Part II

1
Part II Agricultural Household Income and
Wealth

• Handbook Chapters VIII to XIV

2
Part II Agricultural household income and wealth

• VIII CONCEPTUAL FRAMEWORK - INTRODUCTION
• IX THE AGRICULTURAL HOUSEHOLD CONCEPTS AND
  DEFINITIONS
• X DEFINITIONS OF INCOME
• XI INCOME DISTRIBUTION AND POVERTY
• XII WEALTH
• XIII INVENTORY OF AGRICULTURAL INCOME STATISTICS
• XIV FINDINGS AND GOOD PRACTICES

3
Chapter VIII Conceptual Framework and
Introduction
4
Chapter VIII Conceptual Framework -
Introduction

• VIII.1 Matching indicators to policy needs in
  countries at different levels of economic
  development
• VIII.2 Households as economic, social and
  cultural units and as agents for environmental
  change and conservation controllers of
  resources and users of services
• VIII.3 Concepts of income and wealth and related
  indicators
• VIII.4 Households and other forms of
  institutional units within accounting and
  statistical systems

5
VIII.1 Matching indicators to policy needs in
countries at different levels of economic
development

• The farm income problem of OECD countries
• Poverty as a policy problem
• VIII.1.1 Types of income and wealth statistics
  needed (IAHS as guide)
• Levels, compositions, distributions, comparisons
  with other groups
• Parallel statistics on wealth

6
VIII.2 Households as economic, social and
cultural units

• The most common institutional form in agriculture
• Units that both produce (agricultural and other
  activities) and consume
• Important agents of environmental character and
  change
• Family farm a politically weighty concept but
  not precisely defined
• Triple bottom line must be respected

7
VIII.3 Concepts of income and wealth and related
indicators

• Statistics need to be based on appropriate
  concepts and for these to be operationalised
  correctly
• Wrong concepts will lead to poor information
• Total income, disposable income, net worth and
  economic status have roles to play
• Comparisons with other socio-professional groups
  require particular care

8
VIII.4 Households and other forms of
institutional units within accounting and
statistical systems

• Accounting frameworks
• Aggregate (e.g. UNs System of National Accounts
  SNA93)
• Microeconomic (e.g. Canberra Group
  recommendations, FADN/RICA)
• Different definitions of terms (e.g. disposable
  income)

9
VIII.4 Households and other forms of
institutional units within accounting and
statistical systems

• Accounting basis
• Activities (e.g. for agriculture in NACE, ISIC)
• Institutional units (households, corporations
  etc.)
• SNA allows for both
• Complete sequence of accounts (and balance
  sheets) possible for accounts for households

10
Activity and institutional units
REAL INSTITUTIONAL UNITS
Kitchen gardens
Mixed income (Operating surplus) of agricultural
LKAUs
HOUSEHOLDS - AGRICULTURAL
OTHER HOUSEHOLDS
OTHER
CORPORATIONS
Entrepreneurial income from agricultural activity
Other income from independent and dependent
activity, transfers etc.
Other EI
11
VIII.4 Households and other forms of
institutional units within accounting and
statistical systems

• Complete sequence of accounts (and balance
  sheets) possible for accounts for households
  balancing items include disposable income
• Activity accounts well established
• aggregate Economic Accounts for Agriculture
• Microeconomic FADN/RICA)

12
VIII.4 Households and other forms of
institutional units within accounting and
statistical systems

• Accounts and income measurements for agric.
  households not well established
• Aggregate Eurostat IAHS statistics
• Microeconomic only some countries and no
  harmonised methodologyNon-agricultural
• Household budget surveys
• Tax data

13
VIII.5 Where we are in the provision of income
indicators for agric. households

• Increasing awareness that lack of (micro) income
  statistics (and wealth) is a gap (EU Court of
  Auditors report 2003, OECD)
• Need to consider appropriate definitions (income,
  household, agricultural household etc.) and make
  recommendations
• Need to explore what statistics are currently
  available
• Need to explore data sources