Application of Standard Gross Margins (SGM)
SGM definition
SGM for forage categories
Farm Standard Gross Margin
Legal Basis of Farm Classification
Economic Type of Farming (ETF)
Economic Farm Size, European Size Unit (ESU)
Formats of numbers
Application of Standard Gross Margins (SGM)
The original application purpose for the SGM′s is the uniform classification in the
- official statistics of the farm structure surveys of the,
- accountancy statistics of the farm accountancy data network (FADN) in the EU,
- official German statistics with agrarian structure surveys and farm censuses (ASE, LZ),
- accountancy statistics of the sample farms for the nutritional and the agrarian policy report of the German government (formerly Agrarian Report),
- accountancy statistics of the sample farms of the states and
- mandatory accountancy of the farms participating in farm investment support programs.
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SGM definition
The SGM of the EU-Typology is not identical with the gross margins in Germany used for planning of agricultural production processes. There variable machine costs, i. e., repair costs, fuel and lubricants and other material used in work processes and services, e. g. combining, are included in the further variable costs. Data about these cost items are available in KTBL-data collections, e. g. the Data Collection Farm Planning Agriculture 2004/05.
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SGM for forage categories
For the forage categories (temporary grass etc, meadows and pastures) the yield is valuated with a hay price, forage maize with a “market price” for maize silage. The SGM′s for forage are only applied in the case of forage production without keeping grazing livestock (cattle, sheep, goats) on the farm.
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Farm Standard Gross Margin
To attain the farms′s SGM gross margin, the SGM per crop or livestock item are multiplied with the corresponding number of crop and livestock units and are summed up then.
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Legal Basis of Farm Classification
The current classification system of the EU was defined in the Commission Decision 85/377/EEC of June 1985 (published in OJ no L 220, 17.08.1985). This classification system is also called EU-typology. The goal of the farm classification is the characterize and to group the farms according to the economic type of production (farm type) and economic farm size. The type of farm is determined by the SGM-proportions of specific products and branches of production to the farms′s total SGM, the farm size is the total SGM.
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Economic Type of Farming (ETF)
According to the proportion of SGM′s being calculated for the defined types of farming to the total SGM of a farm, the farms are apportioned to an economic type of farming.
This is an expression for the type of specialization, its main production. The economic types farms in the EU-typology for the classification are as follows: specialist field crops, specialist horticulture, specialist permanent crops, specialist grazing livestock, specialist granivores, mixed cropping, mixed livestock or mixed crops-livestock.
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Economic Farm Size, European Size Unit (ESU)
The economic farm size is expressed in a common unit, the European Size Unit (ESU). One ESU is a 1.200 € SGM. The national sample farm network covers farms with more than 8 ESU.
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Formats of numbers
In the “Detail”-screen quantities are indicated with 1 decimal place and prices with 2 decimal places. The value is computed however internally with higher accuracy, so that the product of the indicated amounts for quantity and price can deviate slightly from the proven value.
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