Joint UNECE/EUROSTAT/FAO/OECD Meeting on Food and Agricultural Statistics in Europe Rome, 29 June-1 July 2005 INVENTORY OF AGRICULTURAL HOUSEHOLD INCOME STATISTICS.
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Joint UNECE/EUROSTAT/FAO/OECD Meeting on Food and Agricultural Statistics in Europe Rome, 29 June-1 July 2005 INVENTORY OF AGRICULTURAL HOUSEHOLD INCOME STATISTICS 1 INVENTORY OF AGRICULTURAL HOUSEHOLD INCOME STATISTICS • Survey on definitions and measurement issues in selected countries • Income statistics for selected countries and case studies of good practice in applied methodologies 2 Survey on agricultural household income statistics - Questionnaire sent to UNECE countries plus OECD countries that are not members of UNECE in March 2004 - By end of June 2004 20 EU countries and 25 non-EU countries replied. Two different mailings - to EU member countries with request to update the information held and provide any information on changes that have taken place since the Income of Agricultural Household Sector report (Eurostat, 2002) - to non-EU countries with request to fill in questionnaire and provide any additional information available 3 Survey on agricultural household income statistics 20 EU countries have replied: Belgium, Czech Republic, Denmark, Estonia, Finland, France, Germany, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Poland, Portugal, Slovakia, Slovenia, Sweden, United Kingdom 25 countries that are member states of the UNECE and/or OECD but not of the EU have replied: Albania, Andorra, Armenia, Australia, Azerbaijan, Belarus, Bulgaria, Canada, Croatia, Georgia, Japan, Kazakhstan, Kyrgyzstan, Mexico, New Zealand, Norway, Republic of Korea, Republic of Moldova, Romania, Switzerland, The former Yugoslav Republic of Macedonia, Turkey, Turkmenistan, Ukraine, United States of America 4 Survey on agricultural household income statistics The questionnaire 1. Definition of a household, agriculture household and rural household 2. Criteria for classification of households into socioprofessional groups 3. Mechanism used to introduce short term stability in num. of ag. hholds 4. Treatment of forestry and/or fishery households. 5. “Broad”definition of an agricultural household. 6. Treatment of non personal form of institution in the household sector 7. Treatment of holdings operated as corporate institutions but de facto run as family businesses 8. The equivalence scale used to give consumer units. 9. The basis of estimating the value of own consumption 10 The basis of calculating the imputed rental value of own dwellings 11 Calculation of Net Disposable Income of Agriculture Hholds. 5 Survey on agricultural household income statistics Definition of household How the household is defined is important • to understand the survey’s coverage of the population and • when cross-country comparisons have to be done. 6 Survey on agricultural household income statistics Definition of household • • • • Most commonly used criteria co-residence (living together in the same dwelling unit), pooling of income and resources, sharing of expenditures, including joint provision of essentials of living such as food existence of family or emotional ties. 7 Survey on agricultural household income statistics 11 EU countries use the definition in the IAHS and originally Definition of household: EU used countries stated in the European System of Integrated Economic Accounts (ESA) . People living in the same accommodation, with a shared budget and who consume certain types of goods and services, e.g. food, collectively. People do not have to have a family link. - not all definitions have a reference to shared food - in Austria, Belgium and Denmark a family link between members of the same household is necessary - Estonia, Latvia, Slovenia and Sweden provided a definition very close to the one stated above. 8 -in UK ‘households’ are individuals as the definition is linked to the tax system Definition of household: Non-EU countries • The co-residence criterion is used by all the 18 countries that provided a definition of household, with the only exception of Andorra that is also the only country to require members of the household to be part of the same family. • The definitions used in Canada, Norway and the United States do not refer to shared budgets but only refer to sharing a dwelling unit. 9 Survey on agricultural household income statistics Definition of agricultural household “Narrow” definition ‘agricultural households are those where the income from independent agricultural activity, net of capital consumption, constitutes the main source of the total income of the reference person’ 10 Survey on agricultural household income statistics Definition of agricultural household: EU countries ‘Broad’ definition: ‘agricultural households are those that derive some income from independent activity in agriculture (other than income solely in kind). This income can arise from activity of the head of household or any other member” . 11 Survey on agricultural household income statistics Definition of agricultural household: EU countries Ten countries (Denmark, Germany, Greece, Hungary, Ireland, Italy, Lithuania, Netherlands, Poland and Sweden) use the narrow definition of agricultural households. Five countries stated that no definition of agricultural household is used (Estonia, Latvia, Luxembourg, Portugal, Slovakia). 12 Survey on agricultural household income statistics Definition of agricultural household: non-EU countries •The majority of the countries gave a definition closer to the broad target definition in the IAHS Manual, than to the narrow one • Reference is usually made to the income of any household member rather than to that of the reference person being involved in agricultural activities. 13 Survey on agricultural household income statistics Conclusions o The results of the survey show that there are many differences in the concepts, definitions and coverage used by countries in defining the income of agricultural households. o It might be argued that such flexibility of detail is needed to reflect differing socio-economic conditions, although these differences make cross-country comparisons difficult. 14 Problems of availability: • Data on global farm hholds income are not systematically collected • definition too narrow • the farm hholds sample too small • farm income uderestimated (income in kind not taken into account) Problems of comparability: • different definitions of households • differences in the definition of income and their components 15 What can be done in EU countries? • The main statistical sources that can be used are farm account surveys, administrative data (taxation), national Household Budget Surveys and the Statistics on Income and Living Conditions (EU-SILC). • Administrative data are not easily exploitable, in addition in some countries the available information do not allow to reconstruct the agricultural household income due to the special taxation regime applied to small farms (estimated agricultural income). • Household Budget Surveys and EU-SILC survey do contain data on global income of agricultural household, the problem is that the coverage of farm households is usually too low to produce a statistically significant sample. 16 Background • • • • • The survey exercise in March 2005 Developing country selection criteria LSMS and & or WCAP Data access Policy The need for statistical data on agricultural populations • World Census of Agriculture: > 100 countries • Living Standard Measurement Study: > 30 countries 17 Living Standard Measurement Study Household Surveys • Characteristics: – Several questionnaires; – Small samples; Challenges: • Inadequate household survey data; • Adaptaing the LSMS process; • Disappointments; • Intra-household allocations. 18 Definition of Household Country common dwelling Target definition (from TIAH Manual, Rev.1, para 2.4.1) Brazil China Definition of household Reference to shared shared family link budget food/meals necessary yes yes yes (yes) yes (yes) no no yes (yes) yes no yes (yes) yes no yes yes (yes) yes yes yes no no not mentioned not more than 12 months not more than 9 of the last 12 months not more than 3 of the 12 months not more than 9 of the last 12 months not mentioned yes (yes) yes no absent for less than one month yes (yes) (yes) no yes yes yes no yes yes (yes) yes yes yes no no at least 3 of the last 12 months at least 15 days out of the past year or more than 15 days of the past 30 days less than 6 of the past 12 months at least six months Ghana India Jamaica Morocco students/temporarily absent Peru South Africa Vietnam Zambia 19 Table XIII.2.3 Definition of agricultural household and treatment of fishery/forestry in Developing countries Country Brazil China India Jamaica Morocco Definition of agriculture households The definition of holding matches with the one suggested in the FAO Programme for the World Census of Agriculture (WCA) 2000. Agricultural household: refers to rural household whose members are either engaged in purely agricultural activities, or in a combination of agricultural and non-agricultural activities. Operational Holding (the statistical unit for census) is defined as all land wholly or partly used for agricultural production and operated as one technical unit by one person, alone or with others, without regard to title, legal form, size or location. Operational Holder is the person who takes all managerial decisions regarding cultivation of land. He may be the legal owner or a leaser or a tenant farmer. Farmers that possessed a total area of under 25 acres (the definition of small farmer used by ACB). Agricultural holding was defined as an economic unit of agricultural production under single management, comprising all livestock kept and all land used for agricultural production purposes, regardless to title or legal form. Peru South Africa Vietnam Zambia The selected statistical unit is the Agricultural Unit, defined as any piece of land consisting of one or more parcels, totally or partially used for agricultural production, carried out as a technical-economic unit by the agricultural holder, without regard to size, tenure or legal status. If the household members are engaged 50% in agricultural and 50% in non-agricultural activities, the category is defined by the household’s income. Agriculture, forestry, fishery households: are households with all or most of labourers regularly participating, directly or indirectly, in agricultural, forestry or fishery production and these activities are the principal source of their income. Agricultural Household: Is a household in which at least one member is carrying out some agricultural activity on the holding belonging to the household (excluding the growing of vegetables meant for home consumption). Preliminary testing showed that there was almost oneto-one relationship between the agricultural household and holding. The terms holding and agricultural household are therefore used interchangeably. 20 Own Consumption • Collection of Data on the value of homeproduced food • Imputing Values • Imputation difficulties • Food as imputed item 21 Calculation of net disposable income of agriculture households • Entanglement of personal and business accounts • Practical way to estimate income • Seasonal variability of The income of households • Consumption smoothing 22 Income statistics for selected countries and case studies of good practice in applied methodologies: – Farm household surveys • United States • Italy • Canada – register based agricultural income statistics: Denmark and Sweden – European Union -Income from Agriculture Household Sector (IAHS) statistics 23