Type of indicator

Sectoral

Indicator C26

Agricultural entrepreneurial income

Definition

Agricultural entrepreneurial income[1] measures the income derived from agricultural activities that can be used for the remuneration of own production factors, i.e. non-salaried (= family) labour, land belonging to the agricultural holding and own capital. It is obtained by deducting wages, rent and interest payments from agricultural factor income (see C. 25).

Value of agricultural production 

- variable input costs (fertilisers, pesticides, feed, etc.) 

- depreciation 

- total taxes (on products and production) 

+ total subsidies (on products and production) 

= agricultural factor income (net value added at factor costs) 

- wages 

- rents 

- interest paid 

= agricultural entrepreneurial income

In the case of family farms (sole proprietorships), entrepreneurial income represents, on the one hand, the compensation of the work performed by the agricultural holder (and the work of non-salaried family members) and, on the other hand, the income remaining with the enterprise, without it being possible to separate these two components. It is, therefore, a mixed income. 

It consists of 2 sub-indicators: 

1. Agricultural entrepreneurial income per unpaid annual work unit (AWU) is expressed in absolute terms or as an index. 

2. Income per family worker compared to the wages employees in the whole economy (based on EUR/hour worked) 

The index of agricultural entrepreneurial income per unpaid AWU can be obtained directly from Eurostat's Economic Accounts for Agriculture as Indicator B.

Agricultural entrepreneurial income (in real and current prices) 

AWU in agriculture, which corresponds to the work performed by one person who is occupied on an agricultural holding on a full-time basis. A distinction is made between salaried and non-salaried AWU, which together make total AWU. Agricultural entrepreneurial income is divided by non-salaried AWU in order to show the level of agricultural entrepreneurial income for the farm holder and members of his/her family. In order to compare this "family farm income" with the average wages in the economy, AWUs in agriculture need to be converted into number of hours worked: a standard conversion factor of 1800 hours per AWU and per year is used. 

Gross wages and salaries in all NACE activities at current prices in cash and in kind. Wages and salaries in cash include the values of any social contributions, income taxes, etc. payable by the employee, even if withheld and actually paid directly by the employer on behalf of the employee.

The total number of hours worked per employee in all NACE activities.

Unit of measurement

1: EUR/ non-salaried AWU or index value

2: share of total

Data source

Eurostat – Economic Accounts for Agriculture

Eurostat – Agricultural Labour Input Statistics

Eurostat – National Accounts

References/location of the data

Agricultural entrepreneurial income: 

Economic accounts for agriculture - values at current prices (aact_eaa01)

Economic accounts for agriculture - values at real prices (aact_eaa04)

Agricultural labour input: 

Agricultural Labour Input Statistics: absolute figures (1 000 annual work units) (aact_ali01)

Index of agricultural entrepreneurial income/non-salaried AWU (Indicator B):

 Economic accounts for agriculture – agricultural income (indicators A, B, C) (aact_eaa06) 

Wages and salaries: 

National Accounts by 10 branches - aggregates at current prices: gross wages and salaries (nama_10_a10)                                                                                                              

 Employment: 

National Accounts by 10 branches - employment data (nama_10_a10_e)             

Data collection level

1. EU, national (NUTS 0) and regional (NUTS 1 and 2) – where data are available

2. EU and national (NUTS 0)

Frequency

Annual

Delay

1 year

Comments/caveats

It has to be borne in mind that these income aggregates are not indicators of total income or of the disposable income of households employed in agriculture, because the latter, in addition to their purely agricultural incomes, may also have income from other sources (non-agricultural activities, remuneration, social benefits, and income from property). In other words, agricultural entrepreneurial income must not be regarded as farmers' income. Moreover, this measure of income relates to the income generated by agricultural activities (as well as inseparable non-agricultural secondary activities) over a given accounting period, even though in certain cases the corresponding revenues will not be received until a later date. It does not, therefore, constitute the income effectively received in the course of the accounting period itself.

The indicator farm household income cannot be calculated as there is no methodology or data in Eurostat for this purpose.

Regional data are not available for all Member States. The comparison of agricultural entrepreneurial income with average wages in the economy cannot be done at regional level.