D7.2: Results of FADN Data Analysis and Typical Farm Models from the Participating Countries

Allbwn ymchwil: Llyfr/AdroddiadAdroddiad wedi'i gomisiynu

11 Wedi eu Llwytho i Lawr (Pure)

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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.
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.
Iaith wreiddiolSaesneg
CyhoeddwrPrifysgol Aberystwyth | Aberystwyth University
Corff comisiynuThe European Commission
Nifer y tudalennau85
StatwsCyhoeddwyd - Tach 2010

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