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The proposed project will provide EU policy makers with information, data, quantitative instruments (economic models) and empirical expertise on cost of production for various types of agricultural products using the FADN data. More specifically, the purpose is to offer first a general cost of production model that could be used to estimate cost of production for key agricultural commodities produced in the European Union. This model will be implemented and validated for a wide range of EU-member countries. Further, additional applications estimating costs of production in EU agriculture, using FADN data and based on different analytical tools, will be developed in this research project. The expected outputs include: (a) a review of experiences of estimating cost of production in the EU and other major agricultural producing countries; (b) the development of a general cost of production model for EU agriculture, (c) the application of the former model to several agricultural products (crop products, milk and pigs) and to several EU member countries using FADN data, (d) an operational computer tool with user-friendly interface that can be used by relevant services of the EU Commission to estimate costs of production, (e) extensions and further applications aimed at studying farm performance and analysing environmental aspects, and (f) an evaluation of the impact of agricultural policy measures on farm income and return to capital and labour using FADN data. |
