Definition: Regional agriculture

Category: National accounts

For each region, the agricultural industry consists of all the holdings whose factors of production are located in the region. This principle, which is consistent with the concept of the residence of production units, may pose a few problems: agricultural statistics usually define the location of holdings according to their headquarters and not directly according to the location of the factors of production. These two locations are not always the same and this phenomenon is likely to be more frequent as holdings get larger.  When the RAA are compiled, therefore, some holdings should be reclassified between regions and even, in some cases, split up.  This is likely to be difficult in practice, in which case it may be preferable to keep the same location for the holdings as in the statistical surveys. This proposal, however, depends on two conditions: firstly, the method of defining the location must be identical for all the regions in the country and secondly the accounting entries must all be valued from sources that use the same rules for defining the location of the holdings. http://ec.europa.eu/eurostat/ramon/statmanuals/files/KS-27-00-782-__-I-EN.pdf