The Natural Resources Institute Finland’s profitability accountancy monitors the economic development of agricultural enterprises in Finland, on the basis of annually compiled profitability bookkeeping records. Luke calculates the results and publishes them on the Economydoctor website in the Agriculture and horticulture web service, where a wide range of reports and predictions can be downloaded.
Luke uses the profitability accountancy system to manage Finland’s statutory obligation to provide corporate data for agriculture to the EU’s Farm Accountancy Data Network (FADN), a database maintained by the EU on agricultural profitability accountancy data.
Such data has been compiled since 1912. The annual profitability bookkeeping records contain information about approximately 800 agricultural enterprises’ revenues and expenditures, crop data, production volume, stocks, property information and hours worked.
The records are checked comprehensively in order to maintain quality and ensure the reliability of results. The official income and profitability results and forecasts of the 40,000 largest agricultural and horticultural enterprises in Finland are calculated by weighting the company-specific results in order to ensure generalisation.
The EU utilises FADN economic data in agricultural policy planning
Agricultural entrepreneurs utilise the profitability data of agricultural production. When included in the profitability accountancy system, they may utilise the financial reports sent to them when monitoring and planning the finances of their farms, and in comparison with other enterprises. The profitability accountancy operations are completely free of charge for the farms.
The results are used, primarily via the Taloustohtori service, for advisory, teaching and lobbying purposes and by entrepreneurs.
The profitability data is also used in studying the profitability of the agricultural sector. Luke uses the material for producing a range of forecasts and simulations for the agricultural administration to be used, for instance, in the development of support systems and in various negotiations with the EU. The EU utilises the economic data of the FADN information system in agricultural policy planning and impact monitoring.