 492 Monaco 528 Netherlands 756 Switzerland * Cyprus classed as Western Asia by UN, but classed as Southern Europe for FADN analysis 80 6.4 Appendix 4: Additional data tables Table 107 Mean cp/ha by country for each year 2004-2007, (TEAMPEST TF14 farm types only) Type Country CONVENTIONAL BEL BGR CYP CZE DAN DEU ELL ESP EST FRA HUN Year 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 CP/ha 768 754 768 1161 1285 322 206 257 322 206 257 312 288 314 386 306 225 187 203 186 380 384 406 398 186 192 181 178 288 207 204 177 37 43 28 23 365 347 382 385 129 sd n range 1871 25185 1538 13283 1703 13808 2298 28058 8079 255650 597 7675 350 2881 398 2297 597 7675 350 2881 398 2297 502 5024 1184 23507 1248 15215 1215 15811 858 8365 1362 36414 1234 47181 1288 26278 1038 19743 991 25093 1072 23173 1219 28659 1097 33176 735 30000 706 26000 722 27820 777 30324 1175 35046 521 14173 526 11734 464 14524 177 2019 217 2498 102 1098 54 705 813 23818 950 36641 819 23187 832 21058 407 5640 321 301 319 364 1141 376 380 354 376 380 354 367 647 597 647 675 845 848 855 887 2535 2686 2844 2877 3530 3315 3176 3106 4674 5267 5170 5118 200 196 195 199 3633 3626 3630 3659 1355 81 IRE ITA LTU LUX LVA MLT NED OST POL POR ROU 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 170 192 247 116 103 87 112 249 246 252 262 29 26 23 26 490 558 687 735 17 21 21 25 462 374 385 473 1657 1903 2539 2807 134 122 136 143 168 202 172 244 168 171 165 186 70 301 220 621 8970 667 10311 807 16869 59 368 68 333 55 303 69 412 641 33214 612 46078 648 55563 737 51536 73 771 31 504 25 631 31 756 383 1472 455 1433 462 1629 450 1275 36 392 126 5736 73 1943 115 4560 1465 12651 1059 13334 995 13659 1006 22518 3432 36027 3975 40240 6348 88669 6259 68206 159 1384 145 1442 162 1455 153 990 542 11128 837 22005 687 18517 2619 104734 370 13213 442 14953 483 16533 446 14296 142 3601 3039 76414 2114 49418 1367 1338 1399 50 40 43 52 9173 9483 9312 9488 608 614 628 604 42 39 35 36 325 346 346 338 180 181 198 210 603 617 651 687 483 485 503 489 3239 3340 3620 3843 968 946 907 973 484 307 310 82 SUO SVE SVK SVN UKI 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 2004 2005 2006 2007 412 301 220 412 339 94 92 138 199 51 59 68 80 114 104 115 114 277 248 266 269 3045 36556 3039 76414 2114 49418 3045 36556 2276 50704 533 12500 544 16820 694 11899 1149 19099 54 429 83 669 71 530 75 584 178 1442 116 895 134 1138 146 1642 1022 18663 940 24619 926 14377 959 15394 320 307 310 320 326 252 258 226 240 244 255 295 238 77 111 123 142 810 815 757 758 ORGANIC BEL BGR CYP CZE DAN DEU ELL 2004 2005 2006 2007 2007 2004 2005 2006 2007 2004 2005 2006 a a a a a a a a a a a a a a 11 7 7 3 4 2 1 2 7 6 6 3 a a a a a a a a a a a a a a a a a a a a a a 2007 a 2004 2005 2006 a a 4 4 11 139 4517 97 2217 382 13780 2007 2004 2005 2006 16 27 25 40 279 4834 74 399 76 490 96 656 2007 2004 74 229 182 1498 227 985 3 131 45 129 36 82 89 97 99 16 83 ESP EST FRA HUN IRE ITA LTU LUX LVA MLT NED 2005 2006 138 109 177 788 200 788 2007 2004 2005 2006 123 340 188 141 193 847 342 1997 279 2222 363 3038 2007 2004 a 2005 a 2006 a 171 324 3134 2007 a 2004 2005 2006 a a a a a a a a 115 145 228 184 1184 206 1132 612 8132 2007 2004 a 2005 a 2006 201 281 1577 75 178 725 2007 2005 a 2006 a 2007 a 2004 2005 2006 52 59 139 80 68 61 157 3105 125 933 122 1042 2007 2004 a 2005 2006 84 173 1610 0 0 0 4 1 4 2007 2004 a 2004 a 2005 a 2006 0 1 9 1 1 5 2007 2005 a 2006 a 2007 a 2004 2005 2006 4 17 136 a a a a a a a a a a a a a a a a a 83 53 275 a a a a a a a 476 4133 503 5667 1342 10538 24 53 75 53 75 97 101 2 5 9 10 37 52 56 69 8 8 15 15 1 2 1 323 356 442 451 8 17 38 43 1 12 13 19 26 1 1 1 18 18 19 84 OST POL POR ROU SUO SVE SVK SVN UKI 2007 2004 2005 2006 240 28 21 30 1555 14388 48 199 43 182 51 208 2007 2004 2005 2006 15 35 12 8 22 131 248 3335 47 432 23 161 2007 2004 2005 2006 12 38 90 137 25 120 2007 2007 a 2004 2005 2006 119 80 484 178 1192 181 1056 192 1050 a a 3 2 2 9 35 7 25 4 14 2007 2004 2005 2006 2 18 23 28 4 13 28 127 44 314 33 143 2007 2004 a 2005 a 2006 a 32 33 145 a a a a a a 2007 2004 2005 2006 a a a a a a a a a a a a 2007 2004 2005 2006 a a a a a a a a a a a a 2007 2 4 19 42 56 62 62 48 47 52 60 34 25 23 28 3 19 18 18 18 32 39 32 31 2 4 4 7 5 13 10 11 5 5 11 17 15 a. Data not shown as sample <15 85