Service d'économie rurale

Unit of agricultural statistics

Service d'économie rurale

115 rue de Hollerich

BP 2102

L-1021 Luxembourg

The Economic Accounts for Agriculture (EAA) provide detailed information on income from agricultural activity.

The methods are laid down in the Regulation (EC) 138/2004 of the European Parliament and of the Council.

The EAA are an integral part of the ESA. As such, they are compiled based on NACE Rev.2, the statistical classification of economic activities in the European Community. The list of activities which defines the agricultural industry corresponds, in principle, to Division 01 of that classification: Crop and animal production, hunting and related service activities. However, some differences exist and they are detailed in Annex 1 of Regulation (EC) 138/2004 of the European Parliament and of the Council.

See the detail below.

See sheets 3.2.1.1.(a) to 3.2.1.1.(c) in the attached Excel file 'Annex 1 - Components of the Production account - Output' in the section Annexes at the end of the file.

See sheets 3.2.1.2 (a) to 3.2.1.2 (c) in the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

See sheet 3.2.1.3 in the attached Excel file 'Annex 3 - Components of the Generation of income account' in the section Annexes at the end of the file.

See sheet 3.2.1.4 in the attached Excel file 'Annex 4 - Components of the Entrepreneurial income account' in the section Annexes at the end of the file.

See sheet 3.2.1.5 in the attached Excel file 'Annex 5 - Elements of the Capital account' in the section Annexes at the end of the file.

The sector covers all units involved in agricultural production, even if some of those units have more important economic activities or if the purpose of some others is not commercial. However, kitchen gardens (producing for own-consumption only) are not included.

The list of agricultural activities characteristic of the EAA corresponds to the seven groups of Division 01 of NACE Rev 2 activities (01.1 to 01.7), with the following caveats:

- the inclusion of the production of wine and olive oil (exclusively using grapes and olives grown by the same holding),

- the exclusion of certain activities which, in NACE Rev. 2, are considered as agricultural services (e.g. the operation of irrigation systems - only agricultural contract work is taken into account here).

A detailed methodology can be found in Annex I of Regulation (EC) 138/2004.

The EAA are satellite accounts of the European System of Accounts (ESA) providing complementary information and concepts adapted to the particular nature of the agricultural industry.

The EAA are shown as a sequence of inter-related accounts. As the EAA are based on the industry concept, the sequence of accounts is limited to the first accounts of the current account:

- the production account and

- the generation-of-income account

whose balancing items are value added and operating surplus, respectively.

Nevertheless, it should be possible to compile other accounts, at least in part, in so far as the relevant flows can be clearly attributed to them. The accounts in question are the following:

- the entrepreneurial income account (one of the current accounts) and

- the capital account (one of the accumulation accounts).

The EAA provide a wide range of indicators on the economic activities in the agricultural sector: these include output, intermediate consumption, gross and net value added, gross fixed capital formation (GFCF), both in current prices and in constant prices, as well as compensation of employees, other taxes and subsidies on production, net operating surplus or net mixed income, property income and net entrepreneurial income in current prices.

Three indicators of the economic performance of agriculture are defined in the EAA:

•Indicator A: Index of the real income of factors in agricultural per annual work unit.           
•Indicator B: Index of real net agricultural entrepreneurial income per unpaid annual work unit.          
•Indicator C: Net entrepreneurial income of agriculture.

Agricultural output is the total of agricultural products and the goods and services produced in inseparable non-agricultural secondary activities created during the accounting period. It is recorded as a resource in the production account and it is valued and recorded at the time it is generated, that is when produced and not when paid by the purchaser.

In the compilation of the EAA, output is progressively broken down in quantity terms (see paragraph 2.037 of Regulation (EC) 138/2004).

Output is valued at the basic price. The basic price is the price receivable by the producers from the purchaser for a unit of a good or service produced, minus any tax (i.e. taxes on products) payable on that unit plus any subsidy (i.e. subsidies on products) receivable on that unit. The basic price excludes any transport charges invoiced separately by the producer. It also excludes holding gains and losses on financial and non-financial assets.

The valuation of output at the basic price makes it necessary to distinguish between taxes (other than VAT) on products and subsidies on products, on the one hand, and other taxes and subsidies on production, on the other. 

Intermediate consumption represents the value of all goods and services used as inputs in the production process, excluding fixed assets whose consumption is recorded as fixed capital consumption.

The inputs used for intermediate consumption should be valued at the purchaser prices for similar goods and services applicable at the time of their insertion in the production process. The purchaser price includes taxes less subsidies on products (but excluding deductible taxes like VAT on the products). It also includes any transport charges paid separately by the purchaser to take delivery at the required time and place.

In the case of the generation of income account, the distributive transactions relate to other taxes on production, other subsidies on production and the compensation of employees.

For details please see sheet 3.4.3 - Other questions in the attached Excel file 'Annex 3 - Components of the Generation of income account' in the section Annexes at the end of the file.

The entrepre­neurial income account records certain types of property income (mainly land rents, interest and property income attributed to insurance policy holders).

For details please see sheet 3.4.4 - Other questions in the attached Excel file 'Annex 4 - Components of the Entrepreneurial income account' in the section Annexes at the end of the file.

In addition to Gross fixed capital formation (GFCF), the capital account records distributive trans­actions corresponding to aid for investment and other capital transfers.

Capital transfers are not calculated in LU.

Investment grants (37100) and other capital transfers (37200) have not been indicated in the EAA so far because they are not part of the main calculations and consist in a kind of “additional information” However LU will try to implement them in future, when the new final version of the EAA manual is available may be a good opportunity.

The overall unit is the agricultural sector. However, in order to provide more detailed information and to analyse flows generated by the production process and the use of goods and services, it is necessary to select units which emphasise relationships of a technical-economic kind. This means that, as a rule, institutional units must be broken-down into smaller and more homogeneous units with regard to the kind of production (local kind-of-activity units/local KAUs) are intended to meet this requirement (ESA 2010, 2.147).

The local KAU is defined as the part of a KAU which corresponds to a local unit. The institutional unit's information system must be capable of indicating or calculating for each local KAU at least the value of output, intermediate consumption, compensation of employees, the operating surplus and employment and gross fixed capital formation (ESA 2010, 2.148).

The agricultural holding, (the unit currently used for statistical studies of agriculture (censuses, surveys of the structure of agricultural holdings), is the local KAU most appropriate to the agricultural industry (even though certain other units, such as wine or olive oil cooperatives, or units performing contract work, etc., have to be included in it). Nevertheless, it should be pointed out that the variety of agricultural activities that can be performed on agricultural holdings makes them a special type of local KAU. The strict application of the ESA rule to units and their group should in fact result in a division of the agricultural holding into several separate local KAUs in cases where several activities of the NACE Rev. 2 four-digit class are performed on the same holding.

Although the ESA gives pre-eminence to local KAUs, the unit best suited to analyse the production process is the unit of homogeneous production (UHP). This unit is used to analyse inputs and outputs, since it corresponds exactly to a type of activity. Institutional units are thus divided into as many UHPs as there are activities (other than ancillary). By grouping these units of homogeneous production it is possible to break down the economy into 'pure' (homogeneous) branches. A UHP cannot, as a rule, be directly observed. Therefore, the accounts of homogeneous branches cannot be compiled on the basis of groups of UHPs. The ESA describes a method for compiling these accounts.

The use of the local KAU as the basic unit for the agricultural industry entails recording non-agricultural secondary activities where they cannot be distinguished from the main agricultural activity (inseparable non-agricultural secondary activities of local agricultural KAUs) The selection criterion for inseparable non-agricultural secondary activities is rather the type of activity than the nature of the product. For example, agro-tourism services provided by a farm must only be included if they cannot be separated from its agricultural activities.

territory of Luxembourg

1985-2020

Accounts for year n are calculated at current prices and at prices of year n-1.

Accounts data: million Euro

ALI: 1000 AWU

2020

EU legislation:

Regulation (EC) No 138/2004 of the European Parliament and of the Council of 5 December 2003 on the economic accounts for agriculture in the Community as amended

National legislation: 

no specific national legislation for the EAA

Service d’Economie Rurale (SER); SER is an administration depending on the Ministry of agriculture, which has a division for agricultural statistics, agricultural markets and external relations

Service d’Economie Rurale (SER); SER is an administration depending on the Ministry of agriculture, which has a division for agricultural statistics, agricultural markets and external relations

Data sharing with the Service d'économie rurale is ensured as it is part of the national statistical system

Microdata used for EAA compilation are subjet to the confidentiality rules applicable
within the national statistical system; confidentiality rules are established in article
16 of “Loi du 10 juillet 2011 portant organisation de l’Institut national de statistique
et des études économiques et modifiant …….” (Mémorial A 156/2011)
http://www.legilux.public.lu/leg/a/archives/2011/0156/a156.pdf#page=2

Microdata used for EAA compilation are subjet to the confidentiality rules applicable
within the national statistical system; confidentiality rules are established in article
16 of “Loi du 10 juillet 2011 portant organisation de l’Institut national de statistique
et des études économiques et modifiant …….” (Mémorial A 156/2011)
http://www.legilux.public.lu/leg/a/archives/2011/0156/a156.pdf#page=2

The application of the confidentiality rules does not lead to embargo on EAA data
due to the fact that EAA data are published at a level of detail where confidentiality
rules do not oppose to publication

idem to Eurostat publication calendar for EAA data

not available

data is published online under https://lustat.statec.lu/vis?fs[0]=Th%C3%A8mes%2C1%7CEntreprises%23D%23%7CAgriculture%20et%20foresterie%23D2%23&pg=0&fc=Th%C3%A8mes&df[ds]=release&df[id]=DF_D2108&df[ag]=LU1&pd=2015%2C2021&dq=.A

data is dissiminated 3 times per year: 1st estimates, 2nd estimates and final data

no specific press release for EAA results

EAA results are published here (on paper and online):

• activity report of the Ministry of agriculture
• the agriculture of Luxembourg in figures

data is published online under https://lustat.statec.lu/vis?fs[0]=Th%C3%A8mes%2C1%7CEntreprises%23D%23%7CAgriculture%20et%20foresterie%23D2%23&pg=0&fc=Th%C3%A8mes&df[ds]=release&df[id]=DF_D2108&df[ag]=LU1&pd=2015%2C2021&dq=.A

General microdata access does not exist

no other dissemination format

no further methodological guidelines available at national level

no documentation available

no specific guidelines for quality assurance

quality management is assessed via the following controls:

• cross checks with other statistical domains
• coherence in timeseries
• internal coherence (of aggregates)

• National accounts by National Statistical Insitute STATEC
• other divisons of STATEC
• Ministry of Agriculture, other ministries,
• administrations (of Ministry of Agriculture, of other ministries)
• professional organisations (agricultural sector, other sectors)
• research institutes
• educational institutes (Lycée Technique Agricole,….)
• others

no special measures to assess user satisfaction, users can contact us in case there are special needs

All mandatory data is available

Not applicable to EAA compilation.

Not applicable to EAA compilation.

Not applicable to EAA compilation.

First estimates: 1 month before the end of the reference year (30/11/N)

Second estimates: 1 month after the end of the reference year (31/01/N+1)

Final data: preliminary version 9 months after the end of the reference year (30/09/N+1), revised version with FADN data on 30/11/N+1

data is always delivered before or at the target date

No difference between national EAA and EAA transmitted to EUROSTAT

EAA results are comparable over time. If there are changes in the methodology, back series are recalculated according to the same principle (as far as possible).

Where available, sub annual statistics are coherent with annual statistics. This concerns over all production statistics on meat and milk.

there is interdependency between EAA and National Accounts (NA), no bridge table is compiled

Within the EAA, the different data are coherent.

Cost and burden for the compilation of EAA are not evaluated because most of the basic data already has to be collected for other statistical purposes.

No specific data revision policy, revisions are made continuously when there is a need for it.

Retropolations are carried out whenever it is needed/better data is available. There are no fixed years reserved for the calculation of backwards time series.

When final data is transmitted on 30/09/N+1, the final values for intermediate consumption are not yet available. On 30/11/N+1 when the first estimate for N+1 is transmitted, a revision of EAA N including the final data on intermediate consumption is done. Preliminary data for intermediate consumption already includes the changes of prices while changes in quantities remain stable or are estimated.
Beside this, it is always possible that other updates may occur at a later stage, reasons might be the detection of an error or the use of a better methodology.

See sheet 18.1.1 of the attached Excel file 'Annex 1 - Components of the Production account - Output' in the section Annexes at the end of the file.

For detailed explanations on data sources used, please see remarks under concept 18.1.3.

See sheet 18.1.3 of the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

See sheet 18.1.4 of the attached Excel file 'Annex 3 - Components of the Generation of income account' in the section Annexes at the end of the file.

See sheet 18.1.5 of the attached Excel file 'Annex 4 - Components of the  Entrepreneurial income account' in the section Annexes at the end of the file.

See sheets 18.1.6 of the attached Excel file 'Annex 5 - Elements of the Capital account' in the section Annexes at the end of the file.

Updates are carried out at the deadlines for first an second estimates, as well as for final data transmission.

all the years where updates are necessary are covered.

Due to missing FADN information, final data N is updated on 30/11/N+1 together with the first estimate for N+1.

Most of the data used for EAA compilation is already collected in the frame of the following statistics:

- production statistics

- price statistics

- balance sheets

- FSS

Any other data not yet available is collected in the month(s) preceeding the respective deadline for EAA transmission.

Manual data validation targeting completeness, aggregates, outlies and consistency

See sheet 18.5.1.1 of the attached Excel file 'Annex 1 - Components of the Production account - Output' in the section Annexes at the end of the file.

See also Excel file 'Annex 6 - Calculation methods output'.

See sheet 18.5.1.2 (a) and 18.5.1.2 (b) of the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

See sheet 18.5.1.3 of the attached Excel file 'Annex 3 - Components of the Generation of income account' in the section Annexes at the end of the file.

See sheet 18.5.1.4 of the attached Excel file 'Annex 4 - Components of the Entrepreneurial income account' in the section Annexes at the end of the file.

See sheets 18.5.1.5 'Annex 5 - Elements of the Capital account' in the section Annexes at the end of the file.

See sheets 18.5.2.1 of the attached Excel file 'Annex 1 - Components of the Production account - Output' in the section Annexes at the end of the file.

See sheet 18.5.2.2 of the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

See sheet 18.5.2.3 of the attached Excel file 'Annex 3 - Components of the Generation of income account' in the section Annexes at the end of the file.

See sheet 18.5.2.4 of the attached Excel file 'Annex 4 - Components of the Entrepreneurial income account' in the section Annexes at the end of the file.

See sheet 18.5.2.5 of the attached Excel file 'Annex 5 - Elements of the Capital account' in the section Annexes at the end of the file. 

See the attached Excel file 'Annex 7 - Numerical examples' in the section Annexes at the end of the file.

See the attached Excel file 'Annex 7 - Numerical examples' in the section Annexes at the end of the file.

See the attached Excel file 'Annex 7 - Numerical examples' in the section Annexes at the end of the file.

See the attached Excel file 'Annex 7 - Numerical examples' in the section Annexes at the end of the file.

See the attached Excel file 'Annex 7 - Numerical examples' in the section Annexes at the end of the file.

See sheet 18.5.4.1 of the attached Excel file 'Annex 1 - Components of the Production account - Output' in the section Annexes at the end of the file.

See sheet 18.5.4.2 of the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

See sheet 18.5.5 of the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

not applicable

Calculation of compensation of VAT on Other taxes on production:

not applicable because on macro-economic level there is no over/under compensation of VAT

Calculation of compensation of VAT on Other subsidies on production:

not applicable because on macro-economic level there is no over/under compensation of VAT

See sheet 18.6.1 of the attached Excel file 'Annex 1 - Components of the Production account - Output' in the section Annexes at the end of the file.

See sheet 18.6.2 of the attached Excel file 'Annex 2 - Components of the Production account - Intermediate consumption' in the section Annexes at the end of the file.

See sheet 18.6.3 of the attached Excel file 'Annex 3 - Components of the Generation of income account' in the section Annexes at the end of the file.

See sheet 18.6.4 of the attached Excel file 'Annex 4 - Components of the Entrepreneurial income account' in the section Annexes at the end of the file.

See sheet 18.6.5 of the attached Excel file 'Annex 5 - Elements of the capital account' in the section Annexes at the end of the file.

List of abbreviations:

SER: Service d'économie rurale

IVV: Institut viti-vinicole

ASTA: Administration des services techniques de l'agriculture

ONR: Office national de remembrement

STATEC: National statistics institute

FSS: Farm structure survey (annual survey on area, livestock, OGA, AWU)

FADN: farm accountancy data network

API: agricultural price indices

IACS: integrated administration and control system

CAP: common agricultural policy