Farm income analysis of agricultural holdings in Macedonia using FADN methodology

Abstract

No consistent farm income data on micro level is available in Macedonia. The FADN methodology, being the only standardised and harmonised farm accountancy system in EU, was applied and tested on a sample of agricultural holdings. In addition, data on quantity of inputs and applied technology, as well as occurrence of non-agricultural income were recorded. The structure and farm income of Macedonian farms in 2002–04 was presented upon a sample of farms belonging to different economic sizes and farm types. The results were analysed and interpreted in EU context, by comparison with a panel of EU member countries. The size of Macedonian farms in economic terms (5.9 ESU) was five times smaller than the EU-25 average (32.7 ESU). The gross farm income of the Macedonian sample was 5,500 EUR/farm, representing about 15% of what an average EU farm generated at that level. The family farm income reached 4,100 EUR, four times lower than the EU-25 average. Due to differences in income will the EU-accession pose major challenges to Macedonian farmers, but also expectedly bring improvement of the income situation of commercial-orientated farms. Very little support was available to Macedonian farms until 2004, thus the farm income includes no subsidies, in contrast to the EU farms. The benefits of farm income data on micro level will contribute to the creation and evaluation of the agricultural policy, as well as the measurement of the recently launched national policy support schemes and the imminent pre-accession funds.