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Statistical processing

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Food Industries, Business Statistics
Simone Thun
+45 51 36 92 51

sit@dst.dk

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Economic Accounts for Agriculture

The Economic accounts for agriculture is a composite statistical product, which means that its calculation basis is built on existing statistics, referred to as primary statistics. The statistics are compiled annually using data from a range of different sources, e.g., the Farm Accountancy Data Network and Feed Production Statistics, as well as from administrative registers, industry organizations, companies, and foundations. Once the data in each primary statistic has been processed, it is transferred to and consolidated in the data processing system for the Economic accounts for agriculture, which calculates the annual values. The value of each product is calculated using the standard “quantity times price” method.

Source data

The majority of sources for the Economic accounts for agriculture come from statistics produced by Statistics Denmark, particularly from the Food Industry Statistics Office. Data from the Public Finances and National Accounts statistics are used to calculate indirect bank costs, direct bank and credit costs, as well as taxes and duties. In addition, data from the Foreign Trade in Goods and Industrial Sales of Goods statistics are used. For further information on data collection, reference is made to the documentation of the respective statistics. Moreover, data for specific items, such as fruit and vegetables, Christmas trees, seeds, straw, and sugar beets, are obtained directly from industry organizations, individual companies, and foundations within the agricultural sector. Finally, administrative register data from the Danish Agency for Green Conversion and Water Environment are used regarding payments of agricultural subsidies.

Frequency of data collection

Annually

Data collection

Data for this statistic are primarily obtained from already published statistics. Reference is therefore made to the documentation of the individual statistics for information on data collection methods. The few quantities, prices, or values that need to be collected specifically for use in the statistic and that come from external data providers are obtained through direct contact and through websites. Data on subsidies are received from the Danish Agency for Green Conversion and Water Environment.

Data validation

Data validation takes place in several stages, first at the micro level and then at the macro level, where the data sources are linked and the results calculated. Data from the primary statistics have already been checked and validated within the individual primary statistics when delivered to the Economic accounts for agriculture. In the production system for the Economic accounts for agriculture, data from the primary statistics are organized according to the structure of the accounts. Here, the data are compared with previous years. For example, quantities of cereals sold from farms, obtained from the Use of Cereals statistics, are compared with quantities from previous years from the same source. Similarly, prices of cereals sold from farms are compared with previous years’ prices from the Agricultural Prices statistics. For unusual developments, the responsible statisticians of the primary statistics are consulted. Data obtained from industry organizations and companies for the preparation of the Economic accounts for agriculture are validated by checking and comparing with previous years. The reporters are contacted if necessary.

Data compilation

Data integration: The first step in the data processing workflow is the integration of data from all primary statistics and other individual data sources (e.g., industry organizations). This is done on an annual basis, as the statistics are compiled yearly. Data integration follows the product classification of the statistics (or breakdown by items), as shown in StatBank table JOEK1, which corresponds to the final dataset submitted to the EU (in English). See the table under the section Data Coding for an overview of products (items). Integration is carried out individually; the processing system consists of separate modules for, for example, cereals, industrial crops, etc. Consequently, the next step in processing (error checking, etc.) also occurs at the product level. On the cost side, several products are combined if they use the same data source and identical processing methods. If data are collected at a more detailed level than published, they are integrated at this lower level. For example, the product Seed for sowing is processed at the level of individual crop types (e.g., red clover, ryegrass, and spinach seed). Quantities and prices for each crop type are collected from relevant sources. The module calculates the sales value for each crop type, which is then summed to obtain the total sales value for Seed for sowing.

Data coding: The coding in the Economic accounts for agriculture follows the EU codes for Economic Accounts for Agriculture. Coding is performed in the data processing system, assigning each product the same code as in the dataset submitted to the EU. The coding is hierarchical: all sales products start with “1” and all cost items start with “2”, etc.

Microdata error checking: After integration, microdata are checked to ensure correct linking to relevant fields from the primary statistics. This mainly involves comparing developments with previous years. Since data have already been quality-checked in the primary statistics, no further error checking is performed at this stage.

Data correction and imputation: Corrections are made only if errors are detected in the primary statistics, which is very rare. Data are continuously updated from preliminary to final values with each October publication, with the two most recent years always considered preliminary. For example, prices for Seed for sowing are not available in October, so either previous-year prices or estimates are used. Estimates are applied if significant price changes are known.

Weighting/upscaling of data: Data from the Farm Accountancy Data Network are weighted to cover the full population of agricultural holdings, including small holdings. This ensures activities in small holdings are included for items where FADN is the source. The adjustment was 3% until 2020 and is now 1.5% due to a new SO threshold and structural changes.

Calculation of values in current prices: Values in current prices are calculated using the “quantity × price” method. If only value data are available from FADN, values per holding are converted to million DKK for the full population and adjusted by 1.5%.

Calculation of values in constant prices: Values in current prices are converted to constant prices (last year’s prices) to separate price and volume effects. Constant price calculations are limited to goods and services, and elements contributing to their valuation (output, intermediate consumption, consumption of fixed capital, gross/net value added, gross investment). When both quantities and prices are available: Q(t)*P(t-1). By multiplying the quantity in 2024 by the price in 2023, you obtain the 2024 quantity valued at 2023 prices, i.e., the value in constant prices.

When only current price values and price indices are available: V(t)/Ip(t)*Ip(t-1). This method deflates current values to last year’s prices.

Data aggregation: Once data are integrated, checked, weighted, and calculated at the micro level, they are transferred to the aggregation module for EU reporting and publication. This module produces the overall picture and calculates aggregated items and key figures.

Top-level aggregated items: TOTAL PRODUCTION OF GOODS AND SERVICES (2 + 7) TOTAL AGRICULTURAL PRODUCTION (3 + 6) TOTAL SALES PRODUCTS (4 + 5) VEGETABLE PRODUCTION ANIMAL PRODUCTION TOTAL INTERMEDIATE CONSUMPTION GROSS FIXED CAPITAL FORMATION

Key figures: 9 GROSS VALUE ADDED (1–8) 11 NET INVESTMENT (10–12) 13 NET VALUE ADDED (9–12) 17 FACTOR INCOME (13–15 +16) 18 NET FARM INCOME (13–14–15+16) 22 BUSINESS INCOME (18–19–20+21)

Aggregate-level error checking: After all data are compiled, an overall check at the aggregate level compares this year’s results with previous years, using other relevant sources (reports, analyses) as reference. FADN is also used as a benchmark.

Regional distribution of the Economic accounts for agriculture: The regional breakdown is published in StatBank table JOEK2 and reported to the EU. It is produced in current prices only, as one of the final steps after national results are completed. The regional statistics are one year behind; e.g., in 2024 the 2023 regional results are published.

Methodology: The regional allocation uses a top-down approach: national values are distributed regionally using primary statistics with regional coverage (quantities, areas, values).

Sources for regional distribution: Harvest of cereals, rapeseed, and legumes Agricultural and Horticultural Census Farm Accountancy Data Network.

Adjustment

No corrections are made to the data beyond what is described in sections Data validation and Data compilation.

In Data validation, the data have already been validated within the primary statistics. In cases of unusual developments, the responsible statisticians for the primary statistics are consulted. Data collected from industry organizations and companies are continuously validated by comparison with previous years, and respondents are contacted when clarification is needed.

In Data processing, data from the primary statistics are integrated into the production system for Economic accounts for agriculture, coded, and checked for errors first at the micro level and then at the aggregated level. Corrections are only made if errors are identified in the primary statistics. Data are continuously updated from preliminary to final with each publication in October, where the two most recent years are always considered preliminary.