Definition: Economic Accounts for Agriculture

Category: Agriculture

The Economic Accounts for Agriculture (EAA) are satellite accounts to the National Accounts. For their compilation use is made of EUROSTAT's General Classification of Economic Activities, NACE.

The output of agricultural activity includes output sold (including trade in agricultural goods and services between agricultural units), change in stocks, output for own final use (own final consumption and own-account gross fixed capital formation), output produced for further processing by agricultural producers as well as intra-unit consumption of livestock feed products (see also diagram below). The output of the agricultural industry is made up of the sum of the output of agricultural products and of the goods and services produced in inseparable non-agricultural secondary activities. Output is to be valued at the basic price which includes subsidies less taxes on products.

Intermediate consumption represents the value of all goods and services used as inputs in the production process, excluding fixed assets whose consumption is recorded as fixed capital consumption. Products used for intermediate consumption should be valued at the purchaser prices which includes taxes less subsidies on products.

The EAA are established according to the net recording system of VAT: no VAT is recorded in the accounts, except in the special case of under-compensation of VAT included under other taxes on production.