Agriculture and Horticulture Accountancy Data Network
The following headings on this page contain explanations of the background to the data collection for the Farm Accountancy Data Network:
Population and sample
The Agriculture and Horticulture Accountancy Data Network contains a sample of the farms and holdings from the Landbouwtelling (Dutch Agricultural Census). The sample falls within specified limits; it includes agricultural and horticultural holdings of a size between 16 and 1200 European Size Units (ESU). Including holdings that fall outside the specified limits would incur costs disproportionate to the benefits accruing from the additional data. The holdings falling within the specified limits encompass some 75 to 80% of all holdings included in the Landbouwtelling. The majority of the other holdings are of a size smaller than the lower limit. In terms of production or cultivated land, the coverage of the sampling frame is even greater. The holdings in the sample encompass 90 to 95% of the ESU and area of cultivated land.
The recruitment of holdings for participation in the Farm Accountancy Data Network occurs on the basis of an annual sample plan. The plan ensures a minimal rotation of holdings, also in order to restrict the costs incurred in the collection of data. Minimal rotation can be perceived as a panel rotating in a natural manner, whereby holdings are replaced when they no longer fall within the limits of a particular group of holdings as specified in the sample plan. In addition, holdings that cease their operations also need to be replaced. The sample is specified in a manner such that reliable results can be obtained from the minimum possible number of holdings per type of holding and size category.
The specification of the sample includes an assessment of the spread of the results for the holdings included in each group of holdings. The larger the spread of the results, the more holdings are selected for the sample. This also reduces the costs and furthermore reduces the risk of bias caused by chance sampling.
The classification into groups of holdings is based on two variables, namely the type of farming/horticulture and the size (ESU) of the holding. Holdings are classified into types of farming/horticulture using the NEG typology, the Dutch variant of the EC typology adopted by the EU. The average results achieved by each group of holdings are calculated using a weighting factor for each holding. This factor indicates the number of holdings represented by each holding as determined by its specific attributes. Adopting this approach takes account of the probability of selecting individual holdings in the results for each group of holdings.
Data collection
The data are collected by the administrative staff of the LEI. The majority of the administrative staff has both an agricultural and an accounting education, and possesses the knowledge required to collect financial and technical-economic data. The staff members maintain regular contacts with the participating holdings by mail and telephone, and by making visits. These visits are important for maintaining detailed insight into the characteristics of the holdings, and for developing an appropriate relationship based on trust. Generally, the members of the administrative staff live and work in the area where they serve as the contact person for the participating holdings.
A confidential entrepreneur-LEI relationship plays a pivotal role in an effective data collection. The participating holdings receive assurances from LEI that their individual data will not be disclosed to third parties, and that their data will be anonymised in LEI studies. LEI ensures maximum efficiency of the data collection process by using as much as possible electronic records, such as bank records of receipts and withdrawals.
LEI’s administrative staff processes the data from the individual holdings using a uniform system of principles and standards. All data is recorded at a central location for later use by researchers. As a reward for their assistance, the participating holdings receive an individual company report and a comparative survey of the group of holdings they belong to.
Underlying principles and definitions
The Farm Accountancy Data Network offers insight into issues such as the financial performance of agricultural holdings. The income statement (profit and loss account), which offers a summary of the costs and revenues during the calendar year, are most relevant. The difference between the costs and revenues is equal to the family farm income, i.e. the income for the family (or families) accruing from the holding as a result of their labour, use of assets, and the incurred risks. The entrepreneur’s income accruing from outside the holding – such as income from employment, benefits or invested capital – is stated separately from the income from the holding. The same approach is adopted for private expenditure. The business economics also apportion the personal stake in the production factors (labour and employment). This yields a table of the economic results, in which net operating results and the returns (revenues per 100 euro costs) are the central key figures.
Results: tables and key figures for groups of holdings
The Farm Accountancy Data Network can be used to present a broad range of key figures. BINternet presents a selection of this data, focussing on various items in the annual accounts. In general, the operating results and income pass through three stages, namely the preparation of the estimates, provisional results and definitive results.
- The estimates are based on the external price and quantity developments as linked to the Farm Accountancy Data Network’s principles.
- The provisional results are based on the information from the holdings that have been processed on the relevant date.
- The definitive results contain the results derived following the definitive closure of all the company accounts that are to be expected from all holdings in the relevant group.
Publications and analyses
The results are published and analysed in reports including Agricultural-Economic Report.
Amendments to the principles and definitions
The principles and definitions that have been employed since 2000 differ from those used in the past (information about the major amendments is available on the database page). This has an influence on the results. For this reason, the databases for the earlier years are not linked to those for the later years. The data for the earlier years (derived using the old methods) cannot – and may not – be compared directly with the data for the later years.